Risk Management in Project Management The Eagle Boys

Question: Describe about the Risk Management in Project Management for The Eagle Boys. Answer: Introduction The following assignment is going to focus on the Australian enterprise Eagle Boys for accomplishing the aim of the project, which is to establish a risk management plan. In time of preparing the risk management plan, the assignment is going to consider the risk management design set by the standard of Australian and New Zealand. Overview of Eagle Boys Eagle boys are known to be one of the leading fast food chains of Australia that specializes in selling pizza. Therefore, the enterprise is fundamentally a private company in the field of restaurant service with annual revenue of $8.27 million according to the year 2015 (eagleboys.com.au 2016). Currently, the enterprise runs its business with near about 8000 employees in 350 outlets nationally. Internal stakeholders and their concerns regarding risk management Internal stakeholders Concerns regarding risk management Employees (in house support office staffs, team members) Increase self awareness, monitor own flaws and communicate with other stakeholders about the identified problems Investors or shareholders, Individual franchise owners Monitor risks by assessing risks with the management and engage in more effective investment Suppliers To verify every time supplying orders to the company, do background check and market research Management Conduct frequent risk assessment programs, monitor employee activity, stay conscious about external market trend, form applicable strategies Table 1: Internal stakeholders (Source: As created by author) External stakeholders and their concerns regarding risk management External stakeholders Concerns regarding risk management Customers Prior to become customers it is customers would stay well-informed about the company, should stay aware of any news regarding the company and would pass feedbacks FSANZ (Food Standard Australian New Zealand) and Australia and New Zealand Food Regulation Council Make frequent survey on the company and extend their hands for any consultation, investigate whether the company is obeying all the standards or not Media channels Stay well aware, provide information about any upcoming enterprise in the same sector Table 2: External stakeholders (Source: As created by author) Review of Eagle Boys risk in terms of Political Political unrest in the nation and frequent policy change give birth to social, economic and cultural unrest. For Eagle Boys, risk would arise when they could not find support from the existing political parties and their policies. For example, sudden change in taxation policy or monetary policy would not be easy for the company to accept. Economic Sudden recession or downfall in the GDP rate in Australia would be a potential cause of risk for Eagle Boys, as it will increase suppliers demand, which will lead to high cost production. Social Emergence of any social and cultural struggle between the migrants and the aboriginals would be harmful, as this would largely affect on the consistent business operations for Eagle Boys Legal Change regarding the food business policies set by FSANZ would bring risk for the current organizational culture of Eagle Boys. The newly founded regulations may not found befitting for the organizational purpose of the company Technical If the rate of technological advancement would decrease in Australia, the enterprise has to increase the number of employees all of a sudden, which will not prove cost effective Environmental Any environmental hazard will bring potential damage on the outlets. It will thereafter open the way for huge investment for repairing or establishing new ones. Moreover, climatic calamity could harm farming activity, which will reduce the number of suppliers. Strength and weakness of Eagle Boys risk management practices Strength They keep records of previous risks and issues and compare them with any currently recognized risk They use resolution planning process and QA deliverables of vendor Frequent risk assessment meetings Weakness No use of Traceability matrix No procedures for test Lack of the activity of ramping up the inputs regarding test and no employee engagement in decision making process Outline of the following particulars in terms risk management plan Considering the strength and weakness of Eagle Boys risk management practice, a convenient plan would be, the company should use Traceability matrix and include their employees in the decision making process. Success factor Employee engagement in the decision-making will help to get new ideas and at the same time will support the employees to increase their self-awareness. A positive interaction between the employee and management will take place Goals and objectives Goal of the plan will be to acquire employee opinions and valid information about the recognized risks. Therefore, the objective will be to make proper use of Traceability matrix and to have employee engagement in risk assessment. Techniques used to research risks Brainstorming Checklist analysis (Hopkin 2014) Diagramming techniques Assumption technique Use of risk assessment matrix Risks Frequency of occurrence Consequences Environmental hazard Occasional Critical Recession Likely Critical Political uncertainty Unlikely Moderate Cultural unrest Unlikely Marginal Emergence of any new rival Definite Moderate Internal hazard Likely Marginal Table 3: Risk assessment matrix (Source: As created by author) Prioritizing risks for treatment Risks Risk value Prioritization New rival group High Do first Recession Medium Do last Lack of suppliers Serious Do second Political problem Low Avoid Internal hazards Serious Do first Table 4: Risk prioritization (Source: As created by author) Selection of two risks and options for treating them Two pivotal risks Options for treatment Internal conflict (employee conflict, discrimination, production hazard) The most convenient way to mitigate this risk would be to formulate a special team of managers whose responsibility would be to only monitor the employee performances. Moreover, the company could also try to implement a suggestion or feedback box for the employees (McNeil et al. 2015). Emergence of rival group The best possible way to avoid this risk would be to implement new attracting policies for the customers like, lucrative discount, gift voucher, one to one offer and loyalty card. Table 5: Risk mitigation (Source: As created by author) Action plan One risk Required action Responsible person Time line Monitoring process Communication Internal conflict Implement of a new management team Director of operations One month Frequent visit to the work or production floor and evaluate employee feedbacks (Pritchard and PMP 2014) Communication with CEO and other authorial figures Table 6: Action plan (Source: As created by author) Required documentation To implement the risk management plan, the following documents will be required A list enlisting previous hazards and their mitigation procedure A list comprising working record and performance matrix of exiting individual employee A document holding thorough market research (Sadgrove 2016) Recent data regarding suppliers and customers demand Process for implementing and monitoring proposed plan For implementing proposed plan, initially the entire management will coordinate with shareholders and then plan for the risk assessment meetings. Thereafter, the management will need to flow down the information to each section of employees in the company (Sadgrove 2016). Through the integration process, required changes will be accumulated. Finally, a review and re-measurement process will be exercised to monitor the proposed plan. Process to evaluate success Keep track of time to time results Meetings among management, employees and shareholder in every two months Statistical analysis and bench mark report Customer feedback Insurance available to Eagle Boys Property insurance Insurance on business interruption Products liability insurance Insurance on machinery breakdown (eastwestinsurance.com.au 2016) It is note in this context that for Eagle boys, some of the most convenient insurances are only provided by the East and West Insurance Brokers from Australia. References Eagle boys. 2016.About us. [online] Available at: https://www.eagleboys.com.au/corporate/about-us [Accessed 29 Nov. 2016]. East West Insurance Brokers. 2016.Restaurant Insurance Brisbane - Cafe Restaurant | EWIB. [online] Available at: https://www.eastwestinsurance.com.au/cafe-restaurant-insurance/?gclid=Cj0KEQiA6_TBBRDInaPjhcelt5oBEiQApPeTF-d_59m3bjBJGHgFpinc_2gfgZ6f6G5jozTBjij0KA8aAp_48P8HAQ [Accessed 29 Nov. 2016]. Hopkin, P., 2014.Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers. McNeil, A.J., Frey, R. and Embrechts, P., 2015.Quantitative risk management: Concepts, techniques and tools. Princeton university press. Pritchard, C.L. and PMP, P.R., 2014.Risk management: concepts and guidance. CRC Press. Sadgrove, K., 2016.The complete guide to business risk management. Routledge.