Risk Management Assignment Example | Topics and Well Written Essays - 750 words

Risk Management - Assignment Example SFC developed a risk matrix of the possible risks likely to occur during the implementation of the project detailing the mitigation measures. SFC currently has other projects that are not completed. If it wins the contract, the schedule of the other projects will be interfered. SFC cannot afford to lose the contract for the City project because of the proceeds expected from its completion. Mitigation measure for the risk, SFC has decided to discuss with the other clients and come up with a new realistic schedule to complete the homes. It will be beneficial to SFC to winning their customers trust and loyalty. The two employees present at SFC will not be enough to complete the current projects and that for Gig city. The employees will be strained making them inefficient in delivering quality services to the client especially that for constructing tourism facilities. This will risk SFC in failing to win future contracts from the Gig Harbor Council. SFC has identified hiring of new personnel will be the suitable mitigation measure for this risk. There is also a possibility of the prices construction materials to increase this is due to the booming construction business, thus high demand for the materials. An increase the cost of materials will have an adverse impact on the company since it was not budgeted for, during the planning stage. SFC identifies this risk as severe since it will not only affect the construction of tourism facility but other projects. The mitigation for this is to liaise with finance companies, who will step in during a financial crisis. SFC has a duty to protect its reputation for the City project and therefore reducing material requirement will result to a sub-standard work. If the completion of the construction of tourism facilities does not meet deadline, then SFC management should make an effort to discuss with the Council prior the actual deadline. It will make the Council aware and also gain trust from