The following paper entitled 'The Various Stages of Risk Management' is a wonderful example of a management coursework. The purpose of this document is to provide a detailed risk report to the development consortium that is to build a new international airport in a Latin American State of san Miguel. The report will help the developers to know which amongst the three locations is the most viable for the construction of the international airport. The purpose and objective of the report will be indicated. The report will also analyze the evaluation given in terms of site acquisition, construction costs, revenue-generation, and socio-economic goals in each of the three sites identified by the government so as to identify the best location to build the airport.
Because there are variations of the project risk management processes, this report will also briefly explain the Risk Management Process used in this report which are; Risk Identification, risk planning, and risk monitoring. The risk assessment is also discussed in this report. In the risk assessment, we have looked at the advantages and disadvantages of constructing an airport in each of the three sites.
We also indicate qualitative and quantitative risk assessments, developer’ s budgets, and computation of construction costs. Afterward, we have analyzed the site-specific costs of each option. The report has also given recommendations to the construction consortium. Risk can be defined as the mixture of the probability of an event and its costs (AIRMIC, ALARM, IRM 2002, p. 5). In all types of tasks, there is possible for events and consequences that represent opportunities for the benefit (upside) or threats to success (downside). Risk Management is more and more recognized as being concerned with both optimistic and pessimistic aspects of risk.
Therefore, this standard considers risk from both viewpoints. Risk management is an innermost part of any business strategic management. It is the course of action whereby organizations carefully address the risks connected to their activities with the goal of accomplishing sustained gains within each activity as well as across the portfolio of all activities. In this document, it shall be reviewed how the various stages of risk management can be applied to our project, The relevant stages in risk management are risk identification, risk planning, and risk monitoring.
Of course, no showing assessment could be entirely precise as risk management is a process that starts at the beginning of the project and continues throughout. For risk identification, it shall be examined what possible risks could have occurred as well as identifying the setbacks that did occur. For risk planning, it will be seen which risks could have been and can be avoided and what contingency plans could and have been made. For risk monitoring, it shall be looked out how we have monitored the risks throughout the project and how we shall continue to do this. San Miguel is situated on the western coast of Central America in the belt of the northeast trade winds.
It is largely mountainous with many of its peaks being permanently snow-capped. The state is heavily forested but, poor communications have deterred the development of this resource thus, most of its wealth is generated from the coastal strip. San Miguel has very significant geographical features that attract or could attract tourism in the country.
These geographical features are; the mountains which always have snow-capped, the igneous rocks found in the area. The economic activities in this area include fishing, mining of gold, silver, and copper which started in the 17th century. Agricultural activities are not that popular but, it’ s done by the native non-Indians. The most common transportation method of goods used in the area is by railway and by ship. The government appears fairly secure politically. They were brought to power by a military coup junior army officer 20 years ago.
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Donaldson, G. 2007, Risk Management Report. Vancouver BC: Finning Associate.
Heldman, K. 2005, Project Manager's Sportlight on Risk Managment. USA: Neil Edde.
Merna, T., Merna, A., Chu, Y., & Al-Thani, F. F. 2010, Project Finance in Construction. USA: Wiles-Blackwell.