Project Management Report: Risk Assessment and Mitigation

This project management report addresses various aspects of risk management within the context of a business project, specifically focusing on the implementation of an information system. The report begins by defining project risk and the risk management process, followed by examples of potential risk impacts, including health and safety, sustainability, time, and reputation. It identifies various parties that may face risks, such as finance, third parties, stakeholders, and sponsors, and discusses potential issues like budget overruns and resource allocation problems. The report then categorizes risks from both external and internal sources and outlines the steps involved in risk assessment. It explores various sources of information for gathering risk-related data and discusses different approaches to controlling identified risks, including elimination, substitution, isolation, and minimization. Furthermore, the report emphasizes the importance of identifying risks early in the project initiation phase, communicating these risks, prioritizing them, and developing appropriate responses. It presents a risk assessment for a specific workplace scenario, identifying potential risks, their impact, probability, and proposed mitigation strategies. The report also includes a detailed risk management strategy for the information system implementation project, covering risk identification, assessment, evaluation, and mitigation. The report concludes with an evaluation of the implemented risk management plan and references relevant sources.

Running head: PROJECT MANAGEMENT
Project Management: Diploma of Business Management
Name of the student:
Name of the university:

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Answer to Question 1
a) Project risk is referred to as uncertain event or condition that occurs during project
progress period and impacts negatively any project outcome.
b) The process through which theses risks can be managed or mitigated are known as risk
management.
c) Risk management process can easily spot the reasons for which project success or
outcome are interrupted, escalations become clear and easier. The decision making becomes
focused and the communication becomes elevated.
Answer to Question 2
Examples of potential impacts of risks are as follows:
 Healthy and safety
 Sustainability
 Time and reputation
Answer to question 3
Various project parties may face major risks throughout project progress period such as
finance party, third party, stakeholders, sponsors etc.
 If the budget for the project is not estimated accurately with feasibility study then
the entire project will face issues with budget over allocation.
 If the stakeholders and resources for a specific project are not properly designed
then both budget overflow and overrunning cost issue may occur.

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 If useful resources are not accurately pointed then the entire project will fail to
deliver expected objectives and outcomes.
Answer to question 4
a) Risks from external sources
 Risks from the competitors
 Law and legislation risks
 Risks with externally emerging technologies
b) Risks from internal sources
 Technical risks such as unforeseen changes
 Physical risks
 Operational risks
Answer to Question 5
The steps of risk assessment are as follows:
 Identification of risks or hazards
 Analysis of the risks
 Evaluation of the risks
 Prioritizing the risks
 Mitigating the risks

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Answer to Question 6
The sources of information that could be used for gathering information regarding
potential risks and are as follows:
 Risk register and risk report designed by the organization itself
 Issues log
 Audit reports
 Business Impact analysis
 Internal and external reviews
Answer to Question 7
All identified risks can be controlled through different approaches and these are as
follows:
 Elimination of the risks: In this phase the risk can be
 Substitution of the risks
 Isolation of the identified project hazards
 Minimization of the risks through rearrangement
Answer to Question 8
There are different ways through which the organizational risks can be minimized d and
the steps are as follows:
 Identification of potential risks at the project initiation phase
 Communicate regarding the risks by considering possible opportunities

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 Prioritizing the risks after fully understanding the negative impact of the risks
 Developing response to the risks through register project risks
Answer to Question 9
From the prior to completing the risk assessment, I would like to take help from the hotel
manager. Firstly, I would prepare a list of possible risks regarding current financial condition,
operational status and ongoing functional activities, health and safety concern of the visitors in
the hotel. Then the consequences of these risks will also be elaborated and presented to the hotel
manager. It is expected that after analyzing the possible risks the hotel manager will definitely
support the receptionist.
Answer to Question 10
The risk assessment tools are as follows:
 A1 tracker: A1 tracker provides solution to the User Interface related and web based
risks.
 Risk management studio: This versatile tool is applied to resolve the issues of gap
analysis, risk assessment and treatment.
 Enablon: This is one f the most widely used risk management tool used in
 Isometrix: Best suited for cloud based application and large industry based risks.
Techniques are as follows:
Risk avoidance: According to this process the risks are all avoided by project team
members to ensure the

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Risk acceptance: In this phase the potential risks are all accepted and accordingly
mitigation plans are also developed.
Risk Transfer: In this phase the risks are all transferred instead of accepting those.
Risk reduction: Different strategies are developed and evaluated in this phase to reduce
all operational and functional risks.
Answer to Question 11
The different types of legal and legislation breaches that are applicable for these gives
scenario are as follows:
c) Fundamental legal breach is the legal breach which is occurring in this scenario. It is
the responsibility of the complex maintenance manager to design the structure of the balcony
hand rails for reconstruction.
d) In the given second scenario the circumstances shows material breaches and these
issues can be resolved through the implementation of certain technical specification. For
maintaining the data confidentiality it is very much crucial for sally to use technical platform for
storing patient’s records. Technical specifications will reduce the rate of unauthenticated data
access.
Answer to Question 12
It has been identified that Andrea is the best suited employee for this position but the
manager does not want to appoint her therefore, in such scenario whatever risk the company will
be faced include high rates employee turnover and dissatisfaction from the employee end. In

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order to accommodate Andrea for desired designation the action that has to be taken is
arrangement of technical training and development program for her.
Answer to Question 13
a) The list is as follows:
 Professional liability insurance
 Product liability insurance
 Business interruption insurance
b) Professional liability insurance: The professional Liability insurance cover business
against the claimed negligence for the harm which results from performance and failures. Based
on the type of business the liability insurance varies.
Product liability insurance: Whenever the business manufactures different products in
the general market for sale then the product liability insurance stands very much import for
minimizing risks.
Business interruption insurance: In order to minimize the risks with catastrophic events
or operational disaster the business interruption insurance is very much crucial.
Answer to Question 14
Principles are as follows:
1. Creating and protecting values
2. Be an integral part for the organizational process
3. Become part in decision making

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4. Explicit addressing in uncertainty
5. Systematic, well structured and timely
6. Be tailored
7. Based on best available information
8. Be transparent as well as inclusive
9. Be dynamic and iterative
10. Facilitating continuous improvement for the business organization
11. Considering human and cultural factors
Assessment Task 2
Part 1
The list of workplace policies and procedures in term of resources those have been
accessed are as follows:
 Code of conduct
 Recruitment policies
 Health and safety policy
 Anti discrimination policy
The project which is being identified for this section includes implementation of
Information System in the business organization. The risk assessment plan developed for this
project contains details of financial, social, economical and human resource based risks and the
ways through which these difficulties can be minimized.
Strength of Information system implementation

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 Business efficiency will increase
 Risks will be minimized
 Rate of data hijacking will get reduced
 Data will be managed easily
 Information access will be easy
Weaknesses for Information System implementation
 Inadequate resource
 Lack of managerial support
 Improper supporting platform
 Lack of skills among employees
 Lack of operational arrangement
Goals: To design and implement an information System for the business organization to
increase the business efficiency and minimize the rate of functional and operational risks.
Political risk: The government has not professionally supported the business
organization while implementing the Information System.
Economical risks: In order to design and develop the information system whatever net
economic support was required are not measured by the company.
Social risk: Cultural barrier is the major issue which interrupted the workplace culture of
the organization.
Technical risks: The experts who are being hired for the project are not technically that
strong. Additionally, lack of security is another technical issue that occurred.

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Part 2: Risk assessment for the workplace
Risks Impact Probability Score Responsible
person
Mitigation
strategy
Lack of
communication
High Likely High Project
manager
In order to
resolve the
issues of
communication
errors the
project
manager needs
to design and
consider open
communication
so that the
employees feel
free to
communicate
with all the
project team
members.
Lack of skills
and knowledge
of the
High Very likely Extreme Resource
manager
Based on
project and
workplace

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associates requirements
the resource
manager needs
to arrange
professional
training and
development
program for
the project
associates so
that they can
increase their
degree of skills
and knowledge
Cultural barrier High Possible High HR manager The HR
manager
requires to
design cultural
atmosphere in
the workplace
so that all
working
employees can

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freely take part
in the decision
making and
other activities
Scope creep Low Likely High Project
manager
It is the role of
the project
manager to
develop timely
document and
controlled
project status
report so that
the issues of
scope creep.
This will
successfully
resolve the
errors of scope
creep in the
workplace
environment.