1) Identify potential risks associated with this project. Try to come up with at least five different risks.
Now that we have clearly defined the key aspects and variables associated with this project. A brief description of the risks I identified begins with Silver Fiddle’s practice of using subcontractors. * Silver Fiddle routinely subcontracts build work to local subcontractors. As previously discussed, Silver Fiddle is scheduled to build eleven homes this year, and these homes will be built in a local housing market which can be described as “booming”. Since the Czopek home is scheduled to be built within five months, our concern is that there will be a lack of subcontractors available to work on the …show more content…
Another variable which could cause the project to exceed the budget is scope creep. We feel that developing a responsible time-phased budget along with the establishment of common sense phase gates would help reduce unexpected costs and ensure the project remained on track financially.
2) Use a risk assessment matrix similar to figure 7.4 to analyze identified risks.
The risk assessment form at Figure 1 provides a graphic representation of the risks we previously introduced and identified. Although in our previous discussion, we provided detailed information about each risk, the risk assessment form includes additional information on our evaluation of the likelihood and impact of each risk.
Figure 1. Risk Assessment Form Risk Event | Likelihood | Impact | Detection Difficulty | Lack of preferred subcontractors | 3 | 4 | 2 | Exceeding five month deadline | 4 | 2 | 2 | Lack of available building supplies | 2 | 3 | 1 | Inadequate oversight due to bookkeeper continuity | 4 | 4 | 1 | Exceeding the budget | 2 | 4 | 1 |
In reviewing the likelihood and impact data from Figure 1, it is clear we feel that it is very likely that the project will exceed the five month deadline and, without proactive measures now, inadequate oversight will result from the current bookkeeper arrangement. The high likelihood we assign to exceeding the time limit is due to a great number of variables upon which the construction time is dependent. Should any one of these