2. Introduction
McGill
is improving its
facilities to support
better research and
teaching needs
1
Also preserving
architectural heritage
of buildings
2
Project is to introduce
new building with
emergency power
facility between two
buildings of downtown
campus
3
3. Introduction
Project: Construction
of building with new
emergency power
facility
• Project Duration: 1 year
• (Nov, 2018- Nov, 2019)
• Project Budget: 16 million
Construction of new
building between the
Wong and ferrier
buildings to house
two generators
• Generators will be
powered by natural gas
• Will replace mobile- diesel
powered generators
New generators will
provide power,
• in case of emergencies
• Or during peak periods
for dozen buildings
located on lower campus
5. Plan Risk Management
Processes of conducting risk
management planning, identification,
analysis, response planning, and
controlling risk on a project.
Increase the likelihood and impact of
positive events
Decrease the likelihood and impact of
negative events
6. Risk Management plan
Project Name: Project Zeta
Issue Date: 12 Dec, 2015
Project Manager: Parwinder Singh
Methodology:
Various parameters are used like high, medium and low to access the level of the risk. Numeric values are also used to show the probability rate of each
risk.
Roles & Responsibilities:
Plan Risk Management:
Identify risks:
Plan qualitative risk analysis:
Plan quantitative risk analysis:
Plan risk responses:
Implement risk responses:
Monitor risks:
Parwinder Singh
Yuvraj Singh
Arshdeep Kaur
Harmanjot Chahal
Adarsh Dhillon
Kun Liu
Naraspreet Kaur
Budgeting: Reporting Formats:
Contingency reserves: 620 k already included in 6 million project budget
Management reserves: 900 k
Flow charts, Pie chart and bar charts
Tracking: Probability and impact matrix:
Tracking processes are identified like action, avoid, transfer, mitigate,
Accept, exploit, enhance, share and accept for each identified risk.
Percentage for probability estimation is used and also high, low and
medium assets are taken into consideration. Impact of risk on schedule and
cost is also estimated.
Approved by: James Thomson,
Project Sponsor
Created by(Responsibility):
Parwinder Singh, Project Manager
9. Risk breakdown structure
Project Risks
For construction project
1. Project
Management Risks
2. Technical risks
3.2 Intense competition 4.2 Natural Disasters
1.1 Scope creep
1.2 Absence of
leadership
1.6 Inadequate
networking of project
activities
2.2 Inadequate site
investigation
2.3 Incomplete
design
3.1 Insufficient
revenues
3. Organizational risks
3.3 Incorrect selection
of team members
4.1 System vendor not
available on time
4. External risks
4.3 Unacceptance by
customers
1.5 Improper
communication channels
1.3 Poor cost
estimates
1.4 Poor schedule
estimates
2.1 Insufficient supply of
supplies, spare parts and
fuel
2.4 Change in
seismic criteria
4.4 Transportation problems for import of
supplies and materials on time
2.5 Improper
functioning of
equipment's
3.4 Local labor strikes
2.6 Wrong selection of
materials
4.5 Incomplete or wrong
environmental analysis
2.7 Inflation1.7 Referendum delays
3.5 Financial gain
1.8 Under Budget
1.9 Compressed
Schedule
10. ID Risk Category Description Effect on project
1 Project Management Risks
1.1 Scope Creep Project Management Risks Due to scope creep there will be small adjustments in the project that will take far
longer for the completion of the project.
Affect the project scope.
(Negative Impact)
1.2 Absence of leadership Project Management Risks Poor leadership skills of the project manager for guiding and monitoring the
project team will result in poor coordination and failure of the project
Affect the all aspects of
project.
(Negative Impact)
1.3 Poor cost Estimates Project Management Risks Inadequate use of tool for cost estimation will result in poor cost estimation. Affect the project budget.
(Negative Impact)
1.4 Poor schedule estimates Project Management Risks Inadequate use of tool for schedule estimation will result in poor schedule
estimation.
Affect the project schedule.
(Negative Impact)
1.5 Improper communication
channels
Project Management Risks Improper planning of communication management plan will result in
inappropriate identification of communication channels and miscommunication
between the stakeholders.
Affect the all aspects of
project.
(Negative Impact)
1.6 Inadequate networking of
project activities
Project Management Risks Wrong interdependencies between the project activities will result in inadequate
networking of the project activities.
Affect the project schedule.
(Negative Impact)
1.7 Referendum delays Project Management Risks The delays in the project due to voting procedures for selection criteria’s of any
team member or any decision.
Affect the project schedule.
(Negative Impact)
1.8 Under Budget Project Management Risks Project can be completed by saving some cost if the resources are used wisely Affect the project schedule.
(Positive Impact)
1.9 Compressed Schedule Project Management Risks Compress project schedule using experienced resources Affect the project schedule.
(Positive Impact)
Risk Management plan
Project Name: Project Zeta
Issue Date: 12 Dec, 2015
Project Number: Case study #1
Project Manager: Parwinder Singh
Document number: ACP_1239
Project Owner: James Thomas
11. ID Risk Category Description Effect on project
2 Technical Risks
2.1 Insufficient supply of supplies,
materials and fuel
Technical risks Insufficient supply of the supplies, materials and fuel will hinder the work
performance of the project and will let the project to fail.
Affect the project
schedule.
(Negative Impact)
2.2 Inadequate site investigation Technical risks Site investigation, include investigation and reporting of scope and requirements,
intrusive and non-intrusive sampling, Determining an appropriate design. Any
error in this investigation will lead to failure of the project
Affect the project
schedule.
(Negative Impact)
2.3 Incomplete design Technical risks Submission of incomplete design will result in deviations of the scope from that
what is mentioned in the baseline. This will result in failure of the project.
Affect the project scope.
(Negative Impact)
2.4 Change in seismic criteria Technical risks If seismic criteria is altered then the building does not meet the life-safety
objective of the Guidelines if one or more of the following occurs in an
earthquake: The entire building collapses; Parts of the building collapse;
Components of the building fail or fall; or Exit/ entry routes are blocked,
preventing evacuation or rescue.
Affect the project scope
and schedule.
(Negative Impact)
2.5 Improper functioning of
equipment's
Technical risks Any malfunctioning in equipment being used in construction of the building will
result in delaying the project.
Affect the project
schedule.
(Negative Impact)
2.6 Wrong selection of materials Technical risks Misinterpretation of the raw material required as per the specifications of the
building is going to be constructed.
Affect the project
schedule and budget.
(Negative Impact)
2.7 Inflation Technical risks When there is inflation, however, and high unemployment, the demand falls and
supply rises, lowering the value of the currency. This will let the investors to
disinvest their money in the project.
Affect the project
schedule.
(Negative Impact)
Risk Management plan
Project Name: Project Zeta
Issue Date: 12 Dec, 2015
Project Number: Case study #1
Project Manager: Parwinder Singh
Document number: ACP_1239
Project Owner: James Thomas
12. ID Risk Category Description Effect on project
3 Organizational risks
3.1 Insufficient revenues Organizational risks Insufficient revenues will result in deficiency of money to pay
the bills. This may be a temporary phenomenon resulting from a
delay in reimbursements or a more long-term problem that
results from costs simply exceeding revenues.
Affect the project
Budget.
(Negative Impact)
3.2 Intense competition Organizational risks Identify which competitor is going to launch the same project
and when he is going to launch the same project.
Affect the project
schedule.
(Negative Impact)
3.3 Incorrect selection of team
members
Organizational risks Misinterpretation of the abilities and qualities of the project staff
will result in failure of the project because experiences staff is
needed for timely completion of the project.
Affect the project
schedule.
(Negative Impact)
3.4 Local labor strikes Organizational risks Labor strike is work stoppage caused by the mass refusal of
employees to work. A strike usually takes place in response to
employee grievances.
Affect the project
schedule.
(Negative Impact)
3.5 Financial Gain Organizational risks Saves money by reducing use of diesel generators Affect the project
schedule.
(Positive Impact)
Risk Management plan
Project Name: Project Zeta
Issue Date: 12 Dec, 2015
Project Number: Case study #1
Project Manager: Parwinder Singh
Document number: ACP_1239
Project Owner: James Thomas
13. ID Risk Category Description Effect on project
4 External risks
4.1 Outsourcing vendor not available on
time
External risks Outsourcing vendor is hired to provide consultation throughout the project.
Because outsourcing vendor has experience of the similar projects so this
will result in better planning of the project. Unavailability of the outsourcing
vendor will affect the performance of the project.
Affect the project
schedule.
(Negative Impact)
4.2 Natural Disasters External risks Natural disasters can occur when the project is going on. This will stop the
work and then this will affect the work performance of the project.
Affect the project
schedule.
(Negative Impact)
4.3 Unacceptance by customers External risks Customers can show unacceptance if they don’t like any of the aspect of the
building. This will lead to failure of the project because customer
satisfaction is the major aspect for success of any project.
Affect the project
scope.
(Negative Impact)
4.4 Transportation problems for import of
supplies and materials on time
External risks Transportation problems can delay the delivery of the supplies, materials
and fuel which will stop the work, or affect the performance of the work.
This will lead to failure of the project.
Affect the project
schedule.
(Negative Impact)
4.5 Incomplete or wrong environmental
analysis
External risks Incomplete or wrong environmental analysis will lead in misidentification or
in-identification of several factors that can affect the construction
procedures and can give rise also to several disasters.
Affect the project
schedule.
(Negative Impact)
Risk Management plan
Project Name: Project Zeta
Issue Date: 12 Dec, 2015
Project Number: Case study #1
Project Manager: Parwinder Singh
Document number: ACP_1239
Project Owner: James Thomas
15. Secondary risks
Primary risk Risk response Secondary risk
Raw material and other
supplies not supplied on time
Then another supplier is
selected for supplying the
material
Low quality of raw material
and other supplies
18. Project success Measures
Meeting Agreements:
Scope- A building constructed between wong and ferrier
buildings will house two natural gas generators to provide
enhanced power facility
Schedule- Project must be completed in 1 year
Budget- Cost must not exceed 16 million $
Customers Success:
Needs & Deliverables: Building housing two generators that
run on natural gas
Performance: Generators must replace the mobile- diesel
generators and provide emergency service too.
Customer satisfaction: Customer review will be recorded to
assess their satisfaction level and determine the .
success of the project.
Performing Organization’s Success:
Market share: Project is targeted to acquire additional
revenue of 2%
New Product: This project is ecofriendly and by replacing
mobile diesel generators it will be proven beneficial for the
organization
Project Team Success:
Team Development: Project team will be selected on the basis
of experience as the experienced staff will nullify the rate of
errors in the project
Team Satisfaction: Team satisfaction rate is assessed to verify
that the performance rate and quality of work performed
Project Success
Measures
19. Project Stakeholder Priorities
Improve Keep Comments
Scope X
Schedule Compress by >= 2 months
Budget Save Budget
Requirements X
Progressive performance
evaluation and reporting
X
Ecofriendly X
Experienced staff X
Outsourcing vendor X
Team satisfaction X
Market status X
22. ID Risk Risk Response
Strategy
Probabilit
y
Impac
t
Owner Effect on
project
Response Trigger
1 Project Management
Risks
1.1 Scope Creep AVOID Medium High Project
Manager
Negative 1. Design and execute to a strong scope change
procedure.
2. All scope changes request are documented,
approved or denied by project management
Regular demand of sponsor
for updating scope by
adding some factors or by
eliminating some.
1.2 Absence of leadership AVOID Low High Project
Manager
Negative 1. Seek expert guidance
2. Monitor staff performance and lead them
No coordination of team
members and lack of
progressive monitoring
1.3 Poor cost Estimates AVOID Low High Project
Manager
Negative 1. Revise plans.
2. Seek expert guidance, Update them by
conducting meetings with the team
Insufficient cost for
particular activities
1.4 Poor schedule
estimates
AVOID Low High Project
Manager
Negative 1. Revise plans.
2. Seek expert guidance, Update them by
conducting meetings with the team
Insufficient time for
particular activities
1.5 Improper
communication
channels
MITIGATE Low High Project
Manager
Negative 1. Revise communication management plan
2. Identify suitable communication channel
Absence of communication
channels between the
stakeholders
1.6 Inadequate
networking of project
activities
AVOID Low High Project
Manager
Negative 1. Identify in the project charter the project
resources required for the success.
2. Identify backup plan for each resources.
Wrong estimation of
predecessors and
successors for the activities
1.7 Referendum delays MITIGATE Medium High Project
Manager
Negative 1. Adjust proper timing for the referendum
meeting in the project schedule as a reserve
Meetings for selection
criteria not arranged
properly
1.8 Under Budget EXPLOIT Low High Project
Manager
Positive 1. Wisely use of resources to achieve more work by
use lesser budget by avoiding rework
Proper and witted use of
resources
1.9 Compressed Schedule EXPLOIT Medium High Project
Manager
Positive 1. Wisely use of experienced resources to achieve
more work in compressed time by avoiding
rework
Use of experienced
resources
23. ID Risk Risk Response
Strategy
Probability Impact Owner Effect on
project
Response Trigger
2 Technical Risks
2.1 Insufficient
supply of supplies,
materials and fuel
MITIGATE Low High Anny Negative 1. Identify the reason for uneven supply if
it happens
2. Find an alternative supplier for the
same by finding a backup plan
All clients demanding
same resources on
same time from that
same supplier
2.2 Inadequate site
investigation
AVOID Low High Christy Negative 1. After site investigation, verify the
reports with experienced consultant to
minimize the error rate.
Lack of experience
2.3 Incomplete design AVOID Medium High J Chrimsome Negative 1. After designing the building map, before
submission verify whether it fulfill all the
stakeholder requirements or not.
Hurry to complete the
project will lead to rise
of these kind of errors
2.4 Change in seismic
criteria
AVOID Low High R Thomson Negative 1. Seismic criteria for the building must be
verified from the experts because this
will lead to major failure of the project.
Lack of experience
2.5 Improper
functioning of
equipment's
TRANSFER Medium High Robert Negative 1. Identify which equipment can show
malfunctioning
2. Have a backup plan ready
Old machinery and
equipment and lack of
maintenance
2.6 Wrong selection
of materials
AVOID Low High Phillip Negative 1. On selection of the raw material seek
expert guidance to make sure that the
selected material is of good quality
Lack of experience
and try to save cost
2.7 Inflation MITIGATE High High Anny Negative 1. Market can show fluctuations in
currency exchange rate.
2. Have a back up plan ready to tackle
Fluctuations in share
market
24. ID Risk Risk
Response
Strategy
Probability Impact Owner Effect on
project
Response Trigger
3 Organizational
risks
3.1 Insufficient
revenues
MITIGATE Low High Christy Negative 1. Insufficient revenues from the project
can be a reason for major failure of
the project.
Fluctuation in exchange
rate and share market
3.2 Intense competition MITIGATE High High Robert Negative 1. Figure out which competitor is
launching the same product and when
2. Plan to launch your product
successfully before him
Competitors working on
same project
3.3 Incorrect selection
of team members
AVOID Low High Phillip Negative 1. While selecting the team members
assess their experiences, qualifications
2. Discuss with expert to make sure your
selection is right
Lack of experience and
improper RAM
3.4 Local labor strikes MITIGATE Medium High Anny Negative 1. Have a back up plan ready to tackle Lack of leadership
3.5 Financial gain EXPLOIT High High Christy Positive 1. Financial gain can be achieved by
positive inflation and also the mobile
diesel generators are replaced these
will benefit the organization
Fluctuation in share
market
25. ID Risk Risk
Response
Strategy
Probability Impact Owner Effect on
project
Response Trigger
4 External risks
4.1 Outsourcing vendor
not available on
time
MITIGATE Low High Anny Negative 1. As per system vendor requirement,
mention his availability in
responsibility assignment matrix.
2. Update resource calendar showing
when he is available and when on
vacation
Lack of proper RAM and
Resource calendar
development
4.2 Natural Disasters MITIGATE Medium High J Chrimsome Negative 1. Identify natural disasters that can
affect the project
2. Identify backup plan to tackle them
Lack of backup plan
4.3 Unacceptance by
customers
MITIGATE Low High R Thomson Negative 1. Identify the reasons for in acceptance
of the product by the customers
2. Plan to improve them
-----
4.4 Transportation
problems for import
of supplies and
materials on time
MITIGATE Low High Robert Negative 1. Identify the transportation problems
that can occur and affect timely
availability pf the requirements
2. Identify backup plan or alternative to
overcome
Traffic, Vehicle
malfunctions and other
natural weather obstacles
4.5 Incomplete or
wrong
environmental
analysis
AVOID Low High Phillip Negative 1. While doing analysis seek expert
guidance to make sure that analysis is
complete and right
2. Have a backup plan ready
Lack of experience