Implications Of Risk Management Plan On A Project

Question

Task: Loosemore et al 2006 (p6) suggested that "it is now more important than ever to think about sharing design information during the planning, construction and operational phases of a facility's life". However, Haimes 2009 (p643) suggests that "Project Life Cycle" is often neglected when considering the management of risks.

Part A: Based on your studies, the readings in this Unit and your research of the literature, prepare a paper (1000 words approx) to describe what is meant by Project Life Cycle and discuss its implications on the effective management of risk.

Part B: You are involved in the design project for a new hybrid passenger vehicle. Consider what risks are likely to be present across the life cycle of the vehicle and develop a plan which describes:

• How you envisage those risks would be managed/controlled, and
• The possible implications of those risk controls for the design team

Answer

Part A
What is meant by Project Life Cycle and discuss its implications on the effective Risk management plan?
Project life cycle: A project is a group of activities that have a fixed beginning and end. For the completion of the project, it requires to passes by several phases called the Project lifecycle (PLC). A project always based on actual concepts with its borders and that needs to be planning, implementation, controlling and closing during the complete project life cycle. There are various phases of PLC that mean to Project management body of Knowledge (Volkov and Kuzina, 2016). The phases are described as initiation, planning, implementation, monitoring, and closing.

• Initiation: In this step, the aims and goals of working the project are described and we settled with all stakeholders. The case study examined in this study of Risk management plan is framed with the time and commercial measurement and these are monitored and tracked all the time although these are rough estimates. In this stage also, the project manager is recruited and given authority.
• Project Planning: At this stage, all project management areas of knowledge are created so that the project can further implement accordingly. The complete project management plan along with a proper Risk management plan is shaped as a segment of integrated management. The schedule, project time and cost estimates are also needed to be described to monitor the project lifecycle to calculate the performance as a controlling method (Jin et. al., 2019).
• Implementation of facility: At this stage, the real project implementation word takes place where all requirements are described according to the beginning stage of planning. All the requirements are necessary to be passed by the parameters of quality mentioned in the planning stage.
• Controlling and monitoring: At this stage, all the requirements are passed to the implementation stage are regularly controlled and monitored whenever needs to be delivered as per the project plan.
• Closing of the project: At last, by the side of the final documentation, the complete project requirements are provided to the client with the experiments learning (Lesage and Samson, 2016).

Risk management: The process that is followed during the project lifecycle to verify, evaluate and plan for improvement for any negative and positive risk which is raised at the time of the project life cycle and that will make the impact of aims and goals of project. Risks are divided into two kinds such as opportunities and threats. In order to overcome from these threats, an effective Risk management plan for a project is requited. The threats are considered as negative risk that makes the negative effect of project deliverables, on the other side, opportunities create positive effect on objectives due to positive risk. So at the time of the project, there is a need to describe the risk accurately other than be reactive to ignore any negative effect of threats in the project. To manage the risk effectively, firstly identify all kinds of risks that can effect on project at the whole lifecycle. After the identification of risk, list must be analysed quantitatively and qualitatively to get the rank of risk (Jin et. al., 2019). A risk management plan is a document used by project managers to identify potential risks to the project, estimate the impact and the probability of them happening, and then define responses. According to the severity of risk ranking, a mitigation plan is created and when needed some uncertainty reserves are preserved in the cost calculation to counter such a situation. It is identified that Opportunities are a positive risk and helps in the creation of profits that the project can have some risk during the lifecycle of the project.

The implication of project lifecycle on effective management of Risk:
The whole project lifecycle is needed to be considered for initiating Risk management plan for a project. All the project lifecycle parts must be careful in a good manner at the time of risk identification, so the list can be verified properly and the beat event plan can be created at every step of the project lifecycle. The project life cycle begins from the early stage of the project which is based on concepts or the forecasting and initiation stage and must be closed at the final stage.

In earlier time, identification of risk and their planning for mitigation are done at the time of planning stage where, at present Project Management concept and the risk management is needs to be done for the overall project life cycle and during the project also to reduce the chances of risk on the objectives and aims of project. The success of the whole project is based on the satisfaction level of the project that is provided to all stakeholders. The study developed in this segment of the risk management plan assignment noted that the identification of risk and the mitigation plan are the effective methods that are required to be done during the project life cycle, so that the risk present at every step can be controlled and analysed effectively (Lesage and Samson, 2016).

For the effective and successful management of project and its risk assessment, all the factors and stages included in the growth of the whole project life cycle are needed to be evaluated. It will help in risk identification and according to that risk mitigation plan can proper amount reserves can be kept aside, which can be used when occurrence of a risk. In case, any step of the project life cycle is better to be evaluated then a similar point or stage can remain as an issue for the overall project. At every stage, which is remaining over to be evaluated can become an extra risk for the complete project and it is necessary to be analysed at every project stage effectively for making an effective risk management plan.

Part B
You are involved in the design project for a new hybrid passenger vehicle. Consider what risks are likely to be present across the life cycle of the vehicle and develop a plan which describes:

• How you envisage those risks would be managed/controlled, and
• The possible implications of those risk controls for the design team

New Hybrid Passenger Vehicle
Risks: There are several risk factors present in hybrid vehicles that are needed to be considered at the time of designing the vehicle while initiating Risk management plan. Various kinds of risk that are included during the designing stage of hybrid vehicle are as mentioned here:

• There is a threat of high voltage power shock or occurring electrification to the person working on electric cables maintenance passing by the vehicle.
• The potential risk of having high voltage shock in the system in case when vehicle is off mode, this risk is needed to be considered to ignore any type of harm and losses to human life (Hopkin, 2018).
• Battery replacement is a casual phenomenon in the case of a hybrid vehicle that needs people interface which may cause loss and damage to human life.
• The presence of power motor such as hybrid vehicle it makes too much quiet in nature that causes a person unnoticed and such silent power motors can damage to people.
• With the presence and combination of all these electrical, mechanical and software, there is a risk of getting the communication and corporation gap that can cause major harm due to lack of communication and improper interaction (McNeil et. al., 2015).

Risk assessment:
In this assessment, all verified risk is analysed and assessed quantitatively and qualitatively to make the best raking of risk as per their severity rate. This rate of severity will be later evaluated and plan for controlling risk. The risk assessment created in this study of Risk management plan is as given below:

Risk mitigation plan

The implication of risk control in the design stage of Risk management plan
This mitigation plan or safety factors accesses while examining Risk management plan for a project can reduce the effect of such risk for using the hybrid vehicle that must be involved in the designing stage. It must detail some design based on concepts and similar design must be communicated to production plant or such particular shop to add it for the last creation of hybrid vehicle. With the inclusion of all mitigation factors in the designing stage of the vehicle, such as concealed wiring of electrical cables (Sadgrove, 2016). For the maintenance, distinct identification of quiet power motors having different colours while designing stage helps in decreasing the loss and accident. So such features reduce the application cost of all such risks to people and encourage the use of hybrid vehicles.

References
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management: Review, critique, and research directions. Risk management plan Long-range planning, 48(4), pp.265-276.

Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

Jin, R., Zhong, B., Ma, L., Hashemi, A. and Ding, L., 2019. Integrating BIM with building performance analysis in project life-cycle. Automation in Construction, 106, p.102861.

Lesage, P. and Samson, R., 2016. Risk management plan The Quebec life cycle inventory database project. The International Journal of Life Cycle Assessment, 21(9), pp.1282-1289.

McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative Risk Management: Concepts, Techniques, and Tools-revised edition. Princeton university press.

Sadgrove, K., 2016. The complete guide to business risk management. Routledge.

Volkov, A. and Kuzina, O., 2016. Complementary assets in the methodology of implementation unified information model of the city environment project life cycle. Risk management plan Procedia Engineering, 153, pp.838-843.