Project Risk Management Process

In: Business and Management

Submitted By kirokop
Words 4121
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1st draft
Do Thi Ha Phuong 18249037

RISK MANAGEMENT 641 - ASSIGNMENT NO 1
TOPIC: PROJECT RISK MANAGEMENT PROCESS

PART A – APPLICATION
About the company and its functions.
Joint Stock Company BT20 is established in 28/03/2012. The company operates in road construction areas. The company is implementing a restoration, renovation National Highway 20 project in Vietnam, Required main tasks of company are: clearance and compensation, the basic construction work, mine clearance, leveling, construction of roads, drainage and wastewater treatment systems, trees, power supply system.
As well as any other investment, construction investment is likely to encounter risks to be inefficient investment as originally planned. Type of risks | Sub risk | Sub-Sub risk | Financial | Cost increases | Unreasonable Estimated costs.Weak Project Management | Natural | Unfavorable weather | - Raining- Storm | | Disaster | - Blood- Earthquake- Flooding | Safety | Accident in construction site | - Delay the construction- Reducing on reputant of company. | Time | Project duration is extended | - Cost for material increase- Lack of employee’s skills- Wrong estimate on cost- Lack of skill on project management. |

1. RISK IDENTIFICATION
The effectiveness of the project is determined by three factors that are quality, cost and time (Saladis and Kerzner 2011). For the before and during the construction of NH20, the cost is considered to be one of the serious issues because it contains a lot of different risks and one of the major risk is increased construction costs of the project.
The cost of the project is forecasted at the beginning of project, so when conducting implementation of projects, expenses may be changed with the original forecast. These unexpected changes, which are call, risk on costs, and the cost of the project increases would bring serious…...

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