Risk Management: Implementation and Opportunities Research Paper

Critical Success Factors

In this paper, implementation issues and future opportunities will be discussed to understand if it is possible to foresee the potential risks and take the precautionary steps properly. Critical success factors are the elements that help to complete the process and make sure the project is successful (Heldman, 2005). In the resurfacing an old driveway with new asphalt project, the following success factors can help to extend the boundaries of the improvement process and achieve better results in the implementation stage of the work (Kerzner, 2009):

1. Communication: all team members have to talk to each other, discuss different aspects of the work, and share their ideas because something important can be ignored by one person but underlined by another.
2. Technical characteristics: this factor may touch upon time, cost, and quality issues. When an old driveway is moved, it is necessary to use the available material and equipment and meet the deadlines. If some challenges take place, a number of changes should be done.
3. Project missions: people involved in the project should remember their goals and duties that have to be completed in time. It is not enough to know all of them but understand when and why each step should be taken.
4. Team involvement: cultural, personal, and professional issues should be discussed in a team as well as an individual should be identified in the process (Wan & Liang, 2012). Personal conflicts or misunderstandings may decrease the quality, and the team should think about the outcome of the work.
5. External support: a project manager should consider the possibility of external help in case some unforeseen challenges and obstacles take place.

Key Issues for Management

Key issues help to think of the solutions that can be made to improve risk management (Liu, Li, Lin, & Nguyen, 2007). Bender and Randall (2005) admit that even the most experienced managers cannot be sure that all their actions and activities are free from risks. Therefore, careful planning and identification of key issues of risk management are important in the chosen resurfacing project. It is better to make a list of key issues for management risks of the project and get ready to:

1. Identify one long-term goal (to create a good driveway of high quality) and several short-term goals (choose a good team, discuss the working details, select the material, think about the equipment and material delivery, etc.) and understand what all these activities are necessary for.
2. Analyze the geographical location of the place where a new driveway should be created and underline weather peculiarities and other natural challenges that may take place (like a tornado, rain, snow, etc.).
3. Consider the necessity of upgrading operations in cases of emergency to promote road safety and success of the project (Mouratidis & Papageorgiou, 2010).

Sometimes, key issues are identified in the same way success factors are identified. Still, the possible difference is the detailed explanation that helps to realize that it is not enough to learn the issues but also know how to implement them and achieve the desirable results.

Standards and Implications for Risk Management Tools

Standards are used to determine the already defined practices and make sure that the best ideas are chosen for risk management. ISO 31000 can be used as the main guideline of the project, the scope of which predetermines the possibility to use the guidelines by private or public communities and individuals, who want to improve their work. The chosen International Standards can be used to manage any risk and identify the steps that can be taken. With the help of ISO 31000, it is possible to:

1. Avoid the risks the development of which can cause another unforeseen risk;
2. Remove the source of the risk;
3. Change the environment and use more convenient conditions.

The process of removing a driveway is not too dangerous. Still, if all risks are not mentioned and discussed beforehand, the result of the work may be not as successful as it is expected. The peculiar feature of these standards is the manager’s possibility to inform the workers about the expectations and discuss the conditions under which each stage will be done.

Mitigation Techniques

Mitigation is a risk management attempt with the help of which it is possible to reduce the probability of risk or try to control the impact of the event with a minimum of losses (Heldman, 2005). There are six main risks identified in this project, and each of them may have at least one mitigation technique.

1. The risk of poor weather conditions can be mitigated with the help of special preparations and options available. For example, the project manager can consult a weather forecast company and get the required information about the weather during the working period. If there are some insignificant changes like rain or snow, it is possible to use a special protective canopy to cover the ground or even use the tent to provide workers with dry driveway.
2. The risk of poor quality equipment or delivery delays is also possible and cannot be predicted. Though the project manager cannot know for sure of the quality of the chosen equipment until it is delivered, he/she may take several precautionary steps. These are reserving additional equipment with another company, checking the quality of the equipment independently beforehand, and planning the delivery time far before the first day of actual work.
3. The risk of poor quality of new asphalt cannot be neglected because it is hard to understand if the chosen material is appropriate for a particular driveway and the ground around. The following techniques may be offered: an expert help may be used to make sure the choice of the material is good, or additional asphalt should be considered as a substitute for the main one.
4. The risk of the workers’ health problems is also possible because it is hard to predict or prevent human sicknesses. The project manager can address a doctor to analyze health conditions of the workers (still, it may cost additional money) or follow the working conditions and make sure there are always several extra workers.
5. The risk of too high unexpected financial costs depends on the possibility of some or all risks mentioned above. As soon as some change in the plan takes place, or some improvements may be needed, financial costs can be higher than they are expected. To mitigate this kind of risk, the manager can create a reserved source of money or discuss all possible misunderstandings, emergencies, and other problems with every person of the working team.

Measurement and Monitoring Techniques

Measurement and monitoring are the processes based on gathering appropriate material about the project, supplementary events, and the surroundings that can influence the development of the project (Heldman, 2005). It is very important to analyze the information found and report it as soon as some doubts or challenges take place or may take place. The necessity to control everything around is evident in resurfacing an old driveway with new asphalt. The outcome of this project may influence a number of people: those, who live not far from the place of work, those, who are involved in the working process, those, who pay for and earn from this project, etc.

Six risks of the project may be monitored and analyzed by one person, who has to recognize the threats and make some solutions. For example:

1. As soon as it is seen that weather conditions are worsening, it is necessary to use a special canopy and protect the amount of work that has been already done.
2. As soon as health conditions of workers are changing, it is obligatory to identify the reason, eliminate it, and ask to take some resolvents.
3. When it is noticed that the quality of equipment or asphalt is bad or inappropriate, it is better to make the necessary substitutions not to be late on the order.
4. If some delays take place, they should be discussed with those, who are responsible for them, explanations should be given, and a new company should be chosen if the losses are evident.
5. If the project manager observes the necessity to pay than it is planned, the reasons for additional payment should be clarified and justified to make sure the extra source of money is spent logically.

References

Bender, D. & Randall, K.E. (2005). Service-learning risk management considerations: The community visitor project. Education for Health, 18(1), 85-88.

Heldman, K. (2005). Project manager’s spotlight on risk management. Alameda, CA: SYBEX Inc.

Kerzner, H. (2009). Project management: A systems approach to planning, scheduling, and controlling. Hoboken, NJ: John Wiley & Sons.

Liu, J., Li, B., Lin, B., & Nguyen, V. (2007). Key issues and challenges of risk management and insurance in China’s construction industry: An empirical study. Industrial Management & Data Systems, 107(3), 382-396.

Mouratidis, A. & Papageorgiou, G. (2010). A rational approach for optimization of road upgrading. Canadian Journal of Civil Engineering, 37, 1462-1470.

Wan, J. & Liang, L. (2012). Risk management of IT service management project implementation with killer assumptions. Technology and Investment, 3(1), 48-55.