PROJ6003: Risk Management Analysis for Robert Frank Construction

This report provides a comprehensive analysis of risk management within the context of the Robert Frank Construction Company's Lewis project. It begins with an executive summary that outlines the core objectives, which are to identify, assess, and control various risks stemming from strategic management errors, legal liabilities, and other sources. The report then delves into the identification and impact assessment of potential risks, including budget risks, integration risks, contract risks, and several others. A detailed risk register is presented, categorizing and analyzing each risk, along with a probability and impact matrix to prioritize the risks effectively. The report discusses appropriate response strategies such as avoidance, transferring, mitigation, and acceptance for managing each identified risk. Finally, the report highlights the roles of key stakeholders, such as Ron Katz and Larry Broyles, in the risk management activities, including risk identification, analysis, and response development. The conclusion emphasizes the importance of risk management in minimizing negative impacts and ensuring project success. The appendix includes a detailed risk register with descriptions, likelihood, impact, severity, owner, and mitigating actions for each identified risk.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student
Name of the University
Author’s Note:

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Executive Summary
The major objective of the report is to know about the details of risk management in the case
study of Robert Frank Construction Company as well as Lewis project. There exist some of
the distinctive risks and threats that can easily stem from a broader variety of sources like
strategic management errors, legal liability, accidents and many more. It is also helpful for
maximization of opportunity realization. Such risks mainly come from several distinctive
sources such as threats from the project failures, credit risks, uncertainty in the project budget
and few others. This report has clearly demonstrated the various risks that are possible for
this project as well as their suitable risk response strategies. Moreover, this report has also
described about stakeholders’ apprise on the risk management activities within Lewis project.

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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Risk Identification as well as its Impact Assessment.......................................................3
2.2 Management of Risk and its Reporting............................................................................5
3. Conclusion..............................................................................................................................8
References..................................................................................................................................9
Appendix..................................................................................................................................11

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1. Introduction
Risk management can be referred to as the procedure to identify, assess as well as
control all types of threats to the organizational earnings and capital (Lam, 2014). A specific
plan for risk management increasingly involves every required procedure for successful
identification as well as management of threats to the digital assets and resources for any
particular organization (Project Management Institute. 2013). The following report will be
outlining brief analyses of the case study of Lewis project. Every possible risk for the case
study is being identified in the report with suitable mitigation strategies.
2. Discussion
2.1 Risk Identification as well as its Impact Assessment
2.1.1 Identification and Analysis of Impact of Possible Risks in the Case Study
Robert Frank Construction Company was an engineering and construction
organization that had been serving various industries like iron and steel, pharmaceutical,
chemical, petroleum, mining and many more in several worldwide offices (Glendon &
Clarke, 2015). They have been undergoing some of the most distinctive projects in their
business. One of them is the Lewis project, which is the collaboration of Lewis Company. In
spite of being one of the most significant projects, few possible risks were present in the
project that might have affected the outcome of the project work. Moreover, there might had
been a high impact of poor risk management. Due to such poor risk management in Lewis
project, there might had been poor user adoption and unrealized benefits. As a result, efforts
of this risk management might have taken wrong turn and the project might have suffered
(Hopkin, 2018). Due to the continuous changes, Lewis is even late running and incurring
additional costs for the project.
2.1.2 Risks Identified in the Risk Register

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The most significant risks that are being identified within this risk register for Lewis
project are as follows:
i) Budget Risk
ii) Integration Risk
iii) Contract Risk
iv) Resource Risk
v) Scope Creep
vi) Disputes (Snyder, 2013).
vii) Resistance to Change
viii) Schedule Risk
ix) Technology Risk
x) Project Dependencies
xi) Stakeholder Risks
xii) Operations Risks
xiii) Legal Risk
xiv) Quality Risk
xv) Project Complexity.
xvi) Project Planning Risk.
xvii) Reputational Risk.
xviii) Project Estimates.

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xix) Procurement Risk.
xx) Market Risks (See Appendix).
2.1.3 Risk Probability as well as its Impact Matrix to rate and prioritize these Risks
The probability and the impact matrix of risks for successfully rating as well as
ranking the respective identified risks is as follows:
Probability
Very High
Integration
risk - Scope creep Disputes
Budget
Risk
High -
Project
planning
risk
Resistance to
change
Resource
risk
Schedule
Risk
Medium
Project
dependencies
Procuremen
t Risk Quality risk
Technology
risk
Stakeholder
risks
Low -
Operations
Risk -
Project
complexity
Project
Estimates
Very Low
Reputational
Risk Market risks Contract risk - Legal risk
Impact Very Low Low Medium High Very High
Table 1: Probability and Impact Matrix for Risks Identified
(Source: Created by the Author)
2.2 Management of Risk and its Reporting
2.2.1 Developing Appropriate Response Strategy for Management of every Identified
Risk
There are four response strategies for risks in project, which are avoidance,
transferring, mitigation and acceptance.
a) Avoidance: Avoidance refers to avoiding the risk by reducing the total probability
of it (McNeil, Frey & Embrechts, 2015).

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b) Transferring: The second strategy is transferring, which refers to the fact of
transferring the risk by shifting the total responsibility to deal with risk consequences.
c) Mitigation: Mitigation of a risk refers to reduction of the impact of the risk event in
project (Wysocki, 2012).
d) Acceptance: The final response strategy is acceptance, which refers to the fact of
accepting a risk by simply dealing with its relevant consequences.
The most appropriate response strategies for successfully managing each and every
identified risk in Lewis project are as follows:
i) Budget Risk: The response strategy for budget risk is acceptance (Pritchard & PMP,
2014).
ii) Integration Risk: The response strategy for integration risk is avoidance.
iii) Contract Risk: The response strategy for contract risk is mitigation.
iv) Resource Risk: The response strategy for resource risk is mitigation.
v) Scope Creep: The response strategy for scope creep is acceptance (Heldman,
2013).
vi) Disputes: The response strategy for dispute is mitigation.
vii) Resistance to Change: The response strategy for resistance for change is
transferring.
viii) Schedule Risk: The response strategy for schedule risk is mitigation.
ix) Technology Risk: The response strategy for technology risk is acceptance (Aven,
2016).

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x) Project Dependencies: The response strategy for project dependencies is
avoidance.
xi) Stakeholder Risks: The response strategy for stakeholder risks is mitigation.
xii) Operations Risks: The response strategy for operations risks is transferring.
xiii) Legal Risk: The response strategy for legal risk is mitigation.
xiv) Quality Risk: The response strategy for quality risk is mitigation.
xv) Project Complexity: The response strategy for project complexity is transferring.
xvi) Project Planning Risk: The response strategy for project planning risk is
acceptance.
xvii) Reputational Risk: The response strategy for reputational risk is avoidance.
xviii) Project Estimates: The response strategy for project estimate is mitigation.
xix) Procurement Risk: The response strategy for procurement risk is avoidance.
xx) Market Risks: The response strategy for market risk is acceptance.
2.2.2 Identifying and Describing the Stakeholders being apprised of Risk Management
Activities in the Project
The major stakeholders of this particular Lewis project are Ron Katz, Larry Broyles
and every other person associated with the project (Chance & Brooks, 2015). These above
mentioned stakeholders have major roles in the activities of risk management in Lewis
project. The details of the risk management activities are as follows:
i) Identification of Risks: In this activity, the probable risks should be identified
properly by Larry Broyles, the project manager and Ron Katz, the purchasing agent.

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ii) Analysis of Risks: As soon as the risks are being identified, they should be
analysed and quantified by the stakeholders for understanding the probability of such risks in
the project.
iii) Development of Risk Response: Finally, in the third activity, suitable risk
responses should be developed by Larry Broyles and Ron Katz for reducing huge impacts
(Bromiley et al., 2015).
3. Conclusion
Hence, conclusion could be drawn that risk management is the successful
identification, evaluation as well as prioritization of the risks that are being followed by an
economical application of the resources for successful minimization, monitoring and
management of the impact and probability of every unfortunate event. The above provided
report has clearly analysed the various risks within the case scenario of Robert Frank
Construction Company with identification of risks and their appropriate mitigation strategies.

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References
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), 1-13.
Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk
management: Review, critique, and research directions. Long range planning, 48(4),
265-276.
Chance, D. M., & Brooks, R. (2015). Introduction to derivatives and risk management.
Cengage Learning.
Glendon, A. I., & Clarke, S. (2015). Human safety and risk management: A psychological
perspective. Crc Press.
Heldman, K. (2013). PMP Project Management Professional Exam Study Guide (7th
edition). Indianapolis, IN: Wiley.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Lam, J. (2014). Enterprise risk management: from incentives to controls. John Wiley & Sons.
McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative Risk Management: Concepts,
Techniques and Tools-revised edition. Princeton university press.
Pritchard, C. L., & PMP, P. R. (2014). Risk management: concepts and guidance. Auerbach
Publications.
Project Management Institute. (2013). A guide to the project management body of knowledge
(PMBOK Guide®) (5th edition). Newtown Square, Pennsylvania: Project
Management Institute.

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Snyder, C. S. (2013). A project manager’s book of forms: A companion to the PMBOK guide
(2nd edition). Indianapolis, IN: Wiley.
Wysocki, R. K. (2012). Effective Project Management: Traditional, Agile, Extreme (6th
edition). Indianapolis, IN: Wiley.

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Appendix
Risk Register
Risk Description Likelihood Impact Severity Owner Mitigating Action
Budget Risk that
occurs in cost
overrun
High High High Project
Manager
Making an
appropriate budget
for the project.
Integration risk,
occurs while
integrating
technologies,
processes and
information
High Low Medium Project
sponsor
Performing risk
analysis is the best
mitigating action for
this risk.
Contract risk,
occurs when the
contractor fails to
deliver project on
time.
Low Medium Low Executive Making a legal
contract before
starting the project
work.
Resource risk,
occurs when
there is an
inability in
securing
adequate
resources
High Medium Medium Resource
manager
Allocating correct
resources by
incorporation of a
resource manager

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Scope creep,
occurs when
there is an
uncontrollable
change in scope
High Medium Medium Customers Making a legal
agreement with the
customers
beforehand of the
project initiation
stage
Disputes, occurs
when there is a
delay in project
progress
High High High Executive
and
Customers
Maintaining good
relationships and
being organized
Resistance to
Change, occurs
when team
members do not
agree on the end
result
Medium Medium Medium Project
team
Ensuring effective
communication and
providing training to
staff
Schedule risk,
occurs when
there is an
uncertainty in
assumptions and
estimates
High High High Project
team
Reducing activity
dependencies and
scheduling risky
activities
Technology risk,
occurs when
service outages
Medium High Medium Project
manager
Securing computers
and servers used for
the project

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disrupt project
Project
Dependencies,
occur when there
are numerous
activities
unidentified.
Medium Low Low Project
team
Defining internal and
external
dependencies
Stakeholder risk,
occurs when
stakeholders
disagree with one
another
Medium High Medium All
stakeholders
Identifying risks and
minimizing the
negative
consequences
Operational risk,
occurs when
there is a failure
in the main
process.
Low Low Low All
stakeholders
Managing the
equipment failure
and learning about
regulations
Legal risk, occurs
when there is a
risk of future
litigation
High Low Medium Executive Obtaining
commitment from
Robert Frank
Company and
analysing the legal
risks
Quality risk,
occurs when
Medium Medium Medium Project
manager
Using risks for
prioritizing the

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project output is
not proper
detection and
prevention of the
risks
Project
complexity,
occurs when the
intricacy and size
of the project is
complex
Low High Medium Project
manager
Larry Broyles should
make a proper plan
for the project for
lessening the
complexity
Market risk,
occurs when
there is
difference in
commodity price
in the market.
Low Low Low All
stakeholders
Frank Company
should reduce their
expenses for
maintaining a
balance between
organizational
outcomes.
Project planning
risk, occurs when
the potential of
project becomes
failure
High Low Medium Project
team
Identification of risks
in the first phase and
communicating about
the risks
Reputational risk,
occurs when
there is a high
impact on
Low Low Low Executive,
project
sponsor
Providing proper
output to the project
and maintenance of
ethical conduct

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sponsoring
business
Project
Estimates, occurs
when quality of
the estimates
leads to
uncertainty
Low High Medium Project
manager
Maintaining cheap
contracts and
shortening project
durations
Procurement risk,
occurs when
there is a failure
in the
procurement
process
Medium Low Low Project
team
Ensuring audits and
compliance in the
project procurement
process