Shelter Project

Risk Management Plan

August 1, 2017
Prepared by: Sukhvir Bhathal

Methodology

We have used different techniques to identify risks that might have positive and negative effect
on our project. We used different techniques because we also wanted to come up with secondary
risks that are associated with the primary risks. The techniques we used are following:

Brainstorming: I scheduled meetings with the group at regular intervals to identify

primary risks. The tool we used is brainstorming and it has been successful because most
of the risks are identified during these meetings.

Interviews: interviews were held with stakeholders, finance manager, operations manager
and team members focusing on identification of risks.

Assumptions and constraints analysis: assumptions and constraints of project are re-
analyzed to identify risks.

Risk Probability and Impact Meanings

We quantify the probability and show it in percentage to better understand the likelihood of
happening any uncertain event. Any kind of risk would fall in following three categories:

Risk likelihood Probability (%)

Very high 90
Moderate 50
Very low 10

We have measured the impact in numbers providing ranks to each category of impact.

Impact (qualitative) Impact (quantitative, %)

High 30
Moderate 20
Low 10
We have provided the score to each risk based on probability and impact of risk. (S = score)

Probability/ impact 30 20 10
(%)
90 S = 9, extreme S=6, moderate S=3, very low
50 S= 8, very high S=5, moderate S=2, additional risk
10 S= 7, high S=4, low S=1, secondary risk

Scores are defined as below:

Score Action
9, 8, 7 Risks with these scores have significant effect
and needs to think about before starting the
project. We need to prepare for them
beforehand.
6, 5, 4 Moderate effect, should be dealt carefully if
happens
3, 2, 1 Minimal effect, can be ignored.

Risk Categories

Risk Plan

Risk Number R3000 Risk Name: Disapproval of license

Score 7
Category External, negative
Probability Impact Response Probability Impact
10% 30% Accept 10% 30%
Response As we have categorized this risk as external risk so, we accept it.
description: This project is totally new concept and provincial government might
Accept find it risky because there are some associated risks like smuggling of
drugs. Moreover, government would be worried about safety of people
because different homeless people can harm each other in truck.
We cannot force the government to approve the license of the
government so, we accept it.
Risk Number R3001 Risk Name: Failure to attract volunteers
Score 9
Category Negative effect
Probability Impact Response Probability Impact
90% 30% Mitigate 10% 30%
Response We might fail to attract volunteers because Canadian nurses are paid
description: high wage rate per hour for medical services so they might not be
Mitigate willing to work for free.
We can mitigate this risk by choosing those nurses who have degrees
in medical but still unemployed. As we make contracts with Health
Sciences Center Winnipeg, we are going to give them Volunteer
Experience Certificate that would help them to get a job.
Moreover, once our project establishes well, we can start giving them
salaries out of donations.

Risk Number R3002 Risk Name: Truck accident

Score 8
Category Operational risk
Probability Impact Response Probability Impact
50% 30% Avoid 10% 10%
Response The primary part of our project is providing shelter to homeless people
description: within a moving truck but there is a significant risk of truck accident,
Avoid especially in winters. This risk could affect us adversely in two ways:
The cost of maintenance would be very high which will affect our
budget, in case of any accidents.
Due to loss of human lives, government can disapprove our license
because it would not be a safe project anymore.
Why and how avoided? This risk can be avoided by implementing following
policies:
Hire at least 3 drivers - We can hire atleast 3 drivers at a time and
each will be given a shift of 8 hours with 10 minutes breaks after
every 2 hours. Half hour break will be given for lunch.
Hire experienced ones We will hire drivers who have experience
in driving trucks especially within the city for minimum of 2 years.
This will save our cost of training as well.

Risk Number R3003 Risk Name: Smuggling

Score 9
Category Internal risk, negative effect
Probability Impact Response Probability Impact
90% 30% Transfer 10% 10%
Response Most of the homeless people are addicted to drugs in Winnipeg so, there is a
description: risk of smuggling of drugs in two ways:
Transfer Drugs can be sold or exchanged within a truck between different
people.
Drugs can be smuggled easily from one part to another part of city.
In this way, our objective of providing shelter would be totally incomplete.

Why and how transfer?

We cannot deal with smugglers effectively so we have decided to
transfer this risk into hands of police. Police can make surprise
checks in the truck at any time.
We will also install cameras in the truck to supervise the activities
within truck and police would also have the access to our cameras. In
this way, this project will be very safe with involvement of police.

Risk Number R3004 Risk Name: Failure to obtain donations

Score 5
Category External Risk, Negative effect
Probability Impact Response Probability Impact
50% 20% Mitigate 10% 20%
Response There is a risk of failure to convince people and companies to provide
description: donations for this project because they might find this project unnecessary
Mitigate and would better want to donate for other projects.

Why mitigate? People can be convinced by informing the advantages of

donating to our project.

How to mitigate?
We can mitigate this risk with the help of Provincial government. We
can ask government to give the extra tax benefits to those, who will
donate funds for this project.
We will tell the companies/sponsors about our future plans and
actions.

Risk Number R3005 Risk Name: Less Spacious

Score 6
Category Internal, negative effect
Probability Impact Response Probability Impact
90% 20% Avoid 10% 10%
Response We cannot provide shelter to more than 20 homeless people at a time.
description: In this case, people can go violent in order to get in the truck.
Avoid
Why Avoid? This risk can be avoided with proper planning and
arrangements.
 How avoid? This risk can be avoided by managing and deciding who can get
in truck for day and night. This can be done with distributing ticket numbers
online and at our office. Only 60 tickets will be available for 24 hours for
specific durations.

Risk Number R3006 Risk Name: Food allergies

Score 5
Category External , Negative effect
Probability Impact Response Probability Impact
50% 20% Accept 10% 10%
Response There is a risk of food allergy because we would not have the medical
description: records of people and we will not be able to find out to what food they are
Accept allergic to.
Why accept? This is an external risk and we cannot obtain medical records of
every single individual. People should know about themselves what they are
allergic to and inform us beforehand. We can provide ingredients information
on the labels and packaging materials of food products.

Positive risks:

Risk Number R3007 Risk Name: Government subsidy

Score 6
Category External, Positive effect
Probability Impact Response Probability Impact
10% 20% Enhance 50% 30%
Response Government can provide us with subsidies for purchasing food, truck
description: maintenance & repair, gas and obtaining medical facilities for people if our
Enhance project goes well on right track.
Why enhance? If we become successful in obtaining subsidy, it would be
proved as great asset to our project and we can easily manage our day to day
operations.
How enhance? We need to run our project at least for 6 months successfully
so that we can ask for subsidy from government.

Risk Number R3008 Risk Name: Enhanced motivation to arrange own

shelters.
Score 8
Category External, Positive
Probability Impact Response Probability Impact
50% 30% Share 90% 30%
Response Why share? We cannot afford to provide permanent shelters to homeless
description: people. However, we can share this responsibility with the government; if
Share government provides us enough funds, then we can help homeless people to
fulfill other basic formalities like bank statements, insurance and others.

Risk Number R3009 Risk Name: Government start likely operations

Score 4
Category External, positive
Probability Impact Response Probability Impact
10% 20% Share 10% 20%
Response Government can start likely operations to better serve the homeless people.
description:
Share Why share? Government will start this operation with more facilities and
more opportunities to homeless people which would be very beneficial for
homeless people. We can start joint operations with government to better
serve the people.

Risk Register

Date: August 1, 2017

Prepared by: Sukhvir Bhathal

Risk No. Score Risk Name Probabili Impact Responses Probability Impact
ty
R3000 7 Disapproval of 10% 30% Accept 10% 30%
license
R3001 9 Failure to 90% 30% Mitigate 10% 30%
attract
volunteers
R3002 8 Truck accidents 50% 30% Avoid 10% 10%
R3003 9 Smuggling 90% 30% Transfer 10% 10%
R3004 5 Failure to 50% 20% Mitigate 10% 20%
obtain donations
R3005 6 Less spacious 90% 20% Avoid 10% 10%
R3006 5 Food allergies 50% 20% Accept 10% 10%
R3007 6 Govt. subsidies 10% 20% Enhance 50% 30%
R3008 8 Enhanced 50% 30% Share 90% 30%
motivation to
arrange own
shelters
R3009 4 Govt. start 10% 20% Share 10% 20%
likely operations