Risk Management Plan for Stolle Machinery Company

Stolle Machinery company is a companying that deals widely in the operations in the manufacture of cans for the food and beverage industries. The main aim of the risk management plan will be to identify the potential threats that the company is exposed to in its daily operations. Stolle company is exposed to various dangers which the management of the company need to identify, examine and determine the potential solutions to the risks. The other primary goal of the risk management plan will be to create and provide guidelines of how the project management will best deal with cases of uncertainties in the organization. Stolle company needs to formulate a risk management strategy that will help counter the threats. The perils which the project which is to be introduced by the organization laid out procedures that will be able to identify the listed hazards and eliminate the potential risks that the project might be facing. The project manager needs to determine the strategies that will measure the probability of the risk identified occurring. The strategy should be able to categorize the risks as either having a high probability of occurrence, the medium likelihood of occurrence and low probability of occurrence.

Stolle organization has a project manager who is tasked with the responsibility of overseeing all the activities of the project. The project manager has the sole responsibility of identifying the potential threats or risks that may occur that may negatively affect the operations of the project. The project manager will also have employees in his department to ensure the success of the project. The project manager together with his team will have the primary duty of ensuring that the main aim of the project is achieved. The project will also have the primary aim of ensuring that Stolle organization achieves both the needs of the company and clients.

Project description.

Stolle company which mainly deals with the manufacture of equipment mostly cans for container, food and beverage industries plans to invest $ 4.5 million. The main aim of the Stolle company’s project is to ensure growth and expansion in the organization operations. The project entails the acquisition of new plant and machinery which will assist in the activities of the organization. Stolle company project also requires consolidating 50 more job positions that need to be filled to ensure the success of the project. Stolle company also plans to add space of 18000 square feet. The additional area of 18000 square feet will aim at increasing or expanding its innovation center which is located at Webster Street. Stolle company also plans to consolidate or integrate the operations of its innovation center from those in Miamisburg. The organization plans to ensure the success of the project through acquiring incentives and from the relevant tax authorities in Ohio.

The company is also facing competition from other organizations to acquire space to expand its operations, but the county officials in Vandalia offer to provide the edge grant to Stolle company. The county officials also decide to provide the organization with five-year credit and a 45 percent tax to assist the operation of Stolle company’s new project. Furthermore, the company plans to spend $ 1.6 million on the construction of the new space required for the expansion of the operations. The company also plans to pay an additional $2.0 million in acquiring new plant and machinery for the organization. The company also plans at investing an additional $500000 to cater for other costs that might be incurred by the company in its new operations. The project proposes on recruiting new engineers, support staff and machinists to help achieve the primary goal of the project (Hullet, and Proquest, 2011). The new employees will assist the project manager to support the organization drive towards the primary aim of the project.

Risk management scope and objectives.

The new expansion and growth project introduced by the organization has a susceptibility rate of facing risks that may hinder the operations of the new project. The new project launched by the organization plans at recruiting new staff to help the organization achieve the primary goals of the new project (Society for Risk Analysis, 1981). The risk that is entailed in recruiting the new staff is the likelihood of the new employees lacking the adequate skills to manage the operations of Stolle company. The new employees hired might require the sufficient skills to operate the various machinery purchased by the company for the new expansion project.

The other risk entailed is the risk that is associated with accidents that might occur due to the various operations of the company. The employees who have been recruited by the organization might fall, and other might end up being hurt by the plant and machinery while they are operating the machinery (Zio, 2007). The organization needs to create safety procedures and measures that will help deal with the safety issue that may arise during the operations of the organization (Goerlandt et al., 2017). The organization needs to provide insurance policies that will cover the various accidents that may occur while the employees are in working in their various operations. The other risk that the project faces is the issue of employees lacking the adequate skills to operate the machines. The project manager needs to ensure that multiple employees need to ensure that new employees undergo sufficient training to eliminate risks that may arise due to employees lacking the adequate skills to manage the various machinery acquired by Stolle company.

The other risk that the new project is exposed to is the risk that relates to environmental pollution that the new plant might cause to the new organization. The new expansion project needs to ensure that the various environmental regulations set by the multiple bodies adhere to the later. The adherence to the environmental rules will assist the organization to avoid court cases that may arise due to environmental degradation. The new project will also be tasked with the responsibility of creating of ensuring the waste produced by the new plant is safely emitted to the environment. The organization may introduce recycling measures that will help the organization to dispose of the aluminum waste cans safely.

The new project is also poised to risks that may arise due to security issues. The new scheme introduced by the organization is exposed to security threats as a failure by the organization to manage these threats will lead to interference of the success of the new project. Stolle company needs to put in place the various security measures such as security cameras, security lights, and adequate guards to help manage the numerous security threats that may arise during the operations of the new project.

The other risk that new project is exposed to the new operations of the project is the integration of the role of the innovation plant introduced with the previous departments that were in place before the introduction of the new expansion project. The project manager needs to ensure that the goals of the new project put in place are in line with the various objectives of the previous departments to minimize the risks that may arise. The integration of roles of various departments will reduce risks that may occur due to interlocking of duties of the various departments in Stolle company. Stolle company also faces the threat that may occur due to the stiff competition in the market. The organization is facing stiff competition regarding the allocation of space by various organizations in the county. Stolle company needs to identify innovative strategies that will help the company to maintain the important competition in the market.

Risk management methodology.

Stolle company needs to identify the risks that the new project might face. The project manager needs to determine the risks and identify the various extent that the risks might affect the operations of the new plan introduced by the company (Larson and Gray, 2013). The project needs to identify the type of risk that might affect the operations of the risk and its susceptibility to occur in the organization. Stolle company then needs to assess the risks that have been identified by the organization. The risk assessments methodology should be able to evaluate both the quantitative and qualitative risks that they may affect the new project. Quantitative risk analysis will entail the Stolle company evaluating the performance of the further expansion and growth project that is to be implemented by Stolle company (Loper, 2013). Qualitative risk analysis by the organization entails that the organization should create strategies that will prevent the occurrence of the identified risk (Larson and Gray, 2013). The project manager needs to assess the extent to which the risk may affect the operations of the new project implemented by Stolle company. Stolle company needs to identify the impacts that the risks may have on the new growth and expansion project o Stolle company. The organization needs to create strategies that will ensure monitoring of the identified risks to reduce chances of the risks occurring in the organization. The control will be to assess the environmental degradation that might be caused by the implementation of the new plant. Stolle company needs to create safety measures that will help the organization to deal with cases of a security breach that may result in massive losses by the organization. The other method of dealing with risks is avoiding the risk that is identified in the organization. Stolle company needs to identify and create strategies that will be implemented by the new expansion and growth project management to avoid the identified risks.

Risk Management Organization

Stolle company is an organization that is introducing new project which will have an impact on the expansion and growth of the organization. Stolle company needs to create policies that will help encounter risks that may arise in the organization (Loper, 2013). Stolle company needs to identify, assess and quantify the risks that may occur which will have a negative impact on the new project. Organizations need to determine the type of uncertainties that may affect the new project that is to be implemented by the organization.

References

Goerlandt, Khakzad, & Reniers. (2017). Validity and validation of safety-related

Quantitative risk analysis: A review. Safety Science, 99, 127-139.

Hulett, D., & ProQuest. (2011). Integrated cost-schedule risk analysis. Farnham;

Burlington, VT: Gower.

Larson, E. W., & Gray, C. (2013). Project management: The managerial process with

MS project. McGraw-Hill.

Loper, D. (2013). Risk Analysis. 811-813.

Society for Risk Analysis. (1981). Risk Analysis.

Zio, E. (2007). An introduction to the basics of reliability and risk analysis (Series on

quality, reliability & engineering statistics; v. 13). Singapore; Hackensack, N.J.:

World Scientific.