Risks Identified
IPM or international project management refers to as the distinct management of different project works, which include different multinational teams as well as resources working together for attaining the project goals and objectives (Kerzner 2022). A proper risk management and project governance plan is needed in the business for gaining maximum efficiency accordingly. This report would be providing a risk management plan and a project governance plan for the case study analysis of Licola Wilderness Village.
A risk management plan refers to as a specific document that the project manager prepares to predict different risks, evaluate their impacts as well as define proper responses to the risks (Lock 2017). The project manager requires to ensure that he or she is considering different distinct approaches in the business processes and operations for the successful analysis of the current situation and ensuring that any kind of damage would not be occurring in the project work and there would be a better opportunity for removing any kind of barrier from the work.
Since Mr. Wallaby wants to eventually replicate the ideoogy and success of the Licola Village in Fiji; it would be required to ensure that the probable risks and threats are avoided, under every circumstance (Licola Wilderness Village. 2022). Five of such risks in the project are provided in the following paragraphs:
i) Complex Process To Obtain Approvals.
ii) High Cost At The Project Initiation.
iii) Scope Not Well Defined.
iv) Constraint In The Human Resources.
v) Sourcing Of The Eco-Friendly Materials.
For the purpose of analyzing the risks mentioned above, Mr. Wallaby requires to complete a PESTEL analysis on the current aspects in Fiji, so that he is able to understand the requirements in the project work. A PESTEL analysis on Fiji is provided below:
i) Political: The political condition is stabilized in Fiji as they are following a multiparty system with the prime minister as the head of the system (San Cristóbal et al. 2018). However, there had been certain cases of corruption in the political background in the country and the government has included the FICAC or Fiji Independent Commission against Corruption.
ii) Economic: As per the economic condition, Melbourne is at way better position than Fiji and hence it had been easier for the government of Melbourne to approve the project of Licola Village. The growth of GDP in Fiji had been only 1.9% in 2021, which could be termed as not applicable for investing into a highly expensive project at present. As per inflation, for 2020, it was 2.20%. They are dealing with poverty majorly in their country and the employment rate is low. More than half of the population of Fiji lies below the poverty line and hence, although the completion of the project would reduce electricity demand; the affordability of the initial investment can be a major concern for the project.
iii) Social: Fiji has been facing several social issues in their country, such as poverty. Due to such distinct aspect, the literacy is low and only 33.6% of the population is literate. The main languages of the country are Fijian, Fiji Hindi and English and it could create problems in the project work.
PESTEL Analysis on Fiji
iv) Technological: Due to different social issues, there are distinct transportation and communication infrastructure aspects that are needed to be analyzed and managed. A technological infrastructure would be needed to be considered by Mr. Wallaby for reducing the impacts successfully (Meredith, Shafer and Mantel Jr 2017).
v) Environmental: Fiji has several environmental issues like degradations of land resources, incremented risks of flooding, unsustainable exploitations of marine resources and many more. Hence, they have implemented Fiji Environment Management Act 2005 regulation for the country.
vi) Legal: The government of Fiji has included Health and Safety at Work Act 1996 in their country’s legal system, so that every project could be executed successfully.
A risk register of the risks are provided below:
|
Risk Identification |
Risk Description |
Cause of Risk |
Probability of Occurrence |
Impact on project (schedule) |
Impact on project ($) |
Contingency measure |
Person entering the risk name |
Risk Owner |
|
Complex process to obtain approval |
The first and the foremost risk that is prevalent in the project in Fiji would be complex process in obtaining approvals. Licola Village is already a successful project in Melbourne and the Australian state government has provided their approval to make the work a successful one. However, there is a high risk that the government of Fiji might not provide approval to the project processes and operations. |
Poverty |
Likely |
Delay (High). |
Cost would be increasing (High). |
A proper plan should be presented to the government |
Project manager |
Mr. Wallaby |
|
High cost at the project initiation |
The second distinct and noteworthy risk in replicating the project is that there would be a requirement of high cost at the initiation of the project. As they would be replicating the entire work; proper costs’ estimation would be needed and if the budget is not accurate; the project would become a failure. |
Lack of resources |
Almost certain |
Delay (High). |
Increment in cost (High). |
The budget plan should be made prior. |
Finance manager |
Project manager |
|
Scope not well defined |
There is a high risk that the scope might not be properly defined by all stakeholders and hence the project can become a failure. A proper understanding of scope is needed in every project to ensure that the respective project is able to gain efficiency and effectiveness, under every circumstance |
Lack of understanding |
Possible |
Execution time would be increased (Medium). |
No impact (Low). |
Proper communication with all the team members |
Project manager |
All team members |
|
Constraint in the human resource |
The replication of the project would require a massive involvement of human resources and when any kind of constraint would be identified in the human resources; there is a high chance that Mr. Wallaby would not be able to complete the project on time. |
Not getting adequate member to work. |
Rare |
No impact (Low) |
No impact (Low) |
Since the country is dealing with poverty, a small advertisement can attract several people to work |
Human resource manager |
Human resource manager |
|
Sourcing of the eco-friendly materials |
One of the major attributes of the Licola Village project is that there would be several opportunities for reducing energy demand and hence increasing savings. Eco-friendliness is enhanced as the demand of electricity is reduced as well as the emission of GHG would be reduced. However, Fiji might not comprise of these advantages and they might not have any eco-friendly material in the respective location. |
Several environmental issues are present in Fiji |
Almost Certain |
Project would not be completed if these materials are not obtained (High) |
Cost would be quite high if they have to bring them from outside Fiji (High). |
A proper analysis should be done, in respect to the political, economic, social and environmental factors in the project, before initiating it. |
Project manager |
Project manager |
Table 1: Risk Register
(Source: Created by the Author in MS Word)
The risk response strategies of avoidance, acceptance, sharing, mitigation and sharing should be considered by Mr. Wallaby to ensure that these risks are properly analyzed and every vital aspects is being followed successfully (Harrison and Lock 2017). These strategies would be providing an action plan on the project work.
The project governance plan refers to as a primary procedural deliverable, which is being produced as the major aspect of the respective governance phase of project management. This particular governance plan is a higher priority deliverable, which is responsible for an optimized execution of the project (Kerzner 2017). Different business goals and initiatives are being analyzed with the governance plan. Mr. Wallaby requires to check the progress of the project on a priority basis. The first and the foremost step that the owner requires to ensure that a project outline is needed to be created with the team members. It could be an effective manner of tracking the progress and every member of the team could provide input for setting up realistic project objectives (Chawla et al., 2018). Hence, KPIs of this project would be analyzed.
Stakeholder management is also recommended to Mr. Wallaby for ensuring that all the stakeholders of the project are putting inputs into process for better and efficient results, under every circumstance (Kerzner 2018). A proper relationship would be maintained with the stakeholders, who comprise of major impacts on the work. Hence, a proper communication method would be needed for every member, so that scope is understood by all of them. As a result, the monitoring and controlling of the project processes and operations would be easier. The most distinct communication methods for stakeholder management and for creating a project management culture would be periodical meetings and emails as well as presentations of the project progress, so that a better analysis can be done easily (Boyle 2017).
Since the project in Fiji would be a complete replication of the idea of Licola Village, it is needed to ensure that the constraints are met, under every condition. Mr. Wallaby requires to manage and track all expenses for keeping the project within a budget (Papke-Shields and Boyer-Wright 2017). It is recommended to consider the triple constraints for the project plan and these include scope, cost and time and hence the organizational management requires to ensure that all of these attributes are being followed successfully.
Risk Register
For cost planning, there are a few types of costs that are required to be analyzed and these include labor, investment cost, materials, rent, travel and transportation, inflation, contingency, training, overheads and administration and many more (Radujkovi? and Sjekavica 2017). It is recommended to establish a cost tracking system in the project work for ensuring that all the expenses are dealt easily and the project management would have the capacity of tracking them properly. The involvement of the project management software would be beneficial in such condition and the budget items would be identified (Nicholas and Steyn 2020).
For scheduling, Mr. Wallaby requires to consider a detailed Gantt chart for the project. It is responsible for providing the managers and team members a high levelled overview of different project tasks and activities that they should complete and a timeline is provided that should be followed by them (Bibarsov, Khokholova and Okladnikova 2017). Hence, the project manager would be able to monitor and control the overall progress of the project by showing the members the process of tasks getting related to one another.
Mr. Wallaby would be having a complete visualization of the project processes that are needed to be executed. The involvement of a network diagram is also recommended for the project in Fiji. Since an entire village is to be replicated, the list of project tasks are needed to be executed chronologically (Rowe 2020). The network diagram can aid for tracking the projects and there would be a sequential arrangement of project activities for better planning and scheduling to visually monitor the project status.
For dealing with the emerging risks, Mr. Wallaby should update the distinct risk register regularly, so that the new risks are recognized and proper strategies are involved in the work, without any kind of complexity or issue. The respective project manager requires to ensure that every specific attribute of the project is being executed properly and the risks are identified properly. The most significant responsibilities in such attributes include planning international projects, delegation of tasks to the respective team members, allocation of resources and even ensuring that every deadline is met on time.
The data of the project summary and report should be reported and presented in a presentation to the CEO for ensuring that a progress report is maintained successfully. The frequency of this data presentation should be at least once in every two weeks for understanding the progress (Verzuh, E. and American Psychological Association, 2021). This particular project summary should comprise of Gantt charts, network diagrams and a risk register to ensure that the CEO is well aware of the factors.
Conclusion
Hence, a conclusion could be drawn that the involvement of different principles and attributes of international project management would be extremely beneficial and effective for reducing the complexities and issues in the project of replicating the idea as well as success of the Licola Village in a town in Fiji. This report has provided a detailed discussion on the risks’ management plan and project governance plan for the replication of the idea of Licola Village in Fiji.
References
Bibarsov, K.R., Khokholova, G.I. and Okladnikova, D.R., 2017. Conceptual basics and mechanism of innovation project management.
Boyle, G., 2017. Design project management. Routledge.
Chawla, V., Chanda, A., Angra, S. and Chawla, G., 2018. The sustainable project management: A review and future possibilities. Journal of Project Management, 3(3), pp.157-170.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.
Kerzner, H., 2017. Project management case studies. John Wiley & Sons.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley & Sons.
Kerzner, H., 2022. Project management case studies. John Wiley & Sons.
Licola Wilderness Village. 2022. [online]. Accessed on 31st March 2022.
Lock, D., 2017. The essentials of project management. Routledge.
Meredith, J.R., Shafer, S.M. and Mantel Jr, S.J., 2017. Project management: a strategic managerial approach. John Wiley & Sons.
Nicholas, J.M. and Steyn, H., 2020. Project management for engineering, business and technology. Routledge.
Papke-Shields, K.E. and Boyer-Wright, K.M., 2017. Strategic planning characteristics applied to project management. International Journal of Project Management, 35(2), pp.169-179.
Radujkovi?, M. and Sjekavica, M., 2017. Project management success factors. Procedia engineering, 196, pp.607-615.
Rowe, S.F., 2020. Project management for small projects. Berrett-Koehler Publishers.
San Cristóbal, J.R., Carral, L., Diaz, E., Fraguela, J.A. and Iglesias, G., 2018. Complexity and project management: A general overview. Complexity, 2018.
Verzuh, E. and American Psychological Association, 2021. A Guide to the Project Management Body of Knowledge: PMBOK Guide.
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