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COVER SHEET
Save your work with the filename <Name_StudentID_SubjectName_AsstNumber>, paste your answers to your assessment questions in this sheet below
and upload the document with all questions answered.

Family Name:

Vilarubia

Given Name:

Victor

Student ID: Course:

S40068834 Diploma of Project Management

Subject: Trainer’s name:

Project Risk 2 Shirly Narayan

Declaration: I certify that this assignment is entirely my own work. I have provided full
referencing to the work of others. The material in this paper has not been submitted before.
 IMPORTANT – READ THIS FIRST

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word the thoughts of someone else.

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but submitting identical answers to other students may result in a failing grade. Your answers
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for tutorials will be announced during the first week of term. You are urged to attend the
tutorial that pertains to your online subject.

Assessment 2 – Written Assessment

1. Choose an upcoming project in which you will play a role, and carry out a
thorough risk analysis for it.

• Identify all risks and rank them in terms of their severity, making sure you
have understood the context in which they are likely to occur.
• Determine priorities to avoid those risks (or minimise the chance of them
having a major impact) and document them according to organisational
protocols.

2. Discuss the specific risk management techniques and strategies you will use
in the project to minimise the chance of physical risk, as well as any risk that
are likely to be detrimental to work outcomes.
Answers:

1)

Overview of the risk

Operational and Financial Risk Analysis – This project describes the assessment of a risk analysis undertaken for a project of a technology company in Chatswood. In this
analysis I will describe the risk assessment methodology, and the results of this assessment.

Risk Objectives

This risk analysis was designed to identify, evaluate, plan and deal with potential risks in conducting a new Data Collection project. The main areas of risk include are
operational and financial, we want to ensure that this is a viable project to the company.

Risk Classification

We have decided to use the framework “ISO 31000” to guide this risk assessment.

Operational and Financial risk assessments were undertaken by obtaining inputs from Finance, Recruitment Sales, Project Managers and Operational team members.

Project Managers and Sales are the specialists who have good knowledge and experience in risk management.

Risk judgements are given by respondents in the form of impacts and frequency of risks:

 Frequency - Possibilities to the risk occur;

 Impact - Level of risk variables will influence the success of the project.

The risks were identified by taking into consideration inputs from individuals involved in the project and company. The following aspects of the operational and financial
field were considered as part of the risk assessment:

• Cost to execute the project; Financial

• Resources to execute the project; Operational

• Space required for the Data Collection; Operational

• Equipment setup, testing and support; Operational

• Training necessary; Operational

• Pay participants; Financial

• Payment method; Financial

• Timeline of the project; Operational / Financial

• Target; Operational

• Data quality and delivery; Operational

LIKELIHOOD ENVIRONMENT

Almost Certain 90% of chance to happen

Likely 70% of chance to happen

Possible 50% of chance to happen

Unlikely 30% of chance to happen

Rare 10% of chance to happen

 LIKELIHOOD CONSEQUENCE

Level 1 (Low) Level 2 (Minor) Level 3 Level 4 Level 5

(Moderate) (Significant) (Severe)

Almost Certain High High Extreme Extreme Extreme

Likely Moderate High High Extreme Extreme

Possible Low Moderate High High High

Unlikely Low High Low High Extreme

Rate Low Moderate High High High

Once all risks had been identified, the consequence and likelihood of each individual risk was then analysed using the risk matrix:

RANK ASPECTS ACTIVITY RISK DESCRIPTION LEVEL LIKELIHOOD SEVERITY (1 to ACTION

4)

1 Financial Cost of the project  Once the project
can get twice more
expensive
depending on the
timeline.
4 High 3  To limit the risk, a recruitment
is dependent of plan will be established with
other teams to the recruitment team two
be executed, if weeks before the project
recruitment for starts;
example doesn’t  Project Managers will support
find enough the advertising of the Data
people for the Collection in order to support
data collection, the recruitment team;
the timeline will  This financial risk will be raised
be extended. to the client.

2 Operational Not enough  For this data 4 High 3  Project Managers will
resources in time for collection it’s communicate the situation
the Data Collection required a with the client so we can have
number of a confirmation on the number
resources like of phones and computers
phones and needed;
computers. The  Project Managers will
team might not communicate with the IT
have enough department to see if we have
resources in extra resources in case it’s
time as we are needed.
still waiting on
the
confirmation
from the client.

3 Operational Not enough space to  Due to the 3 Moderate 2  Supervisors to use the meeting
run the Data timeline we rooms of the office to run the
Collection in our might need to data collection;
Chatswood office run several
collections at
the same time,
this will require
extra space for
 the supervisors
to execute the
collection.

4 Operational Equipment setup,  The equipment 3 Moderate 2  Ask the client to send a
testing and support to be used for support to our Chatswood
this collection office in order to setup, test
comes from the and offer training to our staff
client’s office to execute the collection;
and it’s the first  Alternatively ask the client for
time we setup, a document explaining the
test in our step by step on how to use the
Chatswood equipment.
office.

5 Financial Forecast to pay  We need to be 1 Low 1  Submit a Cash Advance

participants after as accurate as request to finance team after
the data collection possible in order being reviewed by Project
session to submit a cash Managers and add 10% on top
advance request of the amount approved.
to finance to
pay participants

6 Financial Payment method to  Ensure there’s 1 Low 1  Project Managers to talk to

participants no implications Legal and HR to ensure we
to the company have an approval to pay
in paying participants cash for a one-off
participants task.
cash
2)

For this risk management plan, we have decided that we will use the following techniques and strategies to minimize the chance of the risks to occur:

1. SWOT – We have utilized the SWOT to identify the strengths and weaknesses of the project, therefore to identify the risks which are real threats.

2. Risk Treatment – “Mitigate” and “take action” are the most recommended actions for this project, the reason for this the gigantic impact that a bad administrated team
can leave in this project.

3. Risk Judgement – It is important for us to understand the impact and frequency of the Operational and Financial risks; therefore, we have engaged several stakeholders
in order to obtain their inputs as specialists who have good knowledge and experience in risk management.

Mitigate risk

This is when you seek to stop a risk before it becomes a reality i.e. preventative action or bring the risk to an acceptable level where its impact is not detrimental to the
project objectives.

Avoid risk

Project Managers will decide to take actions that will avoid the situation where the risk occurs, especially for ones that are moderate to severe. The result expected is that
the likelihood of the risk is widely minimized, and this will make the project viable.