Risk Workshop and Risk Registe

Assess Organizational Readiness

The focus of this assignment is the analysis of the Critical Success Factors (CSFs) as applied in the case study, “Environmental Quality International in Siwa” by INSEAD’s Jonathan Story. That is followed by the determination of the organizational readiness, risk culture, and project benefits after which three project risk recommendations will be presented and the subsequent initial risk categories (RBS Level 1 and 2) based on the case study using the Example Risk Checklist.

How the Critical Success Factors Apply

The absence of some factors in the organizations’ corporate risk management program could increase the likelihood of the risk management program failing and in the process significantly increase the chance of success of the program. These factors include the Critical Success Factors (CSF) which are unique elements to every project. From this, the Critical Success Factors can be said to determine the success of a business or project thus; there is a likelihood of a business or project failing if there is no application and elucidation of critical success factors. In looking at the Environmental Quality International (EQI) in Siwa case study, there are several key success factors evident in the company including a supportive organizational culture, supportive infrastructure and organizational objectives and goals all of which were essential to the company’s success (Zwilling, 2014).

The first critical success factor evident in the case study is that of a supportive Organization in that the company President’s personal project is in line with the mandate of the company for promoting sustainable development. Additionally, Neamatalla and his sister Laila played an influential role in the success phases of the project as they did all they could apply to secured loans and financing for the project. That included the use of local staff in Egypt for the purpose of reducing the overall project costs (Pacetti, 2012).

The second critical success factor in the Environmental Quality International in Siwa case study is that there is necessary support infrastructure in place that can make the organization support any development. One such critical infrastructure evident in this case study is that EQI loaned money to for project finance thus facilitating continued development by the company. Another evidence of availability of necessary infrastructure is the company’s willingness to address problems as they developed as in the case of mites in lumber and improved wages for women workers (Pacetti, 2012).

With this infrastructure in place, the Siwa project turns out to be of immense benefit in many ways. That is because before the Siwa development project, EQI was working as a consulting firm and that the moment it took project made that the company’s foray into project execution, which in turn brought about business opportunities. Also, EQI’s undertaking of Siwa project was beneficial as it ideally fit EQI’s mandate to promote sustainable development projects, a position that significantly made it easier to sell the project to investors and other stakeholders (Pacetti & International Conference on Urban Regeneration and Sustainability, 2012).

The third critical success factor in the Siwa project by the Environmental Quality International is the objectives and scope of the project. EQI’s project in Siwa aimed at ensuring that the customer information was protected by a more secure data system as a way to guarantee an intact trust between the customers and the business. In EQI’s case, the project provided for the insurance of the company becoming PCI compliant as well as the introduction of training strategies and communication and the security of the wireless inventory-control system. All these had the objective of ensuring authenticity, staff background checks, and competency before accessing information (Pacetti, 2012).

Regarding scope, EQI’s was out to illustrate the world in the form of elaborating the critical ways for reducing poverty by capitalizing on local culture and at the same time safeguarding the environment. In particular, the exact location of the project is the oasis of Siwa, in Western Egypt, which comprised of an old-fashioned swathe of olive and palm trees, natural springs and salt lakes surrounded by the sands of the Sahara as well as a population of 20,000 to 30,000 people. The project would be sustainable in the long run as it aimed at preserving the local culture, heritage, and landscape in Siwa. That is because the facilities were established in the traditional style and design of palm logs and blocks from rock salt and mud as well as some being built on the restored ruins of derelict houses thus the idea of rebuilding the old towns of Siwa as a way of promoting local heritage (Norman, 2012).

Additionally, the project of creating Siwa had the target of restoring a craft-art that was fading from local reminiscence as well as job creation for the local women. The goals were not only achieved in Siwa but also in high-end outlets in Egypt, Italy, France, and England thus ensured that the economy was preserved following the setting of the wages for all workers and determination of the particular industry to promote. That is how EQI launched the Siwa women’s Artisanship development initiative in 2001 so as to empower women and develop self-sufficiency in the economy through provision of home based business opportunities thus increasing the participation of the women from the local communities in the success of the Siwa projects (Norman, 2012).

Project Benefits, Organizational Readiness, and Risk Culture

The Siwa project was of significant benefit to the Egyptian government including the increase of the number of the stakeholders, which included the government itself, and other states (Hillson, 2007). In particular, the launching of the Siwa Environmental Amelioration project by the Egyptian government in conjunction with Italian government in1988 contributed to the sustainable development of the Oasis. That is because the initiative was based on the participatory approach such as the inclusion of women in income generating activities (Story, 2009).

The fact that women were part of the revenue generating initiatives part of the project means that the whole project befitted women in Siwa and its neighborhood since women from the local communities got home based business opportunities thus reducing the level of financial instability between men and females. By doing so, the project managed to change the conservative culture of Siwa as it was able to maintain the heritage and culture of Siwa thus attracted visitors and in the process improving the economic situation in the locality (Hillson, 2007).

Also, the fact that EQI made several rules and regulations with regards to the project, which immensely benefitted the culture of Siwa as it promoted the heritage of Siwa hence creating a sustainable environment in the locality by increasing heritage and tourism. The business model of EQI was instrumental in the success of Siwa project since it heavily targeted the economic empowerment of women in the society as thus increasing the conditions of the farmers. That was as a result of the company’s model of buying crops from the farmers at approximately 50 percent more than the market price. That farmer significantly benefitted from this as it removed liquidity, which was the biggest obstacle thus attracting attention from the International Finance Corporation (IFC) which provided funds towards the same course (Story, 2009).

Three Project Risk Recommendations

According to INSEAD, there are significant vulnerabilities that the project was exposed to, one of which was the high price for of local expertise and materials beyond the affordability of the local population. That meant that it was only the foreigners involved in the construction or building works that would use the traditional local techniques, art, and materials but using modern construction methods which are more economical to the locals out to expand their homes (Story, 2009). Secondly, the introduction of indoor bathrooms and the digging of several wells in the new buildings stress the supply of water thus causing scarcely of resources (Hillson, 2007). Thirdly, there is rising urbanization in the country leading to increased usage of the modern machines such as motorcycles.

Following the above risk factors, there is the need for efficient management of the restoration of the cultural and traditional identity of Siwa and promotion of tourism in the area. That will ensure the attainment of the desired organization objectives, which can be as a result of exercising control over scarce resources. That would call for a higher degree of assistance from different organizations thus influencing a rise in the project success.

Identify the Initial Categories of Risk (RBS Level 1 and 2)

References

Hillson, D., & Simon, P., (2007). Practical Project Risk Management. The ATOM Methodology. Management Concepts Publishing.