Instructions for Assignment 3: Risk Workshop and Risk Register
Write an eight (8) Risk Workshop and Risk Register Component paper in which you:
1. Identify the required pre-workshop activities.
2. Prepare a risk workshop agenda based on Figure B-8, Sample Agenda for a First Risk Assessment / Two – Day Risk Workshop (Appendix B of the Hillson and Simon text). Include suggested time intervals for each activity and justify why each agenda item is relevant for this case.
3. Determine the top five (5) threats in a risk register following Figure B-11, Sample Simplified Risk Register Format (Appendix B of the Hillson and Simon text). Include information from the case for each threat.
4. Justify the assignment of probability and impacts for each threat identified in criterion number 3 of this assignment.
5. Document the top three (3) opportunities in a risk register following Figure B-11, Sample Simplified Risk Register Format (Appendix B of the Hillson and Simon text). Include information from the case for each opportunity.
6. Justify the assignment of probability and impacts for each opportunity identified in criterion number 5 of this assignment.
7. Use at least two (2) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
· Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
· Assess and prioritize risks to the project through an analysis of the active threats and opportunities presented.
· Apply the Active Threats and Opportunities Management (ATOM) process to ensure a consistent, measurable result of this analysis.
· Use technology and information resources to research issues in project risk management
· Write clearly and concisely about project risk management using proper writing mechanics.
1. Reading(s)
0. Hillson and Simon, Chapter 15: Simulating Possible Futures (Quantitative Analysis)
0. Hillson and Simon, Figure B-5: Sample Project-Specific Probability-Impact Scales
0. Hillson and Simon, Figure B-6: Sample Double Probability-Impact Matrix
0. Heldman, Chapter 5: Analyzing and Prioritizing Risks
Practical Project Risk Management - 1 Year Option, 2nd Edition
David Hillson
Project Manager's Spotlight on Risk Management - 1 Year Option
Kim Heldman
https://eds.a.ebscohost.com/eds/ebookviewer/ebook/bmxlYmtfXzE2NzIyOTdfX0FO0?nobk=y&[email protected]&vid=6&format=EB&rid=1
(this link goes to ebscohost library where you can read book information for chapter 15)
http://www.atom-risk.com/templates.html
(this link should be helpful)
https://www.researchgate.net/publication/237 ...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Instructions for Assignment 3 Risk Workshop and Risk RegisterWr.docx
1. Instructions for Assignment 3: Risk Workshop and Risk
Register
Write an eight (8) Risk Workshop and Risk Register Component
paper in which you:
1. Identify the required pre-workshop activities.
2. Prepare a risk workshop agenda based on Figure B-8, Sample
Agenda for a First Risk Assessment / Two – Day Risk
Workshop (Appendix B of the Hillson and Simon text). Include
suggested time intervals for each activity and justify why each
agenda item is relevant for this case.
3. Determine the top five (5) threats in a risk register following
Figure B-11, Sample Simplified Risk Register Format
(Appendix B of the Hillson and Simon text). Include
information from the case for each threat.
4. Justify the assignment of probability and impacts for each
threat identified in criterion number 3 of this assignment.
5. Document the top three (3) opportunities in a risk register
following Figure B-11, Sample Simplified Risk Register Format
(Appendix B of the Hillson and Simon text). Include
information from the case for each opportunity.
6. Justify the assignment of probability and impacts for each
opportunity identified in criterion number 5 of this assignment.
7. Use at least two (2) quality resources in this
assignment. Note: Wikipedia and similar Websites do not
qualify as quality resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides.
· Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this
assignment are:
2. · Assess and prioritize risks to the project through an analysis
of the active threats and opportunities presented.
· Apply the Active Threats and Opportunities Management
(ATOM) process to ensure a consistent, measurable result of
this analysis.
· Use technology and information resources to research issues in
project risk management
· Write clearly and concisely about project risk management
using proper writing mechanics.
1. Reading(s)
0. Hillson and Simon, Chapter 15: Simulating Possible Futures
(Quantitative Analysis)
0. Hillson and Simon, Figure B-5: Sample Project-Specific
Probability-Impact Scales
0. Hillson and Simon, Figure B-6: Sample Double Probability-
Impact Matrix
0. Heldman, Chapter 5: Analyzing and Prioritizing Risks
Practical Project Risk Management - 1 Year Option, 2nd Edition
David Hillson
Project Manager's Spotlight on Risk Management - 1 Year
Option
Kim Heldman
https://eds.a.ebscohost.com/eds/ebookviewer/ebook/bmxlYmtfX
zE2NzIyOTdfX0FO0?nobk=y&[email protected]&vid=6&format
=EB&rid=1
(this link goes to ebscohost library where you can read book
information for chapter 15)
http://www.atom-risk.com/templates.html
(this link should be helpful)
4. Abstract
This paper includes an assessment of the key success factors, as
well as the risks of the EQI firm that specializes in providing
tourist services in Siwa, Egypt. In particular, it describes
factors such as the uniqueness of the place, demand,
environmental quality, involvement of the local community in
the activities, and investments. The study has also revealed the
benefits of the project, its organizational readiness, and the
presence of a risk culture, which is determined to be effective.
The paper indicates the initial risk levels that are present in the
project, and provides recommendations for mitigating and
minimizing them.
Keywords: project risks, risks assessment, key success factors.
Assessing Organizational Readiness
Introduction
Any touristic company, regardless of its location, faces constant
risks that arise due to frequent changes in the economy or
public policy, insufficient planning, and insufficient
development of the risk management system. Using the example
of Environmental Quality International (EQI), a privately owned
Egyptian firm, it is possible to look at the specifics of running a
tourism business, identify key factors for its success, and
analyze what barriers may occur in the hospitality industry and
how it is possible to control them.
Analysis of Critical Success Factors
Critical success factors (CSFs) are common to the tourism
industry. However, their particular set may differ because they
are directly dependent on the type of services provided.
According to Yaraghi & Langhe (2011), it is possible to
distinguish the following factors with respect to Environmental
Quality International (EQI):
5. · The uniqueness of the tourist location. Siwa Oasis, on the
basis of which EQI develops its activities, is the most remote of
the Egyptian oases. It is located at 18.3 meters below sea level
on the old caravan route. This oasis is a small island of life in
the heart of the Western Desert and is separated from Cairo by a
distance of 550 km of lifeless desert. The city of Siwa was built
around Shali, a settlement of the 13th century, surrounded by
high walls, the purpose of which was to protect the inhabitants
from possible attacks. In this regard, Environmental Quality
International has discovered a unique geographical location,
interesting as a worldwide attraction, which, at the same time,
does not have a developed tourist sector.
· The presence of demand from tourists. An important critical
success factor is the presence of demand among tourists for
visiting Siwa because the oasis offers everything that they
expect from the sights of the desert, in particular, dense palm
groves around fresh water sources and salt lakes, harsh massifs,
and huge dunes. Also impressive are the ruins of Shali built of
unbaked clay bricks and similar to urban mazes that once
protected Siwa people from raids. Around the oasis, there are
ruins of temples that speak of the glory and prosperity of Siwa
in ancient Greco-Roman times. This description allows
concluding that the provided sights will have a large target
audience, including businesspeople, students, and families with
children.
· Orientation to international environmental quality. EQI aims
to develop global tourism in Siwa. At the same time, it intends
to adhere to environmental standards that do not violate the
environment. For example, hotels of the company are built
according to ancient architectural schemes, which include
exclusively natural materials. In addition, the interior is also
adapted for the use of natural means to provide convenience -
coal fryers for heating, candles for lighting, and so on. Modern
social trends prove that tourists are more loyal to environmental
protection measures, which increases the firm’s competitiveness
against the background of the rest of the tourism sector.
6. · Commitment to local community involvement in tourism. An
important critical success factor for EQI is the inclusion of
local people in its work activities. This approach gives several
advantages at the same time. Firstly, it is a saving in
organizational costs since local residents do not need additional
housing provision. Secondly, the surrounding community
understands the peculiarities of the traditional way of life in the
area most deeply and is able to transfer it to the service sector.
Thirdly, the involvement of local residents in tourism activities
contributes to the growth of their well-being, which improves
the economic health of the area as a whole.
· Support from the International Finance Corporation. Tourist
activities based on the above principles are a priori successful
for investors, because of which the company has good financial
support in the Corporation. In addition, it is possible to assume
that it is not the only investor, which may be interested in the
project, so financial support will allow EQI to feel more at ease.
Project Benefits, Organizational Readiness, and Risk Culture
Project benefits. According to the previous section, the main
advantages of the project are the uniqueness of the tourist
location and the unemployment of the tourist segment in the
analyzed region (Siwa). In this regard, Environmental Quality
International gets the opportunity to start tourism activities in
the oasis first and use all available resources to increase its own
efficiency (Jugdev, 2012). Another important advantage is the
balance between old traditions and modern innovations. In
particular, the attractiveness of the place for tourists increases
if it focuses on the culture and identity of the area. The sale of
souvenirs and goods that correspond to national traditions, the
reconstruction of ancient buildings - all these features fall under
the definition of the term national treasure, which tourists
always explore with interest. Finally, an important advantage is
the good relationship with clients. That is, the firm organizes
leisure in such a way that it meets their needs if taking into
account living in an area that is underdeveloped in terms of
infrastructure (Jugdev, 2012).
7. Organizational readiness. Regarding organizational readiness,
Environmental Quality International has some problems. First of
all, they relate to construction directly. In particular, EQI
initially decided to build houses for tourists with using original
technologies, namely, palm logs and blocks of rock salt and
mud. For modern times, it is an innovative way of construction,
which does not have a technical description since only a few
local elder residents know the traditional methods of housing
construction. The second problem in this sector is the high cost
of construction. The materials necessary for the construction
must be pretreated and created by experienced craftspeople. For
this reason, there is also difficulty in the qualification of
workers and the schedule. However, the firm could solve the
described problems in the end, which helped the company to
cope with the tasks and build the required number of lodges
corresponding to the national culture. Another organizational
problem was the involvement of local women in the execution
of work. Traditional culture and education of local female
residents did not allow them to work with the male population,
so the influence of the company stopped for a while. However,
EQI has found a way out. It consisted in introducing women to
tailoring traditional clothing and other attributes with elements
of national motives.
Risk culture. The risk culture is the knowledge, belief, values,
and understanding of the risks that a certain group of people
with a common goal shares (Govori, 2012). In the case of
Environmental Quality International, the firm maintains its risk
culture at a high level. First of all, the organization’s goals that
are the same for the whole team ensure this result. All of the
project participants understood that tourist activities in the
classical style could hinder the development of the project. For
this reason, they all adhered to common principles, in
particular, focusing on environmental standards, maintaining
local culture and attractions, and preserving ancient traditions.
The inclusion of the local community in the project has played
an important role. The formation of common values among the
8. locals, which Environmental Quality International has
supported, has ensured the growth of their friendliness and
loyalty to the company. In turn, it has significantly reduced the
risk of conflict with the local population. In this regard, it is
possible to consider the risk culture of the firm effective since
it provides a significant advantage for all project participants
including Siwa residents. For the company managers, it includes
competitive growth, a good income, and a contribution to
supporting local culture. In turn, Siwa residents receive
improved local economies, reduced unemployment, and control
of local attractions.
Identifying the Initial Categories of Risk
The initial risk categories in the Environmental Quality
International project can be the following (Hillson & Simon,
2012):
· Technical Risk: Technical processes, Technology, Design,
Reliability and maintainability, Security.
· Management Risk: Operations management, HS & E.
· External Risk: Environmental/weather.
Technical risks. This type of risk may relate to technical
problems arising during construction or subsequent repairs.
According to the previous section, the construction has been
quite expensive. In addition, it requires unique materials, the
making of which is a long process, given the lack of
qualifications of workers. For this reason, there may be a
chance of creating a poor-quality building that does not meet
safety standards. In addition, it is also necessary to remember
some of the needs of clients. Hypothetically, it is possible to
assume the situation that a certain segment of tourists will
refuse to rest in an area where the usual modern comforts are
minimal. Therefore, to meet their needs, the company will have
to change construction plans, thereby disrupting the
construction technology, or violate the local landscape and
environment. Also, risks related to subsequent housing repairs
are likely. Given the fact that the construction used archaic
technology, the strength of the buildings may suffer. For this
9. reason, they will require constant renovation to prevent
accidents. It may require additional and significant capital
investment.
Management risk. The project of EQI focuses on the use of local
labor and resources. There is a possibility of their shortage or
difficulties with the management and control of working
personnel. Occupational safety and health also pose significant
risks. First, the construction does not use materials
manufactured according to modern international standards.
Instead, it uses local resources, in particular, palm wood, rock
salt, and mud. Reliable research on the safety of using these
materials does not exist, so there is a possibility of violating
labor laws that guarantee the safety of workers. In addition, the
used materials may not be suitable for applying as building
attributes. For example, a palm tree may not be soaked enough
in salt water and contain ticks. Rock salt or mud can cause
allergic reactions in visitors. For these reasons, it is necessary
to consider this risk as particularly important.
External risk. Finally, one of the risks is the likely instability of
weather conditions in the area. It is necessary to note that Siwa
is characterized by high temperatures in the daytime and low
temperatures in the nighttime. The constructed buildings
maintain a balance of temperatures. However, considerable
climatic discomfort indoors can occur when the temperature
deviates significantly to either side.
Conclusions and Recommendations for Managing Project Risks
The information obtained shows that the main risks of
Environmental Quality International (EQI) are technical risks
and risks of occupational safety and hygiene. Given the ideas
from the book by Heldman (2005), it is possible to propose
recommendations for mitigating and minimizing these risks:
1. First of all, the firm must mitigate the technical risks that
relate to the production of materials and construction. For these
purposes, it is necessary to conduct a scientific study of the
composition of materials used for construction, find out their
properties and stability, and conduct a series of laboratory tests.
10. Based on the data obtained, the EQI management will be able to
develop a manual for technical operation and preparation of
materials, including a list of mandatory procedures and the rigor
of their observance. This approach will help to improve the
skills of workers and avoid technical errors in construction.
2. The second recommendation concerns occupational health
and safety of workers. In this case, laboratory testing of
materials for construction will help as well. After obtaining the
necessary data, the person responsible for safety should create
conditions, which will eliminate the risk of injury to workers or
their illness. For example, these conditions may include
specially equipped rooms with good ventilation for the
production of stone blocks or soaking the wood. Also, this
approach will help to minimize the likelihood of allergies
among clients.
3. The third recommendation is to build separate rooms of
modern material and with internal amenities for customers who
do not want to live according to traditional local characteristics.
Such a step will resolve the issue with the satisfaction of the
full range of tourist needs.
References
Govori, A. (2012). Measuring and Managing the Impact of Risk
on Organizations: The Case of Kosovo. Journal of Advanced
Research in Management, 3(1), 17-26.
Heldman, K. (2005). Project manager’s spotlight on risk
management. San Francisco, CA: Jossey-Bass.
11. Hillson, D., & Simon, P. (2012). Practical project risk
management: The ATOM methodology (2nd ed.). Vienna, VA:
Management Concepts.
Jugdev, K. (2012). Learning from Lessons Learned: Project
Management Research Program. American Journal of
Economics and Business Administration, 4(1), 13-22. doi:
10.3844/ajebasp.2012.13.22
Yaraghi, N., & Langhe, R. (2011). Critical success factors for
risk management systems. Journal of Risk Research, 14(5), 551-
581. doi: 10.1080/13669877.2010.547253
ASSIGNMENT 2: RISK MANAGEMENT PLAN 11
Assignment 2: Risk Management Plan
By: Annette Dixon
Course: Bus - 519
Instructor:
Date: October 29, 2018
Assignment 2: Risk Management Plan
Risk management is a crucial factor when setting up a
business. There is a high probability that the company will
succeed if incorporated into the company’s policies and
strategy. However, if not considered it is evident that the
company will find it hard to keep afloat. This document is the
Risk Management Plan of Environment Quality Information
(EQI) firm based in Siwa, Egypt. The plan defines the risk
12. management plan that will be implemented. It is the
responsibility of the Project Manager to update the plan to
ensure it deals with any present risk factors by reviewing and
maintaining the risk management plan of the EQI firm
throughout the entire project duration.
Scope and Objectives of the Risk Management Process
The Project Scope
EQI firm, a privately owned tourist company, is situated in
the remote Egyptian oasis of Siwa in the expansive Western
desert. The place is located 550 km from Cairo, the capital city
of Egypt, and therefore a good get away place for both local
people and international tourists. The oasis provides the only
source of life in the rather lifeless desert. It is a source of fresh
and saline water in the desert, In addition to this, the project
boasts of being in a place full of tourist attraction features since
it is positioned among the famous sand dunes, palm grooves,
and the ancient Shali Ruins. All these tourist attraction features
gives the company the assurance that the project will attract and
maintain many visitors. The fact that the place is located in an
underdeveloped and unexploited tourism destination implies
less competition, which translates to more visits by tourists.
Financially, this implies more revenue for the firm. The Project
Objectives
Some of the company’s objectives are:
· To provide quality and affordable tourism services to both
locals and international tourists. The former will be offered
even cheaper incentives to encourage them to visit the site often
since it is they who harbour the initial potential for the
business.
· To manage and conserve the environment where the firm is
located. In alignment with the environment conservation efforts
around the world, the company aims at utilizing the tourist
attraction sites to draw in more tourists, and use part of the
proceeds to conserve the environment.
· To involve the local residents in tourism activities. The local
13. residents shall form the company’s main workforce. They will
give the company’s expatriates some guidance since they know
the area better, in turn they will be employed by the firm to
improve their living standards.
· To attract many investors. The firm will invest in the creation
of a good reputation for itself. With the factors mentioned
above, the firm expects to attract many investors. This will
definitely make the project financially stable and successful in
the long run.
· To assess and look into how to manage the risks involved in
the business. Despite the strengths outlined above, the project
managers are aware of the uncertainties and risks inherent in the
project, thus they are more prepared to counteract them.
· To provide employment to other professionals. Besides
targeting the local community, the project aims at tapping into
the expertise and knowledge of experienced and highly trained
hospitality workers from within the locality.
· To break-even within the first 2 years of operation. Once the
project starts running, it is expected that the firm shall recover
its initial capital overlay within 24 months.
Of all these objectives, environment conservation is of the most
priority. The project itself is based on the environment and with
a wasted environment; the project is infeasible. The local
community is also of much significance since without their
support, there will be probabilities of conflicts, which may
affect the project negatively. However, all the other factors are
important too as they are core to the operational success of the
project.
The Project Size
The strategic importance of the firm is critical to the business,
as the firm has to be located near the tourist attraction features.
The project team anticipates including investors from all over
the world. Post-project liabilities are of high consideration
since the project is rooted on environmental usage. Innovation
in this project is already existent, since the technology that will
be used is already in place, but requires minor adjustments. All
14. the stakeholders will calculate the project value, but due to its
complexity, the project will most probably be valued above
$2M. The tourism sector, where the project falls, is highly
regulated as it involves international investors, international
tourists and most importantly, the environment. Key project
objectives depend on external factors, thus the political support
is of great importance since the company’s clients shall come
from all over the world and the attraction features belong to the
country of operation (Hillson & Simon, 2012. However, it is
worth noting that the requirements in the project have not been
finalised until after consultation with the stakeholders.
According to the project-sizing tool, all these factors sum up to
a score above 75(128). This project, therefore, is large and
complex.
CRITERION
CRITERION VALUE=2
CRITERION VALUE=4
CRITERION VALUE=8
CRITERION VALUE=16
CRITERION SCORE
Strategic importance
The significant contribution to business objectives
4
Commercial complexity
No unusual commercial arrangements or conditions
2
External constraints
Key project objectives depend on external factors
15. 8
Requirement Stability
The requirement not finalised and subject to negotiations
16
Technical complexity
Enhancement of existing product/service
4
Market sector regulatory characteristics
Standard regulatory framework
4
Project value
Larger project value over $3M)
16
Project Duration
1-3 years
8
Project Resources
Larger project team including external contractors
16. 8
Post-project liability
Significant exposure
8
Overall Project Score
78
Figure 1. The overall expected project size and score.
The Risk Tools and Techniques
The EQI project aims to effectively manage all the risks that
may arise in the most appropriate and proactive manner. The
goal is to maintain an acceptable risk exposure level, which is
the maximum acceptable risks for the investors of the project,
and at the same time achieve the project objectives (Hillson &
Simon, 2012). For accountability, the risk process will involve
all project stakeholders. Through this way, the stakeholders will
gain a sense of ownership and take part in making critical
decisions that affect the survival and operations of the business.
Detailed information about the risk process shall be
communicated to the project stakeholders from time to time to
keep them updated and at the same time enable them to give
their contributions to any adjustments to the proposal. Through
risk management, the project stakeholders will be able to focus
their attention on the areas with the most risk and device
solutions on how to deal with them (Jugdev, 2012). An analysis
17. of the opportunities based on how well the company shall
capitalise on them and the threats on how best it can inhibit
them from affecting the project will be done. This way, the most
significant positives, and the worst negatives shall be analysed,
and a range of how the business will perform be set.
Risks are inherent in the project from the start and throughout
the operation of the project. Thus, the risk management plan
will take into account, not only the inception of the project but
throughout its lifetime. Risks are essential in every undertaking,
and they seem to magnify when the project is situated in a new
environment (Govori, 2012). The plan will, therefore, be
reviewed and updated regularly by the risk factors that will be
existent (it is expected the risk factors shall change from time
to time). Thus, the risk management plan will major on internal
risks, but the company will also consider external threats such
as the supplier, and program risks, which all shall affect the
business.
Risks expected in the project include technical, management,
commercial and external. To counter the first type of
uncertainties, the company shall consider including safety and
security of tourists and employees in its policies, maintenance
of the firm and its neighboring environment, the technology that
will be required and its compatibility to the area, and the
assumptions and estimates that shall be drawn, considering the
project operations (Jugdev, 2012). For the management risks to
be disputed, the organisation shall consider including project
and operations management, communication, advertisement and
access to information, quality and reputation of the firm. On the
other hand, commercial risks shall be mitigated by including
internal procurements, terms, and conditions of the offered
contracts, partnerships and retaining the company’s clients
(Heldman, 2005). Some of the external threats to be considered
include administrative, regulation and legislation requirements,
the environment and weather patterns of the area, competition
in the market, and social factors. External risks, just like
inherent risks, should not be overlooked. If not well taken care
18. of, the business will collapse.
Risk Review and Reporting
The EQI project requires continuous monitoring through the
formulation and implementation of a proper risk strategy and
action plan. Such a review of risks should be a regular topic in
the project management meetings to facilitate continuous flow
of work. This process should involve the control and monitoring
of any potential threats. The tools and techniques for
performing these assessments include risk reassessment, audits,
technical performance measurement, reserve analysis, and status
meetings, among others (Heldman, 2005). Thus, a watch list of
the prioritised risks should be developed and contemporary
measures formulated as a response to the mitigation. This
process is of a great significance as it ensures that appropriate
procedures of managing risks are in place, and they are clearly
understood and strictly followed. Furthermore, the process shall
serve as a risk register, which shall be regularly regenerated to
support new actions.
After a proper review, project risk reports shall be drafted,
which are of enormous significance when it comes to
communicating with project stakeholders. They will be the
driving force in ensuring adequate risk management actions are
put in place, and project outcomes are achieved according to
expectations (Heldman, 2005). Furthermore, the reports shall
help the project managers and clients to understand the existing
opportunities and risks, besides keeping them informed. The
results, apart from maintaining communication among the
stakeholders, is a balance between risk management actions and
core issues.
Risk Impact and Probability
Probability-impact assessment shall play a crucial role in the
project risk analysis. It shall involve investigation of the
probability that an event may occur and the impact the
occurrence shall have on the project. A medium, high and low
scale shall be used in the analysis, depending on the complexity
of the work. A comparison of the impact and probability scores
19. shall be done, which shall offer an overall conclusion of the
value of the risks of the project. However, an event with a low
probability/impact ratio shall not be taken to imply the reverse
ratio since impact scales are linear and probability ones are
logarithmic in nature.
The following table is the probability and impact scale for the
EQI project in Siwa;
scale
probability
Impact on project objectives
Time
Cost
Quality
VHI
71-99%
>3 years
>$5M
Very significant impact
HI
51-70%
2-3years
$3-$5M
Significant impact
MED
31-50%
1-2 years
$1-$3M
Impact on certain functional areas
LO
11-30%
3-12 Months
$1M
Mino impact on functional areas
VLO
20. 1-10%
<3 Months
<$1M
No unusual impact on overall functionality
NIL
<1%
No change
No change
No change
Figure 2. Table of expected risk impact and probability
Risk Threshold.
The risk threshold is the measure of the degree of uncertainty
that a particular event will occur and its level of impact. It shall
be one of the essential tools in risk management analysis, which
the project stakeholders shall be interested in. To quanitify the
potential threats, interviews shall be done on the stakeholders to
determine the real risks, according to their perception (Govori,
2012). Based on this, the project managers shall calculate the
risk threshold from the risk tolerance. Thus, failing to
understand the stakeholder's risk perception, tolerance and
threshold shall jeopardise the entire risk management plan.
RBS Level 0
RBS Level 1
RBS Level 2
Example
Project Risk
Management Risk
Competent management
- active management in the restoration of the cultural and
traditional identity
- promotion of tourism
-Balancing of women and male affairs in the project
Commercial Risks
Product prices
21. - high price for of local expertise and materials beyond the
affordability of the local population
- modern construction methods which are more economical and
faster to the native residents
External Risks
-Social
- Scarcity of Resources
- rising urbanisation leading to increased usage of the modern
machines
-Indoor bathrooms and the digging of several wells stresses the
supply of water
Figure 3. Table of expected risk threshold.
Risk management plan is a significant tool for the success of the
project. It is essential in understanding and handling the threats
that may be encountered during the duration of the project. The
analysis of these risks during the early stages of the project and
the development of mitigation plans as the project develops
plays a crucial role in its success. Therefore, if the outline plan
for the EQI project at Siwa is followed to the latter, then it is
easier to ensure its effective implementation by the
management, after consulting and reaching a common consensus
with all the concerned stakeholders.
References
Govori, A. (2012). Measuring and managing the impact of risk
on organizations: the case of Kosovo. Journal of Advanced
Research in Management, 3(1), 17-26.
Heldman, K. (2005). Project manager’s spotlight on risk
management. San Francisco, CA:
Jossey-Bass.
Hillson, D., & Simon, P. (2012). Practical project risk
management: The ATOM methodology. Vienna, VA:
22. Management Concepts.
Jugdev, K. (2012). Learning from lessons learned: project
management research program. American Journal of Economics
and Business Administration, 4(1), 13-22.