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Project Contingency Planning and Risk Assessment

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These risks can include any number of incidents that will erode profitability, cause financial setbacks on the plan or even create negative perceptions about the business in the social community.&nbsp.

Whatever the nature of the specific project at hand, there is going to be a wide variety of different risks to the initial project design. For instance, a business project in a manufacturing environment that entails a restructuring of raw materials supply will maintain issues such as costs involved in distribution, the feasibility of tangible manufacture, or even supplier relationships being affected. A business that maintains a project designed to increase positive public relations, such as a complicated marketing plan, will maintain many different potential risks including the creation of negative consumer sentiment or excessive promotional costs.

Hess Corporation, a large enterprise, recently began a project plan which involved the creation of a new information technology pipeline to serve the business’ multinational needs. As part of preliminary planning, Hess Corporation divided the project into three specific categories. First, the B-Initiative outlined the steps necessary for the information technology pipeline to bring financial value to the company, such as identifying costs associated with various software packages. The P-Initiative was also undertaken as a means to identify potential risks to Hess Corporation in terms of processes when making improvements to the technological infrastructure at the company (Hoffman, 2008). As part of preliminary project planning, subdividing activities based on their potential long-term value to the company allowed the business leaders to create a variety of&nbsp.contingency plans in the event of any unintended disruption to the existing information technology infrastructure.&nbsp.