Question a:

Part 1(10 marks):

Risk management is key to mediators &/or project managers, in a sense that it being a systematic approach to identifying,
analyzing, and responding to risks that may impact a project or organization. The objective of risk management is to
minimize the negative impacts of risks and maximize opportunities for success.

By identifying and analyzing risks, organizations can understand potential threats and uncertainties that may affect
their objectives. This allows them to develop strategies and plans to either avoid, mitigate, transfer, or accept these risks.
The goal is to proactively address risks and take appropriate actions to minimize their impact.

Risk management also involves monitoring and controlling risks throughout the project or organizational lifecycle. This
ensures that the planned risk responses are effective and that any new or changing risks are addressed promptly. By
continuously monitoring risks, organizations can make informed decisions and adjust their strategies accordingly.

Effective risk management requires clear communication of risks and their potential impacts. This involves sharing risk
information with stakeholders in a timely and understandable manner. By promoting transparency and awareness,
organizations can facilitate informed decision-making and collaboration.

Overall, the objective of risk management is to enable organizations to navigate uncertainties and challenges in a
structured and proactive manner. By incorporating risk management into their processes, organizations can enhance
their ability to achieve their objectives, minimize losses, and seize opportunities for growth and success.

Part 2 (10 marks):

According to the Project Management Institute's (PMI) Project Management Body of Knowledge (PMBOK) 5th edition, risk
management is a systematic process that involves the identification, analysis, and response to project risks. The PMBOK
5th edition outlines several key components of risk management.

Firstly, risk identification is the initial step in which potential risks that may impact project objectives are identified.
This can be done using various techniques such as brainstorming, checklists, and historical data analysis.

Secondly, risk analysis is conducted to assess the potential impact of identified risks on the project. This includes
evaluating the likelihood of occurrence and the potential consequences if the risks materialize.

Thirdly, risk response planning entails developing appropriate strategies to address identified risks. These strategies
can involve avoiding the risk altogether, transferring it to another party, mitigating the risk through preventative
measures, or accepting the risk and developing contingency plans.

Furthermore, risk monitoring and control are crucial throughout the project lifecycle. Risks need to be continuously
monitored to ensure that the planned risk responses are effective. Adjustments to the risk management plan may be
necessary to address any new or changing risks.

Lastly, effective communication of risks and their potential impacts is emphasized. Stakeholders need to be informed
of risks in a timely manner, using appropriate channels and formats.

These principles and processes of risk management can be found primarily in Chapter 11: Project Risk Management of
the PMBOK Guide 5th edition. This chapter provides detailed guidelines and tools to assist project managers in effectively
managing risks throughout the project lifecycle.

The main objectives are to control probability (increase for positive events/ whilst decrease for negative events) & impacts
(increase for positive events/ whilst decrease for negative events) of events.
Question b (20 marks):
When classifying risks into four risk quadrants, typically to consider the likelihood of occurrence and the potential
impact. The four risk quadrants (with possible risks associated to HEALTH Catering Services limited) are as follows:

1. High Likelihood, High Impact:

- Strategic risks: Risks pertaining to the long-term goals of the company, such as shifts in market trends or
competitive landscape. (e.g. is competitiveness affected by factory/office location? CBD preferable options, if any, over
scenery?)

- Financial risks: Risks associated with financial stability, such as economic downturns, currency fluctuations, or
credit defaults.(e.g. profit margin affected by rental &/or location of factory/ office?)

- Regulatory risks: Risks linked to compliance with laws and regulations, such as changes in legislation or penalties
for non-compliance.(e.g. respective land law grants consent for factory/office use &/or support future developments?)

- Reputational risks: Risks that could harm the company's reputation, such as negative publicity, product recalls, or
ethical breaches. (e.g. possible propagnd effect on putting staff's need &/or office amenity over profit margin?)

2. High Likelihood, Low Impact:

- Operational risks: Risks connected to day-to-day operations, such as equipment failures, disruptions in the supply
chain, or process inefficiencies. (e.g. any additional/ compensation costs should office locates at remote area, in term of
say, maintenance & commute?)

- Human resources risks: Risks related to workforce management, such as employee turnover, skill shortages, or
labor disputes. (e.g. status of employment in local area? level of skills in local market available or otherwise additional
costs to invite professionals, if any?)

- Technology risks: Risks associated with technology infrastructure, such as data breaches, system failures, or cyber
attacks. (e.g. technology advancement may reduce manufacturer costs?)

- Environmental risks: Risks pertaining to environmental factors, such as natural disasters, impacts of climate
change, or changes in regulations affecting sustainability. (e.g. climate in local area imposes any inclement weather delay
to works?)

3. Low Likelihood, High Impact:

- Legal risks: Risks tied to legal actions or disputes, such as lawsuits, intellectual property infringements, or breaches
of contracts. (e.g. insurance against any accident dispute in legal terms ?)

- Strategic investment risks: Risks associated with significant investments or acquisitions, such as market volatility,
unforeseen costs, or challenges in integration. (e.g. competitors gain market share and possible acquisitions?)

- Crisis risks: Risks stemming from unexpected events or emergencies, such as pandemics, terrorist attacks, or
natural disasters. (e.g. possible contingencies for pandemic, for example?)

4. Low Likelihood, Low Impact:

- Compliance risks: Risks related to internal policies and procedures, such as minor non-compliance issues or
deviations in processes. (e.g. operative workforce derivatives from company core values &/or standards?)

- Minor operational risks: Risks connected to minor disruptions in operations, such as minor equipment failures or
temporary staffing shortages.

- Low-priority risks: Risks that have minimal impact on the company's objectives or can be easily managed and
mitigated.
Question c (25 marks):
As quoted from "Project Risk Management: Processes, Techniques and Insights" by Chris Chapman and Stephen Ward
is a highly regarded resource on the topic of risk management in projects. Various aspects of risk management, including
risk response techniques, are covered within.

The primary risk response techniques, as delineated in risk management practices, are as follows:

1. Avoidance: Employing actions to eliminate the risk or withdraw from the activity or circumstance that presents the risk.
This may necessitate modifying project plans, altering strategies, or completely avoiding certain activities.

2. Mitigation: Implementing measures to decrease the likelihood or impact of a risk. This can involve the implementation
of controls, process improvements, or the addition of safeguards to minimize the potential consequences of the risk.

3. Transfer: Shifting the risk to another party, typically through insurance, contracts, or outsourcing. This entails
transferring the responsibility for managing the risk to a third party who possesses better capabilities to handle it.

4. Acceptance: Recognizing the risk and choosing not to take specific action to address it. This approach is often
appropriate for risks with low impact or likelihood that are deemed acceptable without additional measures.

5. Exploitation: Capitalizing on opportunities that arise from positive risks, also known as opportunities. This involves
actively pursuing and maximizing the potential benefits that can be derived from a favorable risk event.

6. Contingency Planning: Developing backup plans or alternative strategies to be implemented if a risk event occurs.
This helps minimize the impact and maintain project progress in the face of unexpected events.

7. Enhancing: Proactively taking measures to increase the probability and/or positive impact of an opportunity. This
may entail allocating additional resources, adjusting project plans, or leveraging existing strengths to maximize potential
benefits.

Question d (35 marks):

Here are five criteria for effective risk responses :

1. Appropriate (Relevance): The risk response should directly address the specific risk it is intended to mitigate. It
should be tailored to the nature and characteristics of the risk, considering its potential impact and likelihood.
(e.g. a comparison table for proposed actions to specific risks listed as stipulated in question b)

2. Affordable (Cost-effectiveness): The risk response should strike a balance between the cost of implementation and
the potential benefits or reduction in risk. It should aim to optimize the use of resources and deliver the greatest value in
relation to the risk being addressed.
(e.g. a cost comparison for at least a few action plans , being feasible, to identify sunken costs & potential damages)

3. Actionable (Feasibility): The risk response should be practical and achievable within the constraints of the
organization, project, or activity. It should take into account available resources, expertise, and timeframes.
(e.g. assess workforces &/or equipments or company system suffice to support?)

4. Allocated & Accepted (Proactiveness): Effective risk responses are proactive rather than reactive. They anticipate
and address risks before they materialize or escalate, minimizing the potential impact and maximizing the chances of
success.
(e.g. workforce arrangement &/or managerial assignment as appropriate?)

5. Assessed (Monitoring and review): Risk responses should be regularly monitored and reviewed to ensure their
ongoing effectiveness. This includes assessing their implementation, evaluating their impact, and making necessary
adjustments or improvements as new information becomes available.
(e.g. workforce arrangement &/or managerial assignment as appropriate?)
RE: CIArb: Assessment 1 Submission (Za Han Xian, Alex)

寄件者: Alex_Za@hiphing.com.hk
收件者: Success Institute info@i-success.org
副本: alexza1994@hotmail.com
⽇期: 2023年7⽉13⽇ 週四, 下午7:01
230713 Assessment 1.pdf 840 KB
230713 Assessment 1.docx 653 KB

To whom it may concern,

Kindly find attached my assignment 1 for your review/ marking, in both PDF & WORD format.

Faithfully,
Alex Za
Engineer

Hip Hing Construction Co., Ltd.

Tel:9449-8226
(Member of NWS Holdings)
11/F., Chevalier Commercial Centre, No.8 Wang Hoi Road, Kowloon Bay, Kowloon, Hong Kong
website: https://www.hiphing.com.hk
This email is from a Hip Hing Group company.  The Hip Hing Group comprises Hip Hing Construction Co., Ltd., Hip Hing Builders
Co., Ltd., Hip Hing Engineering Co., Ltd. and Bright Link Engineering Ltd. 

Disclaimer - This email is confidential. Unauthorised use is strictly prohibited. If you are not a named recipient, please contact the
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寄件者: Success Institute info@i-success.org

收件者: Alex_Za@hiphing.com.hk
副本: alexza1994@hotmail.com
⽇期: 2023年7⽉14⽇ 週五, 下午5:01

Dear Mr. Za,

 
This is to acknowledge receipt of your following assessment file:
Integrated Risk Management
 

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You have identified the topic and possible issues correctly.
 
Analysis and recommendations are appropriate and incorporate learning from the course. 
 
Analysis and justifications demonstrated critical thinking. Presents an educated opinion and
related experience regarding the information presented.
 
Recommended criteria for effective risk responses are appropriate. 
 
To better improve in the future, you may consider to provide illustration on your recommendations. 
It can help to make it easier for practitioners to understand and follow.
 
To sum up, this is a good piece of work.  We may take it as final.
 
Wish you stay in good health and attain higher heights of success.
 
Best Regards,
Susanna Hung
Operations Director
Success Institute of Higher Education and Professional Training Limited

Today's learner.  Tomorrow's leader.

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