Risk Managment

Risk Managment

  • Submitted By: smilstead
  • Date Submitted: 10/01/2014 2:54 PM
  • Category: Business
  • Words: 433
  • Page: 2
  • Views: 2

Riordan Manufacturing Risk Management Plan


Riordan Manufacturing Risk Management Plan
“Every project manager understands risks are inherent in projects. No amount of planning can overcome risk, or the inability to control chance events. In the context of projects, risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives”(Larson & Gray, 2011) . This is true on every project. Riordan Manufacturing will have many obstacles that they will need to overcome to make this move a successful project for them. The organization will have to face low probability risks that include bad weather, and natural disasters. Another low probability risk is failure to obtain proper permits on time; it is amazing how little clerical errors can stall a big project. Medium chance risks include cultural and language barriers, budget shortfalls, and project completion not accomplished on time. It will take dedication and true diligence to make this a successful and on time project. Please see the risk management chart below for further details.

Risk Management Chart
When Could This Happen
Contingency Plan
Risk Occurs
Preparation Response
Responsible Party
Weather/Natural Disaster
Add Additional days to project for makeup work days
Low Chance
Less than 20%
Monitor weather patterns and look at history of weather in the area
Project Manger
Construction Permit Issues
Prior to construction
Work on parts of the project that do not require permits or local approval to be completed
Low Chance
Less than 10%
Have permitting requirements submitted early and verify acceptance by local government.
Construction Foreman
Cultural Factors
Use as much of a local work force as possible, ensure that communication is solid through interpreters and other methods to overcome barriers
Medium Chance
More than 10%
Study local areas and...

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