Risk Management Assignment 4

A Risk Management Plan

Name:

Institution:

A Risk Management Plan

Introduction

This paper documents the risk management for the Environmental Quality International in Siwa, Egypt which is a project aiming at creating a tourism industry that is based on the oasis’ old traditions and behaviors. Already, the organization has put in place two eco-lodges which has since begun realizing profitability but still faces a host of risks as will be looked into in the following sections. It is imperative to note that it is the duty of the project manager to ensure that risk assessments and tools for intervention are in line with best practices in a bid to ensure that the threat level remains low.

Project Description and Objectives

The project by Environmental Quality International in Siwa, Egypt is mainly for putting in place an eco-industry that reflects the old traditions of the people in Siwa. Siwa is an oasis that is 80 kilometers in length and 20 kilometers by width. It is a home to between 20,000 and 30,000 residents who depend on the oasis for survival. As noted in the case study, the people living in the oasis have continually embraced modernity making the old customs and traditional fade which makes it hard for EQI to create eco-lodges that meet the ancient customs. As noted in the case study, EQI is not able to strike a balance between modernity and ancient customs as the people living in the oasis are increasingly adopting modernity. More so, there are developments such as the proliferation of wells that have led to lowering of the water table which is a major threat to the oasis. Additionally, the population has risen from 5000 to between 20,000 and 30,000 in four decades which also indicate a major threat to the limited resources at the oasis. The ageing population is seen as the resource for knowledge and skills applied by the builders meaning the source of knowledge is experiencing threats and risk as time goes by.

The risk management plan aims at curbing the risk associated with the factors that have been outlined above. With a budget of $100,000 EQI needs to put in place a plan that will assess the risks at the oasis and put in place measures for dealing with the risks. This needs to happen within six months and must ensure that the eco-lodges already established by the organization are not at risk of losing business in a country that hugely relies on the tourism industry. It is the duty of the project manager to ensure that quality performance by the risk management team is being attained in line with best practices as well as the established needs and risks. In essence, the risk management team must ensure that all risks have been identified, assessed, and their level of threats quantified.

Aims, Scope, and Objectives of the Risk Process

The major aims of the risk process is to look into all the foreseeable risks associated with the EQI;s project at Siwa. This will be done in a manner that is within the budget and in line with best practices with the goals of ensuring that all the identified risks are sustained at an acceptable level. This is the level where the EQI will be able to meet the performance goals with reduced threats and also with appropriate resources and tools for addressing the threats that may be posed by the risks. For instance, the organization must put in place a measure for ensuring that the ageing population which is the source of knowledge is not at risk of being unavailable in the future. This can be done through enabling means of passing over information to the next generations.

Additionally, it is imperative to note that all the stakeholders will be involved and informed about the various developments when the risks have been assessed and identified (Morecroft, 2015). The various threat levels will be noted and recommendations for addressing them made in line with established best practices. Further, the process will also identify the major risks that may exert on the achievement of the overall project. Notably, the process only covers the internal project risks and does not look into those associated with external or third-parties in relation to the EQI’s Siwa project.

Application of the ATOM process

Based on the budget size and the already established eco-lodges by the EQI, the project is considered medium hence allowing the use and application of the ATOM Process. The process will involve the following processes.

1. Initiation: This is the process where aims and objectives of the risk process will be defined. With respect to the project, the aims and objectives involve detailing all the internal risks faced by the EQI in operating using a model that is ancient and traditional in an area that is rapidly adopting modernity. Also, risks associated with the increasing demand for natural resources will be looked into. Water table is lowering and the people living on the oasis are adopting agriculture which may require more water in the future hence putting the oasis at risk. Additionally, other resources such as palm trees are quickly becoming limited for sustainable use. Further, the ageing population which provides knowledge for meeting ancient customs is quickly ageing which poses a threat in terms of a constrained pool of actionable knowledge.

2. Identification: This is the hands-on process that will see that risks have been identified and documented. The risks noted above will be quantified and the level of threat assessed and documented. The process needs to be extensive so as to ensure that all foreseeable risks have been documented. This process requires team work so as to increase the knowledge pool that is being acted on. Additionally, it is imperative to involve locals who will act as sources of important knowledge especially when it comes to the natural resources at the oasis.

3. Assessment: It is also a hands-on process where the risks identified will be identified quantitatively and prioritized. From the case study, it can be seen that resource-constraints risk is the most critical one. Increasing populations are posing major risk to the oasis especially when it comes to the water resource. Additionally, palm trees supply from the oasis may not sustainable for the future. This is followed by risk of losing knowledge sources which inform how various activities such as construction need to be achieved. This risk is followed by failure of the organization in balancing modernity with the ancient cultures. The younger generation makes a larger percentage of the population and is rapidly losing touch of their ancient cultures. Additionally, risk on the sustainability of the eco-lodges in terms of structure need to be quantified. Also, it should be examined the threats posed to the structures as a result of natural storms and winds. Previously, the area saw destruction of the structure as a result of a strong storm. The risk posed to the eco-lodges must be assessed and quantified.

4. Response Planning: This is the process through which the responses to the risks will be formulated. For risks such as resource constraints, the organization can start an eco-program for sustaining the current resources at the oasis. It may also involve processes such as educating the people on the oasis about the need of conservation. With regard to loss of sources of knowledge, EQI can start a program for enabling the ageing populations to pass over the knowledge to the younger generations. With regard to the structure, the project manager can put more focus on physical examination of the structure and establish whether there are materials that can be used for strengthening the structure against natural forces such as strong winds and storms. These are some of the responses that may be put in place so as to address the risks that will be identified.

5. Reporting: This is an important undertaking that will ensure that all stakeholders are aware of identified risks and the various methodologies for addressing them. The project manager is at the center of the process and should establish a channel for communication that should be employed by the risk management team in informing other parties. Any new developments should be communicated effectively and responses from the upper management levels requested. In so doing, the team will be oriented to common goals which will increase the pool of knowledge and resources.

6. Implementation: It is an important process where the responses will be implemented in a bid to address risk. This process need to ensure that all the programs and process fall within the $100,000 budget and must be completed within six months. This will require planning where the risk management team and the stakeholders will budget and plan for every activity. This also will involve establishing the extent of the resources available so as to avoid possible challenges and issues that may be experienced when implementing the programs and the processes.

7. Review: This is the process where the implemented programs and processes will be regularly monitored and evaluated. All programs need to be independently reviewed so as to ensure that any needed modifications and updating can be known and implemented in a timely manner. This will be a process of evaluating and seeing whether the programs and process are meeting their specified goals.

8. Post-Project Review: This is the process where the overall project is evaluated and strengths and weaknesses noted. Any new developments that need to be implemented will be documented. Also, all the outcomes will be documented for future reference.

Risk Tools and Techniques

1. Identification: This is a process that will mainly involve the risk management team and some representatives from the Siwa community. In identifying the risks, brainstorming and ad hoc identification of risks will be undertaken. The area will be physically visited and the identification done.

2. Assessment: This is the process where the identified risks will be prioritized based on the threat level. It refers to the probability of the risk impacting the performance of the project in the near future. As earlier noted, resource constraints is seen as the major risk faced by the EQI’s project at Siwa. Additionally, it is imperative to note that a risk breakdown structure will be employed so as to inform the stakeholders about the nature of the risks.

3. Response Planning: This will be done through involvement of risk management team and the stakeholders in putting in place a plan for implementing measures for reducing the risk levels to an acceptable level. Every specific role and responsibility of the teams will be defined.

4. Reporting: The project manager must put in place a channel that will be used for sharing every information relating to the project to the stakeholders. Reporting also will involve recommendations on how improvement can be achieved.

Organization, Roles, and Responsibilities for Risk Management

1. Project Sponsor: Will play a major role in motivating and encouraging the teams into taking the best approaches towards assessment and implementation of new measures. Will also need to ensure that the needed resources have been provided in line with the budget and any other developing trends. The sponsor must also make follow-up so as to ensure the desired goals are being achieved.

2. Project manager: He or she will be responsible for approving the plan after establishing that it adheres to best practices. The manager should also ensure that the programs and activities are in line with the established budget and every team is meeting its roles and responsibilities in line with the plan (Rausand, 2011). The manager will make follow-ups in a bid to ensure that all the process meet the desired qualities. He will also act as the leader of the risk management team.

3. Team members: They are supposed to ensure that they are working in line with established goals. They should participate in brainstorming and making decisions regarding the best approach to performance. They also need to adhere to directions and guidelines stipulated by the project manager.

4. The risk owner: The owner is supposed to see that risk are being mitigated in line with industry standards. Should monitor the progress and inform on areas that may need improvements. The risk owner should also provide the resources that may be needed by the various stakeholders.

Risk Reviews and Reporting

Reviews will be made by the risk owner and the project manager and reports will be provided to the upper management. The reviews will assess whether measures being put in place are addressing the intended problems and whether there are new modifications that need to be done. The reviews should be continuous so as to assess and review the whole project cumulatively (Meredith & Mantel, 2011). Additionally, it is imperative to note that the project manager must provide intermediaries reports after every landmark activity during the course of the project. This will be done before he can provide the final report that will capture all developments since the project began. The final report must show the lessons learnt and how that will help the organization address any related issues in the future. Notably, the reviewing and reporting process needs to involve the team members as that will help expand the knowledge pool in relation to review and reporting.

References

Meredith, J., & Mantel, S. (2011). Project Management: A Managerial Approach. New York, NY: Wiley & Sons.

Morecroft, J. (2015). Strategic modeling and business dynamics: a feedback systems approach. . New York, NY: John Wiley & Sons.

Rausand, M. (2011). Risk Assessment: Theory, Methods, and Applications. New York, NY: Wiley.