University Project: Risk Management for LED Lighting (ENG8103)

This report examines the project risk management of an LED lighting project undertaken by Trend Lighting, an Australian manufacturer. The report begins with an overview of the project, emphasizing the energy-saving benefits of LED technology and the importance of effective risk management. It applies the AS ISO 31000:2018 risk management framework, covering risk identification, analysis, and evaluation across scope, schedule, cost, and quality management areas. The report details specific risks, such as scope creep, schedule slippage, budget overruns, and quality standard issues, along with corresponding mitigation strategies. It explores the organizational profile of Trend Lighting, including the scope of risk management activities, internal and external contexts, and criteria for decision-making. The report includes a business case, terms of reference, and a proposed risk management proposal, reflecting on the importance of a sound risk management plan. The report concludes with a reflection on the project, emphasizing the need for proactive risk management to ensure project success.

Running head: PROJECT MANAGEMENT
LED lightening for energy efficiency by Trend lighting in Australia
Name of the Student
Name of the University
Author’s note

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Table of Contents
Question 1........................................................................................................................................2
1.1 Discussion on the selected project and the organization with proper justification................2
1.2 Application of the framework and process of risk management...........................................2
1.3 Establishment of scope for managing risks...........................................................................4
1.4 Risks and the ways for determining, analyzing and evaluation them....................................4
1.5 Risk treatment method...........................................................................................................8
1.7 Proper discussion on risk management and sound risk management plan............................9
Question 2......................................................................................................................................10
2.1 Organizational profile..........................................................................................................10
2.1.1 Scope of the risk management activities of the organization.......................................11
2.1.2 Internal and external context for achieving organization objectives............................11
2.1.3 Criteria used by the organization for evaluating decision making procedure..............12
2.2 Business case.......................................................................................................................12
2.2.1 Feasibility of more detailed risk study..........................................................................12
2.2.2 Terms of reference for the proposal..............................................................................13
2.2.3 Project team..................................................................................................................13
2.2.4 Incorporation as well as application of risk management principles............................14
2.3 List of main risks.................................................................................................................15
2.4 Risk analysis........................................................................................................................17

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2.5 Risk evaluation....................................................................................................................18
2.6 Description of the proposed risk management proposal......................................................18
Question 3......................................................................................................................................22
3.1 Reflection of the report........................................................................................................22
Bibliography..................................................................................................................................25

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Question 1
1.1 Discussion on the selected project and the organization with proper justification
The paper mainly reflects on the manufacturer of “LED lightening” by Trend lighting
which is one of the lightning manufacturers in Mascot, Australia. It is found that light-emitting
diode (LED) is the latest as well as the most important technological advancement within the
lighting industry as they are very much energy efficient. The LED lights are helpful in outputting
135 lumens/watt as compared to other lights and thus helps in saving energy which further helps
in conserving the natural resources by protecting the ecosystem from destruction. This project is
mainly selected as LED manufacture by Trend lighting is considered as one of the potential
impacts on the energy savings.
1.2 Application of the risk management framework and process
It is needed for Trend lighting to properly apply the different principles as well as
framework of risk management by reflecting on the discussion in AS 1SO 31000:2018 risk
management guidelines. This is needed in order to manage the risk that occurs during the
manufacturing of LED lights successfully. The 1SO 31000:2018 risk management frameworks is
used by the organization for providing proper principles as well as the procedure that are helpful
in resolving the risks associated with the LED lightning project (Kerzner 2017). Furthermore, it
is found that the guidelines which are used within the organization regardless of any sector
further enhances the likelihood for achieving objectives of the project. They ways in which risk
management framework are applied are listed below:
Categorization of information system: This particular step is quite helpful in properly
understanding about Trend lighting such the system boundary can be properly elaborated

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(Carvalho and Rabechini Junior 2015). Dependent on that information, it is analyzed that all
information which are associated with the operating environment as well as intended utilization
of system generally can affect the entire security which are mainly determined within the
information system.
Selection of security controls: It is found that the security controls are generally
considered as the operational, management as well as technical safeguards which are mainly
employed by the information system of the organization such that it helps in protecting the
integrity, availability as well as confidentiality of the information (Cagliano, Grimaldi and Rafele
2015).
Implementation of security control: It is very much necessary for the organization to
properly implement various types of security controls which are helpful in elaborating the
procedure which are generally employed within the environment of information system for
effective operation.
Assessing security controls: It is necessary to properly asses the various security control
that generally needs proper assessment related procedures for determining the controls that are
implemented properly for producing the desired outcome for properly meeting the different types
of security needs (Kaiser, El Arbi and Ahlemann 2015).
Authorizing information system: The authorization of information system generally
depends on the determination of various types of risk for the entire operation of the organization
that further results because of the operation of the information system.
Monitor of security controls: It is quite important to monitor the continuous program
that further helps in allowing the organization for maintaining the security organization of the

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entire information system within an operating environment in which the systems generally adapt
to change with threats, technologies as well as business process.
1.3 Establishment of scope for managing risks
It is identified that for managing the project risk which can occur during the manufacture of
LED lights for achieving proper energy efficiency, it is needed to include the following criteria
within the project scope:
 Proper identification of the risks that mainly occurs during the manufacture of LED lights
 To analyze the various risks in order to get information about the impact that they create
 Proper evaluation or ranking of the project risks are important for managing the risk
 Treating the risks effectively so that the challenges can be properly resolved (Nicholas
and Steyn 2017).
 Proper monitoring as well as reviewing of the project risk are important for successful
management of risk
1.4 Risks and the ways for determining, analyzing and evaluation them
The table that is given below identifies, analyzes as well as evaluates the risks of four
different knowledge area of the project including scope management, cost management, quality
management and schedule management.
Knowledge
area
Risk Category Descriptio
n
Consequence Impact Probabilit
y
Project
scope
managemen
Scope
creep
Opportunit
y
If the
organizatio
n wants to
Due to issue of
scope creep,
the budget as
High Medium

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t manufactur
e more
innovative
LED lights
then the
time
duration
that is
provided
get
increased
and as a
result the
problem of
scope creep
can occur
but it is
accepted as
an
opportunity
.
well as time
that needed for
project
accomplishmen
t gets increased
that further
causes delay in
the project.
Project
schedule
Slippage
of
Threat The project
plan that is
Improper
schedule
High High

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managemen
t
schedule developed
by the
project
managers
so that each
of the
activities of
the project
can be
executed on
time is not
properly
followed
then it
causes
delay in the
project.
management
can cause delay
in the
execution of a
particular
project activity
which causes
delay in the
entire project.
Due to delay
the budget that
is required for
the project also
increases that
causes
financial
hindrance in
the project.
Project cost
managemen
t
Budget
overshoo
t
Threat If the
budget of
the project
is not
effectively
The problem
of budget
overshoot
causes issues
like financial
High High

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managed
then it
causes
budget
overshoot
and thus a
number of
financial
issues
mainly
occur in the
project.
challenges
within the
project and as a
result the work
of the project
that is related
with the
manufacture of
LED can get
obstructed.
Project
quality
managemen
t
Improper
use of
quality
standards
Threat If the
quality
analyst
does not
use proper
quality
standards in
the project
then it
generally
causes a
The quality of
the project is
not maintained
which further
causes a
number of
quality-based
issues and
challenges in
the project.
Mediu
m
Medium

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number of
issues for
not
maintaining
the project
quality.
1.5 Risk treatment method
Knowledge area Risk Category Mitigation method
Project scope
management
Scope creep Opportunity It is necessary to
accept the risk as the
project manager will
manufacture
innovative LED lights
that are quite
beneficial for saving
energy.
Project schedule
management
Slippage of
schedule
Threat It is necessary to
manage the work as
per the project
schedule so that the
activities associated
with LED
manufacture can be

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completed within the
time that is assumed.
Project cost
management
Budget overshoot Threat The project cost
should be mitigated
quite effectively by
managing the project
within the allocated
budget that further
avoids financial
hindrance from the
project.
Project quality
management
Improper use of
quality standards
Threat In order to avoid the
quality problems, it is
quite important to use
proper quality
standards for properly
managing the project
work quite effectively.
1.7 Proper discussion on risk management and sound risk management plan
There are a number of challenges including lack of resources, inexperience team
members, improper management as well as inappropriate testing of the lights after manufacture
is considered as the important issues during the manufacturing procedure of the LED lights
(Hopkin 2018). In addition to this, it is found that the LED Lights needs to be supplied with the

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voltage that is above than threshold and they are mainly dependent on the area of the ambient
temperature.
After proper analysis, it can be concluded that proper use of proper framework of risk
management as well as guidelines are important for mitigating the issues that occur during the
manufacture of LED lights. In addition to this, it is found that for managing the risk, it is quite
important to properly determine as well as evaluate the risk properly by identifying the
probability and impact so that most prioritized risk can be mitigated first for avoiding negative
impact of the risk on the manufacture of LED lights.
While undertaking engineering related project, it is important to have appropriate risk
management plan. Proper plan of risk management generally assists in allowing one to properly
determining the strength, weaknesses, threats as well as opportunities. It is found that the risk
management plan generally helps in contributing towards the success the internal as well as
external risks (Kerzner 2019). This particular plan generally includes the risks that are identified,
probability of occurrence as well as proper impact. In addition to this, it is found that for
enduring that the project is running smoothly, the project managers needs to communicate the
entire plan with the different project stakeholders and this helps in setting the expectations who
generally provides funding and gets affected by the outcome (Marchewka 2016). Moreover,
proper definition of risk management as it assists in properly reducing as well as eliminating
different types of negative risks such that the entire work of the project generally get completed
on proper time.