Risk Management in Engineering Assignment - Risk Management Plan (RMP)
- Develop and implement a proactive risk management process in engineering projects and systems through a Risk Management Plan (RMP) aligning with the risk management standards of AS/NZS ISO 31000 and ISO 31010
- Follow risk assessment process including selection and application of appropriate risk analysis techniques
- Address the different key aspects of risk management within the organisation including risk culture, risk appetite, risk perception, risk communication, risk threshold and risk exposure
- Apply a variety of risk treatment techniques and address optimum action plan decision making
- Identify, interpret and analyse stakeholder needs and expectations, identify constraints, uncertainties, risks and opportunities of the system or project (social, cultural, legislative, environmental, business, commercial, etc.)
Introduction: A Risk Management Plan (RMP) is developed to ensure levels of risk and uncertainty are properly managed within organizations. It is usually developed for a period of time (often one year) for a specific activity, product, process and project, and part or whole of the organizations. It enables those involved with the project or system to manage possible risks by defining the manner in which they will be contained and the likely cost of mitigation strategies. The RMP is developed to:
- Provide a useful tool for managing and reducing the risks identified before and during the project;
- Document risk mitigation strategies being pursued in response to the identified risks and their grading in terms of likelihood and seriousness;
- Provide stockholders a documented framework from which risk status can be reported upon;
- Ensure the communication of risk management issues to key stakeholders;
- Identify the mitigation actions required for implementation of the plan.
1. Read AS/NZS ISO 31000:2009 carefully to understand the risk management framework.
2. Read ISO 31010:2018 to learn the FMEA technique. Alternatively, you can review it through the subject textbooks.
3. Select an engineering activity, product, process, or project with a defined scope, engineering specifications, timeline, budget and internal/external constraints and prepare a RMP in accordance with the standard. Use the following framework:
4. Define your system/project boundaries and objectives carefully; you may need to simplify and define the boundaries of your report (for example "looking only at WHS risks" only) in order to achieve the word limit.
5. Establish an appropriate risk management context, including stakeholders, rules, roles and responsibilities, likelihood and consequence criteria, etc.
6. Identify risk events with potential major negative impact on selected objectives.
7. Assess the inherent and contingent risks using FMEA and propose applicable risk treatment options.
8. Clearly state the risk tolerability criteria employed.
9. Consider aspects beyond the texts and lecture materials i.e. value-added discussion.
Length 3500-4000 words excluding any appendices.