Project Risk Management Assessment for BSBPMG517

COURSE CODE: BSBPMG517 Last Updated: April 2018, V. No. 1.1 Page 1 of 17

BSBPMG517 – Assessment Task 2 (Project) Submission details The Assessment Task is due on the date specified by your trainer. Any variations to this arrangement must be approved in writing by your trainer. Submit this document with any required evidence attached. See specifications below for details. You must submit soft copy of your answers in a word document. Upload the softcopy on the link provided in the eLearning site. Assessment description Using the workplace scenario (Max Lionel Realty) information provided separately and also in appendix 1, you will do/answer the tasks/questions regarding the project risk management specified below. You will also need to discuss with your Operations General Manager (the assessor) throughout the process for approval. If you have workplace documents you wish to submit instead of using the all or part of the tasks/questions: • You must be the author of these documents • You need to map the workplace documents to the Assessment criteria. This mapping demonstrates your understanding of the assessment criteria. • Your facilitator can provide you will details on the documentation you need to provide to do this. All tasks/questions in this assessment must be applied to your project (unless otherwise stated) and specific answers (not just theory) are required to show you can apply what you have learnt to your project – even if you do not currently undertake all aspects in your workplace. Your answers must be satisfactory for all tasks/questions . Criteria for competency To achieve competency in this Unit, you must demonstrate knowledge, skills and experience to: • determine risk objectives and standards with input from stakeholders • establish project risk context to inform risk management processes • identify project risks using valid and reliable risk identification methods Last Updated: April 2018, V. No. 1.1 Page 2 of 17

• classify project risks within agreed risk categories • determine risk analysis classification criteria and apply to an agreed risk ranking system • use risk analysis processes, within delegated authority to analyse and quality risks, threats and opportunities • determine risk priorities in agreement with project client and other stakeholders • document risk analysis outcomes for inclusion in risk register and risk management plan  identify and document existing risk controls • consider and determine risk treatment options using agreed consultative methods • record and implement agreed risk treatments • update risk plans and allocate risk responsibilities to project team members • establish regular risk review processes to maintain currency of risk plans • record and implement agreed risk treatments • update risk plans and allocate risk responsibilities to project team members • establish regular risk review process to maintain currency of risk plans • regularly monitor risk environment to identify changed circumstances that impact on project risks • determine risk responses to changed environment • implement agreed risk responses and modify plans to maintain currency of risk treatments and controls • review project outcomes to determine effectiveness of risk management processes and procedures • Identify and document risk management issues and recommended improvements for application to future projects. Last Updated: April 2018, V. No. 1.1 Page 3 of 17

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Appendix 1 – Scenario Max Lionel Realty Max Lionel Realty (MLR), in order to build customer goodwill and satisfy its legal and ethical obligations, has decided to implement a program to: ● inform agents of legal and ethical obligations (particularly with respect to WHS and anti-discrimination legislation) and any standards or codes of conduct followed by the organisation ● promote high standards in professional conduct (see Real Estate Institute of Victoria (REIV) Code of Conduct and relevant legislation) ● inform clients, tenants and potential tenants of MLR’s commitments ● achieve employee and client buy-in for initiative You are an external consultant (from Ace Consultants) contracted to project manage activities to achieve the objectives above. Quality standards for deliverables: ● clearly communicate legal obligations and REIV obligations ● contain as content or support company strategic directions ● no grammar or spelling errors ● professional but friendly language ● fair and flexible delivery for intended audience ● meet audience requirements and sensitive to information needs, cultural diversity. Previous needs analysis for the project has uncovered characteristics and requirements of Residential and Commercial Agents and Clients: Agents Clients Tenants Last Updated: April 2018, V. No. 1.1 Page 4 of 17

● under stress; time poor ● highly trained and competent in selling and managing real estate ● unaware of legal, ethical requirement. just want to please clients ● even if aware, have no idea how to apply to daily client practice ● cynical: e.g. ‘why do I have to pay attention to MLR’s internal business? I just want them to manage my property.’ ● time poor ● not sure of MLR obligations and commitment to best-of-breed client service and ethical practice, REIV code of conduct ● sometimes feel discriminated against on basis of: ○ lifestyle ○ family status ○ cultural background ○ income, etc. ● unclear on overall strategic aims of MLR ● culturally diverse. ● feel it’s the agent’s obligation to fill rental/lease properties according to client wishes: e.g. ‘I choose who lives in/leases my property’ ● culturally diverse. ● residential agents have been rude or insensitive on occasion: e.g. ‘you wouldn’t treat your rich clients or investment partners this way’ ● do not feel they are adequately consulted ● residential/ commercial agents/clients have let themselves in without consultation ● inspections are sometimes unannounced. Last Updated: April 2018, V. No. 1.1 Page 5 of 17

Project conditions are as follows: ● Six to eight team members who must be utilised and budgeted for. Operations General Manager (the assessor) may be consulted with to determine composition of project team. ● The structure of the work should include roles for project sponsor, technical experts, quality assurance of deliverables, project manager (yourself) and roles and responsibilities for each team member to achieve the deliverables according to standards, etc. ● All resources must be costed and included in your budget. ● Budget: $15,000. ● You may determine your own specific deliverables so long as they are agreed with stakeholders (the assessor at this stage), meet project objectives, and adhere to budgetary constraints. ● Project timeframe to be determined by Operations General Manager (the assessor). ● Project should include design, development, implementation and evaluation stages (with periodic quality review). ● Project status reports are due at 25%, 50% and 75% of allotted timeframe. Assessment Tasks Task 1: Identify, analyse project risks and establish risk treatments and controls 1.1 Describe the risk context in which the project is operating. The risk context may include legislation and regulation controls, nature of the project, organisational risk policies and procedures, project environment and/or stakeholder expectations (including risk appetite and tolerances) There are some cultural diversities between agents, clients and tenants and they might also have different education background, so they may hard to understand the deliverables at the same level. Also, the social scope of risk management and the identity and objectives of stakeholders are not same as well, because they all have the different requirements and expectations from various perspectives. The risk context is a complex system. It is affected by individuals, groups such as the project management team, stakeholders, host organisations, clients and the broad external environment. Fundamental to understanding the context are the concepts of risk attitude and risk appetite. Risk attitude is an individual's or group’s natural disposition towards uncertainty and is Last Updated: April 2018, V. No. 1.1 Page 6 of 17

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influenced by their perception of risk. Perception is itself influenced by many factors, including conscious and subconscious reactions to risk. Risk attitude will affect the way people develop responses to risk and the way they react if a risk event occurs. The assessor and manager need to understand the risk appetite of the stakeholders. In the definition phase of a life cycle the development of a solution to meet requirements will be heavily influenced by the stakeholders’ risk appetite. Some ways of meeting requirements may be delivered quickly or produce high returns but also involve high levels of risk. These would be acceptable to risk-seeking stakeholders but not to those who are risk averse. The leader also needs to understand the risk attitude of the team members and ensure that they are managed in a way that is compatible with the stakeholders’ risk appetite. For the nature of project such as to achieve the highest returns for the clients and to deliver a client experience that is the best in the industry. And within five years, to establish the MLR brand which is the highest ethical standards with best in breed performance for clients. 1.2 Describe your approach to identifying the risks on the project. After establishing the context, the next step in the process of managing risk is to identify potential risks. Risks are about events that, when triggered, cause problems or benefits. Hence, we could start risk identification with the source of our problems and those of the benefits, or with the problem consequences. Firstly for source analysis, risk sources may be internal or external to the system that is the target of risk management, and it is better to use mitigation instead of management since by its own definition risk deals with factors of decision-making that cannot be managed. Then if the above identification results are not satisfied, we can use the second way which is called problem analysis, risks are related to identify threats such as the threat of abuse of confidential information or the threat of human errors. The threats may exist with various entities, most important with shareholders, customers and other legislative bodies. For instance, there are two methods I would like to use: The first one is project charter, we need to set up one to define what we can do and what we cannot. A well-established project charter is a statement of the scope, purposes and participants in a project, and it will define the authority of the project manager and serves as a reference for the future project. The second way is build up a project budget and time scale to review regularly, and also we could adjust the budget to figure out the practical budget. Last Updated: April 2018, V. No. 1.1 Page 7 of 17

1.3 Complete a risk register for the project (including both positive/opportunities and negative risks) and two action plans for the top two priority risks using the templates below. Last Updated: April 2018, V. No. 1.1 Page 8 of 17

<The risk register should list all risks on the project – not just work health and safety risks. It should include both positive and negative risks> Ri s kN o# Risk Category Risk Description including existing risk controls Mitigation Strategy/Response Init ial Res idual 1 <See Legend below> <A description of the risk and outline any existing risk controls in place> <Describe the strategy put in place and also whether this is mitigation, acceptance, exploit etc.> 2 Scope Risk Changing in scope caused by the budgets, hardware and software defects. 75 % Signific ant High Mitigation, documenting any changes and impacts then find a solution that is best suits. 50 % Modera te Mediu m Risk Register: Likelih Impact Rating Likelih Impact Rating

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3 Schedule Risk This includes the threat of abuse of confidential information or the threat of human errors 60 % Moderat e Mediu m Mitigation, using tools such as Work Breakdown Structure and Gantt Charts. 30 % Minor Low 4 Resource Risk This includes the threat of outsourcing related issues to slow down the project. 65 % Moderat e Mediu m Mitigation, comparing qualities between several companies when outsourcing the project. 50 % Modera te Low 5 Technolo gy Risk It includes the failure of an underlying relevant service or any IT service. 60 % Modera te Mediu m Mitigation, building up a more efficient way to train the new staff. 35 % Minor Low Legend for Risk Categories: <Provide a list of all applicable categories> Risk Rating Scales and Overall Rating: <Provide the risk rating scales and overall rating for the above register>

BSBPMG517 Manage Project Risk – Assessment: 2 Last Updated: April 2018, V. No. 1.1 Page 6 of 9

Risk Action Plans for top two risks: <The risk action plans must allocate responsibilities to team members> Risk Action Plan #1 Item No : 1 Risk Description: Budget risks which include unanticipated additional investment of time and money that could have been visible with clearer scope definition. Risk Rating : Significant risk Category: Scope Risk Risk Treatment: < Mitigate/Avoid > Action Plan: Proposed Actions: Well documented the change, validate, assess its impacts and implement agreed risk responses and modify plans to maintain currency of risk treatments and controls. Resource Requirements: Source analysis/Savvy planning Responsibilities: Delegation and ownership are well established in management theory as motivators, and they also contribute to team development and broader project understanding. Scope Impact: While scope definition reveals some risks, scope planning digs deeper into the project and uncovers even more. Product definition documents, scope statements, and other written materials provide the basis for decomposing of project work into increasingly finer detail so that it can be understood, delegated, estimated, and tracked. The process used to do this—to create the project work breakdown structure (WBS)—also identifies potential defect risks. BSBPMG517 Manage Project Risk – Assessment: 2 Last Updated: April 2018, V. No. 1.1 Page 12 of 17

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Time Impact: 1 month Cost Impact: $5000 Reporting & Monitoring Required: Regularly monitor risk environment to identify changed circumstances that impact on project risks. Prepared by: Date: <29/02/2020> Reviewed by: <Tony> Date: <02/03/2020> Risk Action Plan #2 Item No : 2 Risk Description: IT (information technology) risks include hardware and software failure, human error, spam, viruses and malicious attacks, as well as natural disasters such as fires, cyclones or floods. Risk Rating : Moderate risk Category: Technology Risk Risk Treatment: < Mitigate/Avoid > Action Plan: Proposed Actions: This kind of risks can be solved by the proper engineer or experts. Resource Requirements: Some specific data and information should be required for conducting the project and a project team-based environment. Responsibilities: Application and data owners are the business groups interfacing with business- process owners, and are responsible for business and accounting information BSBPMG517 Manage Project Risk – Assessment: 2 Last Updated: April 2018, V. No. 1.1 Page 13 of 17

that is generated by the applications. They decide and design the applications that fit the needs of the processes from a business standpoint, and monitor those applications to ensure they perform as expected. They determine the impact their applications have on key processes and periodically update this assessment. Scope Impact: IT managers report the relevant technical risks identified and assessed in major electronic devices acquisitions and using specialist risk-analysis tools to assist in the decision-making process. Time Impact: How quickly data and information are created, updated and deleted such as 1 week. Cost Impact: $5000 Reporting & Monitoring Required: We have focused on the relevance of IT risks and controls to a company’s meeting the internal control objectives over the reliability of financial reporting. IT impacts virtually everything a company does in generating information for decision making. It is difficult to think of any business activity that is not impacted in some way, directly or indirectly, by an effectively functioning IT organization. IT impacts the achievement of operating effectiveness and efficiency and compliance related objectives as much as it impacts financial reporting objectives. Further, organizations’ dependency on IT continues to increase as business models evolve. That is why the reliability, integrity and availability of applications and data should be of paramount concern to executives and directors. Prepared by: Date: <01/03/2020> Reviewed by: <Milly> Date: <06/03/2020> Task 2: Monitor and control project risks 2.1 What activities did you undertake to monitor the risk environment to identify changed circumstances that would or did impact on your project? BSBPMG517 Manage Project Risk – Assessment: 2 Last Updated: April 2018, V. No. 1.1 Page 14 of 17

Risk monitoring activities implement the risk monitoring strategy by gathering information through automated or manual means, alerting or reporting on information relevant to intended purposes for risk monitoring, and providing inputs to ongoing risk assessment and response processes. Depending on risk assumptions, constraints, priorities, and tolerance levels, the set of risk monitoring practices actually implemented at any one time may differ from what is documented in the risk monitoring strategy. Therefore, the activities did to monitor the risk environment include consultation with the manager who take care of the risk controls, a regularly review of the relevant documents, undertaking a physical inspection of the workplace to identify any potential risks, establish regular risk-review processes to maintain currency of risk plans, regularly monitor risk environment to identify changed circumstances that impact on project risks, determine risk responses to changed environment, and implement agreed risk responses and modify plans to maintain currency of risk treatments and controls . 2.2 What was the outcome of this review and how did you manage the changed risk responses to maintain the currency of your risk register and action plans and responses? Review project outcomes to determine effectiveness of risk-management processes and procedures. Identify and document risk-management issues and recommended improvements for application to future projects. For instance, corrective action is a good choice, and it consists of performing the contingency plan. Project risks changes as approaches so that the corrective action is required to adapt to changing risk environment, and the reviews of risk environment help to determine what actions are needed. The risk response planning involves determining ways to reduce or eliminate any threats to the project, and also the opportunities to increase their impact. Project managers should work to eliminate the threats before they occur. Similarly, the project managers should work to ensure that opportunities occur. Likewise, the project manager is also responsible to decrease the probability and impact of threats and increase the probability and impact of opportunities. For the threats that cannot be mitigated, the project manager needs to have a robust contingency plan and also a response plan if contingencies do not work. It is not required to eliminate all the risks of the project due to resource and time constraints. A project manager should review risk throughout the project. Planning for risks is iterative. Qualitative risk, quantitative risk, and risk response planning do not end ones you begin work on the project. BSBPMG517 Manage Project Risk – Assessment: 2 Last Updated: April 2018, V. No. 1.1 Page 15 of 17

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Task 3: Assess risk-management outcomes 3.1 Review your project performance in terms of risk management. Would your risk management processes and procedures be considered effective? Why/why not? 1. Direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate. Effective. Because the response is positive. 2. Oral or written questioning to assess knowledge of the risk-management framework. Effective. Because the response is positive. 3. Analysis of responses in addressing case studies and scenarios that present issues and problems in project risk management. Effective. Because the response is positive. 4. Analysis, response planning, review of risk-management plans, and controlling risks on a project. Effective. Because the response is positive . 3.2 List all risk management issues you may have experienced on the project (in the table below) including a recommendation for future projects. Note: these are not issues with your risks but how you managed the project risks. Date Description of problem/opportunity Recommended Action for next time/project Lesson Learnt Raised By 02/02/20 20 The threat of abuse of confidential information. Build up a well- established documentary space to protect confidential information. Confidential information should be well supervised. 08/02/20 20 The threat of human errors. Set up a special team for reviewing some common errors. Minimize the errors is very important. 14/02/20 20 Different expectations between various entities. Consider what might be the real schedule for stakeholders to reach their expectations. Stakeholder expectations cannot be always same. BSBPMG517 Manage Project Risk – Assessment: 2 Last Updated: April 2018, V. No. 1.1 Page 16 of 17

20/02/20 20 Conflicts among team members due to poor communication. Regularly organizing the group meetings to avoid misunderstanding. Efficient communicati on can solve the problems. 29/02/20 20 Do not obey legislation and regulation controls. Organizing some webinars to let stakeholders know more. Regulations are good to control risks. BSBPMG517 Manage Project Risk – Assessment: 2 Last Updated: April 2018, V. No. 1.1 Page 17 of 17

BSBPMG517 Assessment Task 2-

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