PROJ6003: Risk Management for the Lyle Construction Project Report

This report focuses on risk management for the Lyle Construction Project, covering risk identification, impact assessment, and mitigation strategies. It identifies potential risks such as irrelevant data, underestimation of prerequisites, and project delays, providing a risk probability and impact m...Read More

Running head: RISK MANAGEMENT FOR THE LYLE CONSTRUCTION PROJECT
Risk Management for the Lyle Construction Project
Name of the Student
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1RISK MANAGEMENT FOR THE LYLE CONSTRUCTION PROJECT
Table of Contents
1. Risk identification and impact assessment..................................................................................2
1.1 Identification of Possible Risks for Lyle Construction Project.............................................2
1.2 Risk Probability and Impact Matrix......................................................................................3
1.3 Response Strategies for Effective Risk Management............................................................3
1.4 Risk Register for Lyle Construction Project..........................................................................6
2. Risk management reporting.........................................................................................................8
2.1 Importance of Stakeholders for Managing Risk Activities...................................................8
References......................................................................................................................................10

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1. Risk identification and impact assessment
1.1 Identification of Possible Risks for Lyle Construction Project
The possible risks that could be incurred for the Lyle Construction Project are:
1. Irrelevant data or information that might be gathered during the designing of the Lyle
Construction Project could lead to the major implications over the next phases of the project. The
impact of irrelevant data from the Lyle project might increase the costs incurred for the project
(Chen, Song & Lin, 2016). Based on an assumption of data, the project managers working over
the project might take assumptions based on cost, which could further lead to project risks.
Inaccuracy of information or data might also put a major impact over the final phase or future
outcomes over the project team.
2. There are many situations of overestimation of prerequisites that would be made for
the project. Underestimation of risks for the Lyle Construction project would lead to loss for the
business. During the process of investing over the Lyle project, underestimation of risks might
lead to downfall of every kind of project aspects (Jasiukevicius & Vasiliauskaite, 2015). Without
a proper estimation of risks, the project manager might feel that the project might take a wrong
turn and lead to disruptions within the project plan. Moreover, the overestimation of risks could
be leading towards the process of missing out on necessary profits.
3. Project delays might occur at any phase of construction projects and this could plague
the industry and lead to losses being incurred over the project. Delay in the measurement of
schedules could lead to many form of undesirable effects that could be affected over the project
(Wang & Yuan, 2016). Delays or loss within the project schedule could lead to huge losses in
terms of revenue that could be imposed over the contractor. This is mainly due to the reason that

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high costs incurred due to a long period of work could further lead to additional costs of material
and extra costs incurred over the labor.
1.2 Risk Probability and Impact Matrix
Number Risk Cell references
R1 Irrelevancy in data C3
R2 Under or overestimation of prerequisites D1
R3 Risk of schedule and project delays B5
Risk Identification D (Certain) C (Likely) B (Moderate) A (Unlikely)
5 (Fatal) R3
4 (Major)
3 (Lost Time) R1
2 (Minor)
1 (Trivial) R2
1.3 Response Strategies for Effective Risk Management
The use of response strategies could be effective towards the management of risks
incurred towards the project. The identified risks that could be affecting the Lyle Construction
project could be mitigated based on the use of effective form of strategies. Some of the most

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useful strategies that could be used for the risk management within the Lyle Construction project
are:
1. The collection and use of irrelevant data within the construction project could lead to
several risks during the development phase and might also create an impact over the final phase
of the project. In order to strategize towards the improvement in the ways in which the work
could be improved, the project manager should be primarily hold responsibility for determining
each of the aspects that would be covered within the project (Bowers & Khorakian, 2014).
Gathering of irrelevant data should be minimized and hence a proper strategy should be set for
the collection of raw data, which could further be utilized for the project.
2. Underestimation or overestimation of project prerequisites could be reduced or
strategized in order to be minimized to a great extent. The estimation over each of the
prerequisites should be deeply focused and thus these should be estimated in the best possible
manner. Underestimation of project prerequisites could lead to insufficient form of requirements
that might lead to lacking aspects within the phase of project procurement (Miorando, Ribeiro &
Cortimiglia, 2014). On the other hand, the overestimation of project prerequisites could lead to
excessive costs being incurred over the project. Hence, it would be the major responsibility of
the project manager in order to bring in better benefits over the procurement of prerequisites.
3. In order to mitigate the risks based on delays in project schedules, it can be discussed
that proactive efforts should be taken in order to meet up to the expectation of deadlines within
the project. In case of any delays within the management of schedule, it can be discussed that the
project manager should make use of the best kind of project management strategy (Ahiaga-
Dagbui & Smith, 2014). They should take into consider the best form of actions that could be
taken in order to discuss each of the activities that would be included within the project.

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Moreover, the project manager should discuss every form of activities that might be included
within the project plan. They should allocate resources and costs accordingly to each of the
phases. This would also help them in managing each of the aspects of the project and would not
lead to delays in terms of project schedule.

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1.4 Risk Register for Lyle Construction Project
Risk
Number
Risk Description Likelihood Impact Risk Mitigation Strategy
1 Irrelevancy in data L M Data should be collected based on the utilization of the best form of
resources. The project manager should be responsible for gathering every
form of relevant data from all kind of defined sources. Hence, they
should also be concerned about the data, which is gathered from all kind
of sources. Any kind of irrelevant data could be negative impacts over
the planning of project (Zou, Kiviniemi & Jones, 2017). This would in
turn put a major impact over the outcomes or futuristic actions that
would be taken over the project output.
2 Under or overestimation
of prerequisites
H L The project manager working over the project should strategize the best
possible manner in which there would be a under or overestimation of
prerequisites. They should carefully estimate each of the outcomes and
thus they should also compare over the utilization of every form of
resources (Sovacool, Gilbert & Nugent, 2014). Each of the project
prerequisites that would be determined for the completion of the project
should be selected in advance and then they should be measured
accordingly.
3 Risk of schedule and
project delays
M H Any kind of delays within any phase might lead to negative outcomes for
the project. There might be some form of risks based on missing of
scheduled activities or there might be problems based on delays in the
submission of any kind of activities. This would be leading to negative
form of benefits in terms of late delivery of project aspects. This would
also put a major impact over the reputation of the company in missing of
important deadlines over the project (Monahan, Skeem & Lowenkamp,
2017). Hence, a proper plan for the project should be set that would list
out the difficulties and mitigate them at the earliest. This would also lead

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to better benefits towards fulfilling each action in the particular time
period.

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2. Risk management reporting
2.1 Importance of Stakeholders for Managing Risk Activities
In the certain case of the Lyle Construction Project, there have been a discussion over the
ways in which the different risks could be mitigated for the project. However, it would also be
the responsibility of the important project stakeholders to determine the ways in which the
activities based on risk management could be made (Mitchell et al., 2015). A project can be
considered as successful only when the stakeholders within your project would be informed of
the major happenings within the project. Based on that, the stakeholders would be able to take
necessary actions in order to handle the efficiency of task activities and manage them. The
discussion of the above risks could only be resolved based on using the best kind of risk
management strategy for the business.
In the case of the Lyle Construction project, the major stakeholders who would be
involved within the project should be notified of each necessary decision that are taken by each
of the levels of management. Any kind of risks that might be approaching towards the project
should be detailed and explained to each of the stakeholders (Ackermann et al., 2014). This
would be possible through the different ways if communication. The effective management of
communication would be considered as greatly helpful for the stakeholders and the project team
in order to ensure that every stakeholder is informed accordingly. The process of communication
between all stakeholders could be done in the form of emails, hard copy of documents and face-
to-face communication. Discussion of every form of action in order to reap benefits for the
project would be considered as highly helpful for the project aspects (de la Poterie & Baudoin,
2015). Hence, a proper form of communication management strategy should be established by
the stakeholders and with the upper level of management. Based on this, each of the actions

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would be confirmed and it would further lead to better and successful aspects of future returns
from the project.

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References
Ackermann, F., Howick, S., Quigley, J., Walls, L., & Houghton, T. (2014). Systemic risk
elicitation: Using causal maps to engage stakeholders and build a comprehensive view of
risks. European Journal of Operational Research, 238(1), 290-299.
Ahiaga-Dagbui, D. D., & Smith, S. D. (2014). Rethinking construction cost overruns: cognition,
learning and estimation. Journal of Financial Management of Property and
Construction, 19(1), 38-54.
Bowers, J., & Khorakian, A. (2014). Integrating risk management in the innovation
project. European Journal of innovation management, 17(1), 25-40.
Chen, J., Song, X., & Lin, Z. (2016). Revealing the “invisible gorilla” in construction:
Estimating construction safety through mental workload assessment. Automation in
Construction, 63, 173-183.
de la Poterie, A. T., & Baudoin, M. A. (2015). From Yokohama to Sendai: Approaches to
participation in international disaster risk reduction frameworks. International Journal of
Disaster Risk Science, 6(2), 128-139.
Jasiukevicius, L., & Vasiliauskaite, A. (2015). Risk assessment in public investment projects:
impact of empirically-grounded methodology on measured values of intangible
obligations in Lithuania. Procedia-Social and Behavioral Sciences, 213, 370-375.
Miorando, R. F., Ribeiro, J. L. D., & Cortimiglia, M. N. (2014). An economic–probabilistic
model for risk analysis in technological innovation projects. Technovation, 34(8), 485-
498.

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Mitchell, R. K., Van Buren III, H. J., Greenwood, M., & Freeman, R. E. (2015). Stakeholder
inclusion and accounting for stakeholders. Journal of Management Studies, 52(7), 851-
877.
Monahan, J., Skeem, J., & Lowenkamp, C. (2017). Age, risk assessment, and sanctioning:
Overestimating the old, underestimating the young. Law and human behavior, 41(2), 191.
Sovacool, B. K., Gilbert, A., & Nugent, D. (2014). Risk, innovation, electricity infrastructure and
construction cost overruns: Testing six hypotheses. Energy, 74, 906-917.
Wang, J., & Yuan, H. (2016). System dynamics approach for investigating the risk effects on
schedule delay in infrastructure projects. Journal of Management in Engineering, 33(1),
04016029.
Zou, Y., Kiviniemi, A., & Jones, S. W. (2017). Retrieving similar cases for construction project
risk management using Natural Language Processing techniques. Automation in
construction, 80, 66-76.