UNIVERSITY OF DAR ES SALAAM

COLLEGE OF ENGINEERING AND TECHNOLOGY (CoET)

DEPARTMENT OF STRUCTURAL AND CONSTRUCTION ENGINEERING (SCE)

MASTER OF SCIENCE IN CONSTRUCTION ENGEERING

MG 623: PROJECT MANAGEMENT

2021/2022 ACADEMIC YEAR – PROJECT RISK GROUP ASSIGNMENT
June 09, 2022

LECTURER: DR. KAFUKU

GROUP NO.1
S/N MEMBERS REGISTRATION NUMBER
1. MSITA TWAHA M. 2021-06-00534
2. NYEMBO HAMISI O. 2021-06-00678
3. ROMANUS JOHN P. 2021-06-01843
TABLE OF CONTENTS
1.0 INTRODUCTION ............................................................................................................... 3
2.0 PROJECT RISK MANAGEMENT PLAN ......................................................................... 3
2.1 Risk Identification ............................................................................................................... 3
2.2. Budget, Risk Tolerance, and Thresholds ......................................................................... 4
2.3 Risk Analysis........................................................................................................................ 4
2.3.1 Qualitative Risk Analysis ............................................................................................. 4
2.3.2 Quantitative Risk Analysis .......................................................................................... 7
2.4. Risk Responses ................................................................................................................... 7
2.4.1 Planning Risk Responses.............................................................................................. 7
2.4.2 Implementing Risk Responses ..................................................................................... 7
2.5 Monitoring or Tracking Risks ........................................................................................... 7
1.0 INTRODUCTION

A Risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on a
project's objectives. They are anything that could impact project’s success. Project risk
management involves identifying, analyzing, prioritizing, and responding to risk but also
integration of risk management activities into your other project management functions such as
scope, quality, time, cost, human resource, contract and procurement as well as information or
communication.
Project Risk Management Plan is the document that helps you identify, evaluate and plan for
potential issue that could come up during your project. Components of the Risk Management Plan
Are Methodology, Roles and responsibilities, Budgeting, Timing, Risk categories, Definitions of
risk probability and impact, Probability and impact matrix, Stakeholder’s tolerances, Reports, and
Tracking
Project Risk Management Plan help project managers to know what actions they have to do once
a certain risk are encountered it also shows who is responsible for what ad can help to track the
whole work
Consider a project for construction of a secondary school which consist of 6 storey buildings for
classes, library, laboratory and car parking lot. The following is the project risk management plan

2.0 PROJECT RISK MANAGEMENT PLAN

Project risk management will involve:

2.1 Risk Identification

During the whole project lifetime, all stakeholders and project team will continuously identify
risks. All identified risks should be logged into the Risk Register. Don’t judge or discard risks
without proper analysis. Project Manager is responsible for timely updates of the Risk Register.
The Project Team will use the following techniques with the scrum team, subject matter experts,
and stakeholders:
1. Interview
2. Meeting
3. Brainstorming
4. Requirements Analysis
5. Project Documentation Review
6. Expert Interview

Project Manager is also responsible for identifying risks outside of the Project Team. Project
Manager will review and analyze the company's Risk Categories on a regular basis.
2.2. Budget, Risk Tolerance, and Thresholds

Risk Tolerance is a measurable and specific level of risk while Risk Threshold is a particular point
at which risks become unacceptable.
The overall risk management budget should not exceed 15% of the project's estimate. Our releases
have strict deadlines, and we have a fixed budget for the team. Therefore, risks to schedule and
budget are unacceptable. Our overall strategy is to generate alternative solutions for the project
requirements/scope that will still meet project objectives.

2.3 Risk Analysis

2.3.1 Qualitative Risk Analysis
The goal of this process is to make a list of risks that require a proactive response. We should also
identify urgent risks that require a response right now. Project Team should assess all risks in the
Risk Register and identify Probability and Impact.
Impact is a level of effect that risk will have on the project while Probability is a level of likelihood
of occurrence of the risk.
It's not an in-depth analysis. Project Team should spend an adequate amount of time to assess the
risks. The project operates under the dedicated team model. Therefore, we will represent a risk's
impact in the team's effort, for example, person-days.
Table 1. Impact grades

Rating Interpretation

Project Failure. The project is not feasible within the given

10
constraints.

Over the project's deadline by 50%. Project goals and constraints

9
are out of synchronization. Feasibility is at risk.
High
Over the project's deadline by 40%. More than two sprints of
8 additional work. At this scale, risks become unpredictable without
further analysis.

Over the project's deadline by 30%. Up to two additional sprints

7
of work.

Over the project's deadline by 10-20%. 6-10 additional working

6 Medium
days of the team or full sprint of work.
Rating Interpretation

A slight impact on the release deadline. One such risk will

5 warrant additional working days for the team. It can be extra days
after the last sprint or overtime on weekends.

Serious impact on reserves. One such risk will drain reserves from
4 all release sprints. Moreover, it puts the deadline at risk. Additional
risks will put us beyond the deadline.

A medium reduction of reserves. One such risk will impact a

3
sprint's goals. We can regroup and catch up in the following sprints.

Low A slight reduction of reserves. Several such risks may impact a

2
sprint's goals.

1 Neglectable impact. Several such risks may reduce reserves.

Table 2. Probability grades

Rating Interpretation

10 A Fact

8 High Probability

5 Medium Probability

2 Low Probability

1
Table 3. Impact-Probability Matrix

10

High 8

6
Probabi
lity
Med 5

Low 2

1 2 3 4 5 6 7 8 9 10

Low Med High

IMPACT

Legend:
Red – risks that warrant a response.
Yellow – risks that require further analysis and investigation.
Green – risks that can be ignored.
2.3.2 Quantitative Risk Analysis

It's not cost-efficient to perform Qualitative Risk Analysis for this project. In exceptional cases the
Project Team may calculate the monetary value of critical risks and develop a decision tree.

2.4. Risk Responses

2.4.1 Planning Risk Responses
Risk Responses are part of the project Scope, Budget, and Schedule. To overcome systematic risks,
the project team may introduce additional processes and workflows. They should be properly
documented and being approved. Project Team may plan Risk Responses as additional tasks,
reserves of time, reserves of budget, or adjustments to processes. Other types of Risk Responses
should be developed in collaboration with Clients and Manager. Each Risk Response Plan should
have a dedicated Owner. It should be a specific person who will monitor the risk and collaborate
on risk response implementation. The owner of the risk has total responsibility for the risk. In case
of issues, the risk should be escalated to the Project Manager.
2.4.2 Implementing Risk Responses
The Risk Owner is responsible for:
1. Monitor the assigned risks.
2. Reporting on the progress of response implementation.
3. Reporting any changes to the risks.
4. Identifying and logging any secondary or residual risks.

Project Manager is responsible for the overall control of all Risk Management activities. Project
Team will discuss immediate risks daily during site meetings. Project Manager will report on the
immediate risks on every Status Report Meetings.

2.5 Monitoring or Tracking Risks

During the whole lifetime of the project, the Project Team will continuously monitor the existing
risks. It will also have regular activities to identify new risks.
1. Project Team will review Risk Register regularly.
2. Project Team will have regular brainstorming sessions.
3. Risk Owner will control risk's Impact and Probability.
4. Risk Owners will assess the efficiency of Risk Responses.
5. Risk Owners will keep Risk Register up-to-date.
6. Project Manager will continuously coach the team and clients on the best practices of
Risk Management.
7. Subject Matter Experts may conduct risk audits on demand.