Assessment 3 Instructions: Risk Identification

Since the project will take place in different countries, the project management strategy and site environmental considerations will be used as inputs for the project scope. The project will employ the brainstorming method. After reviewing the blueprints, drawings, and requirements, the project manager will produce a project charter. Next, the project team will determine cost estimates to keep on budget. Finally, the scope management plan will be the result.

According to Waters (2018), the Components of the risk management plan include the following:

Methodology - This project will include brainstorming, probability, and impact assessments.

Roles and responsibilities - The project manager will have the significant role of identifying the risk and collaborating with other key stakeholders like the management of the construction company.

Budgeting - The project manager will assign resources and estimate risk management costs. Human resources, materials, machinery and equipment, and money are needed to execute the plan.

Timing -Timing documents include when and how risk management processes will be performed on a project.

Reporting formats - the content of the risk register

Tracking - Tracking will include a description of the history of the risk activities for the current project.

Risk categories – The risk category of this case is technical and project management risks.

Risk probability and impact- the probability values that will be considered low, moderate, and high for the project.

The impact thresholds- will be considered low, moderate, and high for the project.

The probability and impact matrix will include a table containing each defined risk's probability and impact ratings to facilitate risk prioritization.

Revised stakeholders' tolerances- Reassessed stakeholders' risk tolerances and included any changes in the risk management plan.

Expected monetary value (EMV) will assist the project team in measuring and comparing risks in the four projects in China, Poland, and Singapore. The EMV will be based on probability and impact.

Benefits of a risk management plan

i. The risk management plan is integrated into all project management activities.

ii. A risk management plan is developed early in the project but is reviewed and updated throughout the project.

iii. A risk management plan ensures that risks are adequately managed.

iv. Proactive risk management techniques give the organization a better understanding of insurance, indemnification, and liability issues, allowing it to prioritize and plan its analysis.

v. Assess for risks that aren't immediately obvious. A thorough proactive risk management plan enlists the help of a team of professionals to detect and analyze all forms of risks.

vi. By lowering the company's legal risk up front, it becomes a more attractive investment.

vii. Olan ensures Better budget control since they analyze their financial statements regularly and try to eliminate any wastage.

Sources of risk

· Workplace risk that may result in worker injuries and accidents

· Drawings that aren't comprehensive and a scope that isn't well defined

· Site conditions are unknown.

· Contracts that are poorly written

· Increases in material costs not predicted

· Shortages of workers

· Equipment and tools are damaged or stolen.

· Natural calamities

· Subcontractors and suppliers are causing problems.

· Availability of construction materials

· Inadequate project management

Low-risk occurrences have little to no effect on cost, schedule, or performance—moderate risk results in a cost increase, schedule disruption, or performance decline. Conversely, high-risk occurrences will likely result in a significant budget increase, schedule interruption, or performance issues.

The project will use the brainstorming process to identify risks; the project manager will arrange brainstorming sessions with the project team and stakeholders. The idea is to devise as many situations as possible that could negatively influence the project. PM will rely on the team's competence, expertise, and technical knowledge. PM may examine previous similar projects to understand better the construction risks that the current project faces. The PM will conduct Regular meetings with the project team and stakeholders to avoid risks piling up on you as the project advances. You can utilize that time to assess your current risk management activities and identify any new risks that may arise.

The construction of the risk breakdown structure will consider risk sources inherent to the project or the company. According to Pritchard (2014),  Among the inputs for a risk breakdown structure application are a list of project risks, the RBS itself, and a goal for the application. A hierarchy of risk sources is one of the deliverables of creating the risk breakdown structure.

Quantitative Risk Analysis will generate a numerical score from accessible significant and verifiable facts, which is then used to predict the probability of a risk event. Qualitative risk analysis compares a subjective judgment of risk occurrence possibility probability to the possible severity of risk effects by determining the total severity of a risk.