PMGT5891 Strategic Risk Management Semester 1 – 2024

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Individual Assignment

PMGT5891 Strategic Risk Management

Semester 1 – 2024

Exam information:

§ Submission made via Turnitin.

§ Submission worth 40%

§ Students must get 50% to pass the unit, regardless of the sum of individual marks.

§ Submissions after the deadline will not be accepted.

Guidance:

§ Answers must be very detailed, concise, and should associate both with the academic and practical references, as well as facts gathered from the project. Please AVOID generic statements and make sure your answers are specific to the project.

§ The assignment is open book. You may use any type of materials available to you.

§ Essay-based questions and answers.

§ Questions must be attempted without the help of others.

§ Answers should be inserted after each question with clear headings.

§ The questions test your ability to find relevant information, analyse, apply knowledge, and think critically.

§ Use the same font size as in the questions and do not exceed the page limit.

§ You must reference any source material used.

§ Writing and organisation of the assignment is 2 marks.

Format:

The paper comprises four questions each with multiple parts:

· Question A – worth 8 marks – Root cause analysis

· Question B – worth 12 marks – Risk mitigation

· Question C – worth 6 marks – Tools and techniques

· Question D – worth 12 marks – Risk monitoring and control

· Organisation and writing – worth 2 marks

Weighting - Marks total 40.

Case Description

Please read the following case study carefully. You will need to refer to the information provided in order to answer the exam questions. You may supplement the supplied information with your own research.

You have been tasked with strategic risk planning for the housing market in Australia, especially in view of the housing crisis. The importance of these risks is reflected in policies and strategies of the Australian Government (e.g., improving housing supply and affordability, Housing Support by the Department of Social Services, Housing Measures by the Parliament of Australia), similar to other governments around the world. Dimensions of this housing crisis include lack of affordable housing, as well as increasing risks of experiencing homelessness. In Australia, the alternative options in this context range from crisis and transitional housing and social housing to market rental and housing (Fig. 1).

Fig. 1. Spectrum of housing options, from Committee for Sydney (2002)

Within this context, there is a need for major projects specifically tailored to address these increasing societal risks. Examples of these projects include the “Big Housing Build” in Victoria, which aims to provide 12000 houses between 2020-2024, including 9300 social housing. However, such projects are criticised because of their complex contexts and risks that manifest in the form of inefficiencies, high cost, and poorly integrated communities.

Question A: Root cause analysis – 8 marks

Root cause analysis is a technique used to map the underlying causes of a problem. Root cause analysis aims to pan out why an incident or undesired outcome occurred by examining the contributing factors and identifying the fundamental causes. By identifying and addressing the root cause, organizations can implement holistic solutions, rather than just treating the immediate symptoms.

To inform the case of housing crisis in Australia based on experience of other countries, please develop a detailed root cause mapping and provide the details of your analysis for housing crisis in another country, with clear references and details and then provide implications for the case of Australia. The mapping should include clear description of problems, analysis and solution, all with references to government or industry reports, and should be as detailed as the example provided in the week three exercise.

The implications of the analysis of the foreign case for the case of Australia can be added as extra boxes with distinct colour on the root cause map and explained in text.

Question B: Risk mitigation – 12 marks

Bow-tie diagrams are tools used to analyse and demonstrate causal relationships and impact of mitigation strategies in high-risk scenarios. To gain a better understanding of bow-tie technique, you can examine material in Week 10: Tools and Techniques.

Create a Bow-tie diagram for the Housing crisis in Australia. Include commentary for the Australian government on what the diagram means and what actions should be taken to prevent risks associated with housing crisis such as housing affordability and homelessness. The proposed actions should be drawn from barrier and recovery strategies implemented in foreign markets, ensuring their applicability and relevance for adoption by the Australian government. We expect to see a range of consequences and threats (at least 5 each), and at least two barriers and recovery measures for each of the threats and consequences, respectively.

Make sure the threats, consequences, barrier strategies and recovery strategies are from credible references with clear citation, and then tailored for this specific context. Do you expect any escalation factors as a result of the barrier strategies? Please integrate them with adequate responses and explain.

Question C: Decision tree – 6 marks

A decision tree is a graphical representation to support decision-making in the context of resourcing for potential risk mitigation strategies. It is a widely utilised tool that enables organizations to systematically assess various alternatives, potential outcomes, and associated risks in a structured approach, ref. to week seven in Canvas.

Using your bow-tie diagram in Question B, please develop a decision tree as a tool to assess the choice of allocating budget for alternative recovery strategies on the right side of the bow-tie diagram. For this purpose, choose four recovery strategies from two branches of your bow-tie diagram, and then develop the decision tree based on the estimated consequences and probabilities for each alternative recovery strategy. Please make sure to hinge your estimate of consequences and probabilities to credible reports and references and clarify the assumptions used in determining these values that support your decision. Please write a small paragraph at the end discussing the implication of this analysis for the actions of government in the face of the housing crisis in Australia.

Question D: Risk monitoring and control – 12 marks

Given the importance and extent of the housing crisis as well as the complexity of projects in response to the housing crisis, including their size and involvement of a range of stakeholders, there is a need for detailed risk monitoring and risk control plan. These plans aim to constantly update the stakeholders about the project risk management plan in view of the dynamic nature of risks.

Considering the example of the “Big Housing Build” in Victoria, please provide a detailed risk monitoring and control plan. Specifically, you can explore and find issues that have been faced in the program as discussed about the progress of the program. Please use established frameworks for risk monitoring and control with clear referencing and tailor them for this specific case. This plan needs to include a step-by-step direction for risk monitoring strategies, including leading indicators and control mechanisms, as well as periodical review process of the program to ensure its progress (7 marks).

Please provide a diagram for the risk monitoring and control plan (5 marks).

References (for all the questions in the assignment):