Project Risk Management Plan

Topics: Risk management, Project management, Management Pages: 9 (1390 words) Published: October 12, 2014


Project Risk Management Plan
PM/584
July 14, 2014

Project Risk Management Plan
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 project. 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...

References: Cooper, D.F., Grey, S., Raymond, G, & Walker, P. (2005). Project risk management guidelines. Retrieved from The University of Phoenix eBook Collection database.
University of Phoenix. (2014). Baderman Island Resort Casino Proposal. Retrieved from University of Phoenix, PM584 website.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Risk Management Plan And Risk Analysis And Risk Management Revised Essay
  • How to Develop a Risk Management Plan Essay
  • risk management Essay
  • Essay on Risk Management
  • Case Study #3
  • Case 3 Risk Management Essay
  • Risk Management and Service User Essay
  • Risk Management Assessment 4 Essay

Become a StudyMode Member

Sign Up - It's Free