Runninghead: UP Company
UP Company
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Set 1:
Risk Identification
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RISKS |
POTENTIAL IMPACT |
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1. Legal Requirement Risks |
The legal requirement risks are likely to interrupt operations as the management work towards making sure it complies with the relevant authorities. The risks that are related to legal requirements can include any standards that need to be met in order to operate the gym sessions in Saudi Arabia. Therefore, the many legal requirements for operating a gym are likely to increase the operational costs. |
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2 . Environmental Risks |
The environmental risks are likely to affect the operations of the UP company by disrupting its operations as it discharges services to the clients. In this case, the environmental risks that the UP Company will face include possibility of bad weather like high rains or low temperatures. |
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3 . Designing Risks |
The designing risks have the potential of causing service disruption, as the company is affected by the designs. The design risks can include the failure to design a gym session area that can accommodate all the employees in need of gym services. UP company needs designs that are in line with the needs of the targeted customers. |
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4 . Right of Way Risks |
Right of way risks can easily delay service delivery at the workplaces. As a result, the overall performance of UP company can be affected negatively in case of occurrence of the right of way risks. The risks can include inquiries of the employees as they work out during the gym sessions |
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5 . Engineering Service Risk |
Engineering service risks can affect the operations of the company by disrupting service delivery. For example, the engineering risks can include machine failure that can lead to the disruption of the gym sessions. |
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6 . Construction Risks |
The construction risks can easily delay the start of the company as the necessary structure must be erected before the operations start. For example, the risks related to construction can include limitation of funds needed to construct structures that can enhance the overall experience of the people doing workouts |
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7 . Project Management risks |
The project management risks can affect the UP company by making the business fail to meet the needs of the customers. for example, the major project management risks include the lack of proper and necessary management skills that can enhance the overall experience of the people taking the gym sessions |
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8 . External Risks |
External risks are usually out of control of the company thus once they occur UP company is likely to experience decline in revenues. For example, the risks that are external related to the project can include interruptions caused by late supplies of equipment. Also, disagreements with investors can be a major risk that can affect the overall funding of the project. |
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9 . Natural Disasters |
Natural disasters can cause huge damage the moment they occur as they can lead to loss of property and revenues as businesses re disrupted. For example, the risks related to natural disasters facing UP company can include sand storms that can easily disrupt the overall operations of the company |
Overview
UP company faces some risks that need to be mitigated in order to achieve its set goals. According to Michael Campbell (2014), risk management is crucial in achieving the set project goals through putting the appropriate measures in place. UP Company needs to work towards addressing the various risks it faces through incorporating the various key stakeholders. This is because the risks have great impacts on the overall performance of the company. The legal requirement risks facing the company can include the many regulations. The risks that are related to legal requirements can include any standards that need to be met in order to operate the gym sessions in Saudi Arabia. UP Company needs to work towards addressing the legal requirement risks by considering the legal environment before starting the business operations. The environmental risks that face UP Company include the possibility of bad weather like high rains or low temperatures. The failure to address the environmental risk can result in losses as the company can fail to meet the needs of the targeted customers.
The design risks faced by UP Company can include the failure to design a gym session area that can accommodate all the employees in need of gym services. As a result, the management should engage the customers in the process of designing the gym in order to offer a high-quality experience. This can assist in making sure that the potential risks associated with failure to meet the needs of customers are mitigated (Drouin, Besner, and Hobbs, 2012). The right of way risks can include inquiries of the employees as they work out during the gym sessions. UP company can ensure such risks are addressed through ensuring that the gym sessions are conducted in an environment that free from any physical objects that can cause injuries. UP Company faces engineering risks that can include machine failure that can lead to the disruption of the gym sessions. The company can addressed engineering risks through the use of reliable suppliers who can offer high-quality equipment.
Construction risks
faced by UP Company can include limitation of funds needed to construct structures that can enhance the overall experience of the people doing workouts. There is a need for the company to have enough funds set aside for constructing the appropriate structures.
Project management risks
faced by UP Company include the lack of proper and necessary management skills that can enhance the overall experience of the people taking the gym sessions. The risks that are external related to the project can include interruptions caused by late supplies of equipment. In addition, UP Company can experience disagreements with investors can be a major risk that can affect the overall funding of the project. Lastly, the risks related to natural disasters can include sand storms that can easily disrupt the overall operations of the company. Therefore, there is a need for UP Company to work towards addressing these risks in order to avoid disruption of its gym services to the targeted customers. For example, Teller, Kock, and Gemünden (2014) argued that engaging the relevant key stakeholders can assist in the risk mitigation process.
2. The probability that risk will occur and impact of the risks.
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High |
Risk 2 Environmental risks |
Risk 7 Project management risks |
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Risk 1 Legal requirement risks |
Risk 9 Natural disasters |
Risk 5 Engineering service risk |
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Probability risk will occur |
Medium |
Risk 3 Designing risks |
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Low |
Risk 6 Construction risks |
Risk 8 External risks |
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Risk 4 Right of way risks |
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Medium |
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Potential Impact |
Overview
The risks in UP Company that have a high probability of occurring are environmental risks and project management risks. However, the risks that have the highest potential impacts are external risks and engineering service risks. As a result, the management of UP Company needs to look for the best ways of addressing these risks. The objective of UP include considering putting in place the measures that can assist in mitigating the risks that have high probability of occurring and the ones with the highest potential impacts. Generally, the risk tolerance level of UP Company is medium, and it should plan to put in place the appropriate risk mitigation measures within two weeks.
3. The overall severity/importance of the risks.
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Distribution probability |
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| 9 | ||||
| 8 | ||||
| 7 | Risk 8 | |||
| 6 | Risk 4 | Risk 5 | ||
| 5 | ||||
| 4 | Risk 9 | Risk 2 | ||
| 3 | Risk 6 | |||
| 2 | Risk 7 | Risk 3 |
Risk 1 |
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| 1 | ||||
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Severity of the risk |
Severe Risk High Risk Elevated Risk Guarded Risk
Overview
The severe risks that need priority include engineering service risk, legal requirement risks and environmental risks. These risks have great impacts hence UP Company needs to focus on their mitigation. UP Company needs to put in place the appropriate measures that can ensure legal requirements are met, engineering services monitored and environmental condition monitored to avoid disrupting the overall operations of the company.
4. Important risks for further action.
The risks that are considered important hence need further action include engineering service risk, legal requirement risks and environmental risks. Michael Campbell (2014) argued that identifying the risks in need of further action is crucial in the entire risk mitigation process. The occurrence of engineering service risk, legal requirement risks and environmental risks is likely to greatly impact the overall performance of UP Company. As a result, addressing these risks is crucial for the survival of the company.
Set 2:
Risk breakdown structure
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Level 1 |
Level 2 |
Level 3 |
| Legal requirement risks | ||
| Management | Construction risks | |
| Project management risks | ||
| Designing risks | ||
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Plan move |
Technical |
Right of way risks |
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Engineering services |
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| Environmental risks | ||
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Organizational |
External risks | |
| Natural disasters |
Risk Techniques
Risk avoidance is one of the risk techniques I would use in mitigating the risks faced by the project. According to Eckerd (2014), risk avoidance involves developing alternative strategies with the probability of attaining project success at high costs. Risk sharing is the second technique I would use in mitigating risks. It would involve partnering with other organizations with the aim of sharing responsibilities of managing risk activities. Risk reduction is the third technique that I will utilize in mitigating the project’s risks. Risk reduction technique would entail reducing risks by increasing the funds dedicated to the project (Zeynalzadeh and Ghajari, 2011). Risk transfer is the last technique I would use in mitigating the project’s risks. This would involve shifting the risks to other parties in order to minimize the risks of the project.
Set 3:
References
Cagliano, A. C., Grimaldi, S., & Rafele, C. (2015). Choosing project risk management techniques. A theoretical framework. Journal of risk research, 18(2), 232-248.
Carvalho, M. M. D., & Rabechini Junior, R. (2015). Impact of risk management on project performance: the importance of soft skills. International Journal of Production Research, 53(2), 321-340.
Heagney, J. (2016). Fundamentals of project management. Amacom.
Kendrick, T. (2015). Identifying and managing project risk: essential tools for failure-proofing your project. Amacom.
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Meredith, J. R., Mantel Jr, S. J., & Shafer, S. M. (2017). Project management: a managerial approach. John Wiley & Sons.
Michael Campbell, (2014). Project Management, Sixth Edition.
Paquin, J. P., Gauthier, C., & Morin, P. P. (2016). The downside risk of project portfolios: The impact of capital investment projects and the value of project efficiency and project risk management programmes. International Journal of Project Management, 34(8), 1460-1470.
Pfeifer, J., Barker, K., Ramirez-Marquez, J. E., & Morshedlou, N. (2015). Quantifying the risk of project delays with a genetic algorithm. International Journal of Production Economics, 170, 34-44.
Zhang, Y. (2016). Selecting risk response strategies considering project risk interdependence. International Journal of Project Management, 34(5), 819-830.
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