Project Management Assignment: Risk Management Plan For Lot Fourteen

Question

Task: Your task
Individually, you are required to complete a comprehensive risk analysis and stakeholder management plan based on your work in the first and second assessments. Therefore, this assessment is a culmination piece.

Assessment Description
The purpose of this assessment is to foster students’ ability to evaluate and determine project viability, including the analysis required in the selection process. This will also form a part of students’ ability to create project portfolios that meet an organisation’s strategic goals and requirements and analyse project lifecycles and the processes involved in project development. Students will also demonstrate the criteria required to evaluate the success of projects based on an organisation’s goals, strategy and standards and analyse the project lifecycle and the process involved in project development.

Project Management Assignment Instructions
Presume that you are advancing the Lot Fourteen project and that you have now been asked to prepare a detailed risk analysis and stakeholder management plan before commencing the project.

Complete a comprehensive risk assessment of your project proposal and statement of work (SOW), linked directly to the case study. In addition, complete a stakeholder management plan, in which you will propose ways to manage the relationships between the stakeholder groups identified in the case study and the proposals you have put forward in the first and second assessments. Your analysis needs to be directly linked to the case study and related to all the elements you addressed in the Project Strategy Framework and Statement of Work (SOW).

Your risk analysis should be approximately 800 words. In it, you must include the concepts studied in weeks 4 and 5, accompanied by at least one or more of the risk assessment techniques used, such as risk assessment grid or project risk picture. You must identify potential risks in addition to your research on the project and its site by stating a clear outline of how these will be managed.
Your stakeholder management p should be approximately 1200 words. In it, you must follow an appropriate, professional presentation style addressing the South Australian Government (who have commissioned the project) and include the identification of the various stakeholders, their interest and influence over the project, and a clear outline of the engagement strategy for each stakeholder group.

Please don’t forget to outline the appropriate objectives and measures for the various stakeholders, using the relevant frameworks, concepts and diagrammatic tables, as necessary, to explain your reasoning clearly and concisely.

Answer

1 Introduction
1.1 Purpose of the risk management plan of lot fourteen
A risk is a contingent event that may or may not happen and can have a positive or a negative influence on the objectives of the project. Risk management is the process of identification, assessment, responding and reporting the risks (Ganguly 2020). The Risk Management plan will enable definition of how risk linked with Lot Fourteen will be traced and managed. It helps in outlining how the performance of risk management will be done, recorded and assessed throughout the project cycle.

2 Risk management procedure
2.1 Process
The project manager working with the project team and other sponsors will ensure that the risk is identified properly, ascertained and managed throughout the lifecycle. Risk will be traced in no time so that the impact will be minimized. The project manager working with the project team and project sponsors will ensure that risks are actively identified, analyzed, and managed throughout the life of the project. Risks will be identified as early as possible in the project so as to minimize their impact. The steps for accomplishing this are outlined in the following sections.

2.2 Risk identification
Identification of risk will comprise of project team concerned stakeholders and will comprise of the assessment of the environmental factors followed by the culture and the management plan. Proper attention will be dedicated to the deliverables of the project with other constraints, resource plan and key documents.

2.3 RISK ANALYSIS
Every risk traced will be evaluated to trace the outcomes that are possible. Qualification will be utilized to ascertain the risks needed to respond to the risk.

2.3.1 Qualitative Risk Analysis
The probability and the influence of the risk occurrence will be evaluated by the project manager with the following approach being used by the team.

Probability
High when more 70% of occurrence
• High – Greater than <70%> probability of occurrence
• Medium is in the range of 30-70%
• Low is below 30%

Impact
• High – risk that contains the capacity to influence project cost, schedule or performance. In this case additional actions are required to control the acceptable risk. Herein the factors such as material having toxic nature in the construction will lead to flouting of laws and subsequently leads to fines and penalties (Ganguly 2020).
• Medium – risk that contains the capacity to influence the project in a slight manner. This leads to increment in the cost, schedule disruption and performance degradation (Ganguly 2020). The workers if not trained properly might lead to lower productivity and hence can influence the project slightly which needs to be corrected by designing plans for training
• Low – risk that has little influence on the cost. This has little or negligible increment in the cost or performance degradation. The actions of the planned project will help in controlling the acceptable risk. Here response plans are not needed.

As the project is to renovate the old heritage buildings and direct future development of Adelaide CBD, the project is a high sized project
The project comprises of multiple divisions within the organization. Since it involves complexity it is rated as high complexity

Quantitative Analysis

Every risk that falls in the red and yellow zone will be assigned to the project team member for the purpose of evaluation to ensure that the risk does not fall through the crack.

For every risk one of the following mechanisms will be used to address:
Avoid: elimination of the threat by removing the cause
1. Ensuring the material is of high quality
2. Ensuring materials contain no toxic elements
3. Hospital to be structured with material of low toxic nature
Mitigation: identification of the ways for reduction of the risk probability

1. Training of the workers needs to be adequate
2. Awareness of the danger and mitigation of the same
3. Strict guidelines for the employees as a whole

Accept: Nothing to be done
1. Accidental failure where the patient is affected
Transfer: responsibility provided to another party for the risk that is outsourcing or buying insurance.
1. public liability insurance against personal injury or death
2. Protecting the building during construction

STATEMENT OF WORK
Project background
Project name: Direct future development in the Adelaide CBD.
Project ID: CBD-001
Project Site: Adelaide
Lead office: Sitetune HQ
FPD: 00-221
Project type: Construction
Project cost: $320,000,000
Prime contractor: FBD Design and Build

Point of contact

Purpose
The aim of the project is to ensure direct future development in the Adelaide CBD

Requirements
The scope is to reconstruct the city and providing it an innovative look so that diversity can be maintained followed by the enrichment of the city. The planning comprises of reutilization of the heritage building and the changes in the building.

Deliverables
- Reconstruct city
- Reconstruct the heritage sites
- Development of central streets
- Reconstruction of the terrace steps

The project is to be done in phases and will stress upon innovation in the areas of South Australia.

Date: Wednesday, 06 October 2021, 12 am
Signature: David Watson (Lead Engineer)

Part 2
Introduction
The unique nature of the construction project ensures the stakeholder management in the sector to consider the unique factors like the contract type and the project nature. Herein, the task is in the area of the construction sector that operates with large teams and is related to the direct future development in the Adelaide CBD. The relationship between the process agents in the construction can be limited through contracts for instance the client and the builder. To attain the desired result, the project director needs to be skillful in the stakeholder management during the project process from the starting until the establishment. The continuous communication with the stakeholders makes the management aware of the different stakes in business (Famiyeh 2017). Stakeholder comprises of all the members in the project team and the interested entities that are internal or external. The project team traces the internal and external, performing and advising stakeholders to ascertain the project needs (Akhwaba 2021).

Project stakeholders
Individual, as well as organization that are actively present in the project or where the interest might be affected positively or negatively considering the execution of the project. The project management team ascertains the stakeholders, their needs and wants and then manages the expectations for a successful project (Rajhans 2018). The stakeholder categories herein are:

i. Shareholders
ii. social and political organizations
iii. clients
iv. suppliers
v. Landowners
vi. Environmentalists
vii. Residents
viii. Local authorities

Stakeholders influences over the project

• External Stakeholders
- Interest group
Interest group can function both as local and national and can be proponents and opponent. Interest group can be developed in various manners and have power to impact the decision of the project (Jason et al 2013).

- Media
Media can influence both the opponent and the proponent in the process of decision making. It can be used as a tool by stakeholders to influence other stakeholders. In short, it can even be used as a forum to provide information to other stakeholders (Amadi et al 2018).

- Public
It can be defined as a large and an elusive stakeholder. The public benefit from the project and might suffer negative impact too (Amadi et al 2018). Herein, the design and future development of Adelaide will provide a great benefit to the public in form of design, appeal and the structure of the city.

Identifying the stakeholders

Stakeholder need and expectation

Measures to be taken for satisfaction of the stakeholder
For the construction process, the key points that need to be remembered for satisfaction of the stakeholders are:

Customer satisfaction
Customer satisfaction is the major element in total quality management which is an approach that stress upon the total satisfaction through the enhancement of the products. Construction companies needs to adopt TQM that helps in enhancing the performance. Understanding the customer needs will helps in providing customer satisfaction (Fassin 2012).
Quality control (focus on customer, leadership and people involvement)
The interest of all interested parties needs to be carefully understood and hence a clear vision of the organization is framed. Providing people with the desired resources and training will help in accountability (Ohman, Hackner & Sorbom 2012)

System approach to management
In this case, proper understanding should be done by knowing the interdependencies between the functions. A well-structured approach will harmonize, as well as integrate the process.

Appropriate decision making
This can be done through providing the desired data what helps in proper decision making. The data should be evaluated through valid mechanism.

Conclusion
The aim of the stakeholder management is to enhance the benefits that can be extracted from the stakeholders while reducing the possible downside that arises through them. Stakes are dynamic in nature and hence should be evaluated. Stakeholders even contain dynamic power level associated with power and urgency. It is important to track the stakes and stakeholders every time. Every stakeholder is vital for the organization however the order of importance is important to be ascertained because that determines the success of the project. By implementation of the above techniques the priority of engagement can be ascertained and such measures helps in satisfying the stakeholder. This will result in the satisfactory project delivery will ensure the overall success of the project.

References
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