| Silver Fiddle Company Risk Matrix |
| Risk Description | Probability | Impact | Factor | Owner | Mitigation |
| SFC is scheduled to complete 11 other homes in the area. This puts the project schedule at risk | 3 | 3 | 9 | SFC | Disclose this risk to all clients and work out a realistic schedule with each one. |
| Two employees at SFC to complete 12 projects are not enough. Risk for mistakes and unhappy clients | 2 | 3 | 6 | SFC | Hire additional resources for the booming house market |
| Labor shortage due to booming construction market in Grand Junction | 2 | 2 | 4 | SFC | Hire contractors on contingency and set up a priority agreement with them. |
| Material shortage due to booming construction market in Grand Junction | 2 | 2 | 4 | SFC | Negotiate material cost ahead of time for all 12 projects. |
| If there is an injury on the job site, who is responsible for medical payments and short/long term disability? Does SFC have enough insurance to cover such an instance? Should the Czopek's purchase additional liability insurance? | 1 | 2 | 2 | SFC/Czopek's | SFC has adequate insurance. The contractors are required to cover their own employees. The risk of a personal litigation reaching the Czopeks is very minimal since they have not closed on the house. |
| If SFC defaults or goes out of business and the contractors were not paid, are the Czopek’s legally liable to pay the contractors even though they paid SFC? | 1 | 3 | 3 | Czopek's | The Czopek's sign lien waivers to protect themselves from litigation. |
| With a glut of housing, the city may be over flooded with permit requests, depending on their process, permits may not be approved by the schedule date of July 5th, which will push back dates on the rest of the project. Permits can average anywhere from 2-6 weeks. | 3 | 2 | 6 | SFC | The city is unlikely to change their process, build enough time in the schedule to allow for this risk. |
| With a possible delayed schedule, the Czopeks may have to stay in their temporary housing longer. There is a risk they could be legally and physically “homeless” for a period of time. | 2 | 3 | 6 | Czopek's | Work out a week by week (or monthly) rental plan with the landlord of current housing |
| Contractors SFC hires may prove to be unreliable or not show up when scheduled. | 1 | 2 | 2 | SFC | SFC has had the same contractors for all of their projects and has set up priority with them. If there is a default, there are back up contractors |
| Since housing is booming, this can result in a price increase in materials and labor, which will most likely raise the total house cost the Czopek’s budgeted for. | 2 | 3 | 6 | Czopek's | This is a risk that will occur, SFC can negotiate all materials up front at a lower price for all 12 projects |
| Inclement weather preventing foundation from being poured or curing properly - causing schedule delay | 1 | 2 | 2 | SFC | Accept risk, there is no control over weather. Plan extra time into schedule |
| If the house does not pass interim and final inspections are there steps to bring the house up to code in a timely fashion? | 1 | 1 | 1 | SFC | SFC has processes in place. Past quality work, so not too many issues with this. |
| If there is a price increase in labor and materials, are the Czopeks prepared to finance a larger amount or scale down their requirements? | 2 | 3 | 6 | Czopek's | Work with the finance company to pre-approve a larger amount than may be needed, or scale down requirements to fit within budget. |
| Key |
| Probability |
| 1 = Low likelyhood of occurance |
| 2 = Medium likelihood of occurance |
| 3 = High Likelyhood of occuring |
| Impact |
| 1 = Not severe, very tolerable risk |
| 2 = Moderate impact that can be remedied |
| 3 = Severe can make a grade impact |
| Factor Table |
| Probability | 1 | 2 | 3 |
| Impact |
| 1 | 1 | 2 | 3 |
| 2 | 2 | 4 | 6 |
| 3 | 3 | 6 | 9 |
| 1 - 3 Factor is considered in the Green Range and acceptable |
| 4 - 5 Factor is considered in the Yellow Range and mitigation plan should be in place |
| 6+ Factor is Severe and risk should be escalated. |
fiedsg
unitiii_riskmanagementtemplate__unit_3.xls
