Risk Analysis - Essay Example

Project Initiation Document Report Name Unit Title Date of Submission Instructor 3 Risk Analysis We identified five main categories of risks to include governance risks, economic risks, financial risks, cultural risks, governance risks and legal risks (Sims, 2002 p. 123). Under each category, we placed one, two or three specific risks, determined the responsible manager for each risk and the required corrective actions for these risks. The rating on the impact and likelihood is as follows: High = three, Medium = two, Low = one. Nature of Risk or Uncertainty Likelihood High/ Medium/ Low Impact High/ Medium/ Low Likelihood x Impact [Score] Actions required and who will take responsibility to manage the risk Economic crisis (recession, inflation) 2 3 6 The accountant should take charge of this risk. He should be aware of the cash flow situation all the time, cut cost and adjust our plan. The accountant should be able to predict such recessions and come up with effective control measures. Change of government (change of leader in the council, change of scheme) 2 3 6 The manager is responsible for this risk. Manager applies again to the new government, to convince them to start our program and update strategic plan to be in line with the new scheme. Conflict between team members (different opinions ) 3 3 9 This is a very crucial risk in our project. The manager should create a team meeting to reach an agreement or compromise Cooperation with schools (rejection from schools) 1 3 3 The manager should take charge of this risk. He should sit down and talk with the principals about our project and try to convince them Beyond budget (Unexpected cost) 2 3 6 It is a critical risk in any project and the accountant is responsible for this. He should take action to prevent this risk: cut cost and adjust our plan Unqualified volunteers (not effective work) 2 2 4 The manager should control this risk. He should identify the appropriate volunteers through enough advertisement. Next, we need to provide training programs effectively Unacceptance of general public (rejection from the public) 1 2 2 The manager should ensure that we advertise on local newspapers Students have negative attitude in this project 3 3 9 This is a very critical risk since it concerns the target group of the project. The manager should provide training for staff，change the education method 4 Roles and Responsibilities a) Project Organisational Chart/Structure The project management team works under White Horse Council and consist of the project manager, operation manager, finance manager, communication manager, and human resource manager as shown in the chart below. All managers have good education background and practical experience in various fields. b) Governance The management team have varied education backgrounds. They have different role specifications to play in our project. In addition to these, they possess vast experience in their respective fields, which help in contributing to the success of our project. Job Title Name Responsibility Skills or strengths Project manager molly The project manager will be responsible for strategic planning. It will be important for the management to plan the operations rather than dealing with issues on a daily basis. Molly is the manager in this area. Molly has a two-year experience in management in Ebon Company. Therefore, she has an understanding of what good management entails. Finance manager Darren Darren will be responsible for the management of all the finances in our project. The responsibilities include budget preparation, tax planning, and cash flows management. Darren has an education background in accounting and experience in business accounting and taxation. She has outstanding accounting abilities and produce accurate financial statements. Human resource manager Moses The human resources manager is responsible for training staff to ensure quality services. Moses is the human resources manager. Apart from human resources major background, Moses has a deep understanding of how to ensure employee satisfaction hence productive staff. Communication manager Hillary Communication manager is responsible for the transfer of information as well as the advertisement through media. Hillary majored in journalism and media studies. He has two years experience in communication management for small businesses. Operation manager Zachary Purchase book, print advertisement, The operations channel for the Project will be print advertisement and books. Zachary has adequate experience in managing this area. He has excellent creative and organization skills. Risk Manager Elias Elias is responsible for the analysis of project risks and organization structure for our project. He majors in risk management. He has good risk management skills and three years experience in the same post. He has set up an effective organization structure for the project; in addition, he is good at problem solving and research. c) Stakeholder Analysis Stakeholder management is very crucial to the success of any project (Rad, 2006 p. 78). Success is achievable through involvement of the right people in the project. This reduces the time wasted when arguing with opponents. Instead, it used to build long lasting relationships with loyal stakeholders (Haugan, 2006 p. 122). In our project, we used three management approaches. Hence, the first step in our stakeholder analysis was to identify who our stakeholders are. The results are as follows; external stakeholders - government, media, property owners and buyers, business owner, police, community Whitehorse council, residents in the community, warners educational awareness, and schools while internal stakeholders - council, project staff and team, and mentor (Snyder, 2009 p. 45). ` The next action was to determine their powers, interests and influence they have on our project. We used a power grid as shown below to classify their levels of interest and influence in our project. For instance, the Whitehorse Council has high power and direct influence over our project while property owners have high interests on our project. Third step is to understand our key stakeholders, who are the government, Whitehorse Council, and School. We achieved this by establishing best methods of communication (Wysocki, 2012 p. 52). The managers engaged in discussions with the Whitehorse council, conducted education programs in school, and advertised our project through the media. Some of the key questions that helped us understand the stakeholders are; what kinds of interests do they have in the success of our project? What is their source of motivation? What kind of knowledge do they need? What influences their decisions and actions? What can make them positive about our project?(Wysocki, 2012) We applied three management approaches to our project management. First, we used the Benefits Realisation Management (BRM) approach. BRM enabled out team to focus on the outcomes, which are prevention of graffiti, rather than the output, that is training and sensitization of student (Sterling, 2009 p. 154). Second, we used lean project management. This approach directs a project to focus on deliver quality services with less costs and time. For instance, we identified those stakeholders that were mostly important and cooperative. This action saved us time spent arguing with opponents and use it to build lasting relationship with appropriate stakeholders (Cowan, 2005 p. 49). The best method to achieve this was through active listening as we engaged directly with them (Dressler, 2004 p. 12). We shared our opinions with them and obtained feedback to build positive and long lasting relationship with the stakeholders. Our risk manager used this information to identify blockers or opponents to our project, and the stakeholders who are on our side by supporting the project then used the information we obtained (Haugan, 2006 p. 87). The last approach used in our project is the event chain methodology (Haugan, 2006 p. 56). This method helped us focus on our activities and curb the impact of risks on our project. We used this method to identify the external activities that could affect our operations, hence analyse risks. Tracking the project’s duration and cost using the events enabled our finance manager to estimate the future budget (Wysocki, 2012 p.98). In summary, the stakeholder management was in respect to current management practices and policies. The approaches were very effective and directed the project towards a success. References Cowan, N. (2005). Risk analysis and evaluation. Canterbury, UK, Institute of Financial Services, School of Finance. Dressler, S. (2004). Strategy, organization and performance management. Boca Raton (Fla.), Universal Publishers. Haugan, G. T. (2006). Project management fundamentals: Key concepts and methodology. Vienna: Management Concepts. Rad, P. F., & Levin, G. (2006). Metrics for project management: Formalized approaches. Vienna, VA: Management Concepts. Sims, R. R. (2002). Organizational success through effective human resources management. Westport, Ct, Quorum Books. Snyder, G. J. (2009). Graffiti lives: beyond the tag in New York's urban underground. New York, New York University Press. Sterling Publishing CO., INC. (2009). Blackbook Graffiti Sketchbook. Sterling Pub Co Inc. Wysocki, R. K. (2012). Effective project management: Traditional, agile, extreme. \ Indianapolis, IN: Wiley. Read More