Project Control

Running head: RISK ANALYSIS & PERFORMANCE ANALYSIS 1

RISK ANALYSIS & PERFORMANCE ANALYSIS 2

Risk Analysis & Performance Analysis

By

Herbert Greene

Dr. Cuffe

August 22, 2021

Formal Letter to the Instructor

Herbert Greene

Antietam Dr

Locust Grove, VA

(Dr. Cuffe), Designation

Dear Sir,

I am writing this your way to explain the risks associated with the proposed project. As I have updated you regarding the project's objective that is divided into six milestones, and in each milestone, there are direct or indirect risks associated. The project involves constructing a lake house project that will be constructed on 500*500 feet of land, including interior and exterior features of the construction project. We will be executing the project after finalizing the planning and development of resources through collaboration with stakeholders. I have also shared milestones for the task and the sequence used to achieve each task. The purpose of this letter is to inform you about risks that might be confronted during project processes and affect expected outcomes. Several risks that might occur during project process includes lack of enough time, lack of capital, and insufficient human resource. These three risks are expected and would imply greater influence over the completion of the project. The assessment and management of these risks are crucial to avoid challenges throughout the project process. Shortage of capital is one of the biggest risks, and its impact would be higher than the rest of the two. One of the biggest costs associated with each risk would be a delay in completing the project process and a waste of available construction material. Because the project completion will be delayed, available construction material would waste and put an extra financial burden on stakeholders. The human resource department and internal stakeholders of the organization are responsible for tackling these risks. For example, the shortage of capital would be managed by the collaboration of stakeholders (Banaitiene & Banaitis, 2012). Similarly, the shortage of human capital and time would be managed by the human resource management department.

I have prepared a risk response for all these three risks that would be helpful to manage and avoid complications throughout the project process. By using qualitative and quantitative measures, the adjustment of associated risks are as follows;

Likelihood
	Higher	Slight	Lower	No Impact at All
Shortage of Capital
Shortage of Human Resource
Shortage of Time

Risk

The above table shows the frequency of occurrence of each risk that also indicates the impact it would imply over the whole project. Shortage of capital and time is highly effective in terms of impacts and costs associated with these risks. Effective planning of each task and hiring an additional workforce is the solution to manage the scheduled time for the project. Some tasks of the project would be outsourced to ensure that the project is completed on time. And the risk response for the shortage of capital will be to ensure that we would have alternative means to meet the crossing needs of capital.

Part 2:

After the assessment of risks and execution of the project, the further step is to track the performance of the project. The tool used to track project performance and evaluate whether or not everything is on track is a regular assessment of each task, using an outline of the project that we made at the start to track whether or not everything is going well. Regular assessment means weekly meetings would be arranged in which each member of the project team will participate to share the performance of each task. Every week, every member will share their progress, use the budget, time, constraints that they are facing, and expected outcomes to figure out project performance and make recommendations. In weekly meetings, along with discussing the previous week's performance, a schedule for the upcoming week would also be discussed that would be helpful to keep track of project performance and measure whether the project will complete within the stated time and budget. I would also like to add that the project will take one year because it is a complex construction project; thus, the approximated time is one year. All six milestones will be achieved one by one throughout the year.

Yours Sincerely,

Project Manager

References

Banaitiene, N., & Banaitis, A. (2012). Risk Management in Construction Projects. DOI: 10.5772/51460.