BUSI 3309 Risk Analysis PDF

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BUSI 3309 B - Project Management Project Risk Management Process Exercise XSU Spring Concert There are many risks associated with planning and organizing an all day concert. With respect to many different factors, we outlined what we believe to be significant risks associated with planning and organ...

Description

BUSI 3309 B - Project Management Project Risk Management Process Exercise XSU Spring Concert

There are many risks associated with planning and organizing an all day concert. With respect to many different factors, we outlined what we believe to be significant risks associated with planning and organizing a concert for a university campus. These risks

may include problems with the venue, dealing with performers and legal issues. The following risks are outlined in the table below: Risk

Effect

Cause

Not Gaining Permissions and approvals

If approvals were not granted the whole concert would have to be rescheduled or cancelled. No show can take place without permission from Wahoo Stadium and Government officials.

There are a lot of guidelines that need to be taken into consideration. For example building approvals, planning approval, application for food and drink outlets all need to be approved. This can be a lengthy process especially if there are issues.

Absent Bookings

This would lead to a lot of upset customers who paid to see a full eight-hour concert. This could lead to having to provide some sort of refund to satisfy the students. It would also be very bad for committee image as it is the first year and it is imperative all acts are booked.

With only a budget of $50,000 it is hard to book a big name artist as they are usually much more expensive. As well as smaller groups may not be willing to pay for travel arrangements to and from the university, as it is an expensive cost.

Inadequate Tech Setup

Sound and light issues can seriously hinder the reviews of a concert and have a negative impact on future years.

If all tech aspects are not tested properly prior to the show, it is very possible that a malfunction could occur.

Noise Complaints

Noise complaints often lead to large fines depending on bylaw restrictions. This could also lead to having to change the venue for future years.

Artists often perform encores and go on past their scheduled time slots. This can lead to concerts to continue on past 11:30pm.

Public Relations Problems

Due to high number of cases of drug related issues, sexual assault issues and any other conflict that is seen as negative to the public can have concerts and events banned for a very long time.

Students consume illegal substances or get intoxicated before going to concerts. It is very hard to monitor this as it is out of the committee’s control.

Budget Restraints

Going over budget could have a serious negative impact on the committee as they may not be able to pay artists or venue costs which

$50,000 is not a lot of money when having to book 8 hours of musicians including a big name artists who can very well cost at

Rigorous Schedule

could lead to having to cancel the entire event.

least half of the budget.

Not completing milestones on time could lead to having to delay the concert, or increase costs for committee members to work over time in setting up for the concert.

Everything must be completed in a span of 5 months, which is a very short period of time to plan for an entire concert.

Failure Mode and Effects Analysis (FMEA) After identifying potential risks for the project, we decided to use the FMEA method to perform a risk assessment to analyze the identified risks. Risk Event

Likelihoo d

Impac t

Detection Difficulty

When

Not Gaining Permissions and Approvals

2

5

2

Pre Planning

Absent Bookings

1

5

4

During

Inadequate Tech Setup

1

4

1

Pre Planning

Noise Complaints

3

4

5

Post

Public Relations Problems

5

4

4

Post

Budget Restraints

4

5

1

During

Rigorous Schedule

5

4

2

During

Likelihood x Impact x Detection Difficulty = Risk Value

Not Gaining Permissions and Approvals: 2 x 5 x 2 = 20

Absent Bookings: 1 x 5 x 4 = 20 Inadequate Tech Setup: 1 x 4 x 1 = 4 Noise Complaints: 3 x 4 x 5 = 60 Public Relations Problems: 5 x 4 x 4 = 80 Budget Restraints: 4 x 5 x 1 = 20 Rigorous Schedule: 4 x 4 x 2 = 32 Based on our prior experiences with respect to outlining risk, we concluded with our calculations that Public Relations problems, Noise Complaints and the Rigorous Planning Schedule pose the greatest risk to the organizing committee of the concert. By using the FMEA model to assess potential risk, we were able to differentiate between the different levels of risk that each criterion may pose. Risk Severity Matrix

4

Public Relations Problems Rigorous Schedule

3

Noise Complaints

5 L I K E L I H O O D

2 Inadequate Tech Setup

1 1

2

3

4

Budget Restraints

Not Gaining Permission and Approvals Absent Bookings 5

IMPACT

According to the risk matrix map the highest risks involved with organizing this event are issues with Public Relations as was seen with the FMEA model provided earlier. Since this is the highest risk in both models, we feel that this is the largest risk to the organizers of the event.

Risk Response Matrix Our team created a risk response matrix to show how we would deal with each risk. This shows our contingency plan, the trigger, and who would be responsible for each risk event. Risk Event

Response

Contingency Plan

Trigger

Who’s Responsible

Not Gaining Permissions and Approvals

Avoid: Early lobbying of zoning regulators

Contact city officials and see if zoning bylaws can be altered

If venue is double booked or unable to reserve venue for desired date

Absent Bookings

Transfer: Late drop out fee

Invite 20 local artists on standby if certain artists do not show

If 3 or less acts do not respond to the Entertainment invite within a Committee week of concert date

Inadequate Tech Setup

Mitigate: Have tech support on standby

Fix technical difficulties ASAP

If tech equipment fails.

Noise Complaints

Avoid: Strict 11:30pm curfew from concert

All attendees must be off venue grounds by 11:30

Concert attendees Crowd are noisy and Control affect surrounding area.

Public Relations Problems

Mitigate: Ensure there is adequate security and resources on hand.

Ensure there is sound legal representation in the event there is legal action taken against the concert.

There is one or more incidents that may cause legal action to be taken against the organizers

Budget Restraints

Avoid: $50,000 is the given budget and must not go over.

In depth monetary planning. Limit spending and hold insurance plans for potential damages and fines.

If getting close to exceeding budget.

Entertainment Committee

Tech Support

Security

Entertainment Committee

Rigorous Schedule

Accept: Strict timeline must be met for concert to begin on time.

Deadlines are to be met as stated, up to organizers to stay on desired schedule.

A missed deadline date causes other Entertainment deadlines to be Committee pushed back and may cause concert to be postponed....