Risk Management Report: Analysis of Risks for Riverina Oils Extension

This report presents a risk management analysis for the Riverina Oils (RO) project, focusing on the extension. It begins with the identification of key risks, including schedule slippage, budget shortfalls, use of improper quality materials, hiring of inexperienced subcontractors, and technical issues. These risks are then prioritized based on their potential impact and likelihood. A detailed risk register is provided, outlining each risk, the responsible person, the impact, the probability of occurrence, and proposed mitigation strategies. The report emphasizes the importance of proactive risk management through measures like proper HMI programming, earned value analysis, quality control, schedule tracking, and hiring experienced subcontractors. The report concludes with a bibliography of relevant sources on risk management and derivatives.

Running head: RISK MANAGEMENT
Project: Extension of Riverina Oils (RO)
Name of the Student
Name of the University
Author’s Note

1
RISK MANAGEMENT
1). Identification of risk
The risks that are associated with the project “extension of riverine oils” are listed
below:
Schedule slippage: If the project manager does not track the schedule of the project
properly on a regular basis then it will be quite difficult to manage the schedule of the project
effectively.
Budget Shortfall: If the budget of the project is not estimated properly, then the
budget that is associated with some of the activities can misused, which further can raise the
entire budget of the project.
Use of improper quality of materials: If the materials that are utilized within the
project is not of proper quality then the quality of the project get affected negatively.
Hiring of inexperienced subcontractors: If the subcontractors who are mainly hired
for the project are not skilled and experienced then they will face lot of challenges and
difficulties in finishing the project within the expected time and budget.
Technical issue: If the HMI software programming that is done within the project are
not managed properly then it will create lot of technical issues within the project.
2) Risk prioritization
The risks of the project are prioritized below:
Risk Rank
Technical issue 1
Budget shortfall 2
Use of improper quality materials 3

2
RISK MANAGEMENT
Schedule slippage 4
Hiring of inexperienced subcontractors 5
3) Preparation of risk register
Risk Description Responsible
person
Impact Probability Mitigation
Technical
issue
As the HMI
software
programming
is not done
properly,
therefore it
generally
creates
number of
technical
issue that can
affect the
project
negatively.
Technical
analyst
Severe Likely The technical
risk can be
prevented by
executing the
HMI
programming
properly.

3
RISK MANAGEMENT
Budget
shortfall
If the budget
of the project
is not tracked
properly then
it cause
shortfall of
project budget
and further
creates lot of
financial
issues for the
project.
Financial
manager
Major Likely The risks that
mainly
occurred due
to the shortfall
of project
budget can be
mitigated
properly by
undertaking
earned value
analysis. It is
identified that
with the help
of earned
value
analysis, the
organization
can be able to
track the
budget quite
effectively for
ensuring
whether the
project is on
track or out of

4
RISK MANAGEMENT
track.
Use of
improper
quality
materials
If the
materials that
are used in the
project are not
of good
quality then it
can cause lot
of quality
related
challenges as
well as issues.
Quality
analyst
Moderate Possible The
challenges
that are
associated
with the
quality of the
materials can
be prevented
by cross
checking the
quality of the
materials that
will be used
in the project
before
utilization for
making sure
that proper
quality of
materials is
utilized within
the project.
Schedule
slippage
If the project
managers do
Project
manager
Major Almost
certain
It is quite
necessary to

5
RISK MANAGEMENT
not track the
schedule of
the project on
a regular basis
then it will be
very much
difficult to
finish the
project within
the expected
time.
track the
schedule of
the project by
the managers
of the project
so that the
entire project
will be
finished
within the
expected time.
Hiring of
inexperienced
subcontractor
s
If the
subcontractors
who are hired
for the project
are not
experienced
or skilled,
then they can
face lot of
challenges as
well as issues
in handling
the project
properly and
Human
resource
manager
Moderate Likely In order to
mitigate this
issue, it is
very much
necessary to
hire
experienced
subcontractors
within the
project who
be able to
manage the
activities of
the project