Risk management plan

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Risk management plan

  1. 1. 1 ASSIGNMENT # 1 PROJECT QUALITY AND RISK MANAGEMENT Submitted To: Submitted By: Kashif AliKhan(FA13) Project Construction of Shopping Mall
  2. 2. 2 Version Date February, 28, 2014 Status Approved Approved by Approver Name Approver’s Title Approver Section Revision History Date Version Author Comments Contents
  3. 3. 3 Introduction 1.1 Scope and purpose of document. ............................................................2 1.2 Overview of major risks. ..........................................................................2 1.3 Responsibilities. .......................................................................................2 2.0 Project Risk Tab 2.1 Risk Identification. ....................................................................................3 2.2 Description of all risks above cutoff. ........................................................3 2.3 Factors influencing probability and impact. ..............................................3 3.0 Risk mitigation, monitoring and management 3.1 Risk item #n. .............................................................................................4 1 Mitigation. ................................................................................................4 2 Monitoring. ..............................................................................................4 3 Management. ................................................................... .......................4 4.0 RM Plan Iteration Schedule 5.0 Summary 1.0 Introduction
  4. 4. 4 The design, use and maintenance of buildings and building service systems have become more and more complex, in the sense of management of information and knowledge. The systematical risk management methods and applications are sophisticated ways to evaluate and manage the risks. When planning a new building or renovation of the existing buildings, the best possibilities to effect on the costs, performance and conditions of the building is the pre-design and design phase. If the requirements for the building are properly set and also the possible evident risks have been evaluated, the implementation of the conditions and their matching to needs and requirements can be checked following a commissioning procedure (or, in general, mutually accepted quality control procedure) 1.1 Scope and purpose of document Risk management is executed at all levels within the project. The risk management process ensures that risks are mitigated at the appropriate level and communicated as appropriate. This plan provides guidance on managing all levels of risks. These processes are implemented within the each individual of the project teams that comprise the program. 1.2Overview of major risks Classification of risks is presented in 5 categories. Country related risks depend on the situation in the county, including economic risks, political risks and risk related to natural conditions. Implementation risks are risk caused by the realization of the case, including technical, financial, contractual (caused by the juridical content), personnel risk (caused by actions of employees) and risks caused by methods of implementation. Force Majeure risks are unforeseen risks, which are not possible to remove. 1.3 Responsibilities. The parties involved in the implementation of the project are assessed for their ability to take responsibility for the risk, and usually, the responsibility is given to the party that could handle it and to that it naturally belongs. Drafting a contract is a concrete tool for pinpointing the party responsible for risks. Through risk assessment, crucial matters to be included in the contracts are observed along with the necessary insurances and potential securities. 2.0 Risk Management Process: This section describes the risk management process from risk identification to risk completion. The risk management process is a continuous cycle performed initially during program planning and thereafter following identification of new risks. New risks may arise from a variety of sources: •Risks previously missed or unforeseen •Risks arising from an approved change request, where cost, schedule, or scope may be amended, impacting the critical path
  5. 5. 5 •Risks arising from major issues •Risks arising from the investigation of current risks •Risks arising from the outcome or consequence of a separate risk occurrence 2.1 Risk Workshops A Risk Workshop is a brainstorming session used to identify initial risks. The meeting participants are the members of the entire RM Working Group and representatives from FKUSA Program stakeholders. RM Working Group members discuss and identify potential and/or existing risks. At the workshop’s end, a list is compiled of all the initial risks and then entered into the Risk Management tool. 2.2 Continual Risk Identification Once initial risks are identified, an ongoing process for timely capture and management of risks will be established in several ways: • The Project Team Leads will hold regular meetings where risks will be constantly submitted and reviewed. 2.3 Project Risk Table: Risk Probability Impact Exposure Rank Country related risks Moderate Moderate High 4 Implementation risks Low Moderate Moderate 3 Personnel risk High High High 5 The risks related to partners moderate High High 5 Risks related of way of action during contract period low Low Low 1 Supply Chain Risk Low Moderate Low 2 Risk Identification.
  6. 6. 6 The risk identification process will be continue throughout the project life, the major risks which was identified is economic risks, political risks, risk related to natural conditions. Implementation risks.Technical, financial, contractual (caused by the juridical content),personnel risk (caused by actions of employees) , risks caused by methods of implementation. Force Majeure risks.Implementation risks include source information, and quality of this information (e.g. conditions of structures in renovation project), technical risks in construction work, investment costs, timetable of construction work and quality of technical plans. Risks related of way of action during contract periodinclude quality source information (e.g. energy consumption of previous years), availability and cost of finance (including interest rate), guaranteed savings and commissioning, maintenance costs (including changes in energy price and cost of maintenance investments). The risks related to partners of the project include economic status of parties and organizational issues (e.g. changes in personnel) 2.2 Description of all risks above cutoff. Risk Item Category Impact Political Crises BU 1 Energy Crises BU 1 Project not delivering expectations CU 1 Natural calamity BU 1 Stakeholder Responses BU 1 Funding could be stopped CU 1 Cost overrun BU 2 Unavailability Staff ST 2 Category is the risk category based on: · Product size PS · Business impact BU · Customer characteristics CU · Process Technology TE · Staff size and experience ST 2.3 Factors influencing probability and impact The Risk Rating is determined as depicted in the following two tables:
  7. 7. 7 • Green for Low/Very Low level risks • Yellow for Medium level risks • Red for Very High/High level risks 3.0 Risk mitigation, monitoring and management Risk mitigation Monitoring:
  8. 8. 8 The monitoring system can contain risk assessment tools which focus the monitoring and service to the risk points of the process. Disadvantageous factors of the various parts of the system are assessed based on three factors . The probability of occurrence (showing how probable is the occurrence of factor) and probability of discovery or detection (showing how easy to discover or detect the factor is) as well as the severity (showing how harmful this factor is) of the disadvantageous factor are assessed separately on a scale of one to ten (or some other selected scale). The product of these three factors is the total risk number (example in table 1). The higher the risk number, the higher the risk caused by the disadvantageous factor. When the risk points have been recognized, the measures can be focused: the risk points of the AC system can be handled with the monitoring system (critical monitoring points), and service can be targeted to the system risk points. Additionally, measurements can be utilized in defining the numerical values (severity based on measured value). Moreover, applications can be developed to assess risks in energy consumption, which is crucial in some contract models, e.g. in energy service contracts Management: risks are managed with the help of the information system, such as building management and monitoring system (BMS). The functionality of the technical system is monitored and measured, paying particular attention to the factors sanctioned in the contracts Risk Management Plan Iteration Schedule Revision of Risk management plan, revision of mitigation, monitoring and management decisions will be on monthly basis. Summary The design, use and maintenance of buildings and building service systems have become more and more complex, in the sense of management of information and knowledge. The
  9. 9. 9 systematical risk management methods and applications are sophisticated ways to evaluate and manage the risks. Good risk management should involve the entire project team includingdesign,engineering business,contracts,finance purchasing,estimating and project controls. The process is ongoing a never ending cycle and iterative process ofidentification,qualification,modeling, management and monitoring. The analysis can include identified risks, estimate and schedule items, new risks, secondary risks, scope changes, and actual cost. The risk management plan for the project “Construction of Shopping Mall” identify the risks that might hurt our project and also explain that how to respond these possible risk if they occur. The purpose of the plan is to remove/decrease the potential risks that might affect the project negatively up to the level acceptable to achieve the project objectives. Risk management is a proactive project management used to reduce the exposure to losses incurred during a course of action, which leaves an auditable stream of changes.The process focuses project resources on reducing vulnerability,providing early visibility of potential problem areas and creating mitigation actions.

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