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Risk and Procurement Management

Prepared by Real Assignment Writing
For
[University of Southern Queensland]
[Mahveen Khan]
[u1017503]

Executive Summary
This paper is based on the project of Suneva Fushi Resort and it provides a concise thought
regarding the procurement and project risk. In this considered project, the initial thing is
recognizing the environment of a Suneva Fushi resort and the risks factors that are included in it.
For this reason, the paper is reflecting appropriate discussion regarding risk planning and
identification for the selected project to evaluate the risks associated with the project
environment. It also entails the proper risk strategies that are critical to recognize the threats
connected with the venture. Based on these strategies, the tools and techniques for the project are
identified in the discussion, which involves budgeting, timing, thresholds, and reporting and
tracking. Moreover, it also contains the process of risk analysis and continuous evaluation of the
project. The risk treatment arrangement is vital to conduct the process of monitoring and review
of the project. The second important thing that is discussed in this report is procurement of the
venture this will incorporate undertaking arranging the ways to direct procurement strategies that
is directly related with the project. On the other hand, source selection and procurement
solicitation is important for the success of a project that is further discussed in this report.

Table of Contents
Background ................................................................................................................................................... 4
Risk Planning and Identification ................................................................................................................... 4
Risk Environment for the Project.............................................................................................................. 4
Risk Planning of Project ........................................................................................................................... 4
Risk Identification of Project .................................................................................................................... 5
Risk Analysis, Evaluation and Treatment ..................................................................................................... 6
Risk Analysis of Project............................................................................................................................ 6
Risk Evaluation of Project ........................................................................................................................ 6
Risk Treatment of the Project ................................................................................................................... 6
Risk Monitoring of Project ....................................................................................................................... 7
Procurement Planning and Strategies ........................................................................................................... 7
Procurement Solicitation and Source Selection ............................................................................................ 8
Procurement Monitoring and Control ......................................................................................................... 10
Project Procurement Monitoring and Control System for Suneva Fushi Resort .................................... 10
Conclusion .................................................................................................................................................. 11
Recommendations ....................................................................................................................................... 11
References ................................................................................................................................................... 12

Background
This appraisal is help to recognize the dangers that are going to be impact and how to deal with
the procurement management system of the "Soneva Fushi" resort venture. This project
incorporates numerous diverse sorts of risks and different challenges of dealing with the
procurement framework, which are needed for this venture. On the other hand, the stakeholder
has larger amount of concern to secure their speculation by alleviating the threats and giving a
compelling methods for procurement framework with insignificant expense. This project take
place in the spot where comprise of a sensitive and troublesome arrangement of ecosystem is
found. The most widely recognized threats are incorporated in this environment are risk that
happening on ocean level climbing, solid waves and solid winds hit to the Island. To securing all
the structures and give safe arriving territory to vessels, which are utilized as a part of this resort
inn. Nowadays procurement management is very important to consider in order attaining their
desire goals and objectives of any project. Same in this case it is really important for the success
of this project is that the management must identifying all-important risks of transportation of
all-important materials and resources, how to store, secure, and giving the products and materials
to the work destinations on time.
Risk Planning and Identification
It is important for the success sofa project that they must have proper strategies in order to
formulate proper risk planning strategies that might be helpful to identify those risks and
minimize it to the negligible level. It is a prior responsibility of a manager to consider the
procedure of getting new product and services. It also entails the appraisal of financial resources
of the choices accessible, advancement of the acquisition or securing of suppliers, valuing,
purchasing, and administration of agreement. It might likewise reach out to capacity, logistics,
review, transportation, expediting and treatment of materials and supplies (Anderson, 2007).
Risk Environment for the Project
According to experts, it is a prior duty of higher officials to evaluate all sorts of risk environment
earlier for the reason that these risks might create problems for them after some interval of time.
There a few sorts of risks that are directly connected with this project, the primary thing is the
spot where the project embraces (Lambeck, 2008). However, Maldives is considered as one of
the most powerless nation that has different ecological issues. There are numerous islands that
are spread all over the country and these islands are little and low lying as indicated by ocean
level, more or less approximately 3-5 feet when ocean rose. The significant danger identified
with environmental change, for example, quickened seashore and decreasing the accessibility of
immaculate water in the area and changing to salt water and shoreline disintegration (Mubarak,
2010).
Risk Planning of Project
The proper risk strategies of the venture is essential, as indicated by arrangement that the higher
officials of this project give careful consideration on this project. Another important factor that
has to be considered by the management while making the risk strategies that are directly related
with Suneva Fushi project. The project risk planning is important for all sorts of project
especially within the evaluation stage of the project. This will serves to recognize and make the
suitable move to cut down the risks from the start of the project. There are two planning steps for
this project first is initial planning and second is final planning (Neeraj, 2011).

The initial planning provides a complete project strategy to the undertaking team to handle and
dealing with the risk factor as much as they can. This will incorporate estimations of works,
inside the given plan and time and the implementation of a final planning gives work schedule
for the team (Boussabaine, 2013).
There are certain tools and techniques that might be helpful for this project in order to complete
it appropriately. It is a prior duty of a management that they must provide all-important tools to
their project team that might support them to perform their activities efficiently and effectively.
On the other hand, output will give a complete risk plan that will illustrate how to recognize the
threat, analysis and monitoring of a project. There are following steps that are considered in
planning stage of Suneva Fushi Resort (Kamara, 2002).
Budgeting
Budgeting is considered as one of the most important part of any project for the reason that it
gives them a complete picture or plan through which management utilize their resources. It is
important for the success of a project that they must have proper budgeting plan through which
mangers managed their work and resources effectively (Harris, 2013).
Timing
Timing is one of the important factors of a project that have to be considered by the workers
while performing their tasks. For that purpose, it is a core duty of workers that they must
complete their work in given time that might enhance their productivity to the utmost level
(Brandon, 2009).
Thresholds
It is noticed that sometimes project are failed just because of the lack of strategies that are
particularly deal with the financial resources such as higher benchmark rate that might lead
towards the failure of a project (Harris, 2013).
Reporting and Tracking
It is important from the management prospect that they must have proper tools and techniques in
order to track and control the project work every time because a proper controlling process might
be helpful for them to attain their desire goals and objectives in a lesser time period (Brandon,
2009).
Risk Identification of Project
It is analyzed that the identification of a project risk is also work inside the assessment stage of
the project. Subsequent to risk planning, the further this is to consider is the threat detection. In
the risk identification of Suneva Fushi Resort, all recognized risks will be pile up in a register of
risk and this list will be identify those risk that have to be considered by the management at any
cost and will give additional priority to concentrate the high threats initially similarly
determining one after another (Jamal, 2009).

Risk Analysis, Evaluation and Treatment

Risk Analysis of Project
The risk analysis of the venture recognizes the procedure of inspecting the effect and probability
of the dangers. As per risk analysis of Suneva Fushi Resort qualitative risk analysis play a
significant part and measure the threat and also the value of financial assets and afterward
positioning the risks into clear classes, for example, high (imperative), medium (paramount) and
low (not vital) furthermore it will scale from one to five and so forth (Wu, 2010).
There are certain tools and techniques that incorporate possibility of threat and effect evaluation,
impact matrix, risk information quality appraisal, risk arrangement and risk desperation
evaluation. On the other hand, output incorporates updated register of threat by positioning the
threat, prepared for risk reaction, assemble the extra data to hazard reaction, and watch the low
risk factors continuously (Maria-Sanchez, 2005).
Risk Evaluation of Project
The project risk assessment procedure is manage inside the task group, when recognized the
hazard that will be enlisted in the threat enroll in place by high to low and send risks rundown to
extend group dialog. It is a core duty of members that they must provide their own presumption
about the each threat independently after that pick real risks which are identified with specific
threat (Artto, 2013).
The following step is considering all those risks that are examined in special threat investigation
group of the venture and settling the activities that are going to take, in regards to the specific
threat. The primary criticalness of assessing the risk is to recognize the type of threat, for
example, information security risk, budget risk, time risk and so on (Delmon, 2005).
Risk Treatment of the Project
The risk treatment plan is considered as an important part of risk analysis and it is a key part of a
risk management strategy. This plan will express the most appropriate ways that might be helpful
while managing the risk either it is high or low. According to this project, the first create risk
management plan that will guide the team members and stakeholders, how they react on the risk
(Loosemore, 2003). Following are some key factors that entails in a risk treatment plan;
Avoiding Risk
It is important for the success of a project that they must avoid the risk as much as they can. For
that purpose, it is important for higher officials of Suneva Fushi to identify the precedent project
understandings and their documentation as well to examine the threats the might take place in the
commencement of a project (Artto, 2013).
Mitigating Risk
It is core duty of a management that they must mitigate the risk before it starts for the reason that
to attain the higher productivity and efficiency the management has to take some serious steps in
order to make it possible (Delmon, 2005).
Transferring Risk

Transferring the risk means, it can be handled with the help of experts and by formulating
effective strategies earlier (Loosemore, 2003).
Accepting Risk
According to experts, accepting risks are that kind of risk, which can easily tackled or reduced.
These kinds of risk do not influence the day-to-day operation of a project in a pessimistic manner
(Delmon, 2005).
Risk Monitoring of Project
Risk assessment of the project is a best way to keep a proper track regarding the risk that is
entering and their responses that can present against those risks, and keeping the alternate
strategy in order to tackle the complex situation that might be arises due to the risk (Munier,
2012). According to Suneva Fushi project, the main objectives of screening are as follows:

Make sure that the risk responses must be imposed according to planned
Inspecting whether the threat responses are good enough or required something new to
tackle
Evaluating the precedent experienced regarding the risk that required innovative trends
for the project development
Evaluating the set of rules that are set in order to maintain a healthy working environment

Nowadays, most of the organizations are looking to set proper monitoring tool that help them to
perform their business operations effectively. Moreover, it is observed that proper monitoring
strategies provide enough assistance to the management through which they can easily tackle all
sorts of complex situation in order to achieve their desire goals and objectives in an appropriate
manner. According to Suneva Fushi project, all recognized risk could easily tackle through an
effective response plan. This will aid to cut down the probability of risk occurrence before it
turns out to be a reality. Input and output procedures are going to utilized while evaluating the
risks in this project (Burtonshaw-Gunn, 2009).
Procurement Planning and Strategies
Procurement planning is the one of the most important role of any project. This process will
provide the product and resources, which are required for the project and delivered the products
on time. Implementation of procurement planning helps the management to ensure that they can
buy appropriate products in right prize from right suppliers. The handling of project procurement
is not easy because it is being implemented in an individual island and all required resources for
the project can be supplied using sea transportation (Burtonshaw-Gunn, 2009; Anderson, 2007).
Based on these aspects, the organization can face issues due to which they decided to hire
external supplier for getting all major products required for the project under consideration. For
instance, heavy machineries such as construction materials, toilet fittings, and Highmark are
imported from foreign suppliers. The custom clearance is required to handle employees of the
organization. For the loading and unloading of goods or materials, capable local organizations
are selected for this purpose (Jha, 2011; McCaffer, 2013; Neeraj, 2011). Following are the
benefits of procurement planning for the project under consideration.

Materials are available for production

More attention to the prices of materials and resources is given

The procurement time and cost is minimized
The level of risk is found to decline
The production plan is performed equally
The understanding level is established between business partners and suppliers (Kamara,
2002; Neeraj, 2011)

Procurement planning consists of two factors such as annual procurement planning g and
strategic or high value procurement planning. For Suneva Fushi Project, the organization adopted
annual procurement planning because it makes it makes the management to increase their
production with the help of managing available resources efficiently and deliver the outcomes
according to plans. Moreover, with the help of this strategy the cost of the project can also be
minimized. The most important aspect of this step is to consider the order of purchasing along
with the suppliers that are required to be considered for the project. The following are the stages
that are considered by the management in annual procurement planning (Anderson, 2007; Artto,
2013; Delmon, 2005).
The main goals of procurement strategies is to make sure that the goods and material which are
needed for the project are of utmost quality and are available whenever needed (Brandon, 2009).
However, some other goals of procurement strategies are as follows:

Promotion of best practice for maintain procurement

Training and educating internal purchasers in order to encourage them for reviewing the
consumption of goods and services, adopting environmental friendly alternative products
and reducing the irrelevant usage
Maintaining and communicating the procurement policy to all the suppliers, staff and
stakeholders (Jamal, 2009; Munier, 2012; Wu, 2010)

The strategies of procurement are considered essential due to the fact that it helps in the
successful operation of the internal or external requirements. The strategies for a project include
analyzing time required for procurement, analyzing project risk, required budget and project
opportunities (Anderson, 2007; Rowlinson, 2004; Boussabaine, 2013).
For the purpose of procurement strategies for Suneva Fushi Resort, the team members have to sit
together, in order to elucidate the works required in the project. These strategies might consist of
deciding about the objectives of the project, the resources that are required for the project, time
scheduling of the work, budget, to assess the ways through which costs can be driven down
(Anderson, 2007; Delmon, 2005; Mubarak, 2010).
Procurement Solicitation and Source Selection
Solicitation is known as the process with the help of which the information that is bids and
proposals according to the sellers prospective can be obtained regarding the ways through which
the basic needs requirements of project can be achieved. For the project of Suneva Fushi Resort,
the solicitation process includes the following process:

Advertising the opportunities regarding procurement as well as sending the interested

suppliers notice

Conducting meeting about proposal or pre-bid meeting for the project of Suneva Fushi
Resort
Giving attention to the bidders list

With the help of above-mentioned process, the team of the considered project would gain
information about the suppliers, which are relevant for the project, and it would reduce the
problem of having so many suppliers for one project that might create hurdle in management for
the project team. Moreover, with the help of conducting proposal meeting or pre-bid meeting the
management would be able to devise the strategies that are important for the project and can
guide the suppliers about the resources that are important (Rowlinson, 2004). However, with the
help of gaining attention about the bidders list, the project team would gain the knowledge about
the number of bidders that are available for the project and the specific and decided bidders
would be allowed to attend the meeting. This is the most important step because through this, it
becomes easy for the project management to know about the basic requirements of the project
and its achievement according to the point of view of sellers. They would gain various proposals
from different sellers and then they would decide about the best that fulfill their projects needs
with the help of this information (Moeller, 2011).
The second step is source selection, which is the process of receiving proposals or bids and to
make use of the proposal evaluation criteria in order to select the relevant suppliers. For the
purpose of considered project, the process of source selection consists of contract negotiations
between the two parties in order to reach on any agreement, which is related to all the aspects of
the contract (Rowlinson, 2004). The agreement might consist of scheduling, terms and condition,
cost and performance. The following are the activities, which are involved in the source selection
process of Suneva Fushi Resort:

Determining the criteria of evaluation related to cost, management and technical

proposals
Discussing the process with suppliers
Implementation of the strategy associated with contract awards

With the help of above-mentioned process, the project team would be able to criteria about the
resources required for the project in terms of management, technicality and cost. This source
selection process is important because it would help them in gaining the information about
resources that is required for the considered project in reasonable cost. This might also include
conducting a price differentiation analysis of the proposal of each supplier. Moreover, with the
help of this process, the project team can gain information about the powerful sellers that are
interested in selling the essential equipments and they can discuss the process of bidding with the
suppliers. They can also obtain the chance to achieve best equipments by analyzing variety of
equipments available in the bidding process (Moeller, 2011). This process consist of making use
of formal source selection with the help of experienced and trained cross functional proposal
valuation teams of the company as well as making link of assessment criteria which is
highlighted in the solicitation phase with the use of disciplined approach. Therefore, it could be
said that this process is of significant importance in terms of gaining information for bids and
proposals (Rowlinson, 2004).

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Procurement Monitoring and Control

With the help of procurement monitoring and control process, the goods and material are tracked
and evaluated through, which the project team gains the idea about the effective use of these
goods and material. Moreover, through this process, the records related to the stock can be
updated and this would ultimately help the team in analyzing the availability of stock. It would
help in evaluating the requirements for essential goods and service due to which the monitoring
and control of procurement process can be made convenient. This is considered as the most
important phase of any project due to the fact that it helps in assessing the schedule, cost, quality
and performance (Marco, 2011).
Project Procurement Monitoring and Control System for Suneva Fushi Resort
For the purpose of Suneva Fushi Resort, the procurement monitoring system will involve
following things:

Goods and materials ordered to suppliers

Goods and materials received from suppliers
Goods and materials that are used in the phases of project
Goods and materials which are damaged

With the help of monitoring above-mentioned points, the team would be able to assess the goods
required for the considered project. They would have complete knowledge about the goods
delivered by the suppliers, which would ultimately help them in analyzing the payments.
Moreover, with the help of this process, the project management team could also gain the view
about materials that are needed and are used in the implementation of the project. Through this,
they have complete idea about which products are used in which phase and to the extent to which
it is used (Howes, 2006). The main purpose of procurement monitoring is the ease of payments
to suppliers and continuation of the project phases without any hurdles. The purpose of this
process is to oversee the progress of products used, and the outcomes achieved. Through
monitoring and control the goods and services can be assessed that is the extent to which the
contributed effectively towards the achievement of the projects objectives (Marco, 2011).
On the other hand, with the help of this process of project management, the Suneva Fushi Resort
team would be able to evaluate the scope of the project and the extent to which the objectives of
the project are achieved. Through this process, it would become easy for the project team to
evaluate and control cost, quality, schedule and performance of the project. This would help
them in analyzing and minimizing any sort of risk associated with the project and would make
the achievement of objectives accessible for the organization. Moreover, with the help of this
process the reporting of the issues is conducted at the correct time so that possibility of any sort
of mishap can be minimized and project could be closed through successful implementation of
the project. This would also help the organization in analyzing the time taken by all the processes
of the project (McCaffer, 2013).
Therefore, it could be said that procurement monitoring and control process is important for the
considered project due to the fact that it helps in analyzing the situation of it in terms of cost,
quality, performance and other important aspects. With the help of this process, the organizations
can decide about the strategies that could use for their future project in order to achieve most
outcomes from them. they could also make the stakeholders or investors of the project make

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aware about the situations because of which the project failed or caused problems in its
successful implementation (Jha, 2011).
Conclusion
To conclude this report, it is observed that formulating a proper strategic plan that entails a
complete risk evaluation plan, regarding the project (Suneva Fushi) and appropriate procurement
strategies and its evaluation plan that lead them towards the success. Moreover, it is important
from the prospect of top management that they must have all sorts of contingency plan that
enhance the reliability of their operations to the utmost level. It is analyzed that with the help of
appropriate procurement strategies it will help the management of Suneva Fushi to tackle all
sorts of complex situation that might occur during the completion of this project (Delmon, 2005).
Most of the organizations are not able to attain their desire goals just because of the lack of
proper strategies and their proper monitoring process that is why it is important for the
management of Suneva Fushi that they should evaluate their monitoring strategies continuously.
Due to the technological advancement, the top officials of this project easily enhance the quality
of its operations that might encourage their project team to perform their task more efficiently in
order to minimize the risk of work disruption as much as they can (Jha, 2011; Marco, 2011).
Recommendations
There are certain recommendations that might be helpful for the management of Suneva Fushi in
order to complete this project successfully. Some of the key suggestions are given below;

It is a core duty of a management that they must express the clear picture of their desire
goals and objectives for the reason that it will help them to manage their work
accordingly. It also helps to clear the idea of workers regarding what they have to attain
thus compelling them to try hard for it.
They have to make use of different objectives to demonstrate their responsibilities
properly. The goals defined to attain the core objective must be used while identifying
and allocating the responsibilities to team members. It is a duty of a team manager that
he\she must identify the competence of their team members and then assign
responsibilities to them accordingly.
The top officials of Suneva Fushi resort project have to build up an empowered project
team that can easily comprehend all-important factors of human behavior and identify the
differentiations in team members.
It is a prior duty of a project manager that they should try their level best to make the
progress of a project clear as much as possible to their team members as well as for the
upper management. They might use PERT or GANT chart in order to disclose the actual
progress of a project visually which will assist them to comprehend the course of actions
much better than oral explanation or presentations.

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