Risk Management Plan Synergy Constructions Construction Essay

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Introduction

This document explains the Risk Management Plan for the Melbourne leg of the Commonwealth games Baton relay. The main purpose of this Document is to identify all the potential threats that could be detrimental to the success of the project, by eliminating and mitigating the impact these threats may place on the project.

This document will be reviewed annually and updated when needed to continuously improve safety measures amongst the project management team. The lessons that are learnt will be identified at the end of each project phase.

Background

The systems which will take place in this project include Risk rankings and risk priorities, risk matrix, risk response plan, and a risk register. Contractors and consultants will include ............................................................. They will help develop and maintain the project, by using systems which will help in the overall project.

Scope

The scope of the risk management plan is to ensure that all the correct safety procedures and steps are undertaken to minimise risk and deliver a project that will result in a project which has a safe environment. There will also be assumptions and constraints that will be related to the project success.

Assumptions

Data used in this plan (determine costs, schedules) are assumed to be accurate, reliable and valid

Inaccurate costs estimation and scheduling will undermine the success of this plan

Constraints

Technology which must be able to meet the requirements of this project

Technical constraints, which may include council or government laws.

Risk Management approach

Risk Identification

Risk Analysis

Risk Response Planning

Risk Implementation

Risk Tracking and Control

Risk Identification

The approach to identify risks has been undertaken by the use of a risk register. Using knowledge from previous projects has also been used to identify risks on this current project, along with this discussions with major stakeholders such as the Victorian government.

Conducting Formal Risk Identification Reviews

The Risk Manager will be responsible for conducting risk identification meetings at the commencement of the project and when needed. The project uses the Risk Identification report (and questionnaire) to assist with initial identification of risks.

Conducting Informal Risk Identification

Informal risk identification occurs while the project team start to work on the project. All team members are expected to identify a candidate or potential risk, including contractor staff, stakeholders, users, and clients. Status meetings will include discussions on possible risks Documenting Risks.

Document risks

When describing the risk, indicate the concern, likelihood, mitigating actions and possible consequences. You may also describe the impacts to stakeholders, assumptions, constraints, relationship to other project risks, possible alternatives, as well as impacts to the project budget, schedule or deliverables.

Validating Risks

The Risk Manager is responsible for coordinating the review and validation of candidate risks with the Project Management team.

Risks Analysis

Assign each risk to a Risk Owner for analysis. The Risk Owner analyses it, determines what actions should be taken (if any), establishes the risk's priority, and identifies the resources required to address the risk.

Categorize Risk

Group risks into categories by using the Risk Assessment Questionnaire. The Project Manager can create additional categories, as required. Assign the risk to a risk category. The risk category is assigned based on the type of anticipated impact.

Impact Analysis

Analyse each risk to determine a) the type and b) the extent of the impacts should the risk event occur. The analysis includes any assumptions made, constraints, and sensitivity of the item.

Enter all risks into the Risk Response Plan. For each risk, assess the risk event in terms of likelihood of occurrence (Probability) and its effect if the risk event occurs (Risk Severity = Impact Score). Use this information to prioritize the risk using established threshold criteria.

Determine the Risk Priority by calculating a Risk Score (Impact * Probability) and then comparing the Risk Score to Priority thresholds. For example, the following thresholds could be used to establish Risk Priority:

Green

Low Risk <= 2.5

Yellow

Medium Risk between 2.5 and 6.5

Red

High Risk >= 6.5

Consider the following areas for possible impacts.

Cost / project budget

HR resource requirements

Organizational impacts

Quality

Security

Schedule

Scope / requirements

Sponsor impacts

User impacts

Review Risk v Risk Tolerances

Review the risk against the project's risk tolerances to determine the appropriate type of action. The Risk Manager, Project Manager, and Functional Managers determine risk tolerances at project inception, re-validate at the start of each project phase, or as needed to respond to current project events.

Identify the risk thresholds for the project.

Category

Acceptable Risk

Unacceptable Risk

Cost

[Identify acceptable risks]

[Identify unacceptable risks]

Schedule

[Identify acceptable risks]

[Identify unacceptable risks]

Staffing Resources

[Identify acceptable risks]

[Identify unacceptable risks]

User Satisfaction

[Identify acceptable risks]

[Identify unacceptable risks]

Quality

[Identify acceptable risks]

[Identify unacceptable risks]

< Other >

[Identify acceptable risks]

[Identify unacceptable risks]

Risk Acceptance

Risks that cannot be influenced by the project are considered accepted. In these cases, the risk will be monitored, but no effort is spent on mitigation or contingency actions. In some cases, the Project Manager must determine if a risk should be accepted or escalated.

Risk Response Planning

Risk planning involves developing plans for mitigation and/or contingency actions for a specific risk.

Identify mitigation and contingency actions for funding, schedule, staff or resources.

Assign actions as appropriate and ensure these fit within the project's budget and schedule.

Determine the actions to reduce the likelihood or consequences that impact on the project.

Determine the response based on a cost/benefit analysis (cost vs. benefit).

Describe the actions to mitigate the risk.

Describe the signs that may be indicators of Risk Event occurrence.

Describe the contingency plan for when the risk event occurs.

Assign responsibilities for each response with a "due date".

Determine impact on project budget and schedule. Update the project plan where necessary.

Update the Risk Register with this information.

Risk Plan Implementation

Risk Plan implementation involves executing the decisions made in the Risk Mitigation and/or the Risk Contingency plans. Mitigation and contingency plans are a) tied to a trigger event and executed when that event occurs, or b) implemented immediately.

Monitoring Trigger Events

The Risk Owner is responsible for monitoring the trigger events associated with mitigation/contingency actions. The Risk Manager assists with tracking triggers as part of the risk status review meeting.

Executing Action Plan

The Risk Owner executes the action plan as follows:

Initiates the mitigation/contingency plan and notifies the Risk Manager of the plan execution when the trigger event occurs or is imminent.

Notifies all parties identified in the mitigation/contingency plan and ensures all activities are coordinated.

Takes specific measurements to determine the effectiveness of the activities

Notifies the Risk Manager if the activities are not producing the desired effect and proposes changes to address the deficiencies.

Risk Tracking, Monitoring & Control

Risk Tracking, Monitoring and Control concerns how the risk is progressing, as well as any mitigation/contingency strategies that have been executed. When changes to the risk occur, repeat the cycle of identify, analyse, and plan. Modify existing action plans to change the approach if the desired effect is not being achieved.

Factors to consider for Risk Tracking include:

Assess all risks as defined in the Risk Register

Ensure all requirements of the Risk Management Plan are being implemented

Establish communications

Evaluate the effectiveness of actions plan taken

Highlight new assumptions

Identify new risks

Identify the status of actions to be taken

Track risk response

Validate previous assumptions

Validate previous risk assessment

Factors to consider for Risk Control include:

Validate mitigation strategies and alternatives

Take corrective action when events occur

Assess impact on the project of actions taken (i.e. cost, time, resources etc)

Identify new risks resulting from mitigation actions

Ensure the Project Plan is maintained

Ensure change control addresses risks associated with the proposed change

Revise the Risk Assessment Questionnaire, Risk Assessment Checklist and other risk management documents to capture results of mitigation actions.

Revise the Risk Register

Retiring Risks

Close risks when the risk event actually occurs or when the likelihood of the risk is reduced such that it is not worth tracking it. At this time, halt and close action plans. If the risk could possibly arise again, reduce the risk to a "Watch" status and evaluate periodically.

The Risk Manager may recommend a risk for retirement to the Project Manager, who then makes the final decision to retire a risk. In some cases, the Project Sponsor may be involved in the decision to retire a risk.

7. Roles and Responsibilities

The Risk Manager is responsible to train all project staff on their risk responsibilities when they join the project.

Project Office

Describe the roles and responsibilities of the Project Office, i.e. those individuals providing support to the Project Manager. The Project Office defines and maintains project management standards across the organization. It is also the source of documentation, guidance and metrics on the practice of project management and execution.

Role

Responsibility / Task

Project Manager

Approves the Risk Management Plan. Participates in risk mitigation, contingency planning, execution, and decisions on risk actions.

Project Team

Participates in the risk identification process, and discusses risk monitoring and mitigation activities at team meetings. Participants will include team members, consultants and contractors.

Risk Manager

Responsible for leading the risk management effort, sponsoring risk identification activities, facilitating communication, ensuring the Risk Log is maintained, and that risk activities are current. The Risk Manager is responsible for providing the Project Manager with recommendations and statuses on risk actions.

Risk Owner

Responsible for managing an individual risk.

Quality Manager

Responsible for ensuring risks are being managed in accordance with the Risk Management Policy and the Risk Management Plan. The Quality Manager also assists in identifying new risks and/or proposing mitigation strategies and contingency plans, and proposing process improvements to the risk management plan and processes.

Functional Managers

Responsible for ensuring risk analysis is completed, risk mitigation/contingency strategies are developed, and plans are executed successfully.

Project Sponsor

The Project Sponsor provides the interface between project ownership and delivery. They act as a single point of contact with the Project Manager for the day-to-day management of the interests of the client organization. This person must have adequate knowledge about the business and the project to make informed decisions. They are may sometimes referred to as the Project Director.

Role

Responsibility

Project Sponsor

Participates in risk identification and risk activities as part of the project team. The Sponsor executives also receive escalated risks and assist with mitigation and contingency actions for escalated risks, as needed. The Project Sponsor for this project is the Victorian government.

Other Participants

Role

Responsibility

Contractor

Responsible for identifying risks to the project and risks to the successful completion of their contractual obligations. The prime is responsible for managing risks internal to their activities and assisting with mitigation and contingency activities for project risks and external risks. The prime is required to report their risks in their monthly status reports and raise potential project risks to the project team at appropriate status meetings.

Project Stakeholders

Identify the project stakeholders, for example, Steering Council, Executive Board etc. The stakeholders' role is to monitor risk action effectiveness and participate in risk escalation.

Legal

Provides advice on risks which may have legal ramifications and/or which are of a sensitive nature.

Tools, Techniques & Reports

Identify the tools and techniques that will be used to store risk information, evaluate risks, track the status of risks or generate risk management reports.

Risk Management Reports

The following reports are delivered in support of the Risk Management Plan:

Report Name

Purpose

Frequency

Audience

Risk assessment checklist

To identify risks under different categories ie. staff etc, and to determine the impacts they may have

Monthly

Project Team, Project Board, Client

Risk Register

Understanding what impact a risk may have on a project and determining a contingency plan and mitigating actions required

Monthly

Project Team, Project Board, Client

Risk response plan

Indentifying a risk, and the probability of this risk occurring

Monthly

Project Team, Project Board, Client

Risk assessment questionnaire

To determine that all categories are understood amongst the team and to determine the success of the project, by judging where misunderstandings are and where there is need for improvement.

Weekly / Biweekly / Monthly

Project Team, Project Board, Client

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