(PMN607) Risk Management assignment analyzing business operational threats

Question

Task: how to investigate business operations threats using Risk Management assignment research techniques

Answer

Introduction
The Risk Managementassignment investigations show The MPMQ has purchased a tourism park that has been in business for the last 20 years. However, due to lack of sufficient maintenance and proper upgrades, the park is in a bad condition and needs renovation and repair works as soon as possible. In addition to this, the company needed to decide whether to install new facilities first or expand as much as possible and then invest the profits for facilities. Initially, the company came up with 4 different choices for project: Expansion of Caravan Park to 70 sites, Addition of Villas and Cabins, Addition of Motel and Common Facilities. Each of the projects will have its own benefits and disadvantages considering the current situation of the park and moreover, conducting all these projects together will require significant amount of investment from the company. Hence, after conducting analysis of both internal and external factors, the decision has been made that the Project 2 i.e. Addition of Villas and Cabins. However, the Risk Managementassignment research also shows the company will continue to work on the other projects as well once this one is completed. The purpose of this Risk Management assignmentis to analyse possible project and program level risks that might be associated with the project with a view to develop a plan that will in turn, help to prepare for a risk-free project.

Part A: Risk Management Plan
1. Background
The overall program planned by the company consists of four differentRisk Management assignment projects that are as follows.
Expansion of Caravan Park
Addition of Villas and Cabins
Addition of Motel
Common Facilities

Each of these subprojects of the overall program will be treated as a separated project will be conducted in a particular order based on the plan.

2. Overview
As earlier mentioned in the introduction section of this document, a scope of the Risk Management assignmentproject will be broken down into upgraded four subprojects. The subprojects involve those works which are developing and maintaining the Caravan Park’s reconstruction of existing sites to 70 sites, refabricating rooms of current 15 villas and 10 cabins, adding 20 motel rooms, and upgrading and adding facilities.

The SMART project objectives have been developed within aims of stakeholders’ expectation, budget,compliance, and quality aligning to the organization’s objectives,procedures and process (COSO, 2017). Therefore, efficient and effective delivery of each sub projects will be done through organisational policy, culture or environment, health and safety, timeline, sustainability, and quality.

The main objective of this Risk Management assignmentproject is to boost tourism activity in local area by developing modern standard of facilities. The positive outcomes of this project will be upgraded Parking area and attraction of new tourist point by supporting operational and local businesses, and by adding employment in the future.

3. Context – Environment
The target of the company is to increase the revenue streams by not only increasing the customer count but also by enhancing the quality of facilities and amenities provided so that they attract more customers on long term basis. The overall expansion program includes plans to increase the number of accommodation facilities as well as renovate and install new equipments at the site. This program has been directly aligned with the business strategy and objectives for long term sustainability and a stable revenue stream. However, the order of the Risk Management assignmentprojects that will be conducted will also have to align with not only the company strategies but also the resources available. Conducting each of the projects will also be affected by certain internal and external contexts that are discussed in the next section of the report.

4. External and Internal Contexts
Risk types Explanation of Risks

5. Stakeholders
The main stakeholders of the Risk Management assignmentproject are listed as follows.

Local (Council, Communities, Industries, Government)
MPMQ
Managing board
Strategic advisors
Programme support office or PMO
Environmental activists
Reputation/Media
Suppliers/contractors

6. Roles and Responsibilities
The roles and responsibilities of the human resources associated with theRisk Management assignment project are listed as follows (Faris& Patterson, 2007).

Leadership Team
- Analyse risk management strategy is aligning with the risk management plan and process outcomes
- Responsible for the risk bearer and effectively manage, review and monitor the high-level risks identified at business level and actively engage in the decision-making process.
- Approve Risk Management Plan and if any changes,take measurement on that and keepaccountability on continual progress of plan.

- ProgrammeManager
- Implement programme and track on the performance of programme within approved risk management plan
- Take accountability on continual programme risks that are identified, and keep analyse those risks, if required, plan mitigation and effectively engage with stakeholders to decrease risk levels
- Be aware of compliance and corporate objectives in the risk management plan
- Participate and build risk-based thinking systems among workers
- Make appropriate decisions based upon Risk Management assignmentaudit report and ensure continual process and if needed, make improvement

Project Manager
- Understand organisation’s external and internal contexts
- Be aware of risk management commitment
- Consider capabilities of, and constraints on, existing resources of project level risks
- Organize team consultation by collecting data and sharing information and review for risk processes
- Report to the PMO and Leadership team about 5 top risks currently identified and other gaps or issues due to reporting structure

Risk officer
- Provide and secure all employee are aware of organization’s risk management plan and its implementation
- Keep analysis and monitoring on current risks and identification of potential risks which can impact on all level of organization’s corporate, programme and project.
- Undertake risk evaluation and conduct compliance audits on the risk management process
- Develop risk management plan for the process, if there is a gap on continual process, to react and improve it by planning.
- Report to Leadership team top risks and keep and review the risk status updated.

All staffs
- Read and understand all procedure and plan relevant to risk management process
- Participate in identification, monitoring andevaluation of risks andin improvement of the risk management plan

7. Risk Criteria
The criteria for evaluating the risks associated with the Risk Management assignmentproject include the following.

Likelihood – This will define the likelihood of occurrence of the risk and will have three different segments: High, Medium and Low (Schuyler, 2001).

Likelihood of Risk Probability Description

8. Risk Register
The risk register is attached in the excel sheet along with thisRisk Management assignment document.

9. Communication, Consultation and Monitoring
The communication plan for the identified stakeholders is shown in the following table (Willumsen et al., 2019).

The company would be open to consulting focus groups in case insight is required on the risks similar projects have faced in the past. The program support office will assign a Risk Management assignmentProject Manager who will supervise, monitor and control the entire project from start to end.

10. Quantitative Risk Analysis
The quantitative risk analysis is performed by rating the risks identified for the chosen project on a scale of 1 to 5 as follows (Rane, Potdar&Rane, 2019). It is to be noted that both likelihood and consequence has 3 values for each risk – optimistic, pessimistic and most likely since PERT technique is used for the analysis.

11. Risk Managementassignment -Risk Treatment Plan
The risk treatment plan for each of the identified risks is shown in the following table.

12. Optimal Decision
The decision making process for identifying and managing risks in the entireRisk Management assignment project has been made through quantitative risk analysis (Dandage, Mantha&Rane, 2019). The risks have been identified based on an initial analysis of the deliverables, which included analysis of the type of work involved and other factors like equipments used, prices, risk factors for individual components and others. Furthermore, data sources collected from various online sites have been used to study and identify the risks different organisations experienced in similar types of projects in the past (George, 2020). The decision making process has been further encouraged and managed by the project leadership team who conducted in-depth analysis and used personal experiences and knowledge to take critical and optimal decisions for theRisk Management assignment project.

13. Conclusion
Overall, it can be concluded the Risk Management assignmentbased on the risk analysis study is that like other projects, this project also has ample amount of possible risks that maybe faced by the company during the project life cycle. However, no projects have ever been successful without implementation of proper risk management techniques and gathering experience from such risks accordingly. Based on the Risk Management assignmentanalysis, mitigation strategies and risk treatment plans have also been discussed that can be used by the company to ensure risk free environment in the project.

Part B: Business Continuity Management
1. Business Continuity Management
In addition to operating the Risk Management assignmentprojects, the company also needs to be aware of maintaining business continuity and avoid threats to the business (Hartono, Wijaya&Arini, 2019). One of the permanent infrastructures that is most essential for business continuity management is power supply system as it is most essential to run the facilities at the tourist park.

2. Business Risk Events
Some business risk events that can occur from the identified infrastructure are as follows (Crispim, Silva&Rego, 2018).

Lack of power supply
Sudden power cuts
Short circuits and long term power cut
Major short circuit and electrical power hazard (possibly fatal in extreme cases)
Essential equipments and amenities not functioning

3. Critical Business Functions
All the critical business functions of the Beardmore Tourist Park depend on the availability of power supply (de Araújo Lima, Marcelino-Sadaba&Verbano, 2021). From powering up the caravans and motels, equipments, amenities to the office rooms, everything requires constant power supply. In the current situation, sufficient power supply is not available for expansion and hence, additional power supply will have to be procured (Heravi&Gholami, 2018). Furthermore, a new transformer, metering and switchboard equipment will be required for managing and distributing the power across all facilities.

4. Business Impact Analysis
The risk events that have been mentioned on this Risk Management assignmentcreate significant negative impact on the business on varied scales (Marle, 2020). The impacts are rated in the following table.

5. Business Continuity Strategies
For ensuring the negative impacts on business are avoided, two main business continuity strategies are to be applied:
Proactive Approach: Preventive strategy – All electrical equipments need to be set up properly with sufficient amount of insulation to prevent any hazards (Masár et al., 2019). Additionally, escape routes need to be prepared along with proper guidelines in case of emergency and electrical hazards. Proactive Approach: Protective strategy – Before expansion, it is recommended on this Risk Management assignment that the company needs to ensure sufficient amount of power is available and distributable to all the units of the park. Prior approval of government is required to ensure the company has the license to procure the amount of electricity required to power the units.

References
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