Develop A Five-Column Risk Register For The Case Study ✓ Solved
Develop a five-column risk register for the case study
There are four activity assignments in this course that provide practice in developing key components of successful procurement planning and management. The fourth activity is the preparation of a risk register or log. Develop a five-column risk register for the case study that you selected for your final project in the style of Figure 7-9 in the textbook. In your submission, identify possible risks and, for each, the probability of occurrence, impact, response, and assignment of responsibility to prevent or mitigate the risk.
In two to three paragraphs, summarize the significance of a risk register for a successful procurement.
Paper For Above Instructions
Introduction
In the field of procurement management, the establishment of a comprehensive risk register is vital for the identification, assessment, and mitigation of potential risks that may impact a project's success. A risk register serves as a systematic and structured tool that organizations use to document, monitor, and manage risks throughout the procurement process. This paper will present a five-column risk register based on a hypothetical case study, categorizing potential risks, their probabilities, impacts, responses, and responsible parties.
Risk Register
| Risk | Probability | Impact | Response | Responsible Party |
|---|---|---|---|---|
| Funding not adequate to provide requested services | Moderate | Very High | Negotiate funding levels | Procurement lead |
| Insufficient detail in the scope of work | High | Very High | Conduct face-to-face interviews with SMEs | Procurement lead |
| RFP not delivered on time | High | Very High | Allow sufficient time for drafting | Procurement lead (RFP writer) |
| Top competitors’ oral presentations delayed schedule | Moderate | High | Allocate additional time for scheduling | Procurement lead |
| RFP responses inadequate | Moderate | Very High | Amend RFP including detailed scope and specifications | Procurement lead (RFP writer) |
Significance of a Risk Register
A risk register is crucial in procurement management as it not only identifies potential risks but also allows procurement teams to proactively address and mitigate these risks before they can impact project outcomes. Effective risk management can lead to avoiding delays, cost overages, and potential failures which can arise from overlooked liabilities. The significance of a risk register is underscored by its role in fostering communication among project stakeholders, ensuring that everyone understands the risks ahead and their respective roles in managing them (Hillson, 2017).
Moreover, a well-maintained risk register can serve as a historical reference that informs future procurement projects. By documenting the lessons learned from managing identified risks, organizations can refine their procurement strategies, enhance their risk management processes, and improve overall project success rates. By doing so, companies can not only eliminate or reduce detrimental impacts but also enable swift decision-making processes that are critical to achieving strategic objectives in procurement (Kwak & Ibbs, 2002).
Conclusion
In conclusion, the implementation of a risk register in procurement management is critical for the identification and mitigation of various risks associated with projects. By systematically cataloging risks, organizations can pave the way for greater accountability, insightful decision-making, and ultimately, project success. A risk register not only reflects the organization's commitment to effective risk management but also serves as a valuable tool for continuous improvement in procurement practices.
References
- Hillson, D. (2017). Capturing Upside Risk: The Importance of a Risk Register. Project Management Journal, 48(3), 1-009.
- Kwak, Y. H., & Ibbs, C. W. (2002). Project Management Process Maturity Model: A Case Study of a U.S. Public Agency. Project Management Journal, 33(4), 21-35.
- PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). Project Management Institute.
- Schmidt, C., & Cushman, R. (2015). The Importance of Using Risk Registers in Procurement. International Journal of Procurement Management, 8(2), 191-207.
- Ward, S., & Chapman, C. (2003). Transforming Project Risk Management into Project Uncertainty Management. International Journal of Project Management, 21(2), 97-105.
- Meredith, J. R., & Mantel, S. J. (2012). Project Management: A Managerial Approach. John Wiley & Sons.
- Project Management Institute (PMI). (2021). Practice Standard for Project Risk Management. Project Management Institute.
- Hillson, D. (2009). Managing Risk in Projects. Routledge.
- Bourne, L. (2015). Stakeholder Relationship Management: A Maturity Model for Organizational Implementation. Project Management Institute.
- Zou, P. X. W., & Zhang, G. (2009). Construction Risk Assessment: A Review of the Risk Identification Process. Journal of Construction Engineering and Management, 135(7), 624-631.