Risk Management Plan: WSI Blue Mountains TAFE Construction Project

This report outlines a comprehensive risk management plan for the WSI Blue Mountains TAFE construction project. It begins with an executive summary and introduction, emphasizing the importance of a proactive approach to risk. The report details the risk assessment process, identifying various risks, including technical, contractual, logistical, construction, and financial. Each risk category is thoroughly examined, with potential impacts and mitigation strategies discussed. The plan includes a risk analysis and evaluation section, utilizing a probability matrix to assess the likelihood and severity of each risk. The report also addresses the monitoring of risks in construction projects, highlighting the purpose and responsibilities of key stakeholders, such as the steering committee, project manager, and project team, in ensuring effective risk management throughout the project lifecycle. The plan's ultimate goal is to provide a framework for the decisive implementation of the project by identifying and managing all the project risks.

Running head: WSI BLUE MOUNTAINS TAFE RISK MANAGEMENT PLAN 1
WSI Blue Mountains Tafe Risk Management Plan
Student Name
Institutional Affiliation

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Table of Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Risk Assessment..............................................................................................................................4
Risk Identification.......................................................................................................................4
Technical Risks........................................................................................................................5
Contractual Risks.....................................................................................................................5
Logistical.................................................................................................................................6
Construction Risks...................................................................................................................6
Financial Risk..........................................................................................................................6
Risk Analysis and Evaluation......................................................................................................6
Technical Risks............................................................................................................................8
Financial Risks.............................................................................................................................8
Contractual Risks.........................................................................................................................9
Logistical Risks...........................................................................................................................9
Construction Risks.......................................................................................................................9
Monitoring of Risk in Construction Project..................................................................................10
Purpose of Monitoring Risk.......................................................................................................10
Roles and Responsibilities.............................................................................................................10
Steering Committee...................................................................................................................10
Project Manager.........................................................................................................................11
Project Team..............................................................................................................................12

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Executive Summary
This WSI Blue Mountains Tafe Risk Management Project Plan preferably aims at delivering a
reliable method, and this will ensure that the implementation of the project is carried out
decisively and all the project risks are identified and managed. Risks issues mainly involve all
the elements and occurring events which are likely to affect the project performance, project
scope, budget, schedule, changing management goals as well as business performance.
Additionally, risks and related issues are mainly measured in terms of event occurrence as well
as the impacts which these risks may result in as far as the project program is concerned.
Therefore, risk refers to all the apprehensions which tend to have imminent implications for the
project capacity and may delay the project to different aspects such as schedule, budget, scope,
business performance, and objectives, as well as change management. On the other hand, risk
management includes a number of activities such as identification, examination, mitigation as
well as managing the overall project risks.

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Introduction
Kerzner & Kerzner (2017) noted that risk management plan is a portfolio which aims at
ensuring that there is a proper channel for driving decisions regarding project management and
its business capability. Hence, this risk management plan will serve as a paramount guide for the
project stakeholders more so the team members and ensure that level risk, and the broader
project managed adequately. Moreover, the risk management plan also serves a critical role of
ensuring that there is an effective mechanism of addressing all the potential barriers which are
likely to affect the project work and scale the strategies for mitigating all the related norms.
Risk Assessment
This section explores all the risks related issues which the WSI Blue Mountains TAFE
Company is likely to encounter during the construction process. Although WSI Blue Mountains
TAFE Company has won the tender for constructing the building, the company capacity is small
and therefore, there is the likelihood that the company might face some imminent risks in the line
of duty. Some of the risks which this company will meet in the work delivery and discharge
include, technical, contractual, logistical as well as the construction issues and these might affect
the overall work quality if not properly managed. Additional, financial related matters such as
capital and budget also form part and parcel of the risks WSI Blue Mountains TAFE Company
may depict concerning the construction and the building process. These aspects mainly discussed
as follows
Risk Identification
This is the first and foremost analysis step in the evaluation of the risk management.
According to Taylan et al. (2014), risk identification gives an in-depth analysis of the uncertainty

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factors, the clarifications as well as the competitiveness description of all the associated risks in
the building process. In this case, risk identification process has three main subgroups and this
include external, internal as well as the project and have different intensities in the construction
process. Thus, the risk identified in this construction mainly discussed as follows
Technical Risks
Burtonshaw-Gunn (2017), noted that technical risk involves all the possible available
changes which are likely to occur when the proposed system, project or even the techniques
anticipated in the process fails to work as per the implementation requirement. Technical risks
are preferably vital as they influence the outcome performance, increases maintenance time,
leads to system failure, hastens security breaches as well as increasing the technical debts for the
company. Some of the various risks which WSI Blue Mountains TAFE Company is likely to
face in the technical aspect and process include default designs, designing errors, management
errors, inadequate qualified labor as well as unmatched material specifications.
Contractual Risks
It is a vital aspect of the construction and this element mainly appraised by the prime contractor.
The contractor often evaluates the viability of the subcontractors to deliver the required materials
on time and also their capacity to provide quality work they are assigned any task. Although this
aspect is critical, it should only be considered by the company in the likely event that the
subcontractors fail to adhere to the clients’ specification and the architectural aspects.
Additionally, it also involves the supplier risk which mainly arises when the supplier defaults
and fails to meet the required obligations in terms of supply (Kelly, Male, & Graham, 2014).

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Logistical
It refers to all the legal processes and procedures which are used in the construction
exercise. Mostly, the critical aspect considered in this case is the documentation and the approval
letters for the construction. Fraudulent and omission of essential issues in the legal documents is
another key and critical risk which is an event in the construction process (Schaufelberger, &
Holm, 2017).
Construction Risks
It occurs at the construction site when the contractor fails to assess all the inherent and
accident exposures in the workplace in line with the building process as well as taking the
required safety advisory to control them. Some of the associated risks include fire outbreaks,
electrocutions, air pollution, and falling rocks (Loosemore et al., 2012).
Financial Risk
According to Kuo & Lu (2013), risks associated with finance and budgeting is another
crucial aspect which must be considered and identified. This mainly comes with the delayed
payment of the construction materials and wages for the labors. It not only delays the
construction process but can also lead to conflict between workers and the management in the
construction.
Risk Analysis and Evaluation
The analysis of the likely risks to be recorded during the construction process mainly examined
using the probability matrix decisively and summarized as shown in the table below

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Also, the analysis for ranging the risks evaluated and examined as shown in the table below.
Table showing the probability matrix ranking of risks posed (Aminbakhsh, Gunduz, & Sonmez,
2013)
Thus, from the analysis above the following vital aspects are evident and documented
i. Failure to design a proper channel for the project scope may lead to the overall creeping
of this project implementation
ii. Fallout may arise as the construction commences based on the customers demand the
outlined set standards of the materials to be used

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iii. Integrating new technology in the process may also affect and interfere with some
operations in the process
iv. Defective units may also emerge as the new units are being installed in the building
v. Lack of proper logistical aspects and procedures may result in confrontation between the
workers and the management
vi. Conflict may be evident between the subcontractors and the prime contractor
vii. Lack of adequate communication at the various levels may lead to safety threats
viii. The supply chain also may be a vital risk based on the element parts and cost of
supplying the materials
ix. Competition may also arise
x. EPA requirements may also be a pre-requisite element
Mitigation Measures for Risk Management for Building
Technical Risks
The mitigation measures for the technical risks may involve assessing the risk in further
details, and this is done to ensure that the particular project is constructed in respect to the
functioning, government requirements and design specification (Newman et al.2011). The other
mitigation measures are to employ an internally experienced owner's engineer to assist in
carrying out the design review, supervision of the construction, support the procurement and test-
run support to help in controlling the construction quality and design as indicated in the project.
Financial Risks
For the financial risk, the mitigation measures may involve consulting a top-notch
financial expert or consultant to help in the conduction of the financial projection. Also, the
financial consultant may be asked to aid in verifying of the financial report of the project before

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it is carried out to help in the identification of the significant business risks that may be
associated with the project (de Kok, & Grossmann, 2010).
Contractual Risks
In the contractual risks, the mitigation measures involve the employment of appropriately
skilled and experienced legal advisor who has basic knowledge on the construction and building
industry in order to help with the drafting of the contract. The other mitigation measures
constitute a comparison of the contract at hand with the other similar contracts which are
considered to have the best concession (de Kok, & Grossmann, 2010).
Logistical Risks
The mitigation measures for the logistical risks may involve selecting the right of a
variety of items required for the construction and building project and thus such a supplier must
be competent and financially stable to avail all the elements needed. In the event that a particular
supplier is unable to avail the items, another supplier has to be chosen to avoid delays for the
completion of the project (Urciuoli, 2010). The other measure is to check for a variety of
indicators in the supply chain such as financial health, capacity and performance of the supplier
and such factors has to be assessed periodically to help in reducing the logistic risks in the supply
chain.
Construction Risks
The mitigation measures for the construction risks may involve, ensuring that the report
on the construction progress is made in the excellent design and thereafter scrutinized by the
owner of the construction site and a consultant before the beginning of the project at hand
(Newman et al. 2011)

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Monitoring of Risk in Construction Project
The risk monitoring is an essential part of a construction risk management plan. It is
expected that all the risks associated with construction are time-consuming and costly and hence
they have to be monitored and controlled during the project life cycle. The risk monitoring
consultants have basic knowledge on the identification and review of a variety of risks during
construction thus they help in the mitigation of disputes and claims. The risk monitoring and
control are done to keep track of the identified risks, ensure that the risk plans are executed
expertly and also to update the owner of the project on the progress of the construction project
(Morsy, 2014).
Purpose of Monitoring Risk
The principal purpose of the risk monitoring is to ascertain if risk response techniques
have been executed as planned in the risk management plan. Also, it is conducted to determine if
specific new risks that had not been identified previously could have occurred. Lastly,
monitoring and control are done to ascertain if project assumptions are valid at the end of the
project.
Roles and Responsibilities
Steering Committee
The steering committee has an overall responsibility of ensuring that the risk management
plan is implemented to the maximum and hence they should be involved during the risk
identification and assessment process. It is expected that risk register and risk management plan
provides the steering committee with information on the risk management strategies including
the projected risks to help them in the management and review of the ongoing plans(Schwalbe,
2015). Apart from the above mentioned statements to be provided to the steering committee, it is

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necessary to also provide an updated risk register to the steering committee to help them
identifying any additional emerging threats that would impact greatly the previously identified
risks resulting to a variety of changes during the implementation of the risk management plan.
However, such roles and responsibilities of the steering committee include;
 Provide support to aid in the implementation of the mitigation process
 Help in risk mitigation process which are controversial and in cross organization in order
to ascertain the type of organizational resources and senior management team to be
involved in the implementation process of the risk management plan.
 Agree with the mitigation of certain risks which are considered as of high severity levels.
Project Manager
The project manager also has certain roles and responsibilities during the implementation
of the risk management plan and such may include the following;
They are tasked with the provision of regular reports on the status of the risk management plan to
the steering committee(Winch, 2010). The report involves the specification of changes that may
occur in the identified risks in the course of every phase of the project. Also, the report stipulates
the variety of strategies that have been applied during the management of the risk plan. The other
role involves ensuring that the all the risks that have been identified previously are monitored
and reviewed closely with the intent of managing them and eventually bring them down. Another
responsibility of the project manager during the implementation of the risk management plan is
evaluation of the risks identified and establishing strategies to aid in the management of such
risks in all the phases of the project that have been identified.Further,the project manager has a
responsibility to develop and implement the risk management plan fully. The project manager
also has a responsibility of leading the other members of the project team during the

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implementation of the risks management plan with the intent of achieving the specific objectives
set in the plan for mitigating the various risks.
Project Team
As a member of a project team to be completed, several roles and responsibilities are
often availed to them and such include, continuous monitoring of the whole project until
completion that is up to the project life cycle ends. The other responsibility involves the
identification of risks that may emerge during the process of completion of the project. Also, the
project team has a responsibility of evaluating and assessing the variety of risks that will be
identified in the course of the project at hand and hence ensuring that the right mitigation
procedures are involved during risk management (Meredith, & Mantel, 2011). The other key role
and responsibility of the project team is the proper communication with the project manager on
the progress of the risk management plan implementation and this is to help in avoiding any
delays during the mitigation of the risks identified.

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References
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