"Summary Risk Report Summary Risk ReportCommunity Park Revision Project Summary Risk Report Executive SummaryRisk mitigation is crucial for all projects in order to ensure efficiency and success. In caseof the chosen community park revision project, there are several risks involved including projectfailure risk, legal risk and commercial risk. Yet an expectation of success based on possibilitiesof risk mitigation and risk minimization drives us to form a risk report which can support projectimplementation and help carry out this project with better chances of success. As the project wasplanned and risks were assessed using the Atom model of risk assessment, 10 major risks wereidentified and rated based on their impact.The following four risks were found to be of high impact and need to be managed well inorder to ensure that the project is not disrupted:a. Technical risk: The new blue print of the park is totally different from what it wasearlier. There are difficulties in starting the construction work because the whole setup will be recreated. It is recommended that there be development of a strong designwhich can be well aligned to the current layout and that it does not conflict with theland available after demolition. An appropriate design is extremely crucial for thisproject to succeed. b. Management risk:There is a need for save zone for pets and the reconstruction of thepark should take these issues before and during the work. It is extremely importantthat the design approved in the final stage of planning ensures that all requiredamenities are included and that there is no scope for mistakes with regard to whatshould be included as a part of the healthy environment and family outing conceptsand campaign being carried out. It is important that the objectives for recreating thepark be clear and the design be well aligned to it. c. Economic risk:In the given case if the rate of inflation increases then the cost ofconstruction for the project will definitely increase. It is recommended that it beensured that the project is completed at the earliest possible. d. Financial risk: The project may be over budgeted and may exceed the said amount of$ 200000. This can be possible due to hike in prices of materials, steel, labor, increasein taxes and so on. It is strongly recommended that a contract be formed with the Summary Risk Report engineering company to whom the construction work is given or directly with thesuppliers from whom the material is being sourced. A legal contract and a hedgingposition can help ensure that there is no project over run due to hike in prices ofmaterials, steel, labor and other factors involved in project implementation. Risks oftax increase and unforeseen expenses do remain in spite of risk mitigation through alegal contract. Scope and objectives of risk reportThe scope of the risk report is limited to assessment of risks related to the projectincluding controllable and semi controllable factors. It does not consider uncontrollable factorslike natural calamities, though it does recommend possible safety measures be taken even forthese. In case of construction, there are high risks involved on site. It is important that these risksbe minimized by using appropriate training and safety gears. This can help constructionemployees be aware of what steps and process they should take up to minimize the risks to lossof life and injury on work site. It helps build stronger levels of trust and confidence amongemployees, helps comply with legal regulations and also helps them eliminate risk on siteOverall risk statusOut of the 10 risks indentified, 4 have been classified as very high risks. This includestechnical risk, managerial risk, economic risk and financial risk. It is important to resolve theseon priority basis. Of these risks, financial risk has been considered as an extremely detrimentalone. A budget over run is of high probability and can hamper the efficiency of the project.Effective work contracts, sourcing and hedging can help the firm ensure that factors like inflationdo not impact the project cost. A buffer to accommodate these increases in price would be ofgreat help. Top risks, actions and ownersRisk Action OwnerTechnical risk: The park is to It is recommended that there Technical headSummary Risk Report be reconstructed by be development of a strongdemolishing the park located design which can be wellat Hughes and Amesbury aligned to the current layoutCircle. The new blue print of and that it does not conflictthe park is totally different with the land available afterfrom what it was earlier. There demolition. An appropriateare difficulties in starting the design is extremely crucial forconstruction work because the this project to succeed. whole set up will be recreatedManagerial risk: The major It is extremely important that Project headobjective of reconstruction of the design approved in thethe park is to create a healthy final stage of planning ensuresenvironment among the that all required amenities arefamilies living in that area. included and that there is noThere is a need for save zone scope for mistakes with regardfor pets and the reconstruction to what should be included asof the park should take these a part of the healthyissues before and during the environment and familywork outing concepts and campaignbeing carried out. It isimportant that the objectivesfor recreating the park be clearand the design be well alignedto it. Economic risk:Economic risks It is recommended that it be Project finance managerare risks that are related to the ensured that the project iseconomic conditions of the completed at the earliest Summary Risk Report country. In the given case if possiblethe rate of inflation increasesthen the cost of constructionfor the project will definitelyincreaseFinancial risk : The project It is strongly recommended Project finance managermay be over budgeted and that a contract be formed withmay exceed the said amount the engineering company toof $ 200000. This can be whom the construction work ispossible due to hike in prices given or directly with theof materials, steel, labour, suppliers from whom theincrease in taxes and so on. material is being sourced. Alegal contract and a hedgingposition can help ensure thatthere is no project over rundue to hike in prices ofmaterials, steel, labor andother factors involved inproject implementation. Risksof tax increase and unforeseenexpenses do remain in spite ofrisk mitigation through a legalcontract. Changes since last reviewSince the last review, owners have been assigned to all risk items along with actions been defined and the risk register has been updated. No new risks have been identified. Summary Risk Report Conclusion and RecommendationsBased on the risk assessment, we can conclude that there are several risks involved in thisproject and they need immediate attention in order to help this project succeed. As each of therisks have been assigned to the respective owners or heads, it becomes essential to focus onhelping them mitigate the risks. The following actions need to be taken:1. Technical risk:Status: REDOwner:Technical headAction:? An appropriate design be formed which is aligned to previous designs? Infrastructure issues be resolved at the planning stage itself 2. Managerial risk:Status: REDOwner: Project HeadAction:? Designing and planning are to be effective? All amenities should be planned for and included in the initial designs ? No reconstruction should be required 3. Economic risk:Status: REDOwner: Project finance managerSummary Risk Report Action:? Timely completion of project4. Financial risk: Status: REDOwner:Project finance manager Action:? Hedging? Appropriate adherence to budget ? Business contracts for sourcing Risk RegistryImpactProbability Probability ImpactP X IType of Risk # Risk Title ** RankRank * Score Score Score Impact*1 Technical Risk High 0.1 VHI 0.9 0.81 Negative2 Management Risk VLO 0.1 VHI 0.9 0.9 Negative3 Commercial Risk LO 0.7 High 0.7 0.49 Negative4 External Risk Med 0.7 High 0.7 0.49 Negative5 Internal Risk Med 0.5 Med 0.5 0.25 Negative6 Economic Risk High 0.9 VHI 0.9 0.81 Negative7 Legal Risk VHI 0.7 High 0.7 0.49 Negative8 Governmental influence LO 0.1 VLO 0.1 0.01 Negative9 Financial Risk VLO 0.1 VHI 0.9 0.09 Negative10 Maintenance Risk Med 0.5 LO 0.3 0.15 Negative11 Scheduled Risk High 0.5 High 0.7 0.35 NegativeAppendixSummary Risk Report RBS Level 0 RBS Level 1 RBS Level 2 Technical Risk The park is to bereconstructed by demolishingthe the park located atHughes and AmesburyCircle. The new blue print ofthe park is totally differentfrom what it was earlier.There are difficulties instarting the construction workbecause the whole set up willbe recreatedManagement Risk The major objective ofreconstruction of the park isto create a healthyenvironment among thefamilies living in that area.There is a need for save zonefor pets and thereconstruction of the parkshould take these issuesbefore and during the work.Project Risk Commercial Risk Commercial risk is the risk ofloss inflow of funds via thisconstruction of the park. Thispark is being made for asocial cause that is to bringthe families of thecommunity and colony Summary Risk Report together and create aharmony among them. External Risk External risk consist ofexternal factors such asfamilies living in the area notallowing workers to work,creating disturbances so thework of parksuffers.Unfavorable weatheris also one of the externalfactors which spoils thedeadline and hampers thework.Internal Risk Internal factors also create risky situations for the construction to complete. These are over budgeting thatis the project is exceeding thesaid estimate and maybecome more expensive,itmay be way behind theschedule, and if the work ispaced the quality of the workmay suffer.Economic Risk Economic risks are risks that are related to the economic conditions of the country. In the given case if the rate of inflation increases then thecost of construction for the Summary Risk Report project will definitelyincrease. Legal Risk Legal risk related to the project isany new policies or any change in the policies of the government which may make reconstruction of the park illegal. Or the construction company may need to apply for neworder/license for the workand so on. Government influence Government may change itspolicies and with suchchanges the construction ofthe project may be delayed ormay stop depending on thenew polices built. If there is achange in the governmentdue to elections etc, thenthere are chances that theproject may stuck until nextaction of government etc. Financial Risk The project may be overbudgeted and may exceed thesaid amount of $ 200000.This can be possible due tohike in prices of materials,steel, labour, increase in taxes Summary Risk Report and so on.Maintenance Risk When the park will be readyfor usage there will be a needfor maintenance of the parkon regular basis. Thegovernment or the localauthority needs to give amaintenance contract to somecompany.Scheduled RiskThe schedule of the project isof utmost importance and anydelay of single day will makeit more challenging for thecontractor to finish his task.Bad weather conditions mayalso delay the project."