Management of Technological Risk

Project Title and Rationale

The engineering project chosen is a home automation system. The rationale influencing the choice of a smart home project is technological developments that are replacing manual labour. This implies that at some point in future, majority of our home apparatuses will be associated, to one another, to our telephones, and to the Web on the loose. Automated systems are already here with us, which means we are only moving to advanced technology in our homes. Among the available home technologies are a smart bulb, a smart plug, and a shrewd speaker in the parlour among others. According to Flyvbjerg and Budzier (2013), for one to figure out what might happen in future, it's much more essential to consider the circumstance and show signs of improvement feeling of what you gain and what you lose when you make your home keen, now and then more intelligent than you even know.

Risk Management Context:

The risk management context covered in this project is the outer and inner parameters that associations must consider when they oversee hazard. Leitch (2010) states that an organization's outside setting is made of the outer partners, neighbourhood, worldwide and national condition, and any outer components that impact its targets. On the contrary, the inner setting is comprised of the interior partners, the way the organisation deals with the administration, the organisation’s capabilities, how the organisation complies with the law, and its culture.

The risk management context for this project revolves around the objective of the organisation, the core activities of the organisation, internal and external factors, and its facilities. When it comes to organisational objective, the project seeks provide facility of automation in which the user will perform all actions with his/her mobile. The core activity is to automate home appliances such as secondary camera surveillance and security among others. The main people involved are the developer, management team, and stakeholders. The external factors to consider are social, legal, technological changes, and legal environment. The project provides various facilities like lights, fans, and appliances that are controlled by smart mobile. This implies that users do not have to perform actions manually.

The Project Risks

Five risks will be considered in this project including scheduling and estimation, sudden growth in requirements, employee turnover rates, reduced employee productivity, and compromising designs. Scheduling and Estimation
Most individual software projects like the one covered in this paper poses a challenge for managers when it comes to scheduling and estimating the time required for development. Sudden Growth in Requirements With progress, it is possible to have issues that were unforeseen arise, which increases the organisation’s likelihood of not meeting the deadlines.
Employee Turnover Rates This refers to the rate at which employees quit their jobs. It is natural that along the way, every project has a number of employees stepping away. This could be a serious threat if the engineer would leave taking with him elementary data. It would take time finding such information again,

which would delay the project accomplishment. A possible mitigation strategy is ensuring there is information sharing among all employees so they can work together and work continues even after any leaves (Mojtahedi, Mousavi and Makui 2010). Reduced Productivity
It is possible that once plans to implement the project start other unforeseen issues will crop up and employees may lose motivation resulting to a decrease in productivity. To mitigate this risk, it is in order to set a timetable and follow it. This is so because in this project there are hardware and software modules: if any module is down then the whole system will be adversely affected. Compromising Designs
In most cases, engineers have a tendency of surging the outline procedure, which is a waste of programing hours. This is so because planning to programming improvement, which means a clear plan should be developed to guide proceedings.

Opportunity

The major opportunity in this project is future developments. Given that technology is here to stay, considering future needs and leaving room for improvement is crucial in this project. Preparedness for future developments implies the organisation will not have to do it again with more cost and time. This underscored the need for being smart while making smart projects (McManus 2012).

Project Time Management

Time management is a crucial factor in any project because if the timelines are not met, more time is likely to be taken, which hinders project success. Such delays are likely to result to big losses for the organisation since the operational budget increases. This implies that a project manager must identify all risks, evaluate them, and find the maximum time needed to solve them. This will result in proper scheduling so the organisation can easily solve an encountered error (Birkmann et al. 2013).

Project cost management

Project cost management is also an important factor because it is necessary for the organisation to remain limited to the budget. Exceeding the budget results to loss, which means that it is imperative to identify all risks and their cost. An estimation of the total cost of the project can then be drafter so the organisation can know its limits.

Project quality management:

This will be an opportunity for the organisation because it will be a better place to work. This is so because good work gives an organisation multiple choices to get good rewards. Additionally, good work increases an organisation’s clients and makes them happier and satisfied.

How to treat Risks

This risk will be mitigated by monitoring existing projects so applicable lessons can be learnt. This is so because existing projects are always the main source of risk management as having seen the consequences of risks one can manage them in the beginning (De Bakker, Boonstra & Wortmann 2010).

Trying to brainstorm in the early phases will help the organisation get maximum requirements. Additionally, having a big picture of the project will help the organisation control its requirements.

The organisation will have to make sure that assets are shared and all colleagues share them so when anyone leave, smooth progress can be made. In addition, the organisation will have to make sure all employees remain motivated.

Setting timelines through developing a clear timetable will help the organisation ensure its employees are busy throughout, which maximises their efficiency. A timetable will also help in ensuring that if any module stops working, the project is not affected and the time was budgeted.

The organisation will have to make standards for each module as this will help avoid compromising on interfaces. The voice of the customer should also be heard and maintained.

With a long chain of events that every employee has to meet, it is possible that the employees are distracted from the ultimate goal while others lose motivation to achieve their goals. Among the applicable solutions are short cycles, having opportune people in the group. Conducting training, and advancing the skills of the group. In this task, the hardware and programming are both incorporated hence agile methods, Parkinson's Law and the Student Syndrome, will be applied. According to Izmailov, Korneva and Kozhemiakin (2016) Parkinson's Law states that work extends to occupy the time accessible. On the other hand, the Student Syndrome holds that given a due date, individuals tend to hold up until the point when the due date is approaching for them to start working. Use of short cycles will ensure work is time-confined to a reasonable emphasis (ordinarily 1 a month) and a feeling of direness is maintained. Lithe techniques will also be observed, which states it is necessary to have the right people in a project through offering training based on the tasks the individuals are to complete (Hoyt and Liebenberg 2011).

Importance of sound risk management plan

A superior coordinated and more durable administration structure obliges an unmistakable explanation of government's hazard inclinations and its eagerness to exchange off expense and hazard. This sets up a lucid reason for better long haul cost execution. Upgraded straightforwardness will only be attained if there are clear lines of responsibility, characterised goals, clear communication of the project goals, and well defined steps and procedures. Additionally, the organisation must have a sound reason for estimating and revealing execution. A sound hazard administration program incorporates approaches and methods that cooperate to recognise, analyse, assess and mitigate hazard. There is the need to take care of humans and the government laws. The system must be built according to the principles of sound risk management.

Organisational profile:

Toyota Motor Corp. was founded by Kiichiro Toyoda on August 28, 1937 and is headquartered in Toyota, Japan. It deals with manufacture and sale of motor vehicles and parts. It has various segments including financial services, automotive operations, and the all other segment. The objective of the automotive operations department is to manufacture, design, assemble, and sell minivans, trucks, passenger cars, and related vehicle parts and accessories. Additionally, the automotive department is involved in development of intelligent transport systems. On the other hand, the Financial Services segment offers purchase or lease financing to Toyota vehicle dealers and customers. It also provides retail leasing through lease contracts purchase by dealers. The All Other segment designs, manufactures and sells housing, telecommunications, and other businesses. Toyota is among the world's market pioneer in offers of half breed electric vehicles, and one of the biggest organisations to empower the mass-showcase selection of cross breed vehicles over the globe. Toyota is likewise a market pioneer in hydrogen energy unit vehicles. Combined worldwide offers of Toyota and Lexus mixture traveller auto models accomplished the 10 million point of reference in January 2017. Its Prius family is the world's best offering half breed nameplate with more than 6 million units sold worldwide as of January 2017. Toyota Motor Corporation produces vehicles under five brands, including the Toyota brand, Hino, Lexus, Ranz, and Daihatsu. It also holds a 16.66% stake in Subaru Corporation, a

5.9% stake in Isuzu, as well as joint-ventures with two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India (Toyota Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive" companies (Toyota Global 2018). TMC is part of the Toyota Group, one of the largest conglomerates in Japan.

Methodology

This section details how the automated system will be installed and administered in Toyota Company. All through the task, the hazard administration process will be demonstrated on and estimated against overall best practice and worldwide hazard administration measures The task is liable to the terms and states of Business Risk Administration Ltd as in this portrayed. Additionally, the specialist will work close by the administration of Toyota. The major point is to guarantee that the specialist exchange insight into chance administration to guarantee that the organisation can effectively deal with the procedure toward the finish of the task.

Background:

The capacity to oversee huge dangers viably is one of the fundamental attributes separating the best associations from the rest. The need to show honour and the effective administration of assets is, of course, basic. The difficulties of the ongoing worldwide financial emergency make overseeing hazard on an endeavour premise a significant prerequisite. Setting up and keeping up a formal, business hazard administration process is a demonstrated and self-evident method for giving the vital affirmation and giving certainty to partners. To do as such, one has to distinguish and record the key dangers affecting the association, survey how well the dangers are being overseen, distinguish exposures and openings furthermore, grow clear activity gets ready for tending to the exposures and misusing the openings. The way to progress is to perceive that hazard isn't something that can be maintained a strategic distance from - a hazard likewise can regularly speak to an open door in camouflage (Flyvbjerg & Budzier 2013).

Basis of Proposal:

TOYOTA has made a guarantee to set up and keep up an efficient structure what’s more, procedures to oversee hazard adequately over the association and have built up a hazard administration approach. The methodology embraced takes after best practice, as does the expected foundation of a Risk Management Group (Buckby, Best & Stewart 2010).
For the project to be successful, 2 half-day workshops for every one of the two bunches plot beneath are necessary. The first workshop aims to distinguish and organise the key dangers and the second to survey and record the procedures set up to relieve the dangers, recognize exposures and openings and create activity designs. The first group will be comprised of the Board and Audit Committee individuals and other senior management. The second group will comprise the corporate administration group and other key chiefs
The yield from all workshops will be examined and synopsis reports created. A timetable of normal dangers, key exposures and real lingering dangers will be readied. Exhortation will then be given to empower hazard administration to be installed into centre exercises, for example, execution administration, corporate arranging and acquisition. Parallel to this procedure, exhortation and functional yield will be given in the foundation of a business progression plan.

Project Risk Management Team (PRMT)

The Project Manager is in charge of performing, refreshing, and looking into hazard administration exercises, or appointing these duties to members of the team. Shared Service Centre staff/Project Management staff might be called upon to help encourage hazard talks with undertaking supervisors and task colleagues. They may likewise encourage hazard workshops on undertakings. The venture supervisor may wish to assign a part or a few individuals from the task group to be the PRMT. The PRMT would direct hazard administration exercises and report back to the full group at a settled upon recurrence. For most tasks the PM will deal with the dangers separately or with chose individuals from the centre group. A PRMT association will in all probability be utilized for Major and Mega ventures. Be that as it may, the undertaking administrator or support may choose to shape a PRMT for minor or direct tasks. Delegates from different offices, or different partners, might be welcome to take an interest at the PRMT gatherings to guarantee that all gatherings are completely educated, and in this way keep away from amazements. Budget Plan for Risk Management A definitive objective when coordinating danger administration into spending arranging is to comprehend the presumptions your financial plan depends on. The following steps will be followed.

1. Recognize the significant details of financial plan and the staff who added to them

A hazard evaluation with a typical scoring rule will enable the organisation think about and organise line things by which ones would have the most elevated effect on your organisation's targets. At this point, the organisation needs to discover why line things are what they are, who added to these numbers, how could they land at this number, and who is in charge of executing the goal on time and on spending plan. The best way to attain this is to draw in key work force related with each gauge. The magnificence of big business hazard administration is that it's cross-useful in nature and can enable you to connect the holes between divisions to get precise information (Ichsan and Latief 2010).

2. Request that key work force give knowledge on significant details

There are two unique spending plans. One relates to growing a current item or administration your organization has performed for as far back as 20 years and the other relates to another item for a current portion of your client base. The details for the 20-year-old item or administration might be verifiably based, yet maybe misses the complexities identified with the development. However, the main objective here is to identify all the possible threats. A potential method to acquire this understanding is to have the work force perform chance appraisals that eventually answer questions such as what are the potential dangers that could meddle with the precision of this estimation? What is the probability of these dangers emerging? What might the effect on the organization be in the event that they did appear?

3. Draw in topic specialists to modify low certainty line things

The best approach to get more data, regardless of what the detail relates to, will be to draw in topic specialists inside and outside your organization. Decide the inquiries you require offered an explanation to up the certainty level of basic details and discover the general population who can give you the appropriate responses (Hiles 2010).

4. Alleviate the dangers in planning

Evaluating and reporting the dangers in planning will comfort each expert included. Months not far off, nobody needs to be set in a place of scrambling to legitimise their determining after it's gone unexpected (Field et al. 2012).

5. Constantly screen dangers and adequacy of controls

To guarantee planning is on the cash, there is need to execute a framework for paying special attention to change the identified dangers, and for gathering measurements to demonstrate the viability of the actualised controls (Birkmann and von Teichman 2010).

In this phase, a timetable will be prepared. Additionally, an appropriate risk management policy will be identified and reviewed in lines to best practice. A risk management group will also be formed, which will develop thought instigators and analytic inquiries to help empower the members to consider the basic dangers before the workshops. Further, essential turning points will be established and the workshop dates be established. The hazard framework will also be established in this phase.

This will require two days: 1 half day instructional meeting and 1 Consultancy day (multi day readiness, multi day Conveyance and audit). Several actions will be taken during these days. First, the context for risk management will be set. Second, key prerequisites such as basic dates will be established. The phase will also outline the guidelines to guide the team. The team will also delineate the connection between the identified risks and the prioritised strategies. In addition, the team will identify the possible opportunities and score them. The process for the workshops will also be developed , categories of risks identified, and a risk register prepared.

Two committees will be formed in this phase: the Board, Audit Committee individuals and other senior management and the corporate administration group plus other key supervisors. The phase will require 2 half day workshops and 2 Consultancy days (multi day readiness, 2 half day Workshops and multi day to survey yield before issue). Hazard Identification will be conducted in this phase. The presentation of a steady and custom fitted model for chance distinguishing proof will be set up. A network to aid the appraisal of the materiality of probability and potential effect will likewise be delivered. These will be custom fitted as far as possible and exposures significant to the association. Hazard classes will be surveyed and finished to guarantee consistency of revealing. During the key risk identification workshop, a brief recap of the workshop approach, its goals and expectations will be given. Ground rules will be laid and a discussion and assertion of Business destinations be made. Other activities include Sifting and grouping the dangers by methods for the hazard classes, measuring the dangers, discussion and assertion of importance, recording the risks on a Risk Matrix, prioritization of dangers and explanation of the yield.

Risk mitigation workshops

These will be held two weeks after the first set of workshops. They will be made of 2 half day workshops with indistinguishable participants from for the hazard ID sessions and a 2 Consultancy days (multi day arrangement, 2 half day workshops and multi day to survey the hazard enlist previously issue). It is again accepted that the yield will reviewed and issued without further input as this is for the most part substantially more financially savvy than having the consultancy do this undertaking Hazard Mitigation Workshops Outline During this workshop, a brief survey of yield from first workshop will be given, explanation of alleviation workshop and expected yield be given, and an interactive talk of alleviation for each hazard bee made. Additionally, there will be recording of alleviation and re-assessment of remaining dangers, inherent and remaining dangers looked at, and assessment of exposures (and openings) be made. Action designs will also be discussed and proprietors decided and the risk register be completed.
A risk register in the format already determined will be produced. The risk appetite will also be determined together with any risk limits in place. It is evident that residual exposures will still be available even after exploring options for risk mitigation. This justifies the need for recognising such exposures and drafting ways of managing them. It is in this phase that the organisation will be helped manage residual exposures
Residual risks can be combined into a generic category and developed as part of the model in use. This will make it easier for the team to assess and consider the actions they take to mitigate their business risks at the lower level. It is also in order to review the results of the specific analysis while identifying their impact on the organisation. Such a pro-active and positive risk management will increase the likelihood of the organisation meeting its operational objectives (Talluri et al. 2013).
Considering the above risks will form the basis of Control Risk Self Assessment (CRSA). This technique will provide an organization wide view of risk management that can then be collated and reported. Additionally, CRSA provides valuable on-going re-enforcement to the independent reviews undertaken by Internal Audit and other assurance providers, which inevitably have to be snapshots at a given period of time. Only CRSA can provide a commentary on how risks were actually managed and how thoroughly internal controls operated throughout the whole of the period of account. Such a system provides an invaluable aid to the continued development of the overall corporate governance and risk management processes.

Consolidation and Reporting

This phase will require one and a half days of consultancy. Among the things to be accomplished in this phase are analysis and comparison of output from previous workshops, preparing a summary report, developing the risk matrix, preparing and evaluation success measures, determining the best approach to share the project output, and determining the steps to be taken while rolling out the process. There will also be the need to develop a holistic approach to risk management activities, which will be developed after considering the views of all team members. Finally, a risk tracking process will be determined. Risk tracking holds that after identifying the key risks, it is necessary to develop a process that helps monitor the risks (Weber, Weißenberger & Liekweg 2012). Here, the team will identify key risk indicators, which will help in mapping progress.

Development of Business Continuity plans

This phase is optional meaning the team can choose to have it or not. It is comprised of 5 days of consultancy. Among the things to be done include establishing keys steps and key processes, examining the arrangements that have already been made, developing project milestones, developing a BCP policy statement, and incorporating LLLL legislation key requirements. Among these requirements are to identify the cooperation needed between various emergency services, the required level of business coordination, and testing how ready the organisation is in terms of implementing the project.
It is in this phase that the team has to examine partner plans for consistency purposes and develop a BCP manual outline. When developing the BCP outline, the team needs to define BCP ownership, identify the business risks, assess incident emergency, discuss necessary communications, premises, transport, recovery and back-up, required supplies and personnel as well as a plan for disaster recovery. The team will also have to conduct testing and planning for the business recovery phase, conduct staff training, and ensure all the plans are updated.

Benefits to TOYOTA

The proposed risk management plan will benefit the organisation differently. First, the organisation will acquire a better understanding of the risks it is exposed to and how they can be mitigated. Second, the organisation will be able to have a greater ownership of the risk management plan, which means it could include it in its internal controls. Third, the organisation will be able to monitor risks, which increases its ability to model risk accumulation. The organisation will also be able to integrate the risk management plan into its system, which implies it is easier to attain. The project will also result in more effective work practice among the stakeholder, which is bound to improve the organisation’s performance. Finally, the organisation will gain a better information management, which is key to enhancing cost effectiveness.

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