Project Risk Assessment

Project Risk Assessment

[Name of the Writer]

[Name of the institution]

[Date]

Project Risk Assessment

Risks are part of the projects cycles and they can become a hurdle in the completion of the project if precautionary measures are not taken in time (Forteza et al.,2016). As 3M Maintenance company is planning to expand their office by renovating the two floors of the building, therefore, there might be some risks they might face during the execution of the project. In this paper, the risk assessment will be undertaken by taking certain steps for the building renovation project of the 3M Maintenance company.

There are five steps, in general, that must be taken to assess the risks related to this project. They are as follows.

Identification of potential risks

Investigate the risk category

Evaluate the damages of that risk

Take precautionary measures

Review the risk assessment procedure

Identification of Risks

There are certain risks that might occur in the completion of the project. They are:

Disapproval of renovation by authorities

Labor unavailability

Incomplete drawings

Health and Safety Hazards

Inefficient contractor

Change in scope

Poor weather (Snowfall, heavy rainfall)

Shortage of materials in the market

Technical issues for wiring

Site issues

An unexpected increase in costs

Poor management

Inappropriate design

Investigate the Risk Category

It is very important to categorize the identified potential risks because this will help the company in focusing on the root causes of these risks. Below is the table made for risk categorization.

S.No.

Risk Factors

Risk Category

1.

Disapproval of renovation by authorities

Legal Risk

2.

Labor unavailability

Site Risk

3.

Incomplete drawings

Technical Risk

4.

Health and Safety Hazards

Site Risk

5.

Inefficient contractor

Management Risk

6.

Change in scope

Process Risk

7.

Poor weather (Snowfall, heavy rainfall)

Environmental Risk

8.

Shortage of materials in the market

Material Risk

9.

Technical issues for wiring

Technical Risk

10.

Site issues

Site Risk

11.

An unexpected increase in costs

Financial Risk

12.

Poor management

Process Risk

13.

Inappropriate design

Technical Risk

Evaluate the damages of that risk

It is very critical to evaluate the damages of the risks listed above. Therefore, the risk register is made to keep on record all the risks and the damages they can incur.

S.No.

Risk Item

Risk Category

Likelihood

(L, M, H)

Impact

(L,M,H)

Severity

(L,M,H)

Effect on Project

1.

Disapproval of renovation by authorities

Legal Risk

Low

High

High

Delays

2.

Labor unavailability

Site Risk

Low

Medium

High

Delays

3.

Incomplete drawings

Technical Risk

Medium

High

Low

Scope affected

4.

Health and Safety Hazards

Site Risk

High

High

Medium

Injuries

5.

Inefficient contractor

Management Risk

Medium

Low

High

Quality affected

6.

Change in scope

Process Risk

High

Medium

High

Change Management

7.

Poor weather (Snowfall, heavy rainfall)

Environmental Risk

Medium

High

Medium

Delays

8.

Shortage of materials in the market

Material Risk

Low

Low

Medium

Delays

9.

Technical issues for wiring

Technical Risk

High

Medium

Low

Quality affected

10.

Site issues

Site Risk

Low

Low

Medium

Schedule affected

11.

An unexpected increase in costs

Financial Risk

Medium

High

Low

Cost overrun

12.

Poor management

Process Risk

High

Medium

Medium

Quality affected

13.

Inappropriate design

Technical Risk

High

Medium

Medium

Scope affected

Take precautionary measures

In project management, there are four main approaches suggested to manage any kind of risk (Haimes, 2015).

Risk Avoidance

Risk Reduction

Risk Transferability

Risk Acceptance

Keeping in consideration all the aspects of the risks, above mentioned four strategies will be adopted to deal with the risks. Every risk requires a different type of approach that is why precautionary measures will be taken for their settlement. For example, in the case of an inefficient contractor, a well-experienced contractor will be hired after checking all the available contractors. For weather conditions, the forecast will be updated to all the team so that the project does not delay.

Review the risk assessment procedure

It is very important to review the whole risk assessment procedure so that the mistakes can be highlighted in their implementation and avoided next time.

References

Forteza, F. J., Sese, A., & Carretero-Gómez, J. M. (2016). CONSRAT. Construction sites risk assessment tool. Safety science, 89, 338-354.

Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons.