Project Jupiter: Risk Management in Large-Scale Project Analysis

This assignment provides a comprehensive analysis of risk management within the context of Project Jupiter. It begins with the identification of three key risks: cost risk, schedule risk, and operational risk, detailing their potential impacts and causes. A qualitative revaluation of these risks is then presented using a risk register, assessing probability and impact. The assignment further evaluates risk response strategies, emphasizing the importance of early risk identification, prioritization, and transfer. The document also defines risk, its components (occurrence and likelihood), and the importance of risk management in project success. It outlines the steps involved in the risk register process, including risk identification, analysis, and assessment (both qualitative and quantitative), providing a thorough understanding of the risk management process for projects.

Project Risk Management

TABLE OF CONTENTS
Question 1 .......................................................................................................................................3
a) Identification of three most important risks.............................................................................3
b) Qualitative revaluation of risks................................................................................................4
c) Evaluation of the risk response................................................................................................5
Question 2........................................................................................................................................6
Question 3........................................................................................................................................8
REFERENCES..............................................................................................................................10

Question 1
a) Identification of three most important risks
Cost Risk :
Cost risk is probably one of the most common risk which occurs in a project. This
happens generally due to the poor or inaccurate planning, cost estimation and scope creep. This
project Jupiter is large programme which has been undertaken with some serious planning.
Despite the planning cost risk is something which can occur in a project. This happens due to
some unplanned events which can cause a hindrance in the performance of the daily activities.
The daily costs which has been given can fluctuate if the number of days which are calculated
for this project to get completed in increases. Other than that a project this long would require
daily expenses which will be related to the maintenance of the teams.
Schedule Risk :
Schedule Risk is the risk which is a result of poor planning and is the risk that affects the
project tasks and activities. Due to this risk the project takes longer than it is estimated in the
project for completion. Schedule Risk is closely related to the cost risk as the any slips in the
maintenance of a strict schedule can proof costly for the project (Kudszus, Klemencic and
Spyridis, 2020). It will also slow down the benefits of the project and might throw off the
timeline. In this project Jupiter in which these phases have been created there is always the risk
of messing up the schedule due factors such as natural calamities, absence of instructors, illness
to individuals involved in the program and also technical issues related to the machine involved
in the project.
Operational Risk :
The planning of this project has been done with proper thought and study. The stages
which are involved in the project are considered to be the very essential for the project to be

completed. However, the operational risk is a threat to this project because it can arise due to the
poor implementation and process problems (Dumitrache and Georgescu, 2019). This is very
common and can occur due to a slight mistake being made by one instructor. It generally
happens due to the lack of performance from the individuals involve in the project. Due to the
differences in the outcomes which can occur due to lack of performance can be the reason for
majority of the risk which is expected to be the outcome which might not be the result.
b) Qualitative revaluation of risks
Risk register is going to be the document which is used for the risk management tool for
the identification of the potential setback within a project. This is also considered as the process
which aims to collectively recognize, analyse and also solve risk before they become a problem.
For the project Jupiter following is qualitative tool of risk register is going to be used,
SL
no.
Risk Description Proba
bility(
1-3)
Impact(
1-3)
Result to no action
taken
Response
Description
1 Cost Risk- The cost
risk which could arise
in the project Jupiter
is if the project due to
lack of proper
planning, organizing
or other not
considered factor will
result in crossing the
overall budget.
2 3 If there are no
actions taken in
order to mitigate or
resolve this risk
which has a rating
of 2 probability of
happening the
impact will be very
harsh as the project
will not able to be to
efficient and will
cost the estimated
budget or lack in the
desired results
(Uzulans, 2019).
The immediate
response to this risk
would be to increase
the budget and also
re-plan the
operations in order
to manage the
upcoming expenses.
2 Schedule Risk : When 3 1 The probability of For mitigation of

the risk faced by the
project is due to the
lack of management
of the time table
which can results in
poor time
management.
this risk is high due
to the different long
process which is
involved in this
project, however if
no actions are taken
this project will take
a little extra time for
competition and
might increase the
overall expenditure.
this risk
consideration
preparation of plan
with additional days
in hand such that
schedule risks can
be managed and the
important dates are
not skipped.
3 Operational Risk:
This is the risk in
which the project is
not able to implement
the planning which
can be due to lack of
performance from
individuals.
1 3 The probability of
this risk occurring is
low due to the
extremely
professional
instructors and
professionals which
are involved in the
project Jupiter.
However, this risk
occurring in the
project can lead to
different other
issues related to
quality a
performance.
The ways of
mitigating this risk
would be to having
proper monitoring
of performance of
the individual
involved in the
operations. This will
help the project to
be able to rectify all
the errors related to
the operational
issues.

c) Evaluation of the risk response
From the above risk register it can be found that there are 3 important risks which can
occur in this project such as cost risk, schedule risk and operational risk. In order to respond to
these risks the following measures and tactics can be taken into account to protect the project and
its significance from the different recognized risks,
Identifying Risks Early with Risk Register :
It is going to be very important for the project to be able to recognize the potential risk
prior to the start of project in order to get to understand the likelihood and impact of the
different risks. It is also considered to be very important way of responding to the risk as it can
track the issues and deal with them as they arise (Rahman, Tripiawan and Pratami, 2021). This
helps in decreasing the severity of the risks such as schedule risk which have a high chance of
occurring.
Prioritizing Risks :
For this project the Prioritization of the risks is going to be very effective as it will help
the project to focus on the risks which is going to have the most impact on the project such as
cost risk and operational risk. This will help the project to be able to mitigate the likeliness of
their occurrence and therefore reduce the impacts on the project. Dealing with these risks is
important because it can affect the outcome of the project.
Transferring :
The risks which would arise in the project are going to be related to certain sections and
departments in the project. It is going to be much more effective for the project to hand over the
responsibility of the cost risks to the financial department which will be responsible for the
management of that particular risk. This will reduce the burden from other teams of the project
which otherwise would face these risks.
Question 2
The risk is defined as the possibility of occurrence of loss or the chances of happening
something wrong. Risk is measured by making the goals and objectives of the company which
helps them to be prepared for any happening in the future. This is the probability that makes to
differ the actual result with the expected results. The risk is consisted of the two components
occurrence and likelihood. The event that would occur the risk is known as occurrence

components. If there is not surety about the happening of the risk is known as likelihood
component. The project maker must identify the risk which helps them to have the better
management of the project on which they are working (Lee, Lee and Kim, 2018). The owners of
the business projects has more control on the risk which makes them to know about the
occurrence and likelihood of the risk in the future. This risk used to have effect the day- to- day
operations and strategies of the working project.
The external risk used to have the great impact on the profitability of project as this
consist of change in technology or the occurrence of natural disaster. It is very important to know
the difference between the two components which are occurrence and likelihood. By making the
plans for the occurrence of risk makes the project to get success. The risk management plan must
be made which helps to know about the description of risk and how to manage those risk if they
arise in the future. The risk is basically made up of the two components which includes the
probability of something wrong and its negative impact if it occurs. It is very hard to spot the risk
and to manage that risk. By knowing about the risk it helps the company to planned better for the
project and save them to have the wastage of resources while working in the project.
The preparation of the risk register process consists of the following steps such as,
Identification of the risk :
This is the first step to the process of risk register in which the project would need to
identify all the risks that it might face during its project Jupiter. In this recognition of the risk
there are different types of risks to which a project can come across.
 Legal risks
 Environmental risks
 Market risks
 Regulatory risks
It is considered to be very important for the project to identify as many risks as possible
in this manual environmental. These risks are noted down manually with regard to the project.
The major advantages of this approach is to make the project visible of the impacts that are going
to have on the project and its stakeholders.
Analysing risk :
This is the stage in which the risk has been identified as the needs to be analysed. It is
also helpful for the risk to be identified. It can be said that the determination of the severity of

every risk that can arise in the project is important. This is helpful for understanding the level of
efforts and prioritization that needs to be given to each risk. In this project there are risks which
can bring the whole project to a standstill if actualized (Five Steps of the Risk Management
Process, 2022). There are also risks which are minor and can be solved with the help of only
minor adjustments.
Evaluating risk or risk assessment :
The most important aspect of the risk assessment is that it allows the risk that allows the
risks to be able to studied properly in order to manage the different levels of catastrophic losses
that can be rated to its highest potential. Importance of rating the risks is that it can help in
categorization of this risk which is helpful for the creation of some sort of inconveniences in the
low rated risks. It is also helpful for the business to be able to analyse the vulnerabilities of the
different low-level risks. However, it also allows the project to act upon the ones which have
higher rating first.
Qualitative Risk Assessment :
Risk assessment are considered to be said as the ones which derives the metrics from the
risk and helps in analysing those risks which are not measurable in the quantifiable terms. Such
as the risk of climate change or natural calamity affecting project cannot be measured in terms of
quantitative assessment. For this type of risk is it important to ensure the objectivity and the
standardization of the assessments which are present in the enterprise that helps in the finding
and managing the likelihood and impact of these risks.
Quantitative Risk Assessment :
The risks which have a relation to the financial risks are best assessed through the
quantitative risk assessments. These risks are considered to be very common in the financial
projects which have a target to achieve or gain a certain level of income in the primarily deals in
the number of money (Bubeck, Maddaloni and Peydró, 2020). These metrics can be interest
rates or any other data point that is critical for the risk assessment in the financial sector. Risk
which are assessed through this method are easier to be automated as there are generally having a
measurable objective.

Question 3
Clearly defining the goals and objectives is very important in order to satisfy the people
and this helps in evaluating the success of the project. This helps the company to have the easy
access of the success before and after the completion of the project (Islami, Mulolli and Mustafa,
2018). By defining and making the objectives it helps to define the goals, identify the activities
related to conflict, guide the person to have the good decision- making and ensure to have
accountability in the project. As in order to plan the project without clearly defining the goals
makes the company to have the goal displacement. The project objectives are basically the short
term goals that helps them to achieve the final goal of the project. It is very important to have the
well- defined objectives that helps to guide and provide the directions in order to achieve the
target. By having and defining the objectives it makes to know about the idea of the doing
projects. This will make it easier to prioritize and organize the projects of the company and helps
them to have the proper management. The project objectives helps to measure the target and
provide the clear path to guide the right direction to the people who are working on that project
(Pace, 2019). By having the better clarity and transparency makes them to have focus on
achieving the defined goal. If the project objectives are clearly defined it helps them to achieve
the overall aim and by these employees are motivated in their working.
By having the clear objectives of the projects makes the project free from risk occurrence
in the future. As by making the objectives the maker used to know about the various risk that
may be occurred in the future in the ongoing project. The main aim of risk management is to
identify the problem before they happen and this helps to leverage them to cause in the future.
By making the project objectives it identifies the risk which enables to develop the plans in order
to minimize the harmful things before they occur. The purpose of the risk management is to have
increase in the probability of happening of positive events and decreases the probability of
happening negative events. By making the proper and defined objectives helps to know about the
identification of the risk and helps the project to get success (Elamir, 2019). The best objectives
made for the project will have the direct impact in the identification of the risk and makes them
to manage the risk accordingly. The risk management plans made by the project maker
contribute to the project success by knowing about the internal and external risks that may be
risen in the future. The person who has made the project must monitor and update the project on
continuous basis which helps them to know about the areas where they are lacking. This will

make the make them to have focused on the made goals and ready to manage the risk if they may
arise.

REFERENCES
Books and Journals
Bubeck, J., Maddaloni, A. and Peydró, J.L., 2020. Negative Monetary Policy Rates and Systemic
Banks' Risk‐Taking: Evidence from the Euro Area Securities Register. Journal of
Money, Credit and Banking. 52(S1). pp.197-231.
Dumitrache, G. and Georgescu, D.N., 2019. The Implementation of The Risk Register by The
Leaders of Preuniversity Educational Organizations. Logos Universalitate Mentalitate
Educatie Noutate-Sectiunea Stiinte Economice si Administrative/Logos Universality
Mentality Education Novelty-Section: Economical and Administrative Sciences. 4(1).
pp.10-20.
Elamir, H., 2019. Enterprise risk management and bow ties: going beyond patient
safety. Business Process Management Journal.
Islami, X., Mulolli, E. and Mustafa, N., 2018. Using Management by Objectives as a
performance appraisal tool for employee satisfaction. Future Business Journal. 4(1).
pp.94-108.
Kudszus, R., Klemencic, R. and Spyridis, P., 2020. Basic Concepts of Engineering Risk
Management for Fastenings and Risk Register Based on Industry Survey. CivilEng.
1(3). pp.275-290.
Lee, M., Lee, H. and Kim, J., 2018. Dairy food consumption is associated with a lower risk of
the metabolic syndrome and its components: a systematic review and meta-
analysis. British Journal of Nutrition. 120(4). pp.373-384.
Pace, M., 2019. A correlational study on project management methodology and project
success. Journal of Engineering, Project, and Production Management. 9(2). p.56.
Rahman, G.N., Tripiawan, W. and Pratami, D., 2021. Perancangan Risk Register Dan Risk
Response Terhadap Proyek Pengembangan Aplikasi Dana Pensiun Dengan
Menggunakan Probability Impact Matrix Pada Pt. xyz. eProceedings of Engineering,
8(5).
Uzulans, J., 2019. THE PROJECT RISK REGISTERS ANALYSIS BASED OF THE PROJECT
RISK MANAGEMENT NOTION ‘RISK REGISTER’. Project Management
Development–Practice and Perspectives. 25. p.79.
Online
Five Steps of the Risk Management Process, 2022[Online]. Available through:
<https://www.360factors.com/blog/five-steps-of-risk-management-process/>