Project Risk Management

This report provides detailed insight into the risk management strategy for decommissioning the manufacturing site of the VCN Consortium, which is utilizing for timber processing in the past. The soil is intensely damaged due to timber processing steps including sorting, drying, grading regarding, surfacing, and drying processes. This report provides yawning perception into the development of the risk management plan for the construction project. In this report, the strategy is used that sustain the appropriate quality of the soil in addition to this the strategy also ensures to keep the different risks associated with finance, safety, and quality in check. The boom provides a detailed analysis of the strategies, their implementation their role and their significance in controlling and mining the risk associated with a construction project. Different key factor including budgeting, timing, scoring and strength and weakness of the used strategies is illustrated by the risk management plan.
1.1 Scope
The risk management plan is formulated in such a manner that communicates all the possible risk that the company faced in past as well as the risk organization plan can fight the future challenges. For the fruitful conclusion of the scheme effective monitoring and evaluation of the activities are considered to get the desired objective in target time. The risk management plan is used to recognize potential dangers utilized by project managers to recognize potential dangers to the project. The probability and impact of risks are examined by illustrating the responses effectively. The minimizing and unexpected risks are identified in the risk management plan, as this plan can help to save cost and secure the structure of the organization. Effective risk organization policies permit to recognition of threats, opportunities, weaknesses, and strengths of the project.
The unexpected events can be planned so as to ensure the achievement of the project. Successful project managers can identify that risk management is crucial, as attaining the goals of the project relies on evaluation, results, preparation, and planning that also take part in attaining strategic goals. The risks are also communicated to the team members, stakeholders, and project sponsors. This fixes the expectations of the persons who offer to fund and are influenced by consequences. The risk management procedures are also recognized to make the project more successful. The pessimistic risks are also eliminated and reduced in order to fulfill the targeted aims and budget of the project. The conversion of old sites into the technique of soil remediation.
2.0Identification and Evaluation of the risks
The major risk that is identified is associated with poor soil conditions due to extensive use in the past. The physical and chemical property of the soil has been changed due to extensive processing of the wood material. In timber processing, the major step that is acquired for the processing of the wood is sorting and barking, sorting and grading, regarding and surfacing, drying, log sawing, and the breakdown and log sorting. In the scenario of the present case, the causes of risk are previous timber processing activity on the land. Obstruction from the regroup in the community is also considered as the basic cause of all identified risks. It is observed that in the present scenario the factor that triggers the risks and poor development are damaging soil.
2.1 Risk Categories
A variety of risks is being attached to the construction project. The risks may include internal risks and also external risks. In complex construction projects the internal and external risk both effects the constriction processes. The financial risk, safety threat, inadequate management, quality risk, economic and social conditions affect the processing of the construction project. The financial risk that is directly connected to the project is that the absence of required finance may affect the project completion. The financial risk may cause consequences and uncertainty in work that may affect the project negatively (Chatterjee, et al., 2018). For decommissioned the manufacturing site of the VCN Consortium, their selected site is already processing with the timber processing company. To make the selected site for the ford motor company that is located in the North Geeiong there is a need to convert the site into a modern mixed-use commercial center.
Inadequate safety and protective measures may cause serious injuries and give birth to accidental situations to the workforce working on the project. The safety and health of the labor working on the project are crucial for the proper conduction of construction activities. So, the safety measures should be taken with great care. Improper management of the internal and also of external resources of the project is another threat being faced by the project management. The inadequate management may cause serious consequences and also (Behvandi, et al., 2020) increase the cost of the project.
2.2 Risk Assessment and Quantification
The output of the project is also affected in case the project management does not manage the resources of the project properly (Dana & Jan, 2020). The quality of the material that is used in the complex construction project is also an essential risk attached to the project. The material used in the project should be of sustainable and good quality. If the project is not able to meet the quality objective, then the output of the project, in the end, is affected and it is essential to achieve the quality goals of a construction project. The social and economic condition of the country also matters in the construction project. Social and economic conditions may cause schedule delays and expenses overwhelmed (Alkaissy, et al., 2020). The effective risk system used the systematic based system similar to the current scenario for the delivery of the efficient construction project a systematic plan is formulated by utilizing the principles and processes that organized all the activities.
2.3 Risk Assessment and Quantification
In the construction project major risk that identified are sustainability risk, safety risk, quality risk, inadequate, management risk, and social-economic condition risks. All are the expected risk are associate with the poor conditioning of the soil and the resistance that company faced from the heritage group in the community in the current scenario. The foundation of the project lies in the quality of the soil in the present scenario the soil is suffered from severe damage due to extensive past use in different sorting, drying grading, and regarding the activity of the timber. The major challenge that associate with soil degradation is sedimentation, mudslides and a structural problem. In construction, the identified major hazard is relating to safety because poor safety measures in the construction site lead to injuries and accidents (Ho, 2020).
A poorly defined scope is defined in the context of poor strategic management and planning of the project. For an effective construction risk management plan the safety is considered a top priority that effectively manipulates the safety measures. Shortage of available resources in terms of labor and resources for the production of goods and construction of the building g area is considered as the risk associated with the planning and management of the project. Fluctuation in the cost effect the fluency of project. At the time of need material with unexpected increase cost is used for the completion of the project this is considered as one of the biggest and challenging risks during the construction of the project. The performance of the project is measured through poor scoping, poor estimation, contractual problems, poor quality, delay in the planning and organizing of the strategy, and limiting time for the testing of all the possible risks and severity of their impact on the construction project. The poor risk analysis and poor testing of the construction element like material, soil, and plan lead to poor completion of the project (Nguyen & Nguyen, 2020). In construction, the risk is associated with the construction design and project management.
In closing the nutshell the possible expected risk associated with project management is the following. Public objection, tax change, change in the local standard are considered in the external risks however in the organizational risks the possible risks associated with the organization are an inexperienced workforce, lack of protection, and delayed deliveries. The risk related to the project management in the construction of the project is scheduling errors, team conflict, and contractual quality requirement. All these errors and limitations in the environmental, construction, project management, designing, and organizational performance limit the productivity of the company and cause them to increase the risk that indirectly increases the poor performance. Besides all discussed factors the political control, natural force, fluctuation in the exchanging, and globalization affect the performance of the construction project.
In this regard, there is a need for such a strategy that effectively manipulates all the circumstances and controls the external and internal possible risk associated with construction. Poor implementation and processes give rise to an increase the poor procurement, poor distribution, and poor production. In the construction project the risks are associated with floods, earthquakes, labor strikes, civil interest, and terrorism, and sabotage, and storms (Project-management;, 2021). All these conditions mitigating by effective modeling techniques that overcome the current situation.
3.0 Risk Management Impact and Control Action
In modeling the soil the there is a need for elasto_plastic theory to adjust the behavior of the soil with the need. For this purpose, there is a need to check the quality of the soil through laboratory testing. In reducing the identified risk series of step will use like laboratory testing, engineering control in increasing the strength of the soil, Vibration monitoring of soil and their impact on the neighboring building. Besides this material model as well as another advanced method of modeling the soil will be utilized. In minimizing the impact of financial risk there is a need to utilize five basic models of risk management. Sharing, retention, avoidance, transferring and reduction, and loss prevention are tactics that of risk. To address the management issues there is a need for a strategic management effectively manipulates all the possible risks associated with the challenge. To reduce the governance risk there is a prerequisite to use ethical principle of functioning in working sites that promote ethics (Alkaissy, et al., 2020). Community stewardship and company reputation is maintained by the implementation of the ethical principles. For reducing the operational risks there is essential to utilize the marketing strategy that helps in providing a stable environment in which marketing activities like competition, liquidity, commodity market as well as foreign exchange efficiently manipulate.
Legal risks are also characterized as the stronger risk that affects the construction activity. In reducing the legal risks there essential to design the construction plan according to government rules and regulations. In the present scenario processing and scheduling the risk management plan help in clarifying the fluency of the process in addition to this, it would be helpful in targeting specific activity easily. The timing and scheduling is the key element of the project (Al Mhdawi, 2020). Due to economic change, regulatory change is essential to use the fast and effective decision aiming strategy it effectively mitigates the risks. The project manager should necessarily Acknowledged the risk with management tool for effectively controlling and strategizing. The comprehensive management tool helps in the identification of the risk provides qualitative assessment for effectively controlling and monitoring. In risk management, it is necessary the contractor (CME Ltd) and developer (Vernal Group) and Nexus (designer) should aware of the risk. Safety consciousness is achieved through owner management and by the knowledge of risk management. In the scenario of the present case, it is recommended that the contractor and owner effectively plan the procedure and planning process. In proceeding with the risk management plan the basic step is the identification of associated risk the stability of the plan based on the uncertainty and accurateness in identification of risk.
4.0 Development of Risk Management Plan
4.1 Risk Identification
Financial risk, safety risk, management risk, social and economic conditions, inadequate management, quality risk, could avert the project from continuing as intentional or from fruitful ending. The dangers can be recognized from numerous bases, as some might be clear and can be recognized before the plan kickoff. These risks will be recognized throughout the lifespan of a project, as risk will be recognized by stakeholders (Hartmann & Driessen, 2017). The project manager has a complete role in organizing the project risk. Besides, risk awareness will be also needed to constitute a danger to the plan, and being delicate to the particular factors or events that might influence the plan negatively or positively.

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