Multiple therapy strategies for hazards have been developed by various researchers. A risk management plan is described as a set of alternatives intended to reduce issues or hazards, evaluate the alternatives, and then put the alternatives on the plan into action. People in charge of it need to take prompt action to reduce the high risk. The best course of action for risk management should balance the benefits of the action against the costs. To put it another way, the costs associated with such an action plan should be reasonable.
Risk Management Plan.
The five main methods of risk management are as follows:
averting risks There is no reason to continue with the risk of mitigation. The person can choose alternatives from the most acceptable activity to ensure that the objective of mitigation is met and thus this plan treats certain risks.
Accepting the risk. When the risk rises to an acceptable level or the cost of treating the risk is lower than the benefit, one can therefore accept that particular risk. However, it is recommended that one have a continuous monitoring of that risk because of the uncertainty that may come from that accepted risk.
Reduce the risk. Sometimes, elimination of a risk can be in excess of cost intensity and time. One can therefore implement a strategy that can enable reduction of the risk to a level that is acceptable by the management.
Transfer of risks. Transfer of risks to other party or parties is also another way of having a treatment for risk. This can be through outsourcing managers that handle assets that are physical.
The internal audit in OH&S identified various types of risks whereby among those the following methods can be used to treat the risks identified.
Manual handling of tasks should be reduced by employment of machines like cranes to lift heavy items.
The working environment with a wet floor should be ensured that it is dry every day before people can start their daily work to minimize the risk that come from a wet floor.
Unsafe work practices that include faulty equipments should be highly avoided.
Prevalence of sharp materials that may lead to exposure to blood borne virus should also be avoided and their use banned.
Use of hazardous chemicals should also be avoided.
Risk management plan for the risks identified.
The plan consists of 5 stages which include;
Establishment of the content. This involves identifying the scope of the risk management. This is where criteria against the risk is drawn from the company’s objectives. The key objective of the risk assessment in the organization should be after evaluation of external and internal factors review before the risk management. This aims at identifying areas which are subject to increase the risk. This result can be of great value.
Ideally, the risk can be from either internal or external sources. When external risks are from environmental conditions, the firm cannot control. The risks from the DMG manufacturing resulting from the factory adjacent to it are from external sources. On the other hand, internal risks are as a result of decision making from the firm. The objectives of the company are to refurbish and sell electronics. Environmental factors have thus been a threat to this objective.
Risk identification. The risk that is fire and explosion has thus been identified from the reports of audit and thus this risk has interrupted the cmpany’s product liability.
Risk analysis. Risk is uncertainty being insignificant and therefore they can be measured in two ways that include; likelihood and extent of the risk impact it has. This stage of risk analysis is very important since it prioritizes the key risks in DMGM. It also shows the possibilities of improvement in the present activities.
Risk treatment. The below methods can be used to treat risks,
Fire and explosion-the chances of fire happening should be reduced by getting rid of highly flammable items.
Business interruption- this can be as a result of fire since fire is not easy to eliminate and can interrupt the normal operations of the business. To reduce this interruption, the risk of fire can be transferred to insurance companies.
Product liability- this is a risk with a great impact to the firm since it affects the firm’s objectives and thus the risk should be reduced or eliminated as soon as possible.
Monitoring and review. This should be a planed way of managing risks and thus the monitoring should be regular. The results need to be recorded and well stated so as to obtain information needed to reduce risk and also track any emerging risk.
Case study 3
risk
Probability
Impact
Risk importance
Poor cost Estimate
3
3
critical
Incomplete design
4
4
most critical
Failure to keep in cost estimate
3
3
critical
Failure to achieve completion date
2
2
Less critical
Changes in project scope
3
3
critical
Design change
3
3
critical
Pressure to deliver
3
3
critical
Inaccurate contract time
2
2
Less critical
Lack of communication
2
2
Less critical
inadequate defined roles
2
2
Less critical
Insufficient skilled staff
3
3
critical
Political risks
4
4
most critical
risk
Risk control
Poor cost Estimate
Client and contractor
Incomplete design
Architect
Failure to keep in cost estimate
Client and contactor
Failure to achieve completion date
contractor
Changes in project scope
Client and contactor
Design change
architect
Pressure to deliver
Contactor
Inaccurate contract time
Contactor
Lack of communication
Client and contactor
inadequate defined roles
Client and contractor
Insufficient skilled staff
Contactor
Political risks
Government
3.2.C Explain how the risk could have been avoided
The above risks could be avoided through thorough risk management framework that is establish the contest, indentify potential risk and analyze the risk to eliminate them
3.2.D Risk can be mitigated through the following
Risk avoidance
Risk transfer
Risk acceptance
Risk reduction
4. 1 Risk to be eliminate through
Terminate: poor cost estimate, incomplete design
Treat: Failure to keep within cost estimate, unskilled labor
Tolerance: Design changes ,pressure to deliver project on schedule
Transfer: political risk
4.2 .Lesson learned
Several lessons are learned from the case study,
Proper risk management is required
A timely risk treatment to avoid risk
4.3. The matrix above is not sufficient because the number don’t explain how much impact is on the project and also what that probability represent in reality
References
Edwards, L. (1995). Practical risk management in the construction industry, Thomas Telford, London
Flyvbjerg, Bent, "Design by Deception: The Politics of Megaproject Approval", Harvard Design Magazine, Volume 22, 2005.
Murray, P (2004) The Saga of the Sydney Opera House, Spoon Press (UK), ISBN 0415325218
Murray, P (2004) "The dramatic storey of the design and construction of the icon of modern Australia" London and New York: Spon Press.
Roger Flangan & George Norman "Risk Management and Construction". Blackwell Scientific Publications ISBN 0-632-02816-5.
Yozo Mikami "Utzon's Sphere" page 46 Shokikusuha Tokyo ISBN 4-395-00712-0
Ziegler, Oswald L. (ed) Sydney Builds an Opera House., page 25.
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