Project Progress Note: The assignments in this course are a series of papers that are based on the same case, which is located in the XanEdu tab in the left-hand menu of your course. The assignments d

Project Progress Note: The assignments in this course are a series of papers that are based on the same case, which is located in the XanEdu tab in the left-hand menu of your course. The assignments d
Running head: RISK MANAGEMENT PLAN 0 Risk Management Plan Introduction One of the most critical aspects of project management is risk management. The rationale for the same is that it benefits the project team in enhancing the project success rate through proactive risk identification and management. Therefore, it is imperative to carry out significant risk effective management for every project. This study attempts to develop a risk management plan for the British Petroleum project with the same consideration. Description of Project BP is initiating a new project for improving their daily production capacity by 85,000 barrels. The organization had experienced various safety and similar risks in the previous projects; therefore, the organization is unwilling to ignore any potential risk in the new project due to tighter deadlines and extensive budget involved in the project. Thus, BP is firmly integrating effective risk management in its project management practices to improve its success rate. BP’s cost for the same task is about $100,000, where it is expected to complete within six months. Risk Management Process Section Aims, Objectives, and Scope The BP project’s key aim from the risk management process is to ensure adequate identification, assessment, and management of all the potential risks existing proactively to maximize the project success rate. BP project team will be using P-I scoring to assess the project risk’s acceptability reaching up to a threshold of maximum 4 (Hillson & Simon, 2007). The BP project’s risk management process will cover all the critical activities being carried out throughout its life. Moreover, it will hide all the external and internal risk elements comprising safety, program, etc. The objectives of the BP project risk management process comprising Increase the success rate of the BP project through sufficient identification, assessment, and management of potential risks existing at the project Ensure strong coordination between project team members related to risk management to adopt effective strategies to manage project risks. Develop ownership and commitment among the employees about risk management to maximize their contribution towards effective risk management. Justification of Size of the Project Hilson and Simon (2007) make use of the ATOM process for determining the size of the project. The size of the BP project will be determined through the same tool as follow: Strategic significance: The project is of high strategic importance for BP as it will improve the company’s production capacity by 85,0000 barrels per day. Commercial Complexity: BP had executed similar projects in the past; therefore, there is minor commercial complexity involved in this project. Therefore, 8 is the criterion value for this aspect (Hillson & Simon, 2007). External Linkage: BP organization is solemnly responsible for executing this project with no external dependency. Therefore, 4 is the criterion value for this aspect. Requirements Stability: BP project requirements are quite exact and already communicated to the concerned stakeholders. Therefore, 4 is the criterion value for this aspect. Technical Complexity: BP project is coming with no new technology development or utilization in this project. Instead, they will be making use of past technologies to improve production capacity. Therefore, 2 is the criterion value for this aspect (Rodríguez-Rivero et al., 2020). Characteristics of Market Sector: The project team must comply entirely with the Standard Regulatory Framework for this project. Therefore, 4 is the criterion value for this aspect. Value of Project: $100,000 is the value of the BP project, which is significant. Therefore, 4 is the criterion value for this aspect. Duration of Project: BP project team needs to complete the overall project within six months, which is less than a year (Amarshi Maru, 2015). Therefore, 4 is the criterion value for this aspect. Resources of Project: BP organization will make use of a medium in-house project team for completing this project within defined constraints of time, cost, and quality. Therefore, 4 is the criterion value for this aspect. Liabilities after Project: It is allowable to accept the weaknesses of the project after completing the same. Therefore, 4 is the criterion value for this aspect.  The BP project’s size is medium, evident through the project’s overall criterion score, i.e., 42 as per ATOM methodology (Ruqaishi & Bashir, 2015). With the same size of the project, the BP project team must use all the risk processes as per the project size. The BP project team will utilize the ATOM process for managing risks making use of provided stages. Initiation: Clarity in the objectives of the project Identification: Documenting all the potential risks existing at the project Assessment: Making use of the qualitative or quantitative methodology to assess project risks. Planning of Response: Determining effective strategies against each risk living at the project. Reporting: Communicating the project’s active status. Implementation:  Making use of effective response strategies to manage potential risks at the BP project. Review: Reviewing the residual risks after implementing risk management strategies Post-Project Review: Producing lessons learned from a complete risk management process to support future projects. Tools and Techniques Involved in the Risk Management Following risk tools and techniques will be used by the project team for managing existing risks at the project. Qualitative risk analysis will use a pre-defined rating scale to determine and prioritize all the potential risks in the project. Judgment knowledge, Situational awareness, etc., are the critical factors required for completing such a kind of analysis (Hillson & Simon, 2007). Probability of Risk and Assessing the Impact: The scoring of risk will be carried out through occurrence chances and the potential impact of the project’s risks (Ruqaishi & Bashir, 2015). The project team will also evaluate the effect of trouble on the project’s time, quality, and cost parameter. Probability and Analysis of Impact: BP project team will define all the project risk tools at the initial stages. It will benefit in identifying and managing potential risks existing at the project with their numerical scoring. Categorization of Risk: BP project team will place the project risks in different categories after identifying their impact on the project output (Rodríguez-Rivero et al., 2020). Assessment of Risk Urgency: BP project team will also assess the urgency of the potential risks existing at the project to determine their sensitivity for taking timely actions. BP project team had selected qualitative tools to assess and manage risks effectively and fastly at the project utilizing effective team coordination and subjective evaluation. The project team will also use the quantitative risks analysis tool for allocating a numerical value to every risk existing at the project to carry out faster decision making and effective action (Hillson & Simon, 2007). The BP project team will be using the following tools and techniques in this regard, including Three-Point Estimate: Different values, including pessimistic, most likely, and optimistic, will be used for the project risks to determine their most harmonious relationship with the project. Sensitivity Analysis: BP project team will evaluate each risk’s potential impact and urgency over the project using this tool (Ruqaishi & Bashir, 2015). Decision-Tree Analysis: BP project team will be developing a tree for each risk to determine all possible courses of action for selecting the most suitable one (Shayan, Pyung Kim, & Tam, 2019). Expected Monetary Value: BP project team will develop a contingency schedule and budget for each potential risk existing at the project using this tool. The rationale for selecting quantitative risk tools and technique is that it will be delivering all the results in numerical form that will be suitable for the project team to carry out informed decision making and strategy implementation (Hillson & Simon, 2007). The below table provides information regarding the complete life-cycle of utilizing risk tools and techniques at the project. 1. Risk Management Process Initiation 1.1 Signing off Risk-Management Plan and sharing with all the concerned stakeholders; 2. Identification 2.1 Initial Risk Register 2.2 Ad-hoc Risks Identification 2.3 Standard Checklist 2.4 Project Constraints and Assumptions 2.5 Brainstorming 3. Risk Assessment 3.1 Risk Register Updating 3.2 Categorization of Risks 3.3 Preparation of top risk existing at the project 3.4 Assessing the impact and probability of each risk 4. Planning response for the Risks 4.1 Developing Risk Urgency 4.2 Carrying out Sensitivity/Decision-Tree/Monetary Analysis 4.3 Risk Register Updating 4.4 Risk analysis and delegation of risk roles 5. Reporting 5.1 Risk Report to the project owner 5.2 Risk ad-hoc report to the stakeholders 6. Implementation 6.1 Monitoring of Risk Actions 6.2 Implementing Response Strategies 7. Review 7.1 Developing Lessons Learned to support effective risk management in future projects The complete risk plan will provide appropriate support to the project team to ensure the BP project’s effective risk management to achieve the project’s desired success rate. Review of Risks and Reporting Section BP project team will be using a defined frequency throughout the project to evaluate the project’s risk exposure. The regular risk review will benefit the project team in assessing that either the project risk management is proceeding in the right direction or not (Hillson & Simon, 2007). It will also support them in modifying their risk planning appropriately as per the needs of the project. BP project team will be making use of a daily morning meeting to review the minor risks existing at the project. BP project team had selected such a short frequency to ensure exact, regular, and updated information to all the project stakeholders regarding potential risks at the project for effective risk management (Rodríguez-Rivero et al., 2020). BP project team will be carrying out fortnightly meetings to evaluate and review the significant risks existing at the project (Shayan, Pyung Kim, & Tam, 2019). BP project team had set the same frequency for ensuring that regular detailed analysis of the project risks is carried out to avoid any adverse impact on the project’s performance. BP project team will generate a monthly risk management report to keep all the stakeholders updated and informed regarding the project’s risk management progress. The story will benefit all the BP project stakeholders to gather the latest and updated information regarding the project risks for carrying out informed decision making and further action (Hillson & Simon, 2007). Moreover, they will also be able to fulfill their roles and responsibilities effectively. BP project team will also regularly update the lessons learned document for making sure that they can realize their mistakes in the current risk process to avoid the same in the future strategy. Probability and Impact of Potential Risks $100,000 is the total cost allocated for completing the BP project within about six months. BP project team also used a contingency rule of 10% to determine particular values related to the project linked with cost, time, and quality. The below table provides a probability and impacts analysis table for the current project with appropriate scaling to ensure effective risk treatment and management. SCALE PROBABILITY IMPACT ON PROJECT OBJECTIVES TIME COST QUALITY VI 71-99% >30 d >$13K Impact on Project Objectives is HIGH HI 51-70% 22-30 d $7K – $14K Impact on Project Objectives is MAJOR MED 31-50% 12-21 d $3K – $7k Impact on Project Objectives is up to SOME EXTENT LOW 11-30% 6-11d $2.1K – $4.1K Impact on Project Objectives is MINOR VL 1-10% 1-6 d <1.9K% Impact on Project Objectives is MINOR NIL <1% No Change No Change Impact on Project Objectives is NOTHING It is imperative to mention that if the potential risks existing at the project are creating an opportunity for the project team related to quality, cost, and time, then the probability and impact table will deliver positive results; otherwise, it will provide adverse effects. Threshold Value for Risks $100,000 is the total cost allocated for completing the BP project within about six months. Therefore, it might be suitable to determine contingency values for risk thresholds in the project (Hillson & Simon, 2007). However, all the project risks will be coming up with different influence and impact; therefore, the BP project team must use probability and impact matrix to determine the threshold values for the risk. If the risk tends to carry a probability of about 11 to 30% with an impact on the time of about 6 to 11 days and a cost impact of a maximum of $1.9k on the BP project objectives, they must be considered falling within the threshold value. Suppose the effect and probability of the identified risks at the project are falling within the criteria as defined above. In that case, the project team will accept the same risks without further action-taking (Rodríguez-Rivero et al., 2020). However, the BP project team must ensure to showcase rapid-response towards project risks exceeding these values. Conclusion Overall, one of the most critical aspects of project management is risk management. The rationale for the same is that it benefits the project team in enhancing the project success rate through proactive risk identification and management. The risk management plan prepared in this study will help the BP project team achieve success with the minimum impact of the potential risks. References Amarshi Maru, A. (2015). Project Risk Management: Methodology Development for Engineering, Procurement, and Construction Projects a Case Study in the Oil and Gas Industry. American Journal of Civil Engineering, 3(3), 75. https://doi.org/10.11648/j.ajce.20150303.14 Hillson, D., & Simon, P. (2007). Practical project risk management: the ATOM methodology by David Hillson and Peter Simon. Vienna, VA: Management Concepts Rodríguez-Rivero, R., Ortiz-Marcos, I., Romero, J., & Ballesteros-Sánchez, L. (2020). Finding the Links between Risk Management and Project Success: Evidence from International Development Projects in Colombia. Sustainability, 12(21), 9294. https://doi.org/10.3390/su12219294 Ruqaishi, M., & Bashir, H. A. (2015). Causes of Delay in Construction Projects in the Oil and Gas Industry in the Gulf Cooperation Council Countries: A Case Study. Journal of Management in Engineering, 31(3), 05014017. https://doi.org/10.1061/(asce)me.1943-5479.0000248 Shayan, S., Pyung Kim, K., & Tam, V. W. Y. (2019). Critical success factor analysis for effective risk management at the execution stage of a construction project. International Journal of Construction Management, 1–8. https://doi.org/10.1080/15623599.2019.1624678 Project Progress Note: The assignments in this course are a series of papers that are based on the same case, which is located in the XanEdu tab in the left-hand menu of your course. The assignments d Running head: RISK WORKSHOP AND RISK REGISTER 0 Risk Workshop and Risk Register 20 Introduction The last report of the study analyzed the BP project concerning the stakeholders, techniques, and tools; the report also developed risk management practices. The present report will develop pre-workshop activities for the BP project. The report will also create a risk workshop agenda and a risk management plan for the project. Pre-Workshop Activities The preparation activities involved in the BP project workshop will include brainstorming, which will encourage the participants to carry out a useful discussion over the potential risk areas of the BP project. It will require internal stakeholders' involvement to provide decent support in suggesting improvement areas for the project (Chatterjee et al., 2018). The stakeholders must ensure effective collaboration during the session to make a valuable contribution towards identifying, analyzing, and managing strategies of the potential risks present. The facilitator will update the risk register by incorporating all the critical information regarding the risks. The facilitator will share the project's objectives with the participants at the beginning stage (Hillson & Simon, 2007). The team member will identify all the potential risks and management strategies to meet the company's objectives. The facilitator will share key ideas regarding the project's potential risk areas to encourage the participants to identify potential risks, including reputation loss, increased spending, and increased period (Kousky & Kunreuther, 2018). The facilitator will inform the stakeholders regarding different risk management strategies, including avoiding, reducing, and transferring; it will help develop health plans for managing the risks. Risk Workshop Agenda Day 1: Morning Introduction: The facilitator will share information regarding the BP project with all the stakeholders to make them aware of the objectives and the workshop's purpose. Verification of Project Objectives: The workshop facilitator will carry out a collaborative discussion with the stakeholders regarding project needs, requirements, and objectives, ensuring that the project's scope is clear to them so that the required results of the workshop could be achieved (Kousky & Kunreuther, 2018). Verification of Project Risk Scope: The workshop facilitator will be sharing complete information regarding the project risk scope with the internal stakeholders so that they become aware that the project's risk management process may cover the whole project from start to end. Setting workshop rules: The facilitator will be setting ground rules for the workshop, making sure that there is an equal opportunity available to all the stakeholders for presenting their point of view (Hillson & Simon, 2007). Providing risk management brief: The facilitator will inform the stakeholders regarding the adoption of ATOM methodology to manage the potential risks present (Hillson & Simon, 2007) Sharing expectations: The facilitator will make stakeholders realize that the company expects a positive contribution and support to manage risks associated with the BP project. Risk Identification: The facilitator will encourage the stakeholders to come up with the identification of potential risks existing in the project (Qazi et al., 2016) Day 1: Afternoon Risk Rationale: The facilitator will collaborate with all the internal stakeholders to identify the rationale of all the existing potential risks. Risk Translation: The facilitator will segregate the potential risks into different categories and segments for stakeholders' understanding (Violante, 2018). Day 2: Morning Assessment Scheme Explanation: The facilitator will team up with the stakeholders to define the criteria to assess the potential risks. Evaluating the impact and likelihood of all risks: The facilitator will collaborate with all the stakeholders to assess the potential effects and the possibility of the existing risks (Hillson & Simon, 2007). Risks Categorization: The facilitator will work together with all the stakeholders to define different categories of the existing potential risks to target the organization's concerned function. Day 2: Afternoon Risk Owners Nomination: The facilitator will collaborate to nominate the concerned stakeholders to manage the project's potential risks. Timeline for Responding to the Risks: The facilitator will collaborate to define the timeline to manage the risk and provide the progress (Violante, 2018). Closing the Workshop: The facilitator will ensure to end the workshop by encouraging all the stakeholders to provide some positive thoughts or recommendations for improvement. Top Five Risks existing in the Project No. Date Description Pre. Res Possibility Pre-response impact Response Post Response Probability Post Response Probability Owner Action Status Cause Risk Effect Time Cost Quality Other Time Cost Quality Other 01 05-01-21 There is no safety culture existing at the project site Various injuries or accidents could occur at the project site It will be affecting employee satisfaction as well as project progress Existing One month $4500 Enhanced N/A Delivered Negative Safety culture needs to be maintained through the BP project About $150000 Reduced N/A Refinery Director: Don Parus Executing a safety plan and policy at the Project In-working 02 07-01-21 Bribing issues are existing at the project site The material quality at the site is low The Project might include restraint to meet quality criteria(Hillson& Simon, 2007) Existing One month $11000 Enhanced N/A Delivered Negative Imperative to retain project reputation About $250000 Decreased N/A Manager Telos Procurement policy needs to be implemented at the Project In-working 03 09-01-21 The fumes are saturating due to the fall of concrete An accident could happen at the site (Chatterjee et al., 2018) The Project might be unable to achieve objectives Existing 2 weeks $50000 Enhanced N/A Delivered Negative Imperative to retain project reputation About $75000 Decreased N/A Manager construction Significant construction activities need to be carried out In-working 04 11-01-21 There is no risk log existing at the Project The inability of the project team to manage risks The weak performance of the project team Existing 2 weeks $5000 Enhanced N/A Delivered Negative Imperative to retain project reputation $10000 Decreased N/A Risk Manager The risk management plan needs to be implemented effectively In-working 05 13-01-21 No suitable leadership at the Project Lack of coordination between project stakeholders (Chatterjee et al., 2018) Low chances for the project team to meet objectives Existing 3 weeks $4500 Enhanced N/A Delivered Negative Imperative to retain project reputation $1000 Decreased N/A Project Manager Proper leadership practices must be used at the BP project In-working Justification for the assignment of probability and impact of each threat All the risks identified in the BP project comes with two critical dimensions, including likelihood and impact, which will be deciding factors for categorizing the risks. Low-Level Risks The risk ID-4 belongs to the low-level risks category because there are limited chances that there will be no risk log existing in the BP project. After all, the BP project team uses the ATOM risk methodology that makes it mandatory for the project team to create a risk register (Chatterjee et al., 2018). However, the impact of the same risk upon realization will be medium. It will be restraining the project team from identifying and managing the project risks effectively throughout the project. Medium Level Risks The risk ID-1 belongs to the medium level risks category. The previous projects carried out by the BP Company reveals that the company pays less attention to safety (Hillson & Simon, 2007). Therefore, if the project risk is realized, it will be bringing various consequences for the project team, such as injuries and accidents affecting the reputation and the progress of the project. Critical Risks The risk ID-2 belongs to the critical risks category. After all, the BP project is quite significant in its spectrum and focus. Moreover, bribing issues had been reported in the previous project (Qazi et al., 2016). Considering the same, if the same risk is observed in the current project, it will bring various consequences, such as reputation damages. The risk ID-3 belongs to the critical risk category. There are many activities involved in the project; the construction manager might not keep a vital check on all the carried-out activities (Violante, 2018). The impact of the same risk is also high as it will affect the progress and the reputation of the market's project. The risk ID-5 also belongs to the critical risk category. There are various stakeholders involved in the BP project. The project leader must effectively manage the stakeholders and project activities to achieve desired targets (Chatterjee et al., 2018). With the same consideration, the impact of the same risk is also high as it will affect the motivation and the satisfaction of the stakeholders, restraining the project to achieve targeted objectives. Top Three opportunities in the risk register No. Date Description Pre. Res Possibility Pre-response impact Response Post Response Probability Post Response Probability Owner Action Status Cause Risk Effect Time Cost Quality Other Time Cost Quality Other 02 07-01-21 Bribing issues are existing at the project site The material quality at the site is low The Project might include restraint to meet quality criteria Existing 1 month $11000 Enhanced N/A Delivered Negative Imperative to retain project reputation About $250000 Decreased N/A Manager Telos Procurement policy needs to be implemented at the Project In-working 03 09-01-21 The fumes are saturating due to the fall of concrete An accident could happen at the site The Project might be unable to achieve objectives Existing 2 weeks $50000 Enhanced N/A Delivered Negative Imperative to retain project reputation About $75000 Decreased N/A Manager construction Significant construction activities need to be carried out In-working 05 13-01-21 No suitable leadership at the Project Lack of coordination between project stakeholders Low chances for the project team to meet objectives Existing 3 weeks $4500 Enhanced N/A Delivered Negative Imperative to retain project reputation $1000 Decreased N/A Project Manager Proper leadership practices must be used at the BP project In-working Assignment of probability and impact for each opportunity The opportunity ID-1 existing for the BP project team is eradicating complete safety issues or concerns at the project site. The same opportunity demands the project team to implement the ATOM methodology effectively. The workshop's conduction will provide required training and support to the stakeholders for participating in the BP project's risk management process (Chatterjee et al., 2018). The same opportunity is also high as it will be supporting the BP project team in providing a valuable contribution to project success. The opportunity ID-2 available for the team deals with adopting effective and efficient construction practices at the workplace. The chances for the same opportunity are high as various contractors and builders are involved in the project. BP project team can use effective construction practices to ensure all the stakeholders' presence at the same platform (Kousky & Kunreuther, 2018). The same opportunity is high and lively as it will benefit the project team in exerting the input in the right direction. The opportunity ID-3 existing for the BP project team deals with adopting and implementing effective leadership practices. The chances for the same opportunity are high as various stakeholders are involved in the project due to its size (Violante, 2018). The same option is high as it will support the project team in arranging and managing all the stakeholders at the same platform. Conclusion The BP project team must arrange pre-workshop activities related to risk management to manage the potential risks present at the BP project effectively. The BP project team needs to use the risk management register developed in this report to manage all the existing potential risks effectively. It will make a valuable contribution to the achievement of desired success. The report has also identified some opportunities existing for the BP project team that must be exploited for adding value to the achievement of project objectives. References Chatterjee, K., Zavadskas, E., Tamošaitienė, J., Adhikary, K., &Kar, S. (2018). A Hybrid MCDM Technique for Risk Management in Construction Projects. Symmetry, 10(2), 46. https://doi.org/10.3390/sym10020046 Hillson, D., & Simon, P. (2007). Practical project risk management: the ATOM methodology by David Hillson and Peter Simon. Vienna, VA: Management Concepts. Kousky, C., &Kunreuther, H. (2018). Risk Management Roles of the Public and Private Sector. Risk Management and Insurance Review, 21(1), 181–204. https://doi.org/10.1111/rmir.12096 Qazi, A., Quigley, J., Dickson, A., &Kirytopoulos, K. (2016). Project Complexity and Risk Management (ProCRiM): Towards modeling, project complexity is driven by risk paths in construction projects. International Journal of Project Management, 34(7), 1183–1198. https://doi.org/10.1016/j.ijproman.2016.05.008 Violante, A. (2018). Risk Management in Construction Projects: Are Small Companies Prepared? MOJ Civil Engineering, 4(1). https://doi.org/10.15406/mojce.2018.04.00090