Project Risk Management Plan Essay

The purpose of the risk management plan is to identify any event or condition that may occur which could have a positive or negative affect on the project. Risks management is the process of identifying, assessing, responding to, monitoring, and reporting risks. The Risks Management Plan will define how risks associated with the Baderman Island Casino Hotel project will be identified, analyzed, and managed. The plan will outline how risks management activities will be performed, recorded, and monitored throughout the project. The plan will also provide a template and practices for recording and prioritizing risks. The risks management plan has been created by the project manager during the planning phase of the Baderman Island Casino-Hotel project and the intended audience is the project team, project sponsors, and management. Executive Summary Baderman Island has recently been approached with an offer to construct the Silver’s Casino-Hotel on the grounds of the resort. With a downturn in the hospitality industry, volatile gas prices and current economic uncertainties, the Board of Directors and operational leaders believe the proposal could benefit the island. The casino will bring jobs to the local area, along with increasing revenues for the surrounding businesses. Along with jobs and increasing revenue, the casino-hotel will bring gaming as well as a blend of attractions and entertainment for the visitors to the island (University of Phoenix, 2014). Project Summary The hotel-casino will take 30 months to complete, beginning in November 2014, and will cost approximately $40 million to construct. Additional cost for roads and ferries for transporting materials, construction equipment, and workers to and from the island will be approximately two million dollars. The schedule for the roads and transportation will take three months with  the roads needing to be completed prior to construction of the hotel-casino. Budget and time are obvious constraints, but the team also needs to consider the constraints the natural resources and botanical gardens will put on the project. The quality of work on the roads and construction will need to meet the standards of the island resort without interruption to the existing activities and guest experiences. Risks Management Strategy and Process Determining project risks and responses to those risks are done by following risk management procedures. Risks management procedures include quantitative risks management, risks and control assessment, and project auditing. These procedures help the project team and stakeholders stay up to date on the latest developments with the project and help them to adhere to the risk management principles (eHow, 2014). Quantitative risks management helps project manager identify risks in short-term project or long-term initiative. Statistical skills and math expertise are applied to build control tools and methodologies. These tools identify, measure, and monitor operational, financial, and technological risks in a project. Once the risks have been identified the risks and control assessment is used to determine the level at which the risks may impact the project. The risks are categorized in levels that will reflect the likelihood of the risks occurring and the severity of its impact on the pr oject. To manage the risks as the project is in progress audits will be conducted. Audits will identify any area where corrections or adjustments may need to be made. Risk Identification Every project has risk and the proposed casino-hotel project is no different. The risk identification process must be comprehensive to avoid emergence of a risk at a later time when it could threaten the success of the project (Cooper, Grey, Raymond, & Walker, 2005). To identify possible risks to the Baderman Island Casino-Hotel, the process was structured and used key elements to examine possible risk systematically in each area of the project. This was done during a brainstorming session which included the following individuals: Renaldo Hinderer, CEO Baderman Island Resort Neida Durerso, Melancon Hotel GM Jame Tokar, Melancon Hotel Convention Center GM Kristoper Riffle, BA. The Tenney @ Night GM Amberly Wendolski, The Baderman Island Cafà © Perla Musgraves, Mayor of Kelsey Naoma Kinoshita, Sr. Botanist, William C. Martin Botanical Gardens Bao Weyrauch, CPA, Finance Manager, Boardman Management Group Ashly Yeamas, Manager Pepicello Fairways Dagmar Sephus, President Kelsey Ferry Company Cedrick McBroome, Director of Business Development, Patten-Fuller Community Hospital Tony Gonyer, Warden of Kelsey Prison Craig McClary, Ph.D, Principal, Kelsey High School A facilitator was appointed to conduct the brainstorming workshop and to review the procurement. The selected brainstorming team was briefed on the purpose of the workshop and the outcomes that were desired (Cooper, Grey, Raymond, & Walker, 2005). Risk were identified in the risk brainstorming workshop, then ranked, and prioritized. Each risk was assessed and given a qualitative and quantitative measurements to determine where they rank in priority, with one being the highest risk and seven being the lowest risk (see appendix B). Project Risks Monitoring: Watch Lists During a construction project such as the Baderman Island Casino-Hotel all risks must be monitored daily to ensure the impact is minimal. To monitor the project risks a watch lists has been developed. The watch list contain all the risks that are extreme or high (see appendix A). The progress and effectiveness of risks treatment actions will be reviewed, and adjustments to the Risks Action Plan will be made as needed (Cooper, Grey, Raymond, & Walker, 2005). As effective risks treatment has been completed the corresponding risks will reassessed, reclassified, or removed from the watch list. Likewise, as low or medium risks change in status and become more important or newly identified risks, will be added to the watch list. Project Risks Reporting: Milestone Progress Project risks reporting provides a summary of risks, the status treatment actions, and an indication of trends in the incidence of risks in the project (Cooper, Grey, Raymond, & Walker, 2005). To report the progress of  the Baderman Island Casino-Hotel project and its risks a Milestone Progress report will be used. This will give the project manager and stakeholders an update on how the project is progressing. The report will match the achievements to the planned milestones. The achievements and milestones can be charted to give a visual to see progressing on time or if it is behind schedule (Simon Wallace, 2007). A project manager can also analyze the dates for milestones to determine a variance and projection for milestones (Simon Wallace, 2007). If the project gets off track for any reason this will allow the project manager to make adjustments to get back on track and to determine how much impact a risks has had on a project. Conclusion Baderman Island Resort has a very lucrative opportunity that could bring jobs and revenue to the island. Building a Silvers Casino-Hotel may pose some risks for the resort, but will be beneficial once the project is complete. The project team has identified all possible risks to the project and has put together a project risk management plan that will mitigate the risks. Monitoring and tracking the risks will help the project stay on track. Reporting of the progress of the project will be done throughout the project so that the key stakeholders and management can stay abreast of the project. With the approval of the project the team can get to work and have the Casino-hotel up and running by 2015 for guest to enjoy. References Cooper, D.F., Grey, S., Raymond, G, & Walker, P. (2005). Project risk management guidelines. Retrieved from The University of Phoenix eBook Collection database. eHow. (2014). Qualitative risk assessment tools. Retrieved from http://www.ehow.com/info_8511684_qualitative-risk-assessment-tools.html Simon Wallace. (2007). Risk Management: Assessing risks at the start of a project. Retrieved from http://www.epmbook.com/risk.htm University of Phoenix. (2014). Baderman Island Resort Casino Proposal. Retrieved from University of Phoenix, PM584 website.