UGANDA MANAGEMENT INSTITUE

Module: Project Risk and Disaster Management

Facilitator: Malunda Netalisire Paul
MARIA PINE FRUIT ENTERPRISE
A PROJECT IN PALLISA DISTRICT

BY
AJULONG MARY JOSELINE
REG: 17/DPPM/00/KLA/EVE/0074
A map showing the Pallisa District where project is located

AGULE
KAMEKE

GOGONYO

APOPONG KIBALE
PALLISA BUTEBO

KAMUGE KAKORO
PALLISA TC PETETE

¯ KASODO

PALLI
-SA
PUTI-PUTI

KAGUMU
BULANGIRA
KABWANGASI

BUSETA
Population Density
Persons per Sq Km KIBUKU
69 KADAMA
70 - 228
TIRINYI
229 - 298 KIRIKA
299 - 364
365 - 687
Water Body

0 2.5 5 10 KM

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EXECUTIVE SUMMARY OF THE PROJECT

Name and address of the business

Maria Pine Fruit Enterprises
P.O.BOX 11,
Pallisa,
Uganda.
Telephone numbers: +256-414562373(Office landline)
+256-773765311(office mobile)
+256-678690006(Manager home)
Email:mariapinefruitenterprise@gmail.com
Website: www.mariapinefruitenterprise.co.ug

Type of business
Maria pine fruit enterprise is start up business, production and proprietorship type of business.
The founders in cooperation with other members of family and friends as well as the potential
investors are to help in assisting in the smooth performance of the business .The business will
provide employment to the local population both professional and non-professional or casual
laborers who will include both men and women. However emphasis is targeting the low scale
farmers and the unemployed youth around Pallisa district.

Characteristics of the project

Maria pine fruit enterprises is will be providing juice of different tastes in terms of concentration
and sugar levels depending on the tastes of the customers , this include ready to drink juice and
concentrated juice with some little water and sugar.

This juice is will be packaged differently basing on the ingredients that have to be used it will be
differentiated basing on the color, shape, sizes and so on. This attracts customers towards buying
the product but also help them know what juice to take according to their time, taste and like.

Our products are mainly to be cut from source and juice is extracted there and then this is
reason why natural juice has short shelf span and has to be refrigerated after opening to avoid the
juice from getting bad.

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Our juice has no specific ingredients since its produced from fresh pine apples with no sugar or
artificial additive but 100% pure ready to drink by consumers. Part of the juice we make that has
fairly longer shelf life will consist of sugar content such that it is properly balanced in favour.

The principle raw material from which pineapple juice is prepared are the shredded meat
obtained from the inner portion of the peels left after the peeling of pine apple ,small pine apple
that is too small for canning, the trimmed cores and the juice drippings from the crushed apples.

Small pineapples are peeled, the peeled small pine apple cores and eradicated meat are shredded
the juice is extracted and then passed through the finisher. The juice thus obtained is blended
with sugar syrup, Pasteurized and filled into sterilized cans. The cans are sealed (hot seal
process), cooled, labeled and packaged.

VENTURE

Legal form and ownership

Uganda is East Africa’s juice basket.it produces arrange of juice products .there is growing
demand for fruits in Uganda as a result of the drive towards healthy leaving .any attempt in
establishing a modern fruit business can prove to be a profitable business especially when it’s
located in a good area .Maria pine fruit enterprise is legal company name ,a registered product
and service company that is separate entity from its owner .it’s a sole proprietorship company
where one member has put financial resources together to form the startup capital of the
company that is Ms.Mary Joseline Ajulong .the enterprise will be based in Pallisa and will
specialize in the growth of pineapples.

Vision
Maria Pine Fruit Enterprise endeavors to provide quality and natural fruit juice for everyone. We
intend to supply our customers with highest quality products and expanding our business by
developing innovative and diverse products for new and emerging markets Countrywide.

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Mission statement
At Maria pine fruit enterprise we believe in quality, freshness and innovation. We want to
redefine the word fresh. Pine fresh fruit enterprise mission is to provide freshest fruit juice and
deliver it to customers as quickly as possible

Purpose of the project

The main reason for the existence of Maria Pine Fruit Enterprise is to provide job opportunities
to the local people and opportunity to supply harvested fruits to the society in order to avoid un
necessary wastage of resources and also earn higher incomes for survival. The business existence
is to ensure proper utilization of resources and also provide a health living to society through the
supply of quality natural fruit juice.

Major objective
To provide quality natural fruit juice to Ugandans
Specific objectives
 Increase market share by 1% per quarter from 2018.
 Increase profits by 2% a quarter through sourcing for least and quality inputs and demanding
competitive prices.
 Ensure a projected 5% sales growth at an increasing rate per year from 2018.
 Ensure increased customer awareness and satisfaction within five days of supplies and
services provision hence improved sales from next year continuous.
 To avoid wastage of resources as many pineapples rot before they are even shelved for sale
in the market.
.
 To provide cheaper and health diet and health juices since they will be extracted from fresh
harvested fruits. This will not only be affordable but will also improve their health welfare.
 To make a distinct in our products with those of our competitors through unique and
desirable varieties, blends, flavors and packaging.

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 Risk register for Maria pine fruit enterprise.

Type of risk Likelihood Impacts Mitigation Contingency

of Strategies strategies
occurrence

High Medium Low High Medium Low

Financial

Market risk

Liquidity risk

Credit risk

Operational risk

Environmental

Business
interruptions

Drought.

Soil erosion

Hailstorms

Wild fire

Impact of
pesticides

Technological

Architecture risk

Audit risk Budget

risk,

Transaction

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processing risk

Strategy risk

Integration
Risk

Technical debt

Resource risk

Human risks

Poor attitude of the

community

Injury

Lack of expertise

Property loss

Security breach

Bureaucracy

The asset register will be explained below with the risks, level of occurrence and its impact on
the project and finally the mitigation and contingency strategies. They risks include the following

Financial risks. These refer to the risks that involve financial loss to the firms, financial risk
generally arises due to instability and losses in the financial markets caused by movements in
stock prices, currencies, interest rates and more. financial risk is one of the high priority risk
types for every business .its caused due to market movements and the market movements include
host of factors .financial risk are classified in various types this include;

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 Market risk
This type of risk arises due to movement in prices of financial instrument .its classified in to
directional risk it’s caused due to movement in stock prices, interest rates and non-directional on
the other hand can be volatility risks they have a high level of occurrence and high impact on the
project

Mitigation

Market risk limit a supervised entity shall have a limits framework that covers the mitigation and
monitoring of all market risks associated with the business .all the limits must be consistent with
the supervised entity’s business plan and market risk strategy and commensurate with its risk-
bearing capacity .the level of risk is permitted under the limits set on market risk taking must be
taken in to account in the entity’s capital adequacy planning .the limits set must be reviewed on
a regular basis and be reviewed whenever the business plan is updated or otherwise required.
And a supervised entity must determine the acceptable level of market concentrations for
example in respect of individual currencies or instruments.

 Liquidity risk
These arises out of the inability to execute transactions .liquidity risk can be classified into asset
liquidity risk; this arises either due to insufficient buyers or sellers against sell orders and buy
orders respectively and funding liquidity risk this risk has medium level of occurrence and high
impact on the project.

Mitigation
Controlling and accessing liquidity, companies cannot manage what they don’t see hence they
need to have an accurate and real time inventory in all current assets that can be diverted quickly
to generate cash if required. These assets will be unencumbered bank deposits or marketable
securities due to the need for short notice liquidation and predictability. Tools for managing this
underlying information system include collateral management, real time and companywide cash
reporting as well as cash flow forecasting.

Optimizing cash utilization, automated or manual programs that convert and or concentrate all
usable assets such as marketable securities, trade receivables, or bank deposits into a readily

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accessible buffer of liquidity can be implemented via approaches such as pooling structures and
asset securitization.

 Credit risk
It arises when one fails to fulfill their obligations towards their counter parties its classified as
sovereign arises due to difficult foreign exchange policies and settlement risk arises when one
party makes the payment while the other party fails to fulfill the obligations. Credit risks have
low level of occurrence and medium impact on the project.

Mitigation

When there is more than one type of collateral or when there is both collateral and guarantee
covering an exposure Maria pine fruit enterprises will work with its clients to assess the exposure
to credit risk, applying risk modeling to loan portfolios ,portfolios of derivatives trades and
hedges, and other outstanding obligations our experts use this analysis to help clients develop
processes to asses ,communicate and limit the credit risk exposure .for example Maria pine fruit
enterprise strong data and modeling expertise as well as understanding the regulatory
expectations allows its experts to independently evaluate appropriate ness of a financial firms
allowance to loan and lease loss hence helping to mitigate credit risk.

 Operational risk
It’s the type of risk arises out of operational failures such as mismanagement or technical failures
.operational risk can be classified into fraud risk and model risk .fraud risk arises due to lack of
controls and model risk arises due to incorrect model application. Examples include fraud,
people, model, legal risk. Operational risks have high level of occurrence and high impact on the
project.

Mitigation
Supplies, storing supplies to reduce the impact of a risk for example extra parts for a critical
machine may reduce operational risk if such parts take a long time to procure from a supplier.

Maria pine fruit enterprise expertise in manipulating and analyzing large data sets help us to
examine the full range of operational risks that companies face , and to identify which risks

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present the most serious challenges this approach allows our experts to predict a client’s future
operational experiences ,and help them prepare to manage future risk.

Environmental risk
Refer to the actual or potential threat of adverse effects on living organisms and environment by
effluents, emissions, wastes, and resource depletion etc.

 Business interruptions
The business interruptions that affect the Maria pine fruit Enterprise include fires and other
unforeseen events can force vulnerable businesses to relocate or close. Due to the business
interruptions it has medium level of occurrence and high impact on the project.

Mitigation
Create disaster recovery plan that includes data backup and recovery strategies, as well as plans
on how to set up a remote location and alert employees to what’s going on .consider investing in
business interruption insurance which helps cover your operating costs and loss of income so you
can help maintain payroll while you replace equipment and repair damage .this coverage
typically provides reimbursement for up to a year of lost revenue.

 Drought
This refers to the period of below –average precipitation in a given region, resulting in prolonged
shortages in water supply, weather atmospheric, surface water or ground water.it can last for
months or years or it may be declared after as a few as 15 days or refers to the buildup of man-
made gases in the atmosphere that trap the suns heat, causing changes in global weather patterns.
The climate change risks for my project include frequent extreme weather; you may have
increased insurance costs, more damage to property and resources, and disruption of power and
water. Increased costs you may experience higher costs for energy, water and other sources

Due to lack of enough rain for the pine apples this affects their growth and their productivity
hence the quality of the pineapples to be harvested will be poor and therefore affecting the juice
that is to be produced from Maria pine fruit enterprises. Drought has medium level of occurrence
and has high impact on the project.

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Mitigation
Dams, construction of many dams and their associated reservoirs supply additional water in
times of the drought. Transvasement, this refers to building canals and redirecting rivers as
massive attempts at irrigation in drought prone area s hence helping the pine apples to grow well.

Contingency plan
Rain water harvesting ,this refers to the collection and storage of rain water from roofs or other
suitable catchments when this water is harvested during the drought period this water can be
used for the pine apple growing.

 Soil erosion
It’s the wearing a way of land ,such as loss of river bank ,beach ,shoreline ,or dune materials .its
measured as the rate of change in the position or displacement of a river bank or shoreline over a
period of time. Short term erosion results from periodic natural events such as flooding, wind
storms and so on. Soil erosion has low level of occurrence and has high impact on the project.

Soil erosion mitigation

Developing and implementing an erosion management plan and locating utilities and critical
facilities outside areas of susceptible to erosion to decrease the risk of service disruption.it can
also be done by prohibiting development in high hazard areas

The following techniques can also be used construction of deep foundations in erosion hazard
areas, clustering buildings during building and site design, constructing open foundations
systems on buildings to minimize scour.

 Hailstorms
They hailstorms potentially damaging outgrowth of severe thunderstorms they frequently
accompany thunderstorms, so their locations and spatial extents overlap, hail can cause
substantial damage of the pineapples, roofs, landscaping .they have low level of occurrence and
high impact on the project.

Mitigation
Improving the factory roof sheathing to prevent hail penetration, installing hail resistant roofing
and siding and finally including measures such as structural bracing, shutters, laminated glass in

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window panes, and hail resistant roof coverings or flashing in building design to minimize
damage.

 Wild fire
It refers to any outdoor fire that is not controlled supervised or arranged, it depends on the
probability on local weather conditions, outdoor activities such as camping, debris burning and
construction and the degree of public cooperation with fire prevention measures. This can led to
destruction of property and loss of lives.it has low level of occurrence and its impact is very
high.

Mitigation
Installing and maintaining smoke detectors and fire extinguishers on the factory building of the
pine apples and installing fire mitigation systems such as interior and exterior sprinkler system.

 According to biosphere, Impact of pesticides residues this therefore affects the growth of
pine apples and hence affecting the quality of pineapples to be got from the garden.

Mitigation
Having pesticides of quality and tested pesticides before using on the pine apple growing.

Technological risks are any potential for technology failures to disrupt your business such as
information security incidents or service outages.

 Architecture risk
IT structures that fail to support projects activities and the flexibility, dependability of the
architecture it high level of occurrence and its impact on the project is also high.

Mitigation
Architecture Risk assessment is a risk management process that identifies flaws in a software
architecture and determines risks to business information assets that result from those flaws
.through the risk assessment flaws are found that expose information assets to risks, risks are
prioritized based on their impact to the business, mitigations for those risks are developed,
implemented and the software is reassessed to determine efficacy of the mitigation.

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Formal and informal testing this can be done through penetration testing this can be used to test
the architecture before its implemented.

 Audit risk
The chance that an IT audit will miss things such as security vulnerabilities or legacy risk this
has low level of occurrence and has medium impact on the project.

Mitigation,
Regular audits may identify problems such as accounting errors or security vulnerabilities before
they become larger problems .audits can be used both as a process of risk identification and
mitigation for example accounting audits are away to reduce the risks of financial fraud.

 Budget risk, IT programs, projects or operations teams that go over budget, in many cases,
going under budget is considered a positive risk.it has high level of occurrence and
Medium level of its impact

Contingency plan
Create budget risk contingency plan that will contain funds that can be tapped so that the project
does not over go beyond the budget. This can be done through the use of expected monetary
value as technique to quantify the risk in to budget terms.

 Data loss, this refers to the data that can’t be restored, they data can be about the
procurement of resources, the data base of the workers and the performance of workers, the
income statement of the enterprise and statement of the financial position of the project when
such information is lost this therefore affects the enterprise as a whole hence affecting the
performance of the project. It has high level of occurrence and high impact on the project.

Mitigation
Having backups of information in multiple secure physical locations .this will help to recover
several information that has been lost during some emergencies of actions.

 Integration risk, the potential of integration of organizations departments, processes,

technology or data to fail this integration risk has high level of occurrence and its impact on
the project is high.

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Mitigation
Transaction processing risk, failure of transaction processing such as ecommerce purchase

Mitigation
Having process controls such as approvals designed to reduce financial risk and process
improvement such as automating steps to reduce errors.

 Technical debt, weak technology implementations that are likely to result in future costs such
as big ball mud. The technical debt has high level of occurrence and has medium impact on
the project.

Mitigation

Establishing standards to guide business practices decision making and design for example
technical security standard can reduce security risks if applied to all technology projects.

 Strategy risk associated with a particular IT strategy this refers to failure to agree with the
type of strategy to be used in the execution of the project activities hence affecting the overall
performance of the IT department because if the strategy is not agreed upon by the people in
the project.

Mitigation
Due diligence which involves the process of investigating before committing to something such
as a strategy basic due diligence such as environmental ,financial, corporate social responsibility,
and management practices of a potential partner is a basic step in risk reduction that is often
considered a legal obligation.

 Security threat, such as malware software this refers to the software which is designed to
harm computer system spread from one system to another through emails, infected storage
media and so on. Symptoms of malicious codes include files disappear ,file size changes ,loss
of access to resources and so on this will lead to loss of files of the project ,other security
threats include hackers, human error, theft ,fraud ,system failure and so on. This security
threat has high level of occurrence and medium level of impact.

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Mitigation
Use of antivirus software, more secure operating system Linux has a robust security features and
also educate users, avoid programs form unknown sources for example internet

 Resource risk, an inability to secure resources such as skilled personnel to be able to operate
the IT machines for producing the pineapple juice.

Mitigation,
Training such as compliance training for employees designed to reduce compliance and
reputational risks

Human risks
 Injury, Work place injuries can result in medical treatment and costs and lost productivity
.they can also inflate business insurance premiums.

Mitigation
Educate employees about workplace safety and ensure that you have proper workers
compensation insurance in place .this insurance provides wage replacement and medical benefits
to staff members who are injured on the job.it also protects businesses from legal complications
relating to workplace accident’s .all states require companies to carry workers compensation
coverage if they have employees who receive W-2 forms .in addition ,your home state may have
specific laws that your company needs to follow.

 Property loss, there is risk of property loss there is high risk of occurrence and it has high
impact on the performance of the project.

Mitigation
Audit your physical locations and business processes to identify and address areas vulnerability
.consider investing in a business owner’s policy to help cover damage to company assets that
results from fire, storms and other disasters. These policies are available whether you rent or own
the building you work in.

 Security breach this is where there is theft of both the pineapples and the products of the pine
apples that are already processed from the factory this can be stolen by both the internal and
external workers of Maria pine fruit enterprises.

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Mitigation
Having two security guard to monitor both the factory and other being in the garden to monitor
the workers and people who go around the gardens. putting a barbed wire fence around the
gardens where the pine apples are grown

Contingency plan
Having supplementary budget to purchase more machines that are stolen by both the internal and
external workers.

 Beau racy, due to the need to get a loan to do the project from centenary bank there is a lot of
beauracracy to get the funds to run the project. The total capital is expected to be about
40,000,000 Uganda shillings. Part of it is a loan of 15,000,000 Uganda shillings which will
also be used to help to top up the total amount of working capital that the firm will need.

Mitigation,
Making loan requirement in advance so that the bureaucracy problem is handled before the
execution of the project this therefore reduces the delays of the starting the project since its
handled early.

 Lack of expertise, in every project to be done there should be people who have the expertise
and the experience in that field failure to have the expertise when doing the project the likely
hood of the occurrence of this risk is high and its impact is likely to be highly because if
there is no expertise the performance will be low and the productivity will also be low.

Mitigation
Training of the workers to get the knowledge, skills, and abilities to be able to perform and
execute the work this will fasten the speed of the work since workers have been trained on what
to do when executing the project.

Contingency plan
There will be hiring of the expertise who have the knowledge ,skills and abilities to do the work
and hence making the work move so fast since the already know how pine apple can be used to
come up with different type of juice.

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 Poor attitude of the community, this is where the community is negative of putting the pine
apple factory in the community and growing pine apples in the large acres of land, when the
different stakeholders refuse the idea of the project will therefore affect the project the
likelihood of its occurrence is high and hence having high impact on the success of the
project.

Mitigation
Doing stakeholder analysis, this refers to the identification the project key stakeholders, their
interest in the project and the ways those interests affect the risks or viability of the project. The
stakeholder analysis can be done by the project management team and it’s done at the beginning
of the project and at the late stages of project life cycle. Several strategies can be used this
include buffering and bridging strategy, buffering refers to how to protect the project from
stakeholder power or influence whereas bridging refers to how to cooperate and build inter
dependencies with key stakeholders.

Contingency plan
Legal action can be applied in case of resistance for example having the support of the
government, police when implementing the project.

Conclusion
There are several risks that hinder the projects this include financial, technology .human,
political, economic, social risks and these therefore determine the success or failure of the project
.the success of the project can be achieved when these risks are mitigated and some risk s will
need the contingency plans to be formed, failure to mitigate this risks and form contingency
plans will lead to failure of the project.

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