Risk management Essay
The major issues to be evaluated in the risk management study for TechWatt corporation which will be carried out following the contract award and immediately before the site set up should include; identification of the risks, quantification of those risks, coming up with strategies to respond to such risks and solutions on how to control the risks.
An example of a risk which should be addressed in a risk management study on TechWatt corporation project scheme is the exhaustion of the funds allocated for the project as a result of a rise in the cost of the raw materials needed for construction to prices higher than those estimated by the original budget. If not properly addressed, this would lead to stagnation of the project which would greatly affect the expansion plan put in place by the corporation (Mulazzani 2003).
This study should focus on identifying such risks which are likely to emanate from related projects, resources (scarcity), technical problems, politically instigated issues, undefined time schedules, commercial problems, socio-economic issues, labour related problems, financial constraints, industrial relations, unreliable suppliers, environmental issues, liability issues, organisational managerial problems, natural disasters among others (Haralambos 2005). A risk management study should therefore clearly analyse the five major
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This include: A strategic risks study which should involve understanding the competitive environment of the corporation as well as its long term plans regarding the deployment of resources for its expansion plans. Financial risks study on the other hand should be carried out to understand the sources of revenue for the proposed project and the reliability of these sources in funding the project. A study of operational risks is also important and this would involve critical analyses of all the systems put in place to support the project’s mission and vision and ensure that they are all efficient.
A compliance risk study for the project would involve checking whether the proposed site and all the activities involved in the project are in accordance with the rules and regulations of the government as well as the policies and procedures of the corporation. Lastly, the study should look at the reputational risks which are concerned with the ability of the project to fulfil the expansion mission of the TechWatt corporation and how it is bound to affect the reputation of the corporation locally and internationally. Who should be involved in the study.
A risk management study for the project should mainly involve project managers who have the sole responsibility of overseeing the whole study and their team members. A project manager must have great communication skills, be highly organised, have the ability to negotiate and provide great leadership skills for the project to successed. This particular study should involve three groups (of about five team members and one project manager each) which will address the risks involved in all the three sections of the proposed scheme.
The risk management study is bound to last for a period of one week which should involve three days of in-door workshops and for the remaining four days or so, the team members should do a through field analysis of the field environmental factors which may pose a threat to the project. This would involve visiting the proposed project site to check on things like the topography and the ability of the soil to hold a firm foundation which should be able to withstand natural calamities such as earthquakes, floods and so forth.