Assignment 1
Project Risk
Management
By – Krushant Soni
Student ID: 202304054
1. Identify the threat risks for ABC Corporation, based on the recent power outage.
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While building the Warehouse there may be frequent power outages and will lead to higher
cost and wastage in operational time and efforts.
Frequent outages will affect the overall operations of this project, and there is a high risk that
the equipment might be damaged as well due to it.
One of the major risks is also the safety of the warehouse and the regulatory compliance
requirements, the warehouse might fail to meet those standards due to frequent power
outage.
The operations of the warehouse will be disturbed and due to it company’s reputation also
will be on strike.
Due to delay in the manufacturing process and disturbance in operations, there will be
severe damage to the business
2. Identify possible information sources that will aid you in reducing the level of uncertainty for this
project.
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Building some strategy to turn the operations off during the outage time and working on
time when there is no outage.
Taking into consideration the weather forecasts as they are one of the major causes of power
outage.
Like every business has an emergency backup source, Heavy generators can be a great
source of backup for the business to operate smoothly during power outage.
Reaching out to the local municipality and checking and implementing the different ways
through which power outages can be reduced.
Better infrastructure can highly reduce this problem.
3. Create a certainty/uncertainty matrix for the power outage event (see Figure 2.1).
Certainty/Uncertainty Matrix for Power Outage Risk
Risk Element
Constituent
Certain
Uncertain
Event
Type
Backup power systems
(generators, UPS)
Frequency of outages and duration
Occurrence
- Power outages will occur
occasionally
- Exact number of outages per year
- Duration of each outage
Period of
Exposure
- Ongoing reliance on power
grid
- Long-term impacts of aging
infrastructure
Consequence(s) Type
- Operational downtime due
to outages
- Impact on supply chain and
logistics
Risk Element
Constituent
Certain
Uncertain
Magnitude
- Short-term operational
interruptions
- Scale of economic or reputational
impact
Period of
Exposure
- Continuous exposure during - Length of time affected by each
operations
outage
Type
Power surge protection
systems
Likelihood of sudden power surges
Occurrence
- Surge protection measures
are in place
- Frequency of power surges
Period of
Exposure
- Permanent safeguards
installed
- Duration of surge impacts
Consequence(s) Type
- Protection against
equipment damage
- Damage to sensitive equipment
or IT systems
Magnitude
- Reduced risk of equipment
failure
- High repair/replacement costs
Period of
Exposure
- Continuous protection
during operations
- Short-term disruption from
surges
Type
Backup cooling systems (if
power outage occurs)
Likelihood of power failure during
hot months
Occurrence
- Backup cooling is installed
and operational
- How often power outages occur
during hot weather
Period of
Exposure
- Continuous protection
during warm periods
- Duration of exposure in extreme
heat
Consequence(s) Type
- Prevents temperaturesensitive inventory damage
- Potential inventory spoilage or
loss
Event
Event
Magnitude
- Reduced risk of spoilage due
- Increased losses from spoilage
to temperature changes
Period of
Exposure
- Continuous protection
during operations
- Short-term temperature
fluctuation impacts
Risk Element
Constituent
Certain
Uncertain
Event
Type
Emergency backup
communication systems
Probability of communication
failure during power outage
Occurrence
- Emergency comms system is - How often power outages disrupt
in place
communication
Period of
Exposure
- Ongoing functionality during - Duration of communication
power loss
outage
Consequence(s) Type
- Maintains security and
operational coordination
- Loss of coordination or delayed
response time
Magnitude
- Ensures safety during
outages
- Increased risk of accidents or
delays
Period of
Exposure
- Continuous readiness for
communication during
outages
- Short-term communication gaps
during power loss
Type
Infrastructure upgrades or
grid improvements
Timeliness of utility infrastructure
upgrades
Occurrence
- Upgrades and
improvements are planned
- Timing of infrastructure
improvements
Period of
Exposure
- Gradual improvement in
power grid reliability
- Uncertainty about completion of
planned upgrades
Consequence(s) Type
- Reduced risk of frequent
outages
- Increased risk of continued
outages until upgrades are
complete
Event
Magnitude
- Increased grid stability over - Extended project delays or
time
disruptions
Period of
Exposure
- Ongoing improvements over - Short-term disruptions until
several years
upgrades are complete
4. Define the internal stakeholders for your project?
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Decision Maker/Leadership team – Key decision makers who gives direction and control the
whole project.
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Finance Department – Responsible for taking financial decisions, cost implications, and
evaluation of cost of power backup systems.
IT Team – Responsible for managing the IT Infrastructure and systems and ensuring they are
well protected from outage.
Project Team or Employees of the Project – Construction Workers, Procurement team,
Engineers and Architects, Project Managers, and people managing safety department and
security.
Government Compliance / Regulatory team – Ensuring building meets all safety
requirements.
5. Define the external stakeholders for your project?
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Local community
City of Timmins and the Municipal Government
Federal Government
Utility Providers
Customers or clients
Suppliers or Vendors
Insurance company
Emergency services such as Fire, Police, Medical.