Comprehensive Risk Management Plan of RSBIM Project

This report presents a detailed risk management plan for the Research Support Building and Infrastructure Modernization (RSBIM) project undertaken by Turner Construction Company at Central University of California. It begins with an introduction to risk management, emphasizing its importance in project success. The report then outlines the risk management process, including identification, assessment, handling, and control actions. It identifies various risks inherent in the RSBIM project, categorizing them based on impact and cost, and assesses their potential consequences across technical, schedule, and cost dimensions. The report includes a risk probabilities and severities matrix to quantify the risks. It then delves into risk management methods, specifically risk avoidance, transfer, reduction, and acceptance, along with their application in the RSBIM project. The report also addresses risk impact determination, including the effects of mitigation strategies and residual risks. Finally, it discusses risk abatement strategies developed to mitigate the identified risks, ensuring the project's successful completion.

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Risk Management Plan of Research Support Building and Infrastructure Modernization
project (RSBIM)

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Contents
1: Introduction.................................................................................................................................3
2: Risk and Risk Management.........................................................................................................3
3: Brief overview of risk management process...............................................................................4
4: Risk Identification and Impact Assessment in the taken project.................................................5
4.1: Risk identification.................................................................................................................5
4.2: Risk Assessment and Quantification of each level of risk....................................................6
4.3: Risk Probabilities and Risk severities matrix.......................................................................8
5: Risk Management Impact and necessary control actions............................................................8
5.1: Risk management method to manage the identified risks....................................................8
5.2: Risk Impact Determination.................................................................................................11
5.3: Risk abatement strategies....................................................................................................11
6: Risk plan Follow up and Document requirement......................................................................14
6.1: Risk monitor and status follow up......................................................................................14
6.2: Risk Documentation............................................................................................................14
7: Conclusion.................................................................................................................................15
8: References.................................................................................................................................16

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1: Introduction
The successful completion of a business project is dependent on the development and
implementation of an effective risk management plan. The risk management plan is developed
basically for identification, analysis and mitigation of the risk that can impact the project
execution and completion. The mitigations of the risks in advance before their actual occurrence
enhance the chances of the successful completion of the project. In this context, the present
report describes the risk management plan for a selected business project. The report describes in
detail the management process used for identifying, categorizing, quantifying, and overcoming
the risks that a project can face while its execution. The project selected in this context is
‘Research Support Building and Infrastructure Modernization (RSBIM)’ at Central University of
California undertaken by the Turner Construction Company in the US. The company operates on
a global level and is recognized as a leading builder for undertaking complex infrastructure
projects and completing them through the use of innovative construction processes. The plan
addresses the financial, managerial and technical risks associated with the selected project. The
risk management plan helps in prioritizing the risks and thus provide an assessment of the risks
that helps in their effective resolution. The prioritization of the risks significantly led to
development of the risk management process for their mitigation for ensuring that all the
possible chances of failure of the project are identified and effectively managed.
2: Risk and Risk Management
The term ‘Risk’ in the context of the business project refers to any event that has the
potential to negatively impact the chances of its successful project completion. It is a definable
event with a high probability of occurrence having negative consequences in the event of its

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occurrence. The severity of the risk can be assessed in multiplication of its probability with its
impact that helps in determining the type of mitigation plan for its overcoming. The risk
mitigation plan helps in identifying, managing, reviewing and controlling the risks for reducing
its severity to an acceptable level. Thus, the process of risk management can be defined as the
method used for forecasting and evaluation of all the managerial, technical and financial risks
associated with a project for minimizing their impact on the outcomes to be achieved
(Loosemore et al., 2012).
3: Brief overview of risk management process
The risk management process details out the strategies and the methods to be
implemented by project manager for dealing with the risks identified. The different stages in the
risk management process can be described as follows:
 Risk Identification: The step involves identification of the risks that impact the successful
completion of the project.
 Risk Assessment: The step involves carrying out a quantitative assessment of the impact
of the risks and their chances of occurrence.
 Risk Handling: The strategy adopted by the business entity for eliminating, transferring
or mitigating the risks identified.
 Control Actions: Implementing the actions to reduce the occurrence of the risks through
the help of risks handing strategies
 Risk Reporting and Tracking: Reviewing the effectiveness of the rinks management
strategies adopted in reducing the impact of the risks on the project completion
(Andresen, 2007).

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4: Risk Identification and Impact Assessment in the taken project
4.1: Risk identification
Risk identification is the complex process and it requires methodical method in order to
identify all the risk associated with in the project in comprehensive manner. For this process,
person such as risk project manager, integrated project manager, project engineer, all the experts
and other managers are asked to review their respective areas and find all the risks. The project
RSBIM is the complex process and it has following inherent risks (Edwards & Bowen, 2013).
Risk Priority
on the basis of
impact and
cost
Major risk Areas
found in the
Project
Risks identified in each of selected areas
Very High Risk Project Cost  High fluctuations in the cost of raw material
 High certainty that project cost will rise in
future
Very High Risk Time Schedule of
project
 There is no proper funding to the project as
funds are provided in unplanned manner
 Resources requirement are not met at time
 Schedule time is not based on realistic approach
High Risk Testing
Requirement,
Evaluation and
carry on simulation
 Testing plan has made at initial stage
 There is no testing planning for operating
environment
 Testing procedures defined does not completely
evaluate the performance of project

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 Time availability for testing is very minimum
 No proper tools to carry out the testing
Moderate risk Suppliers and
vendors
 There are very less number of suppliers in the
project area and transportation cost is above the
market price
Moderate risk Facility arrangement
and fixed assets
(Equipment)
 Vendor support and long term planning for long
lead items
 Failure to acquire assets and proper leasing
arrangement
Low risk Design  Improper design as design relies on immature
technologies
 Cost effective design cannot be achieved
Low risk Requirements in the
project
 Requirement are not clearly stated
 If Requirements are not met in decided price
and on time
No such risk
involved but if
any of listed
risk quantify
can lead to
some increase
in cost and
duration
Technical matter  No major technical risks
 High end technologies is used but limited to the
given set of requirements by the client
(Kendrick, 2015)
No or very Management  Requirements and work flow are divided as per

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negligible risk of project requirements not on the basis of
management classification and respective roles
 Management people are not assigned the project
on the basis of the experience, skills and
stability (Hillson, 2017)
4.2: Risk Assessment and Quantification of each level of risk
Risk assessment is very important phase in the risk management plan and it is processed
by identifying the probability of occurrence, cost taken, and schedule impacted through each
risk. So it can be said that consequence of each risk can be through making the cumulative
impact due to cost, project scope and time schedule. So looking at the size of project and
schedule of project, following three assessment levels has been decided:
 Technical Consequence level
 Schedule Consequence level
 Cost Consequence level (Raydugin, 2013)
The matrix of risk assessment is provided below:
Risk Level 0
(Zero or no
risk)
Risk Level
1(Low or
minimum risk)
Risk Level 2
(Moderate or
considerable
Risk)
Risk Level 3
(High and
significant Risk)
Technical No or Negligible
risk
Lower level of
degradation
Degradation at
significant level
At this level
technical
Level
Area

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performance is of
no use in
attaining the
project objectives
Schedule No potential
even for
Negligible risk
It can delay the
project duration
up to 1month
It can delay the
project duration
up to 3 month
It can delay the
project duration
by more than 3
months
Cost If cost impacted
is under or up to
10,000 US
dollars
If cost impacted
is under or up to
100,000 US
dollars
If cost impacted
is under or up to
500,000 US
dollars
If cost impacted
is more than
500,000 UD
dollars
4.3: Risk Probabilities and Risk severities matrix
After risk assessment has been performed and risk are broadly divided into four major
levels (Level 0 to 4). For each level of risk following the risk probability identity on the analysis:
Level of risk Percent of Probability that risk will quantify
Level 0 Less than 1 % probability that risk consequences will quantify
Level 1 Less than 10 % probability that risk consequences will quantify
Level 2 Less than 25 % probability that risk consequences will quantify
Level 3 More than 25 % probability that risk consequences will quantify
Risk Severity Matrix on the basis of probability identified

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Risk Matrix Risk Consequence Level
Probability Level
1 2 3
P0 0 0 0 0
P1 0 1 2 3
P2 0 2 2 3
P3 0 3 3 3
5: Risk Management Impact and necessary control actions
5.1: Risk management method to manage the identified risks
The project RSBIM has various risks that have been identified in above section of the
risk management plan. After identification and analyzing them in detail under the risk
management plan is now followed by the risk handling through applying risk mitigation
strategies. Risk mitigation strategy is the management approach and it is broadly divided into
four categories. The four risk mitigation strategies are risk avoidance, risk transfer, risk reduction
or mitigation and risk acceptance. All these risk strategies are mainly used to manage the
identified risks up to maximum extent (Cretu, Stewart & Berends, 2011).
In order to handle the identified risks in the RSBIM project, risk management strategy of
risk handling has been used as it is best method available to manage the risk in any kind of
project. Below table will show the risk management strategies in detail that are applied in the
RSBIM project to manage the overall risk.
Risk Management method Its Objective The main features
Risk Avoidance  Risk can be eliminated  Under this risk

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or avoided through
changing various
parameters of the
project
management method
project plan can be
change to eliminate the
risk that are creating
the risk. For example,
Risky requirement,
working conditions,
technology and
contractor agreement.
Risk Transfer  Under this method risk
remains the same but it
gets shifted to some
other project or
company. This is why
is called as risk
allocation
 Full transfer or partial
transfer is possible
here
 Cost and funding risk
are best to transfer
Risk Mitigation  This method reduces
the likelihood and
consequences of the
risk identified that
cannot be transfer or
eliminated.
 It is performed using
the risk control
measures
 Here the control
measures are
comprehensive and
hard to implement

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 The risk mitigation
action can affect the
project duration, cost
and scope
Risk Assumption  Risk is recognised and
it is accepted
 No feasible option is
available to mitigate
the risks
 Only controls can be
placed but it is not sure
that they will be
helpful or not
5.2: Risk Impact Determination
Under this process effect of risks is evaluated and quantified that impacts the project.
Risk makes an impact on the project into two different ways:
 Risk management strategy plan implementation: In case when the risk reduction and
risk mitigation strategies used to reduce the impact of risk on the RSBIM project, than
there certainly there will impact on the project duration and cost. So it has been decided
to include the cost associated and project duration impact due to risk management
strategy plan, in the overall cost of project and project schedule.
 Residual Risk: Even after the successful implementation of risk management strategy
plan there remains certain risk that cannot be avoided and it can bear some cost and also
impact the project duration. So the cost and schedule variance (the estimated figure) has

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been included in the project cost and duration on contingency basis in order to avoid any
future cost and lag in the project due to unidentified risk (Smith, Merna & Jobling, 2013).
5.3: Risk abatement strategies
Risk manager is responsible for planning the risk abatement strategies that are needed to
accept or mitigate the risk identified in the RSBIM Project. Under the risk management plan
manager will develop risk abatement strategies for each of the identified risks of the project. The
risk abatement process is the general risk manager process that has complete in order to develop
the actions plan of specific activities that are taken up to reduce the risk impact on the project
(Lambeck & Eschemuller, 2008). The below table is developed to the risk abatement strategies
for each of the identified risks under the RSBIM project.
Common risk abatement strategies
High Moderate Low
Project Cost  In this
Situation
there is need
to closely
monitor the
cost and
spending of
the project
 In this
Situation there
is need to
closely monitor
the cost and
spending
 Cost
estimations of
 Simply
monitor the
cost and how
the spending
are taken up
Risk Level
Area of
impact

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 Obtain the
cost estimates
from the
vendors using
bottom up
method
 Value
management
process
vendors at least
two using
bottom up
method
Project Duration  Try to increase
the lead as
maximum it is
possible
through
making the
arrangement
of
procurement 6
to 8weeks
early
 Regular
vendors visit
and lookout
 Try to increase
the lead as
maximum it is
possible
through
making the
arrangement of
procurement 2
to 4 weeks
early
 Regular
vendors visit
and lookout
 Have the look
the project
duration and if
any major
fluctuation
noticed must
be reported
(Smith,
Merna, &
Jobling, 2013)

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Project Performance  Need to
perform major
redesign
process
 Need to apply
the alternate
technology
 Testing must
be strictly
followed
 Redesign at
moderate level
is required
 Technology
can be altered
if required
 Testing must
be performed
thoroughly
 Testing must
be overlooked
by the
manager daily
6: Risk plan Follow up and Document requirement
6.1: Risk monitor and status follow up
It is important to monitor the risk management plan and take the follow up of status for
each of the process. The RSBIM project is critical project and there is need to regular tract and
monitor each of the risk management process. This process include the process of checking the
probability and consequences of each of the risk identified (pre and post risk mitigation plan).
The risk control measures or actions are checked on schedule basis so that proper assurance can
be made. As the RSBIM project will be taken on long duration basis there is need to make the
risk registry on schedule basis so that risk management plan can be successfully implemented
and controlled (Molenaar, 2010).
In the process of risk plan review, the RSBIM Risk Manager, RSBIM Project Manager
and the Integrated Project Team of RSBIM will together review and update the project risks and

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management actions by monthly basis so that any new risks can be identified and proper actions
can be taken as and when needed. The risk manager of RSBIM project is responsible for
maintenance of risk registry and to ensure that all the team members of the risk management
monitor and reassess the risks regularly. Risk manager is also responsible for maintenance risk
management strategies and to ensure that risk management plan is implemented in timely and
effective manner (Simon & Gunn, 2017).
6.2: Risk Documentation
It is important to maintain the risk documents for the RSBIM project as it helps to get the
information as and when required by the risk management team. All the identified risks must be
document in the risk assessment worksheet. The risk consequences and risk probabilities must be
defined and explained in detail so that it supports the level of assessment. The risk management
strategies and abatement strategies for each of the risk must be documented in planned manner
so that it can be easily understood (Simon & Gunn, 2017).
7: Conclusion
Risk management plan of RSBIM project has been successfully completed using the best
management approach and this plan helps to identify the risks associated with the project and
also provide risk mitigation strategies to avoid the risks. The risk management plan contains
series of steps that need to be properly followed in order to develop best risk management plan.

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8: References
Andresen, M. 2007. The process of risk management for projects. GRIN Verlag.
Cretu, O, Stewart, R.B. & Berends, T. 2011. Risk Management for Design and Construction.
John Wiley & Sons.
Edwards, P. & Bowen, P. 2013. Risk Management in Project Organisations. Routledge.
Hillson, D. 2017. Managing Risk in Projects. Routledge.
Kendrick, T. 2015. Identifying and Managing Project Risk: Essential Tools for Failure-Proofing
Your Project. AMACOM Div American Mgmt Assn.
Lambeck, R. & Eschemuller, J. 2008. Urban Construction Project Management (McGraw-Hill
Construction Series). McGraw Hill Professional.
Loosemore, M. et al. 2012. Risk Management in Projects. Routledge.
Molenaar, R. 2010. Guidebook on Risk Analysis Tools and Management Practices to Control
Transportation Project Costs. Transportation Research Board.
Raydugin, Y. 2013. Project Risk Management: Essential Methods for Project Teams and
Decision Makers. John Wiley & Sons.
Simon, A. & Gunn, B. 2017. Risk and Financial Management in Construction. Routledge.
Smith, N.J., Merna, T. & Jobling, P. 2013. Managing Risk in Construction Projects. John Wiley
& Sons.

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Smith, N.J., Merna, T. & Jobling, P. 2013. Managing Risk in Construction Projects. John Wiley
& Sons.