Risk Analysis and Hazard Mitigation - Essay Example

? Risk Analysis and Hazard Mitigation Insert Risk management is essential for any particular project or business due to the various probable risks and contingency risks as well. In fundamental nature, risk management is an anticipation of likely challenges, which demands an objective assessment of the environment that the project is set to be implemented. The core goal of risk management involves scheduling, budgeting and executing the project responsibly concerning the environment. Risk tackling entails identifying the risks involved, evaluating them and putting a monitor in place to follow up the task, and implementing made choices on risk mitigation as per the project (riskinstitute.org). In this case, my organization’s building complex is the project for which risk mitigation actions are required. First, the project is to be subjected to a thorough risk assessment individually by the project management personnel. The risks assessed are to be compiled into one entity. Risk handling is determined by the nature of the risks identified and the personnel assigned particular risks to monitor, especially those that are not transferred in nature. The personnel’s duty is to monitor the identified risk and report to the risk management team and initiate response actions in respect to that particular risk. A detailed description of the risk is provided to enhance teamwork since precise information is key to the success of risk management through effective communication among the team members. In fact, at this stage the main objective is to identify risks and provide a detailed description to be used to determine potential and most appropriate solutions (riskinstitute.org). I would employ the five methods of risk identification for the building complex project. First, documentation reviews would be quite essential in order to determine the complications caused by the apparent risks and other related requirements as well. For instance, a review of the project design and the planned implementation would be best tackled by the use of this method. Consequently, identifying inconsistencies between the proposed activities and alternative practices with projects’s internal operations would be easily handled. In addition, this would facilitate an effective means to identify and solve any conflict in the process of risk management activities. The success of this activity is absolutely dependent on effective information gathering. Information gathering method entails thorough brainstorming, interviewing the persons involved and analyzing the cause of every particular risk identified. To obtain the most possible volume of ideas, I would employ brainstorming and interviewing since external and internal parties involved in the project would make an equal contribution. This would enable a team work spirit since the project owners, shareholders and the end users or rather clients are given an opportunity to provide their insights, which could not be identified without involving them in the process. Overall, the concept is a SWOT analytical approach to potential challenges to the project. This enhances project management since a breakdown of the information gathered through interviews and brainstorming activities is applied in the most appropriate way to tackle the risks identified. Additionally check list analysis is another method I would use to solve the multiple tasks, which are similar in nature fro this project. For instance, one on one interview with customers on their concerns in regards to the project would gather information on every aspect that affects them directly on completion of the project. Therefore, it would be appropriate to conduct interviews on all issues either correctly or sub-divide them for respective issues. In either way, the activity seeks to gather the customers' point of view on the project and interview correspondence would provide first hand information thus appropriate for other related aspects of the project that require customers input. Finally, I would employ assumptions analysis in relation to risks identified in the documentation review to determine the consistency, accuracy, and completeness of the project (projectmagazine.com). Given that this is a building project, there are numerous risks identified. These risks include, terrorism attacks since this is an administrative building of public importance. Secondly, the building is exposed to environmental risks and could develop cracks or collapse due to severe weather changes. In addition, the land on which the building is to be erected could slip and is subject to an earthquake whose occurrence cannot be prevented. On the other, the location of the complex has predisposing factors to environmental risks because an occurrence of a tornado or whirlwind is probable and this would negatively impact the business intended for the building. There are also man made risks that come along with implementation of this project. For instance, traffic in and out of the complex compound could result in unforeseen accidents and cause loss of life. Furthermore, the general infrastructure of the complex inclusive water supply, power supply and a drainage system alter the soil structure and the topology of the earth on which they are erected. It is noteworthy that such aspects attracts other risks. For example, the power supply lines which conduct electricity would amplify casualties in case lighting struck the building (riskinstitute.org). Likewise, the financial budget and allocations for various activities in respect to this project attract a wide range of contingencies which should to address. In fact, the completion of this project will last more than one year hence varying prices of construction materials and policies of other key players such as procurement contractors among other suppliers. The change in prices would necessitate that the project budget is adjusted upwards to cater for the cash deficit (projectmagazine.com). To reduce the vulnerability of the complex building project, I have identified an insurance cover approach for all aspects involved in this task. Given that the complex will have office equipment, machinery and other tools. In addition, the real property that is, the premises should be taken into account. A disaster that could damage this property would cause disruption of usual business hence I would take insurance premium for property cover to avoid inconveniences in case such a disaster occurred. The property insurance that guarantees repair or replacement of damaged property will fund the restoration of normal conditions whenever a disaster arises. Consequently, the premises will resume operations as soon as the repair is made without any financial constraints. However, I have to ensure the insurance cover policy is inclusive of extra costs such as removal of debris after a building collapses and the accounts receivable and reconstruction records as well as other paperwork in the course of repair. In reference to man made hazards, I would opt to pay for automobile insurance cover since a disaster affecting them would disrupt normal operations as well. In fact, insurance cover for vehicles would save extra costs involved in case new automobiles were to be bought in the absence of an insurance cover. Furthermore, this would interfere with the fiscal budget to a great extent. Nevertheless, the policy cover I would go for would have to cover injuries sustained during the accident as well. Although the environment and man-made disaster insurance covers would be of great support in sustaining the operations intended at the complex building, this project also requires a commercial insurance. Generally, the definite way to ensure financial security is through securing the commercial insurance cover. Commercial insurance is the least expensive way to insure the project as whole since it will finance all losses in the long run. This is an alternative to the inability of the project budget to set aside financial reserves (projectmagazine.com). References Public Entity Risk Institute, Managing Your Risky Business. Retrieved from . The Project Magazine,Practical Project Management. Retrieved from . The Project Magazine,Practical Project Management. Retrieved from . The Project Magazine,Practical Project Management. Retrieved from . Read More