RISK MANAGEMENT PLAN NAME PROFESSOR Project Management 519 05/01/17 Table of Contents 1. Introduction 2 2. Project Description and Objectives 2 3. Aims, Scope and objectives of risk processes 4 4. Application of the Atom processes 5 5. Risk Tools and Techniques 6 6. Organization, roles and responsibilities for risk management 9 7. Risks Reviews and Reporting 10 8. Definition of probability and impacts 11 9. Definition of Risk Thresholds section for the Risk Management Plan 12 10. Conclusion 13 Bibliography 15 1. Introduction This paper reflects on risk management plan for the project “British Petroleum (PLC) and John: Browne: A Culture of Risk beyond Petroleum” for illustrating various risk management procedure which is generally employed throughout the life of the project. In this project, the project manager is considered as the person who is very much responsible for maintaining as well as reviewing the plan that is generally associated with the Risk Management for ensuring that the various procedures of risks remains inappropriate to deal with various levels of risks that are mainly faced by the project. 2. Project Description and Objectives About the Project The project mainly focuses on the organization “British Petroleum” to determine the reasons of poorly regulated safety measures in the plant as well as in the risk management plan. It is analyzed that the organization does not maintain proper regulated safety measures in the plant and as a result, an explosion happens which killed 15 people and injured more than 180 persons. According to the suggestions from board, the organization compromised the safety of the company in favor of profits, management supervision as well as cost savings. Background of the project The organization “British Petroleum” was mainly founded in the year 1908, which was an Anglo-Persian Oil Company. The business of the organization is mainly divided into three subsections that mainly include oil exploration and production, power and renewable and oil refining and market. British Petroleum was engaged in exploring oil in mainly 26 different countries all over the world. The organization is one of the largest companies with 100,000 employees in over 100 countries due to the effort of Mr. John Browne who is the chief executive officer of the company at that time. Purpose of the project The main purpose of this paper is to identify assorted reasons due to which the British Petroleum suffered. The paper also helps in illustrating various risk management plans, which are necessary for resolving or mitigating the risks that generally occurred due to the explosion. Objectives of the project The objectives of the project are illustrated below:  To determine the assorted reasons behind the occurrence of explosion within the organization “British Petroleum”.  To complete the entire project within $100,000  To determine the risks that are associated with the explosion of British Petroleum  To complete the entire project activities within six months  To provide proper safety measures to the employees It is analyzed that the prior objective for the organization “British Petroleum” is to identify the reasons behind poorly regulated safety measures and to provide proper risk management facility to the company by determining the diverse types of risk effectively. 3. Aims, Scope and objectives of risk processes The main of the project is to manage different foreseeable risks in such a manner that is generally effective, proactive as well as appropriate for maximizing the likelihood of the project by achieving the goals as well as objectives of the project while maintaining the exposure level of the risk at various acceptable levels. The project scope reflects on the management of several types of risks that the organization mainly faces due to the explosion that generally occurs due to improper safety measures within the organization. The scope of the project also engages in analyzing the assorted reasons behind the risks due to which the organization “British Petroleum” suffered losses both in context to reputation as well as finance. The objectives of risk processes include:  To engage various stakeholders of the project appropriately by developing proper ownership in various risk management actions  To communicate the risk based information to the various project stakeholders in an appropriate time  To enable the strategy of the project to be modified properly in the light of appropriate risk exposure  To enable the stakeholders to focus attention on different areas of the project  To cover different activities of the project that is undertaken during the project lifetime 4. Application of the Atom processes The project is considered large as per the agreed project-sizing tool. It is analyzed that the budget of the project is $100,000 which is>than $75K and as per the project sizing tool the project is identified to be large and for this project extended ATOM procedure will be utilized. The ATOM procedure that is utilized in the project is illustrated below: Initiation: This stage mainly clarifies as well as helps in recording the objective of the project, which is generally accessed. It not only helps in illustrating the various details of risks procedure but also assists in implementing various risk management plan. Identification: This step generally helps in documenting the various risks which might helps in affecting the objectives of the project. Assessment: This step assists in illustrating risks either qualitatively or quantitatively for determining different areas of the risks. Response Planning: It assists in determining various appropriate strategies as well as action plan to deal with various risks Reporting: The step engages in communicating the status of risk on the project to various stakeholders. Implementation: This step assists in implementing diverse types of response strategies as well as actions for identifying their effectiveness. Review: This step helps in updating different risk assessment policies at various regular intervals with the help of minor as well as major reviews Post-Project Review: This is the step where several types of lessons are generally learned for either improving the risk management or project management. The project’s initiation phase is generally completed before the commencement of the project and after then all the other steps in the risk process will be completed in a cyclic pattern within 30 days of project initiation and various reviews will be conducted in weekly basis thereafter. It is analyzed that major review generally occurs within a week and helps in elaborating all the most significant risks that helps in creating a negative impact on the safety measures for analyzing as well as resolving them appropriately. On the other hand, minor reviews are many conducted in months for resolving the risks that does not have an enormous impact on the safety measures of the project. 5. Risk Tools and Techniques The tools as well as techniques that are generally utilized for supporting the risk management procedure include: Initiation:  The document of risk management plan that is developed at the start of the project is mainly reviewedduring the course of the project. Identification: During this step, various tools as well as techniques are utilized for identifying various risks.  Brainstorming is utilized with the assistance of all project team members as well as representative suppliers of the project.  The project analyses various assumptions as well as constraints that are also considered as important technique.  The initial risk register of the project helps in recording several types of risks for assessment. Assessment: The utilized tools and techniques include:  Impact as well as probability assessment for the risks are used  Double P-I matrix is generally used for prioritizing risks for various action  The list of top risks for achieving the attention of the attention is utilized  Risk register is updated for incorporating data assessment. Response Planning: The various tools as well as techniques that are utilized include:  Selection of appropriate response strategy for several types of risks that are identified  Specific action owners as well as actions must be identified  Risk Register is updated for including response data. Reporting: The tools as well as techniques that are generally utilized include:  Report on risk of the project must be provided to the project board as well as project sponsor  Ad-hoc report provision must be provided to project team as well as different stakeholders. Implementation: The tools and techniques used include:  Response Strategy implementation with the help of agreed upon actions  Monitoring different effectiveness on different agreed actions for updating the plan of the project Review: The tools and techniques that are use include:  Risk workshops for determining different risks, reviews progress on various existing risks as well as assessing effectiveness of the process  Meetings on risk reviews in context to minor risks of the project to identify new risks as well as analyzing the risks that are existing in the company Post-Project Review: The tools and techniques that are use include:  Meeting on lessons learned for capturing all the lessons, which are generally learned in context to risk management of the project. 6. Organization, roles and responsibilities for risk management Stakeholders Roles and Responsibilities Project Sponsor The project sponsor is the person who mainly engages supporting as well as encouraging the development of risk management procedures. The project sponsor also assist in setting as well as monitoring various thresholds of risk to ensure that they are converted into acceptable levels of the project. The project sponsor is also responsible in reviewing several types of risks which is generally escalated by the project manager. The person makes appropriate decisions on different releasing management reserve for the entire development of the project. Project Manager The project manager is the person who is responsible for managing the entire risk procedures by ensuring several types of foreseeable risks. They also help in determining the acceptable level of risks. They generally engage in approving as well as promoting risk management procedures or plan. The project sponsor is responsible of approving diverse types of risk response plan which associated with the priority of the risks. Risk champion The risk champion of the project mainly engages in managing as well as overseeing the entire risk management procedures. They assist in planning various risk management plan and facilities workshops to review several types of risks. They also have the responsibility to ensure the quality of all risks data. Risk Owner The risk owner mainly engages in developing several types of responses in various forms that include risk actions that are generally assigned to various action owners. They also help in monitoring the progress of risks and assists in implementing agreed upon actions for supporting several response strategies. Project team member The project team member generally participates in diverse types of risks processes by proactively identifying as well as managing the various areas of responsibility. The project team members also assist in providing several types of inputs to the project managers for reporting different type of risks. 7. Risks Reviews and Reporting It is analyzed that the risk exposure is mainly reviewed with the help of state frequency of major reviews during the entire course of the project. The reviews help in identifying distinct types of new risks which are accessed and it also assists in analyzing the existing risks for the progress on different agreed actions. The effectiveness of the procedure of risks is reviewed based on major review for identifying whether the changes to the tools, techniques as well as various approaches are needed. It reviews the procedure that is needed by both the project champion as well as the project manager for reviewing as well and updating the documents of risk management plan. A report on risk is mainly issues on a weekly basis and is provided to the project sponsor with the help of the project manager. This is mainly done for reviewing both the minor as well as major reviews of the project properly. The various stakeholders as well as project team members are generally offered with an extract from various risk register after completing each review by properly listing those actions as well as risks for which various individuals are responsible. After completing the entire project successfully, a section of risks is generally given to the report of lessons learned that elaborates distinct types of threats as well as opportunities which may have a negative impact on other similar projects. Input will be generally provided for the knowledge of the project for capturing various risk-related lessons from the project. 8. Definition of probability and impacts SCALE PROBABILITY +/- IMPACT ON PROJECT OBJECTIVES Time Cost Quality VHI 71-99% >15 days >$200K Very Significant impact on the functionality HI 51-70% 10-22 days <$51K-$100K MED 31-50% 4-8 days <$10K Significant impact on the functionality. LO 11-30% 1-3 days $12K-$34K Some impact on functionality. VLO 1-10% <1 day <$10K Minor impact on functionality NIL <1% No change needed No change No change in functionality 9. Definitionof Risk Thresholds section for the Risk Management Plan Risk threshold is defined as a risk that is generally accepted either by the willingness of an individual or by the approval of the organization. For example, the budget of the project is $100,000 which is acceptable by the organization but any other extra expenses more than the approved budget are not acceptable in the project. In the risk management plan, it is considered as a section that the organizations do not want to tolerate. This threshold is generally applied with the help of risk exposure which is mainly calculated with the help of both impact as well as probability. It is quite important to understand the crossing limit of the threshold. The project management team of the organization must take some proper decisive actions for bringing the risk exposure under the limit of threshold. SCALE PROBABILITY +/- IMPACT ON PROJECT OBJECTIVES Time Cost Quality VHI 71-99% >15 days >$200K Insignificant impact on the functionality HI 51-70% 10-22 days <$51K-$100K MED 31-50% 4-8 days <$10K Insignificant impact on the functionality. LO 11-30% 1-3 days $12K-$34K Negligible impact on functionality. VLO 1-10% <1 day <$10K Negligible impact on functionality NIL <1% No change needed No change No change in functionality 10. Conclusion It can be concluded from the overall assignment that proper risk management plan is generally created for the British Petroleum to mitigate the issues that generally occur due to poorly regulated safety measures in the plant. It is analyzed that the organization does not maintain proper regulated safety measures in the plant and as a result, an explosion happens which killed 15 people and injured more than 180 persons. According to the suggestions from board, the organization compromised the safety of the company in favor of profits, management supervision as well as cost savings. To resolve the problems, the organization analyzes the risks and creates appropriate risk management plan that successfully helps in resolving the issues. It is identified that the risk management plan helps in elaborating the ATOM of the processes, tools as well as techniques as well as probability and impact of risks. Bibliography Amernic, J., & Craig, R. (2016). CEO speeches and safety culture: British Petroleum before the Deepwater Horizon disaster. Critical Perspectives on Accounting. Bailles, N., Beattie, N., Chandler, M., Donovan, T., Edwards, B., Erickson, A., ...&Laberda, L. (2016). Brooklyn Park Risk Management Plan for Nature Playscapes. Chan, M. J., Huang, Y. B., Wen, Y. H., Chuang, H. Y., Tain, Y. L., Wang, Y. C. L., & Hsu, C. N. (2016). Compliance with risk management plan recommendations on laboratory monitoring of antitumor necrosis factor-α therapy in clinical practice. Journal of the Formosan Medical Association,115(2), 83-93. Chan, M. J., Hsu, C. N., Wen, Y. H., & Wang, Y. C. L. (2014). Does a Risk Management Plan Increase Safety Monitoring for the Use of Tumor Necrosis Factor-alpha Inhibitors?. Pharmacoepidemiology and Drug Safety, 23, 4-5. Fardhosseini, M. S., Esmaeili, B., & Wood, R. (2015). A strategic safety-risk management plan for recovery after disaster operations. Fermont, I., Wexler, Y., Lavon, O., &Brezka, L. (2015, October).ISoP Israel Project to Address Public Health Issues Through a National Multi-Lateral Collaborative Risk Management Plan: Time to Move Forward. In DRUG SAFETY (Vol. 38, No. 10, pp. 983-983). 5 THE WAREHOUSE WAY, NORTHCOTE 0627, AUCKLAND, NEW ZEALAND: ADIS INT LTD.