Risk Analysis and Management Strategies for Project Success (BSB51415)

This report analyzes various risks associated with the 'Chubby House Build' project, a case study likely within a Diploma of Project Management curriculum (BSB51415). Task 1 identifies key risks, including selecting a suitable project manager, location selection, the design process, time constraints, and budget issues. Each risk is prioritized. Task 2 presents a risk matrix, assessing the likelihood and consequences of each identified risk. Task 3 details a comprehensive risk management plan, outlining identification, assessment, analysis, management, and monitoring strategies. It provides response strategies and accountability for each risk. The report emphasizes proactive risk management, aligning with the assignment brief's focus on managing uncertainty and change. The student has drawn on course notes and case study to complete the assignment. The report includes a bibliography of relevant academic sources. The assignment focuses on practical application of risk management principles within a project management context, aiming to equip students with the skills to mitigate potential project failures.

Running head: DIPLOMA OF PROJECT MANAGEMENT
Diploma of Project Management
Name of the Student
Name of the University
Author Note

1DIPLOMA OF PROJECT MANAGEMENT
Task 1
The range of suitable risks that are present in the process are as follows: -
 Selecting a suitable project manager is a risk
Project manager have been one of the major stakeholder who have been performing several
duties that acts important in the operational process of the organization. It have been initially
seen that the project manager is present while initiating the projects. However in this case, the
main issue that have been seen is that the project manager have to be selected. In case the project
manager who is selected for execution of the project is not proper and well qualified the entire
project might fail as the entire planning process will be in vain. The priority of the risk have been
very high.
 Selection of the location also acts as a major issue
Selection of the location of constructing a chubby house is considered to be one of the most
important factor. In case the location that is chosen is not appropriate the entire project gets
affected. It can be seen that the project will be suffering from lack of popularity and the main
reason of constructing the same will be in vain. Hence in this process of location selection,
proper data analysis is to be performed. For this data analysis process, collection of data
regarding the number of visitors visiting the area is performed. With the help of this section, the
main aspect that is considered is that the number of people visiting at the selected locations are
checked. After checking of the population visiting the area, there are a few factors that are to be
considered. As per this section the main aspect that is considered is the age group that visit the
location. After collecting the data of the age group visiting the location, proper assessment of the
entire data is performed. In case the data analysis is not performed in a proper manner, there

2DIPLOMA OF PROJECT MANAGEMENT
might be wrong estimation regarding the location that is needed to be selected. The priority of
the risk have been moderate in nature.
 Designing process also acts as one of the major risks is to be considered in the Chubby
House Build project.
The resources that are required for constructing the entire project also acts as a major issue. It is
considered that the design that have been decided in the initial stage of the project will be having
a certain set of requirement. This is the main reason that proper assessment of the requirements
are to be made. In case the resources cost more than the budget that is allocated, completion of
the project gets difficult. Hence proper assessment of the number of items that is required for the
system will be limited and hence wise the entire process is needed to be performed in an
estimated form. In case the design that have been selected in the process is complex enough and
the resources required for the process is not as per the estimation, the design process might not
be as per the initial requirement. This will also lead to failure of the project. The priority of the
risk have been moderate in nature.
 Time issue will also be one of the major issue that have been considered during the
completion of the project.
The time that have been estimated in the process might act as a major risk. It have been seen that
the time that have been considered for completion of the project is considered as per lean
management. In case the time that is required for completion of one of the activity gets higher
than the estimated time, the entire project will be failing to meet the deadline of the project. This
is one of the major issue that can lead to failure of the project. The priority of the risk have been
moderate in nature.

3DIPLOMA OF PROJECT MANAGEMENT
 Budget issue
Budget that is estimated for completion of the project might also be considered as an issue. In
case the budget falls short of that is required failure of project is obvious. As not proper
budgeting is performed in the initiation phase is performed, this risk might arise. The priority of
the risk have been moderate in nature.
Task 2
Likelihood
Rare Unlikely Possible Likely Almost
Certain
Consequence
s
Catastrophic
Major
Moderate Time issue Selection
of the
location
Designing
process
Minor Improper
selection
of project
manager
Budget
issue
Negligible

4DIPLOMA OF PROJECT MANAGEMENT
Task 3
Identification Assessment and analysis Management Monitoring
Risk
event
Probability Impact Priority Response
strategies
Accountability Review
Selecting a suitable
project manager Medium Medium High Selection of project manager
is needed to be performed
before starting of the project.
Proper interview process must
be conducted and experience
is needed to be considered as
one of the major aspect. In
case a project manager is
recruited before the initiation
phase, the project manager
himself will be performing the
project planning and hence
wise proper steps can be taken
to perform the planning
Board of
directors
With the help of
selecting project
manager in the
initial stage, the
issue can be
eliminated.
Selection of the
location
High High Medium Trend analysis is needed to be
made in the process. In case
usage of the SPSS tool is
made the issue of wrong
estimation and analysis can be
made. This is one of the major
aspect that is considered for
completion of project. With
the help of proper trend
analysis being performed, the
data that will be collected will
be accurate in nature and
hence wise the accuracy of the
estimation will be high.
Project
Manager, Board
of Directors
With proper
assessment of data
analysis, the main
aspect that is
considered is that
trend analysis is
made and hence
wise proper business
management can be
made.
Designing process Very high Medium High Proper framework prototype is
needed to be made in the
initial stage and hence wise
this ensures that the prototype
will be acknowledged by the
higher board members. In case
the board members allow the
prototype, then performing the
design will be considered to
be correct and failure of the
project will not occur.
Infrastructure
designer
With proper
framework defining
as per the help of
prototype
development,
designing process
gets benefitted in a
positive manner and
accurate design cans
be received.
Time issue Moderate Low Low In case proper planning is
made along with scheduling,
the entire time scheduling
process gets easier. In this
case usage of project
management tools are used
and hence wise this benefits
the time management section.
This time management section
is considered to be an
important aspect.
Project planner With the help of
project
management, this
issue can be
eliminated.

5DIPLOMA OF PROJECT MANAGEMENT
Budgeting issue Moderate High High In case Initially budgeting is
performed the main issue that
is considered is that proper
assessment of the cost that
might be incurred will be well
estimated. This estimation
process benefits the functional
process. This is the main
reason that developing a
budget schedule acts
important and a project
manager is needed to be
present for performing the
financial analysis.
Project manager With proper
financial analysis
before starting of the
project, the entire
project can be
completed within
the estimated
budget.

6DIPLOMA OF PROJECT MANAGEMENT
Bibliography
Burtonshaw-Gunn, S.A., 2017. Risk and financial management in construction. Routledge.
De Azevedo, R.C., Ensslin, L. and Jungles, A.E., 2014. A review of risk management in
construction: opportunities for improvement. Modern Economy, 5(04), p.367.
Dziadosz, A. and Rejment, M., 2015. Risk analysis in construction project-chosen
methods. Procedia Engineering, 122, pp.258-265.
Edwards, P. and Bowen, P., 2013. Risk management in project organisations. Routledge.
Hwang, B.G., Zhao, X. and Toh, L.P., 2014. Risk management in small construction projects in
Singapore: Status, barriers and impact. International journal of project management, 32(1),
pp.116-124.
Iqbal, S., Choudhry, R.M., Holschemacher, K., Ali, A. and Tamošaitienė, J., 2015. Risk
management in construction projects. Technological and Economic Development of
Economy, 21(1), pp.65-78.
Mahendra, P.A., Pitroda, J.R. and Bhavsar, J.J., 2013. A study of risk management techniques
for construction projects in developing countries. International Journal of Innovative
Technology and Exploring Engineering, 3(5), pp.139-142.
Renuka, S.M., Umarani, C. and Kamal, S., 2014. A review on critical risk factors in the life cycle
of construction projects. Journal of Civil Engineering Research, 4(2A), pp.31-36.