[SOLVED] Risk Analysis

Projects, including carefully planned ones, can run into trouble. This project, no matter its planning, can encounter unexpected problems. Larson and Gray (2014) indicate that anything can happen to alter the outcome of project activities. A risk can either be a condition or an event. It is something that can or cannot occur, but if it does, it can force a project manager and his or her team to change the way they work on a project. This project is prone to four major categories of risks- technical, cost, financial, and schedule risks. A technical risk may arise if the contractor uses low quality materials to build the new facility. This risk can also arise if the organization purchases substandard equipment for the new facility. A technical risk can result in a low quality structure and reputational damage. The probability of experiencing this type of risk is low because the organization will hire experts in construction industry and source materials as well as equipment from reputable manufacturers.The cost risk may arise due to increases in price of construction materials and equipment. Such increase may result in budgetary variances and affect project schedule. The probability of this risk occurring is high due to the prevailing Covid-19 pandemic and dwindling economic performance. Financial risk can arise if the executive level managers decide not to provide enough resources for the project’s budget. Lack of adequate financial resources may lead to use of substandard construction materials and equipment for the new facility, which may damage the company’s reputation. The probability of this risk of occurring is very low because of management support for the project and the organization’s healthy financial status. Schedule risk may arise if team members quit or due to unavailability of resources. Schedule risks can also occur due to changes in weather conditions such as onset of snowstorm. These may increase project costs and unnecessary delays. The likelihood of schedule risk occurring is high because Waterloo Town is prone to adverse weather conditions such as snowstorms and tornados.