Intersection Between Legal Risk Management And Dispute Resolution

Developing a risk management plan

Discuss about the Intersection between Legal Risk Management and Dispute Resolution.

The risk management plan refers to the specific set of activities and action implemented to deal with the negative outcome of a project (Loosemore and Phua, 2010). This increases the chances for the success of the project because proactive actions are taken with the association of skilled and qualified team (Lundgren and McMakin, 2013). In this context, the present report develops a risk management plan for Eye clinic noble park project which covers several steps beginning from the assessment of risk to its reduction for successful management of the project. Apart from this, effectiveness of processes and procedures used for the project risk management outcome have been reviewed. Along with that, the risk issues have been documented and identified with the equal focus on the recommended improvements. In addition to this, involvement of stakeholders  has been discussed.

The management of potential risks coming to the project is the crucial task, which assists project manager to determine the success of the project (Frewer, 2004). For the management of risk, following mentioned plan has been used in the Eye clinic noble park project-

• Identification of hazards-It is the first and foremost step wherein potential risk associated with the project will be identified (Apollon, 2015). The current project is prone to risk of using poor quality raw material and inclusion of poor skilled staff. Furthermore, higher exposure of risk may cause accident of workers on the site, loss of production and time. At this juncture, the onsite hazards are important to be dealt with so that workers can work with higher level of safety. Still the risk of increasing cost and time may have direct impact on the project deliverable (Leslie, 2002). Therefore, accident on the site, risk of collapse, extended time, cost overruns and inexperience employees may affect the performance of overall project.

Table 1: Risk assessment

• Evaluating the risks caused by the control measures-It is the most important step wherein management of the business might face issue related to the occurrence of additional risk through the risk control procedure (Agassi and Meidan, 2016). For example, application of technology to reduce the accident at workplace would further increase the risk of higher cost. Also, it might take extra time to arrange for the same. Owing to this, consequences would be understood and accordingly management of the business will put efforts to reduce the impact of any kind of risks and train the employee for the same for determining the successful completion of the project (Modarres, 2016).
• Control measures of risk-This step defines about the potential control measures which can easily control overall risks associated with the project (McNeil, Frey and Embrechts, 2015). This contributes towards deriving valid outcome for stakeholders because appropriate actions are taken for the successful completion of the project and minimum impact of the risk factors. The current project Eye clinic noble park will have following risk control measures-

Table 2: Risk management plan

• Risk management –On the basis of above table, the risk management team will work towards the appropriate management of potential risk occurred in the project (Gorze?-Mitka, 2013). This would be helpful in taking the corrective actions on the right time and the rate of accident on site of Eye clinic noble park project will be reduced largely. In this context, staff or team members will continually get the information that how their project can be affected by the negative aspects and accordingly they can be taught to use the corrective action. Also, the risk management plan may need certain amount of money because emergency plan consisting team of skilled and experts people backed by enough resources for managing the risk will be employed. This is the emergency plan for the Eye clinic noble park project through expectations of stakeholders will be met and project will be work successfully.
• Review of the plan-The overall risk management plan will be reviewed on the basis of pre-defined objectives of the plan (Banaitiene and Banaitis, 2012). This facilitates to control the risk because loopholes will be recorded and reporting of the same will be done in the respective department. Also, the review procedure will ensure that all the resources employed in the Eye clinic noble park project have been properly utilised.
• Modification-It is the last step wherein project management will modify the risk plan by focusing on the certain aspects like free flow of communication, involvement of stakeholders and setting the quality parameters on the priority (Iqbal and et. al., 2015). Also, the recorded risk plan will be modified on the basis of reports and outcome through which success of the project can be determined to a great extent. Thus, risk management plan for Eye clinic noble park project is helpful for to deal with the potential barriers and effectively complete the related projects through the optimum utilization of limited resources (Sharma and Swain, 2011). Apart from this, right modification in the plan will lead further success in other projects so the outcome derived at this stage will be communicated among the team members of the project.

While making the risk management plan then there should be proper interaction with stakeholders because these are important people for the organization. Stakeholders can be in an individual, group or organizations that have the major contribution in the company (Lundgren and McMakin, 2013). So for the management of the risk plan of Eye clinic noble park project, MEGC should focus on the involvement of the stakeholders in the risk plan. Stakeholders of the construction of Eye clinic can be vendors, suppliers, material handling team etc.

Further, manager will be able to understand the expectations of the shareholders by organizing timely meeting, regular interfere in the processing and can develop a software for the interaction. It will be helpful to manage the risk that how the project will be affected in the form of time, cost and quality (Frewer, 2004). If all these things will be communicated to stakeholders then it will be easy to handle the risk and can be mitigated. Further, there may arise higher cost to communicate with potential stakeholders but it will reflect the expected benefits through effective consultation (Loosemore and Phua, 2010). Therefore, it reveals that involvement of stakeholders in the management of risk is beneficial for the company because with the help of it risk will be effectively managed and fewer resources will be required.

Addressing the following in the risk management plan

Disputes are those which arise in the management of projects due to risk factors because when the expectations do not match to reality then mismanagement of projects can take place (Agassi and Meidan, 2016). Hence, the dispute may be with suppliers, customers, employees and other business partners in the construction of Eye clinic noble park project. So there can be several strategies to resolve the disputes among partners and stakeholders.

All the documents and facts must be complied in a proper format so that so that misconception regarding time, date, lease, warranty and service delivery, contracts etc. On the other hand, project manager should communicate with the other parties to get a better solution for handling of the disputes. Because in this, other parties will also have experience regarding the normal disputes so they will be able to provide the creative ideas for the win-win solution and tools for resolving the disputes (Leslie, 2002). For instance, risk management always helps the physician to identify the health risk for the patient and avoid the risk so that disputes cannot arise in the clinic (Apollon, 2015). It shows that risk management always consists with the disputes because both are interlinked. When the risk will arise then only disputes will be and there will be requirement of resolutions for managing the risks.

The project manager has to face several types of risk in the construction of the Eye clinic of Noble Park like lack of communication, insufficient supply of material, less availability of labor and higher cost of the labor etc. After starting the construction process there can arise the problem in the construction design that what design has prefixed that is not taking place in the building. Due to this, manager will be liable for that mistake and he has to find another alternative for the better construction of park.

On the other hand, project manager can provide further training to the workers so that effective construction can be done. For that new blueprints and layout should be prepared by the constructor and modification should be done as per the requirements. Hence, modification procedure will be costly for the construction because it demanded for the extra cost, time and resources for the better construction.

There are different types of risk which identified in the construction of the Eye clinic noble park so for the mitigation of that risk these techniques can be used. With the use of the tools risk can be controlled and project will be highly affected. It includes cost and time estimating, expert judgment, decision tree and expected monetary value analysis etc (Modarres, 2016). Further, as per these methods, project manager can implement these two techniques- cost and time estimating and Monte Carlo approach. Cost and time estimating techniques is very helpful to minimize the risk because it will facilitates the expected time and cost of the project and it should not exceeded than only the project will be cost effective (McNeil, Frey and Embrechts, 2015). On the other hand, Monte Carlo approach can also be implemented for the construction of the Eye clinic noble park because it is simulation techniques which stimulate the results of cost and schedule of the project (Gorze?, 2013). Therefore, both are the techniques which preferred for the management of the expected time and cost so that there cannot be major difference between decided and actual results.

Communication with stakeholders

As per the construction of the Eye clinic noble park project, there should be proper measurement of the actual results and planned outcomes. Because it will shows the reality of the project that at what extent project is effective or there should be modification. In this context, the department head of Eye clinic noble park will be asked to provide the report and then the milestone will be considered to make the comparison. For this purpose, evaluation stage will be completed in accordance with the set standards and gap between the actual and expected outcome will be reduced to a great extent. Apart from this, the standard rate of accidents and the actual accident rate will be compared and accordingly project management will assess how effective the risk management plan was. Moreover, project management will be carry out the comparative analysis in term of team performance, project objective, risk and budget as well as time consumption etc. This would be helpful in assessing the actual progress of the project so as to meet the expectations of all related parties.

It is not always necessary that project risk management outcome will be favourable because management have emphasize on other related areas through which tight control can be established (Fernández-Sánchez and Rodríguez-López, 2010).  

The procedure used for the risk management plan is effective as it focuses on every single issue which may become hurdle in the completion of the current project. This facilitates to cater the requirement of all related parties and derive the valid outcome for the related stakeholders (Walker, 2015). However, the processes used for the review of risk management plan are explained as follows-

• Preventive measures-In order to increase the positive outcome for the risk management review, preventive measures will be used by the project manager, For example, latest technologies are in use for the transfer of raw material so that on-site accident related to workers can be reduced. Apart from this, team members associated with the Eye clinic noble park project will be communicated and provided all the safety equipments so that accidents can be controlled effectively. This would further stimulate the growth of residential construction project and initial and basic work of the project will be completed with the speed.
• Raking of risk and final plan-The another processes used to derive the positive outcome of risk management plan is ranking of risk and accordingly implementing the suitable plan (Winch, 2010). For example, accident on the site is priority risk for which additional money has been incurred to get the latest  technologies transferring the raw material from the place of origin to the place where it is needed (Zavadskas, Turskis and Tamošaitiene, 2010). However, other risks such as cost and time overruns cuase moderate risk for the overall Eye clinic noble park project, still the plan has been prepared to effectively utilize the resources with the use of critical path method. By using this method, both time and cost will be reduced because the longest path of the project will be obtained and the entire team will work accordingly.
• Comprehensive programme-This comprehensive plan will target to maintain overall quality of the project with the help of structured procedure. For this purpose, project team will communicated regarding the quality parameters and accordingly risk related to the project will be reduced to a great extent (Loosemore and et. al., 2012). For example, the requirement or expectations of stakeholders will be clearly communicated among team so they can comply with the set regulations.
• Continuous improvement-The continuous improvement of the project will be done with the help of training and development program. These procedures would enable employees or project management to track the performance of project and accordingly provide the review (Choudhry and Iqbal, 2012). Also, the daily close supervision also facilitates to get the meaningful information through which it becomes easy to work on the potential issues.

The management of risk in the project is crucial tasks which require active attention of people from different departments (Motiar Rahman and Kumaraswamy, 2002). The Eye clinic noble park project also has several risks in the completion of the project; however, appropriate plan has been prepared for mitigation of those potential risks. Still, the risk issues may affect the progress of the project to a great extent. It has been explained as follows-

Table 3: Risk issues and improvements

On the basis of above table, it has been found that Eye clinic noble park consists of several risk issues including lack of risk decision making structure, risk taking culture, poor risk assessment process and inexperienced staff or project team. These different issues impede the overall performance of the project by weakening the project completion procedure (Tang and et. al., 2007). Owing to this, appropriate actions will be taken by project management to deal with risk issues. For example, if risk management culture is absent in the project team then it is likely to have direct impact on the implementation of risk management plan. This is because staff will be less cautious towards the risks and they also will not be able to take the corrective actions.

Dispute resolution

Another crucial risk issues is lack of risk assessment process through which management cannot find the exact risks which might be faced in the project. For instance, collapse of walls even in the natural normal disaster can affect the overall success of the project. Since it provides good result at the early stage and later it affects the construction project to a great extent (Lyons and Skitmore, 2004). Owing to this, risk assessment should be strong whereby management of project can plan for the risk management in the right manner.

Inability of project management to assess certain critical risk is also the issue through which project get affected (Banaitiene and Banaitis, 2012). For this purpose, audit can be carried out and assistance of experts should be taken. This extensive support would evolve project manager and provide the continuous learning in term of management of management of the risks. Apart from this, different stakeholders including vendors, suppliers, sponsors and client should be aligned or engaged so they can effectively provide their views related to quality or specific requirement of project (Iqbal and et. al., 2015). This would further be supportive in identifying the risk and managing the same with the application of right strategy.

The involvement of stakeholders in the project management is the important tasks as they also provide important insight regarding the management of some specific tasks and resolving the potential issues in the right manner (Kalkhoran, Liravi and Rezagholi, 2014). Owing to this, stakeholders will be engaged and the risk improvement will be disseminated among them in the following manner-

• Weekly meeting-In order to deal with issues related to risks, project management will be take the weekly meeting regarding the progress of the project and understanding some specific requirement. For example, sponsors and project management will be invited to provide their views for the work done yet. This would help them to trace the current performance and accordingly contribute toward in the same for further (Wang, Dulaimi and Aguria, 2004). For instance, they will be communicated that latest technologies will be used which will consume extensive amount of financial resources but risk related to on-site accident will be reduced.
• Common communication portal-The common communication portal will be developed for Eye clinic noble park under which all stakeholders will be stay connected. They will be allowed to comment and provide their suggestions through that portal also they can easily ping to the respective member of project. This procedure would although expand the span of control but the progress of project will be appropriate (Sharma and Swain, 2011). In this context, they can be provided information that employees or team has been undergone through training program and drastic improvement has been seen in term of quality of work.
• Proper reporting-In order to involve stakeholders, proper reporting will be done and they will be asked to provide their comment. This reporting will be done in term of present progress and risk which has been resolved yet. Also, the potential risk related to quality, material, staff and others will also be communicated along with the clear description of further requirement of resources (Lyons and Skitmore, 2004). The respective head of the department will do this reporting and response derived from stakeholders will be incorporated into the risk management procedure.
• Asking for suggestions-Under this procedure project manager will disseminate risk improvements and at the same time stakeholders will be asked to provide their suggestions (Tang and et. al., 2007). The procedure of taking their suggestions would assists management to bring further improvement in the risk management plan and mitigate the potential risks in the right manner. In this context, daily meeting can also be organized with stakeholders having any specific issue regarding the risk related to the project.

Conclusion

The report concludes that risk management plan facilitates to derive valid outcome for the business because the project management reduces potential risk by being proactive. It can also be concluded that active involvement of stakeholders would provide the right choice for project manager to control the risk and ensure free flow of communication between different parties who are directly or indirectly connected with the success of the project. Apart from this, dispute resolution procedure and selection of appropriate risk control trigger mechanisms are helpful in deriving the success of the project as it provides clear path for the right way to complete the project with the satisfaction of all involved stakeholders.

Reference List

Agassi, J. and Meidan, A. (2016) Resolving a Dispute. In Beg to Differ (pp. 15-26). Copernicus, Cham.

Apollon, G. (2015) The Intersection between Legal Risk Management and Dispute Resolution in the Commercial Context. Pepp. Disp. Resol. LJ. 15, pp.267.

Modification procedures

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Choudhry, R.M. and Iqbal, K. (2012) Identification of risk management system in construction industry in Pakistan. Journal of Management in Engineering. 29(1), pp.42-49.

Fernández-Sánchez, G. and Rodríguez-López, F. (2010) A methodology to identify sustainability indicators in construction project management—Application to infrastructure projects in Spain. Ecological Indicators. 10(6), pp.1193-1201.

Frewer, L. (2004) The public and effective risk communication. Toxicology letters. 149(1-3), pp.391-397.

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Iqbal, S., Choudhry, R.M., Holschemacher, K., Ali, A. and Tamošaitien?, J. (2015) Risk management in construction projects. Technological and Economic Development of Economy. 21(1), pp.65-78.

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Lundgren, R.E. and McMakin, A.H. (2013) Risk communication: A handbook for communicating environmental, safety, and health risks. John Wiley & Sons.

Lyons, T. and Skitmore, M. (2004) Project risk management in the Queensland engineering construction industry: a survey. International journal of project management.  22(1), pp.51-61.

McNeil, A.J., Frey, R. and Embrechts, P. (2015) Quantitative risk management: Concepts, techniques and tools. Princeton university press.

Modarres, M. (2016) Risk analysis in engineering: techniques, tools, and trends. CRC press.

Motiar Rahman, M. and Kumaraswamy, M.M. (2002) Risk management trends in the construction industry: moving towards joint risk management. Engineering, Construction and Architectural Management. 9(2), pp.131-151.

Sharma, S.K. and Swain, N. (2011) Risk management in construction projects. Asia Pacific Business Review. 7(3), pp.107-120.

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Winch, G.M. (2010) Managing construction projects. John Wiley & Sons.

Zavadskas, E.K., Turskis, Z. and Tamošaitiene, J. (2010) Risk assessment of construction projects. Journal of civil engineering and management. 16(1), pp.33-46.

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