Professional Documents
Culture Documents
3000 Words Part 4
3000 Words Part 4
3000 Words Part 4
PRINCE2
1 Introduction
Purpose: To identify the potential problems in plant-based leather workshop before they
occur and mitigate the risk that have a critical impact on the project like risks faced in
construction, resources, machinery, conflicts between project members and stakeholders
and others.
Objectives:
Minimize threats and enhance opportunities like employment for people in the field
operational risk manager, risk analyst, risk manager, financial services risk
management manager, insurance risk management executive, others.
Identifying major risk like delay in construction, bad weather conditions, usage of
chemicals in workshop, etc and mitigate and control them.
Scope: As it is a new project of replacing animal skin by plant-based materials in leathers
there is no historical information present related to it. Using risk management strategy
helps to identify the risk in each and every stage of the project like construction, lectures,
practical and exhibition and working on those risk to mitigate/control them.
2. Risk analysis: Analysing potential issues that could have a negative impact on the
project. Planning permission-without the permission the project doesn’t even start,
Escalation of project costs due to poor cost estimating, lack of availability of
resources, lack of experience from similar projects, usage of hazardous chemicals
as a part of workshop, bad weather conditions, delay in building construction due
to contractors, increase in prices of inputs (materials, equipment, machinery) due
to price changes from suppliers or inflation are the potential issues that could have
a negative impact on the project.
3. Risk evaluation: identify the likelihood and consequences
Refer to risk register
4. Risk mitigation and control: Taking preventive measures to control and reduce the
impact risk on the project.
To provide the documentary of the whole project and ensure that due to the
plant-based leather workshop the university is going to gain more profits
and raising the advantages and future demand for the workshop to get the
planning permission from the council and the university.
Estimating and scaling the cost to all the activities like purchasing of raw
materials for the construction, equipment, machinery, raw materials of the
plant-based materials, salaries to all the team members involved in the
project and finalizing the budget before proceeding to ensure that the
project is not exceeding the budget.
After scheduling all the tasks to be performed by a particular person of the
project within a given amount of time and ensure that work is completed on
time and arranging weekly meetings/daily meetings/monthly meetings to
know the project progress and comparing it with the plan and informing the
UoN about the progress.
Coming up with an idea of latest technology or methods and being fixed to it
while the whole project to avoid conflicts between team members or not
getting deviated from the plan which leads to run the project smoothly.
Confirming with the stakeholders about the availability and quantity of the
resources and also to check for any alternative resources as a backup plan
in case of any emergency.
While hiring instructors testing them with the skills needed in this project like
information related to raw materials and various techniques involved in
making the leather by using different raw materials and also communication
and soft skills.
2. Probability and impact matrix: After the SWOT, time to know the probability and
impact of the risk and with this we can identify the major risk to be controlled and
which shouldn’t be avoided or ignored.
3. Risk Register: Maintaining the risk register so each risk which gives a clear view of
impact, probability and mitigation strategy.
4 Records
Risk register: Including a risk register, a documentary which shows the identified
risk, risk description, probability & impact of the risk and all the risk response types
likes avoid, reduce, fallback, accept and share. In this project major risk identified
are delay in building construction due to contractors and builders, increase in
prices of inputs (materials, equipment, machinery) due to price change from
supplier of inflation, bad weather, usage of hazardous chemicals as a part of
workshop, lack of experience from similar projects, breach of health and safety
regulations but also many risk are been identified. Risk register comes handy in
this project so that the level of risk is known and also the mitigation measures can
be taken on time to monitor the project.
Some physical records like accounting papers, property records, plans related to
construction, schedule tasks and activities, financial records, etc and some digital
records.
5 Reporting
Project risk reporting: reports related to the risk of lack of availability of the
resources, risk of the suppliers not being able to complete their work on time, the
risk in changing of the prices of the materials and machinery, financial risk-
exceeding of budget for given task. Portfolio risk reporting: it gives an idea of areas
of risk to be concentrated like budget risk, resources risk, legal risk and others.
Portfolio risk reporting: it gives an idea of areas of risk to be concentrated like
budget risk-exceeding of the budget than assigned to a particular task, resources
risk-availability, legal risk-planning permission and others.
8 Scales
High impact/high probability: Risk like usage of hazardous chemicals as a part of
workshop, lack of experience from similar project, breach of health and safety
regulations, delay in building construction due to contractors/builders, increase in
prices of inputs due to price changes of supplier or inflation and bad weather are
the critical risk which should be given top priorities and must pay a close attention
towards these risk.
High impact/low probability: risk like approval from the UoN for building
construction and starting up the project, planning permission from council, conflicts
between different partners/supplier/team members throughout the project,
vandalism/terrorism, poor quality of materials used for construction, poor
management of team, breakdown of machinery and equipment and funding of the
project is reduced or withdrawn are very important and are very unlikely to happen.
Low impact/high probability: risk like construction-related pollution, delay in
delivery of machinery, equipment and materials, feedback on provided on time
from the project board, poor quality of materials used for work shop are moderately
important.
Low impact/low probability: risk like inability of instructor to start working for UoN
according to time scales, IT system/support not meeting requirements or not
working, lack of availability of supplier are considered as low level.
9 Proximity
To access when a risk is likely to occur so that an appropriate response is taken.
Imminent: some of the risk which have to be controlled effectively and immediately
like planning permission from council and UoN and funding as it is main source of
the project. If there is no permission then the project doesn’t exist.
Within the stage: many risks come under the category when it comes to risk within
stages:
1. Construction stage: delay in supply raw materials or contractors/builders,
usage of low-quality materials, environmental pollution.
2. Lecture/practical stage/exhibition: lack of experience of instructors or not
available to work immediately at a given time, instructors who are hired are not
meeting the required standards, poor quality of materials used for workshop.
3. Support activities: health and safety regulation, security facilities.
Within the project: risk like increase in prices inputs, conflicts between the project
members/stakeholders, weak team management, lack of experience of similar
projects.
Beyond the projects: vandalism/terrorism
10 Risk Categories
The risk categories in this project are:
1. Strategic/commercial:
Failure of suppliers to meet contractual commitments: this could be in terms
of quality, quantity, timescales
Lack of availability of capital investment
2. Economic/financial/market:
Inflation/increase in the inputs of materials
Failure to meet projected revenue target: assigned budget for each task
3. Legal/regulatory:
Approval of planning permission: council, UoN
4. Organisational/management:
Poor leadership
Lack of clarity over roles and responsibilities
Conflicts between team members/stakeholders
Inappropriate decision making among team members
Poor staff selection procedures
Health and safety constraints
5. Environmental:
Natural disaster-floods, storms
Noise pollution due to construction in university campus
Air pollution due to construction
Transport problem- vehicle collision
6. Technical/operational/infrastructure:
Breakdown of machinery in workshop
Delay in construction due to supplier/contractor/builders
Inability of the instructor to join immediately
Having a different option of project with relevant to the project selected i.e.,
product from plant-based leather
Agree with the University that additional funding will be made available to cover a
proportion of adverse variances outside of project team’s control
Usage of chemicals which already tested by the laboratory and even those which
are used by many industries like these.
Transfer:
Taking an insurance policy for the building construction
Outsource the procurement of builder and suppliers to a third-party, who is liable
for any adverse variance from budget
Taking an insurance policy for the whole project.
Being poisoned can be life-threatening, but sometimes we can transfer it by using
anti inhaler masks, activated charcoal, antidotes, sedatives.
Contract- establish a contract between us and the suppliers of deliverables for
every good that is been delayed they will be an extra discount this will be a way on
to reduce financial impact on the project.
Insurance- taking an insurance policy on the risk of rainfall affecting the
construction. Wait to see if the climate will be of a stable condition through out the
project.
Accept:
Hope that the construction is completed on time without any delay.
Accepting and continuing the project with the risk of lack of experience from the
similar projects.
Reserve a proportion of the budget as a contingency in case of significant
adverse variances
If the level of pollutant is low, accept that because every industry makes
environment pollute to a minimum level.
Wait to see if the climate will be of a stable condition throughout the project.
Share:
Dealing (setting up an agreement) with the contractor that the construction is
completed on time or else the some of the budget is to be refunded back.
There is a certain risk that the people will not like to take up a risk in getting into a
very new project, so dealing with them if there is a huge profit it is shared with all
the team members and if loss it is also shared.
Negotiate and agree with builder and suppliers to share any adverse variance from
budget
Outsource the risk with the UoN who is a major part of the project. They could take
part in the responsibility of handling the risk if it happens.
Negotiating with the suppliers that if the quality of the materials used in workshop
are not up to the mark the amount paid is refunded back.
Hiring more members for the project and setup as a replacement of members
having weak management skills
Dealing with the suppliers about the delivery time of the materials on time or there
is refund of the amount paid to the materials.
1. Knowing the importance of the project and the selected business case for our
PLASC is making leather from the raw materials from plants.
2. Estimating the delivery dates of the equipment and materials needed for the
construction as well as for the lecture hall, workshop and exhibition room to make
sure that the project is completed within time.
3. Hiring the required members for the project before the work is started to make sure
that there are enough number of members involved in the project.
4. Ensure the packages given to the project team members while they are been
hired.
5. Making a note of supplier performance regarding the materials and equipment
supplied to the project.
6. Ensuring the work to be addressed to the members with all the information they
need so as to minimize the conflicts between the internal and external
stakeholders.
7. Allocating fixed budgets for the tasks to make sure that the project run smoothly in
the given amount.
13 Risk Tolerance
Time and budget are the two most important risk tolerances of any project:
Time tolerance: A time tolerance is important in projects to be delivered on time. As there
are a lot of activities going on in this project like construction, equipment and materials,
hiring members, dealing with suppliers, negotiating with university members and the
council. Among them construction, negotiating and confirming with the university and
council members will take more time compared to other activities. Making sure the project
is completed on time and before the final deadline.
Financial tolerance: Cost tolerance can be percentage or cash amount against the
planned budget. As the budget is fixed from the project i.e., £1.5million, there is no
chance of at least 10% of tolerance. The tolerance for this project is zero.
14 Risk Budget
The total budget for the project is 1.5million pounds in which the cost for the construction,
lecture, exhibition, practical and the support activities are 10,10,000pounds and the
remaining 490,000pounds are used the all the risk budget.
A1 Appendix 1 – Risk Register for Risk D (Adverse budget
variances)
For other suppliers, fixed price contracts can be negotiated in advance. A contract to share the risk can be diffic
and outsourcing also reduces control as discussed above. Therefore Avoidance, Reduction, Fall-back and Acce
strategies, in this order.
Date Registered: Risk Author: Risk Owner: Risk Actionee:
05 December 2019 Project Manager Assistant Project Assistant Project Mana
Manager – Risk – Risk Management
Management
A2 Appendix 2 – Risk Register for Risk E (Construction delays)
Risk Response:
Avoid: Exclude inexperienced contractor/builders
Reduce: Ensure there are no error in the design as it leads to redesign
Transfer: Taking an insurance policy for the building construction
Risk Response:
1.Making sure whether we are using the chemicals which doesn’t harm much to the environment.
2.Making sure whether control manager passed it to check in the laboratory.
3.Make sure whether the location is ready with antidotes,sedatives,anti-pollutant masks.