Project Risk Management Report: Risk Assessment and Mitigation

This report provides a comprehensive analysis of project risk management, focusing on the practical application of project management principles in the context of shifting a house. It begins with an introduction to project management and its importance in everyday life, followed by a detailed discussion on the project of relocating to a new home, including associated costs and timelines. The core of the report lies in its risk assessment section, where eight potential risks are identified and analyzed, including unavailability of information, resources, and funds, as well as lack of innovative ideas and potential project failures. Each risk is evaluated based on its impact, likelihood, and a composite risk score, along with proposed response types and descriptions. The report concludes by emphasizing the importance of proactive risk management, including planning, forecasting, and the use of checklists and mitigation techniques to ensure project success. The report underscores the need for project managers to set priorities and develop strategies to handle uncertainties, ultimately facilitating smoother project execution and cost management.

PROJECT RISK MANAGEMENT
1

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
DISCUSSION.............................................................................................................................................4
RISK ASSESSMENT.................................................................................................................................4
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11
2

INTRODUCTION
Project management is one of the most important phases of every individual’s life. It is necessary
that an individual should have the understanding of all the phases of the project so as to manage
the life in a proper way. Applying all the project management aspects into the real life of an
individual helps him managing the same in a smooth and subtle way. In this report, a project of
managing things while changing a house will be provided. The risk assessment will also be done
in which 8 risks will be identified which could affect the project process. The project developed
will also provide a solution to the risk factors and will help an individual in managing the things
in a better way. Attaching life with project management helps in making the same more smooth
and effective. Hence, a report is developed which will deliver appropriate knowledge regarding
project management and the risk factors which could affect the smooth functioning of a various
set of aspects.
3

DISCUSSION
Shifting to a new city or a new home needs huge effort to make the adjustments and to make
oneself comfortable. It is necessary that this aspect should be taken as a project and planning
should be done so as to complete the same in an appropriate way (Teller, Kock & Gemünden,
2014). Working on the project management aspect will help in managing the shift in an
appropriate way. Purchasing a house will require a huge amount to be invested; it will require
approximately $ 425,000 to purchase a new house in the region of Adelaide. Transportation cost
will also be included in which expenses of $12000 will incur. The project of shifting a house will
take approximately 4 days. It is required that proper focus should remain attached with shifting
as in the case of shifting time will increase then it will lead to increase the cost of transportation
also the labour charges will also get increased. The increase in the cost of the labour and
transportation cost will lead to affect the pocket of an individual (Smith, Jobling & Merna,
2014). Hence, it is necessary that the project should be managed and actions should be taken
appropriately. This will help in completing the project tasks within the required time.
RISK ASSESSMENT
Risk assessment is one of the most important aspects which are required to be focused upon in a
project. There are a various set of risk factors which remain attached to the projects. Hence, in
this section, all the risk aspects will be taken into consideration and a trail will be made to
develop the strategies which could help in removing all the risk factor (Simister, 2010).
Project
Phase
Risk Impact Likelihoo
d
Composit
e Risk
Score
Respons
e Type
Response
Description
Project
Initiation
Unavailabilit
y of proper
information
High Very
Likely
5 Quick Before initiating a
project one of the
most important
aspects which are
required to be
taken into
4

consideration is
the availability of
a proper set of
information
(Maqsood, 2011).
Failing to avail the
same will affect
the project
initiation aspect. It
might also be
possible that the
project would not
get started due to
the same reason.
Project
Charter
Unavailabilit
y of resources
High Likely 3 Mod
erate
It could be possible
that the project
manager may fail to
find a proper set of
resources. In this
case, project
initiation process
will get affected
(Lock, 2013).
Hence, it is
required that before
planning all the
resources should be
availed.
Project
Planning
Lack of
Innovative
High Not
Likely
4 Quic
k
It could be possible
that while planning
people may fail to
5

Ideas present innovative
ideas. Such type of
aspects leads to
cause delayed
services and affect
the authenticity of
the project. Hence,
it is necessary
innovative ideas
should be presented
so that project
could be
formulated in a
proper way and
quality could be
ensured.
Work
Breakdown
Structure
Improper
distribution of
activities
Medium Not
Likely
2 Mod
erate
Work breakdown
structure is one of
the aspects which
are required to be
taken into
consideration while
formulating a
project. In a very
rare case, only such
type of cases occurs
in a project
management. For
the maximum time
activities are
distributed in a
6

proper way and
project
requirements get
fulfilled (Focacci,
2017).
Execution
Phase
Unavailabilit
y of Funds
High Likely 4 Quic
k
Unavailability of
funds is one of the
major matters of
concern. It is
necessary that the
funds should be
properly managed;
failing to avail the
funds will have a
huge impact on the
project. Quick
action should be
taken by the project
manager so as to
ensure that project
requirements could
get fulfilled in a
proper way.
Performance
and Control
Identification
of loop and
gaps Factors
Low Not
Likely
(Denas,
2017)
2 Mod
erate
It is necessary that
all the risk factors,
as well as loops and
gaps, is a most
important aspect. It
is a positive risk
because if loops
and gaps in the
7

project will get
identified in the
identification phase
only then the
possibility of
quality
enhancement will
get increased. This
will help in
managing the
project in a better
way.
Project
Closeout
Failure while
testing
Low Likely 1 Mod
erate
It could be possible
that when the
project will be at its
closing phase then
it could fail at the
closing phase. Such
type of risk is a
positive one as
things could be
managed before
launching it to the
general public.
Hence,
identification of the
loop of the breach
at the closing phase
will help in
managing the
project and
8

launching the same
in a proper way.
(Charrel & Galarreta, 2007)
The above table provides a brief explanation of the risk factors which could occur in the project.
In this, it is required that the project manager should develop the list of all the risk factors in a
well in advance form. Doing so will help the manager in developing the strategies which could
help in mitigating the risk factors and will help in managing the project in an effective way. Risk
assessment is a part of the project which should be done by each and every project manager; this
lead to help in managing the cost of the project also provides the opportunities to project
manager to complete the same within the required framework (Carroll & Morris, 2016).
There are various aspects which will help in mitigating the risk factors these aspects are:
Planning all the aspects in well in advance form
Forecasting all the risk factors
Developing checklist
Collecting Information
Developing Risk mitigation techniques
Mitigating Risk
Developing Checklist
Cross Checking
Taking Feedback
Working on issues
These are the some of the aspects which will help in collecting information related to the risk
which might occur in near future. It is necessary that the project manager should work with such
type of aspects and try to manage the risk (Besner & Hobbs, 2012).
9

CONCLUSION
Evaluating all the aspects related to the risk factors it could be concluded that while managing a
project a project manager should focus on all the risk factors which may incur in near future. It is
required that a risk assessment table should be developed and bifurcation of the risk factors
should be done. Setting the risk priorities will help the project manager in developing an
appropriate set of strategies and will help in mitigating risk. Priority setting is one of the most
important aspects attached with project management; if a project manager will set the priorities
in a proper way then he will be able to manage the things in a more appropriate way. Priority
setting will also help in reducing the risk of uncertainties and will help in processing the project
in a smooth and subtle way.
10

REFERENCES
Besner, C., & Hobbs, B. (2012). The paradox of risk management; a project management
practice perspective. International Journal Of Managing Projects In Business, 5(2), 230-247.
Carroll, J., & Morris, D. (2016). Agile project management in easy steps.
Charrel, P., & Galarreta, D. (2007). Project Management and Risk Management in Complex
Projects. Dordrecht: Springer.
Denas, S. (2017). Estimating and Managing Enterprise Project Risk Using
Certainty. International Journal Of Risk And Contingency Management, 6(2), 47-59.
Focacci, A. (2017). Managing project investments irreversibility by accounting
relations. International Journal Of Project Management, 35(6), 955-963.
Lock, D. (2013). Project management. Burlington, Vt: Gower.
Maqsood, T. (2011). Managing Risk in Projects20111D. Hillson. Managing Risk in Projects.
Farnham: Gower 2009. 102 pp. International Journal Of Managing Projects In Business, 4(1),
179-180.
Simister, S. (2010). Managing Project Risk and Uncertainty. International Journal Of Project
Management, 22(3), 269-270.
Smith, N., Jobling, P., & Merna, T. (2014). Managing risk in construction projects. West Sussex
[u.a.]: Wiley.
Teller, J., Kock, A., & Gemünden, H. (2014). Risk Management in Project Portfolios Is More
Than Managing Project Risks: A Contingency Perspective on Risk Management. Project
Management Journal, 45(4), 67-80.
11