Review 470853S4Risk and Procurement Management

8/10/2019 Review 470853S4Risk and Procurement Management

1/14

1

Risk and Procurement Management

Prepared byReal Assignment Writing

For

[University of Southern Queensland]

[Mahveen Khan]

[u1017503]
http://realassignmentwriting.com/http://realassignmentwriting.com/http://realassignmentwriting.com/http://realassignmentwriting.com/


2/14

2

Executive Summary

This paper is based on the project of Suneva Fushi Resortand it provides a concise thought

regarding the procurement and project risk. In this considered project, the initial thing is

recognizing the environment of a Suneva Fushi resort and the risks factors that are included in it.

For this reason, the paper is reflecting appropriate discussion regarding risk planning andidentification for the selected project to evaluate the risks associated with the project

environment. It also entails the proper risk strategies that are critical to recognize the threats

connected with the venture. Based on these strategies, the tools and techniques for the project areidentified in the discussion, which involves budgeting, timing, thresholds, and reporting and

tracking. Moreover, it also contains the process of risk analysis and continuous evaluation of the

project. The risk treatment arrangement is vital to conduct the process of monitoring and reviewof the project. The second important thing that is discussed in this report is procurement of the

venture this will incorporate undertaking arranging the ways to direct procurement strategies that

is directly related with the project. On the other hand, source selection and procurement

solicitation is important for the success of a project that is further discussed in this report.


3/14

3

Table of Contents

Background ................................................................................................................................................... 4

Risk Planning and Identification ................................................................................................................... 4

Risk Environment for the Project.............................................................................................................. 4

Risk Planning of Project ........................................................................................................................... 4

Risk Identification of Project .................................................................................................................... 5

Risk Analysis, Evaluation and Treatment ..................................................................................................... 6

Risk Analysis of Project ............................................................................................................................ 6

Risk Evaluation of Project ........................................................................................................................ 6

Risk Treatment of the Project ................................................................................................................... 6

Risk Monitoring of Project ....................................................................................................................... 7

Procurement Planning and Strategies ........................................................................................................... 7

Procurement Solicitation and Source Selection ............................................................................................ 8

Procurement Monitoring and Control ......................................................................................................... 10

Project Procurement Monitoring and Control System for Suneva Fushi Resort.................................... 10

Conclusion .................................................................................................................................................. 11

Recommendations ....................................................................................................................................... 11

References ................................................................................................................................................... 12


4/14

4

BackgroundThis appraisal is help to recognize the dangers that are going to be impact and how to deal with

the procurement management system of the "Soneva Fushi" resort venture. This projectincorporates numerous diverse sorts of risks and different challenges of dealing with the

procurement framework, which are needed for this venture. On the other hand, the stakeholder

has larger amount of concern to secure their speculation by alleviating the threats and giving acompelling methods for procurement framework with insignificant expense. This project takeplace in the spot where comprise of a sensitive and troublesome arrangement of ecosystem is

found. The most widely recognized threats are incorporated in this environment are risk that

happening on ocean level climbing, solid waves and solid winds hit to the Island. To securing allthe structures and give safe arriving territory to vessels, which are utilized as a part of this resort

inn. Nowadays procurement management is very important to consider in order attaining their

desire goals and objectives of any project. Same in this case it is really important for the success

of this project is that the management must identifying all-important risks of transportation ofall-important materials and resources, how to store, secure, and giving the products and materials

to the work destinations on time.

Risk Planning and IdentificationIt is important for the success sofa project that they must have proper strategies in order to

formulate proper risk planning strategies that might be helpful to identify those risks and

minimize it to the negligible level. It is a prior responsibility of a manager to consider theprocedure of getting new product and services. It also entails the appraisal of financial resources

of the choices accessible, advancement of the acquisition or securing of suppliers, valuing,

purchasing, and administration of agreement. It might likewise reach out to capacity, logistics,

review, transportation, expediting and treatment of materials and supplies (Anderson, 2007).

Risk Environment for the Project

According to experts, it is a prior duty of higher officials to evaluate all sorts of risk environmentearlier for the reason that these risks might create problems for them after some interval of time.

There a few sorts of risks that are directly connected with this project, the primary thing is the

spot where the project embraces (Lambeck, 2008). However, Maldives is considered as one ofthe most powerless nation that has different ecological issues. There are numerous islands that

are spread all over the country and these islands are little and low lying as indicated by ocean

level, more or less approximately 3-5 feet when ocean rose. The significant danger identifiedwith environmental change, for example, quickened seashore and decreasing the accessibility of

immaculate water in the area and changing to salt water and shoreline disintegration (Mubarak,

2010).

Risk Planning of ProjectThe proper risk strategies of the venture is essential, as indicated by arrangement that the higherofficials of this project give careful consideration on this project. Another important factor that

has to be considered by the management while making the risk strategies that are directly related

with Suneva Fushi project. The project risk planning is important for all sorts of projectespecially within the evaluation stage of the project. This will serves to recognize and make the

suitable move to cut down the risks from the start of the project. There are two planning steps for

this project first is initial planning and second is final planning (Neeraj, 2011).


5/14

5

The initial planning provides a complete project strategy to the undertaking team to handle and

dealing with the risk factor as much as they can. This will incorporate estimations of works,

inside the given plan and time and the implementation of a final planning gives work schedule

for the team (Boussabaine, 2013).

There are certain tools and techniques that might be helpful for this project in order to completeit appropriately. It is a prior duty of a management that they must provide all-important tools to

their project team that might support them to perform their activities efficiently and effectively.

On the other hand, output will give a complete risk plan that will illustrate how to recognize thethreat, analysis and monitoring of a project. There are following steps that are considered in

planning stage of Suneva Fushi Resort(Kamara, 2002).

Budgeting

Budgeting is considered as one of the most important part of any project for the reason that it

gives them a complete picture or plan through which management utilize their resources. It is

important for the success of a project that they must have proper budgeting plan through which

mangers managed their work and resources effectively (Harris, 2013).

Timing

Timing is one of the important factors of a project that have to be considered by the workerswhile performing their tasks. For that purpose, it is a core duty of workers that they must

complete their work in given time that might enhance their productivity to the utmost level

(Brandon, 2009).

Thresholds

It is noticed that sometimes project are failed just because of the lack of strategies that are

particularly deal with the financial resources such as higher benchmark rate that might leadtowards the failure of a project (Harris, 2013).

Reporting and Tracking

It is important from the management prospect that they must have proper tools and techniques in

order to track and control the project work every time because a proper controlling process might

be helpful for them to attain their desire goals and objectives in a lesser time period (Brandon,

2009).

Risk Identification of Project

It is analyzed that the identification of a project risk is also work inside the assessment stage of

the project. Subsequent to risk planning, the further this is to consider is the threat detection. Inthe risk identification of Suneva Fushi Resort, all recognized risks will be pile up in a register of

risk and this list will be identify those risk that have to be considered by the management at anycost and will give additional priority to concentrate the high threats initially similarly

determining one after another (Jamal, 2009).


6/14

6

Risk Analysis, Evaluation and Treatment

Risk Analysis of ProjectThe risk analysis of the venture recognizes the procedure of inspecting the effect and probability

of the dangers. As per risk analysis of Suneva Fushi Resort qualitative risk analysis play a

significant part and measure the threat and also the value of financial assets and afterwardpositioning the risks into clear classes, for example, high (imperative), medium (paramount) and

low (not vital) furthermore it will scale from one to five and so forth (Wu, 2010).

There are certain tools and techniques that incorporate possibility of threat and effect evaluation,

impact matrix, risk information quality appraisal, risk arrangement and risk desperationevaluation. On the other hand, output incorporates updated register of threat by positioning the

threat, prepared for risk reaction, assemble the extra data to hazard reaction, and watch the low

risk factors continuously (Maria-Sanchez, 2005).

Risk Evaluation of Project

The project risk assessment procedure is manage inside the task group, when recognized the

hazard that will be enlisted in the threat enroll in place by high to low and send risks rundown toextend group dialog. It is a core duty of members that they must provide their own presumption

about the each threat independently after that pick real risks which are identified with specific

threat (Artto, 2013).

The following step is considering all those risks that are examined in special threat investigationgroup of the venture and settling the activities that are going to take, in regards to the specific

threat. The primary criticalness of assessing the risk is to recognize the type of threat, for

example, information security risk, budget risk, time risk and so on (Delmon, 2005).

Risk Treatment of the Project

The risk treatment plan is considered as an important part of risk analysis and it is a key part of a

risk management strategy. This plan will express the most appropriate ways that might be helpfulwhile managing the risk either it is high or low. According to this project, the first create risk

management plan that will guide the team members and stakeholders, how they react on the risk

(Loosemore, 2003). Following are some key factors that entails in a risk treatment plan;

Avoiding Risk

It is important for the success of a project that they must avoid the risk as much as they can. Forthat purpose, it is important for higher officials of Suneva Fushi to identify the precedent project

understandings and their documentation as well to examine the threats the might take place in the

commencement of a project (Artto, 2013).

Mitigating Risk

It is core duty of a management that they must mitigate the risk before it starts for the reason that

to attain the higher productivity and efficiency the management has to take some serious steps in

order to make it possible (Delmon, 2005).

Transferring Risk


7/14

7

Transferring the risk means, it can be handled with the help of experts and by formulating

effective strategies earlier (Loosemore, 2003).

Accepting Risk

According to experts, accepting risks are that kind of risk, which can easily tackled or reduced.

These kinds of risk do not influence the day-to-day operation of a project in a pessimistic manner(Delmon, 2005).

Risk Monitoring of ProjectRisk assessment of the project is a best way to keep a proper track regarding the risk that is

entering and their responses that can present against those risks, and keeping the alternate

strategy in order to tackle the complex situation that might be arises due to the risk (Munier,

2012). According to Suneva Fushi project, the main objectives of screening are as follows:

Make sure that the risk responses must be imposed according to planned

Inspecting whether the threat responses are good enough or required something new to

tackle Evaluating the precedent experienced regarding the risk that required innovative trends

for the project development

Evaluating the set of rules that are set in order to maintain a healthy working environment

Nowadays, most of the organizations are looking to set proper monitoring tool that help them to

perform their business operations effectively. Moreover, it is observed that proper monitoringstrategies provide enough assistance to the management through which they can easily tackle all

sorts of complex situation in order to achieve their desire goals and objectives in an appropriate

manner. According to Suneva Fushi project, all recognized risk could easily tackle through an

effective response plan. This will aid to cut down the probability of risk occurrence before itturns out to be a reality. Input and output procedures are going to utilized while evaluating the

risks in this project (Burtonshaw-Gunn, 2009).

Procurement Planning and StrategiesProcurement planning is the one of the most important role of any project. This process will

provide the product and resources, which are required for the project and delivered the products

on time. Implementation of procurement planning helps the management to ensure that they canbuy appropriate products in right prize from right suppliers. The handling of project procurement

is not easy because it is being implemented in an individual island and all required resources for

the project can be supplied using sea transportation (Burtonshaw-Gunn, 2009; Anderson, 2007).

Based on these aspects, the organization can face issues due to which they decided to hire

external supplier for getting all major products required for the project under consideration. Forinstance, heavy machineries such as construction materials, toilet fittings, and Highmark are

imported from foreign suppliers. The custom clearance is required to handle employees of theorganization. For the loading and unloading of goods or materials, capable local organizations

are selected for this purpose (Jha, 2011; McCaffer, 2013; Neeraj, 2011). Following are the

benefits of procurement planning for the project under consideration.

Materials are available for production


8/14

8

More attention to the prices of materials and resources is given

The procurement time and cost is minimized

The level of risk is found to decline

The production plan is performed equally

The understanding level is established between business partners and suppliers (Kamara,

2002; Neeraj, 2011)

Procurement planning consists of two factors such as annual procurement planning g andstrategic or high value procurement planning. For Suneva Fushi Project, the organization adopted

annual procurement planning because it makes it makes the management to increase their

production with the help of managing available resources efficiently and deliver the outcomes

according to plans. Moreover, with the help of this strategy the cost of the project can also beminimized. The most important aspect of this step is to consider the order of purchasing along

with the suppliers that are required to be considered for the project. The following are the stages

that are considered by the management in annual procurement planning (Anderson, 2007; Artto,

2013; Delmon, 2005).

The main goals of procurement strategies is to make sure that the goods and material which areneeded for the project are of utmost quality and are available whenever needed (Brandon, 2009).

However, some other goals of procurement strategies are as follows:

Promotion of best practice for maintain procurement

Training and educating internal purchasers in order to encourage them for reviewing theconsumption of goods and services, adopting environmental friendly alternative products

and reducing the irrelevant usage

Maintaining and communicating the procurement policy to all the suppliers, staff and

stakeholders (Jamal, 2009; Munier, 2012; Wu, 2010)

The strategies of procurement are considered essential due to the fact that it helps in thesuccessful operation of the internal or external requirements. The strategies for a project include

analyzing time required for procurement, analyzing project risk, required budget and projectopportunities (Anderson, 2007; Rowlinson, 2004; Boussabaine, 2013).

For the purpose of procurement strategies for Suneva Fushi Resort, the team members have to sit

together, in order to elucidate the works required in the project. These strategies might consist of

deciding about the objectives of the project, the resources that are required for the project, timescheduling of the work, budget, to assess the ways through which costs can be driven down

(Anderson, 2007; Delmon, 2005; Mubarak, 2010).

Procurement Solicitation and Source Selection

Solicitation is known as the process with the help of which the information that is bids andproposals according to the sellers prospective can be obtained regarding the ways through which

the basic needs requirements of project can be achieved. For the project of Suneva Fushi Resort,

the solicitation process includes the following process:

Advertising the opportunities regarding procurement as well as sending the interestedsuppliers notice


9/14


10/14

10

Procurement Monitoring and ControlWith the help of procurement monitoring and control process, the goods and material are tracked

and evaluated through, which the project team gains the idea about the effective use of thesegoods and material. Moreover, through this process, the records related to the stock can be

updated and this would ultimately help the team in analyzing the availability of stock. It would

help in evaluating the requirements for essential goods and service due to which the monitoringand control of procurement process can be made convenient. This is considered as the mostimportant phase of any project due to the fact that it helps in assessing the schedule, cost, quality

and performance (Marco, 2011).

Project Procurement Monitoring and Control System for Suneva Fushi Resort

For the purpose of Suneva Fushi Resort, the procurement monitoring system will involve

following things:

Goods and materials ordered to suppliers

Goods and materials received from suppliers

Goods and materials that are used in the phases of project

Goods and materials which are damaged

With the help of monitoring above-mentioned points, the team would be able to assess the goods

required for the considered project. They would have complete knowledge about the goods

delivered by the suppliers, which would ultimately help them in analyzing the payments.

Moreover, with the help of this process, the project management team could also gain the viewabout materials that are needed and are used in the implementation of the project. Through this,

they have complete idea about which products are used in which phase and to the extent to whichit is used (Howes, 2006). The main purpose of procurement monitoring is the ease of payments

to suppliers and continuation of the project phases without any hurdles. The purpose of thisprocess is to oversee the progress of products used, and the outcomes achieved. Through

monitoring and control the goods and services can be assessed that is the extent to which thecontributed effectively towards the achievement of the projects objectives (Marco, 2011).

On the other hand, with the help of this process of project management, the Suneva Fushi Resortteam would be able to evaluate the scope of the project and the extent to which the objectives of

the project are achieved. Through this process, it would become easy for the project team to

evaluate and control cost, quality, schedule and performance of the project. This would helpthem in analyzing and minimizing any sort of risk associated with the project and would make

the achievement of objectives accessible for the organization. Moreover, with the help of this

process the reporting of the issues is conducted at the correct time so that possibility of any sort

of mishap can be minimized and project could be closed through successful implementation of

the project. This would also help the organization in analyzing the time taken by all the processesof the project (McCaffer, 2013).

Therefore, it could be said that procurement monitoring and control process is important for the

considered project due to the fact that it helps in analyzing the situation of it in terms of cost,

quality, performance and other important aspects. With the help of this process, the organizationscan decide about the strategies that could use for their future project in order to achieve most

outcomes from them. they could also make the stakeholders or investors of the project make


11/14

11

aware about the situations because of which the project failed or caused problems in its

successful implementation (Jha, 2011).

ConclusionTo conclude this report, it is observed that formulating a proper strategic plan that entails a

complete risk evaluation plan, regarding the project (Suneva Fushi) and appropriate procurement

strategies and its evaluation plan that lead them towards the success. Moreover, it is importantfrom the prospect of top management that they must have all sorts of contingency plan that

enhance the reliability of their operations to the utmost level. It is analyzed that with the help of

appropriate procurement strategies it will help the management of Suneva Fushi to tackle all

sorts of complex situation that might occur during the completion of this project (Delmon, 2005).Most of the organizations are not able to attain their desire goals just because of the lack of

proper strategies and their proper monitoring process that is why it is important for the

management of Suneva Fushi that they should evaluate their monitoring strategies continuously.

Due to the technological advancement, the top officials of this project easily enhance the qualityof its operations that might encourage their project team to perform their task more efficiently in

order to minimize the risk of work disruption as much as they can (Jha, 2011; Marco, 2011).

RecommendationsThere are certain recommendations that might be helpful for the management of Suneva Fushi in

order to complete this project successfully. Some of the key suggestions are given below;

It is a core duty of a management that they must express the clear picture of their desiregoals and objectives for the reason that it will help them to manage their work

accordingly. It also helps to clear the idea of workers regarding what they have to attainthus compelling them to try hard for it.

They have to make use of different objectives to demonstrate their responsibilitiesproperly. The goals defined to attain the core objective must be used while identifying

and allocating the responsibilities to team members. It is a duty of a team manager thathe\she must identify the competence of their team members and then assign

responsibilities to them accordingly.

The top officials of Suneva Fushi resort project have to build up an empowered project

team that can easily comprehend all-important factors of human behavior and identify thedifferentiations in team members.

It is a prior duty of a project manager that they should try their level best to make theprogress of a project clear as much as possible to their team members as well as for the

upper management. They might use PERT or GANT chart in order to disclose the actual

progress of a project visually which will assist them to comprehend the course of actionsmuch better than oral explanation or presentations.


12/14

12

ReferencesAnderson, S.D., 2007. Guidance for Cost Estimation and Management for Highway Projects

During Planning, Programming, and Preconstruction. Transportation Research Board.

Anderson, S.D., 2007. Guidance for Cost Estimation and Management for Highway Projects

During Planning, Programming, and Preconstruction. Transportation Research Board.

Artto, K.A., 2013.Managing Risks in Projects. Routledge.

Boussabaine, A., 2013.Risk Pricing Strategies for Public-Private Partnership Projects. John

Wiley & Sons.

Brandon, P.S., 2009. Virtual Futures for Design, Construction and Procurement. John Wiley &

Sons.

Burtonshaw-Gunn, S.A., 2009.Risk and Financial Management in Construction. Gower

Publishing, Ltd.

Delmon, J., 2005.Project Finance, BOT Projects and Risk. Kluwer Law International.

Harris, F., 2013.Modern Construction Management. 7th ed. John Wiley & Sons.

Howes, R., 2006. nfrastructure for the Built Environment. Routledge.

Jamal, T., 2009. The SAGE Handbook of Tourism Studies. SAGE.

Jha, K.N., 2011. Construction Project Management. Pearson Education India.

Kamara, J.M., 2002. Capturing Client Requirements in Construction Projects. Thomas Telford.

Lambeck, R., 2008. Urban Construction Project Management. McGraw Hill Professional.

Loosemore, M., 2003.Essentials of Construction Project Management. UNSW Press.

Marco, A.D., 2011.Project Management for Facility Constructions. Springer Science &

Business Media.

Maria-Sanchez, P., 2005.Neuronal Risk Assessment System for Construction Projects. expert

verlag.

McCaffer, R., 2013.Modern Construction Management. 7th ed. John Wiley & Sons.

Moeller, R.R., 2011. COSO Enterprise Risk Management. 2nd ed. John Wiley & Sons.

Mubarak, S.A., 2010. Construction Project Scheduling and Control. 2nd ed. John Wiley & Sons.

Munier, N., 2012.Project Management for Environmental, Construction and Manufacturing

Engineers. Springer Science & Business Media.

Neeraj, J.K., 2011. Construction Project Management. Pearson Education India.

Rowlinson, S., 2004. Construction Safety Management Systems. Routledge.


13/14

13

Wu, D.D., 2010.Modeling Risk Management in Sustainable Construction. Springer Science &

Business Media.


14/14

14

Review 470853S4Risk and Procurement Management

Documents

Transcript of Review 470853S4Risk and Procurement Management