Risk Management in NSW Regional Railway Fleet Train Replacement Program

This paper discusses the risk management process and strategies in the NSW regional railway fleet train replacement program. It explores the challenges and risks associated with the project and provides a risk treatment plan to minimize their impact. The objective is to improve the safety, services, and facilities provided to customers and increase connectivity between regional offices. The paper also highlights the importance of effective communication, proper scheduling, and clear definition of roles and responsibilities in managing risks.

Project Management

Contents
1. Introduction:........................................................................................................................2
Project Information.................................................................................................................2
Project Scope..........................................................................................................................2
Objectives...............................................................................................................................2
2. Risk Management process..................................................................................................3
3. Establishing Context...........................................................................................................3
Internal Context......................................................................................................................3
External Context.....................................................................................................................4
Risk Management Context.....................................................................................................4
Risk Criteria............................................................................................................................4
Risk Assessment process........................................................................................................4
Risk Identification..................................................................................................................4
4. Risk Analysis......................................................................................................................5
5. Risk Register.......................................................................................................................6
6. Risk Treatment Plan............................................................................................................9
7. Risk Responses.................................................................................................................10
8. Recommendation..............................................................................................................12
9. References.........................................................................................................................12

1. Introduction:
Project Information
The NSW regional railway fleet government is facing problem in managing the rail services
by XPT, XPLORER, and Endeavour trains. The government is developing a plan for
replacing the existing rail fleet with new trains. The maintenance program should be
developed for designing and placement of the old trains with new trains so that economy of
the nation get improved by providing new job opportunities with the implementation of new
railway project. The project of new trains replacement program helps in improving the safety,
services, and facilities provided to the customers. The reliability on the train management
system can be accelerated due to the makeover of the rail fleets with the new trains and
replacing old trains. It helps in improving the connectivity between different regional offices
of Australia. The new routes of trains are created from Perth to Canberra, Brisbane, and
Melbourne. The purpose of this paper is to identify the risks and provide a risks treatment
plan so that risks associated with the train replacement plan can be effectively minimized and
the implementation of replacing old trains with new trains can be successfully done without
any complexities throughout the project. It helps in improving confidence, trust, and
reliability of the customers on the NSW regional railway fleet railway system. The reliable
services and facilities will be provided to the customers to increase level of satisfaction and
trust on the railway services.
The railway network is growing at very faster rate in New South Wales. The government is
the central authority in NSW regional railway fleet railway system for operating the railway
lines to the different regional centres. The western Australia railway system is governed by
the combined efforts of government of Western Australia and many private companies. The
public transport authority is responsible for providing rail services to the passengers. The
Perth Sub-urban network is formed for managing connectivity between various regional
offices in Western Australia railway system whereas the Sydney Sub-urban network is
formed for managing connectivity between various regional offices in NSW regional railway
fleet railway system.
Project Scope
The scope of the project is to replace old and outdated trains with the new trains which are
efficient in providing good services and facilities to the passengers. The new trains are
comprised of providing good and clean toilets, reversible seating arrangements, buffet
system, luggage storage system, automatic door opening and close system, CCTV cameras,
charging pints for laptops and mobile phones, and others. The contract of developing the new
rail fleet system is provided to the Momentum trains. It is the international consortium
company. The contract is signed between the NSW regional railway fleet government in
Western Australia and Momentum trains for developing new rail fleet system, designing and
maintenance program, and financial support to the new railway system. The maintenance
facilities to the trains are provided at Dubbo which helps in increasing connectivity between
Perth and different regional offices.
Objectives
The objectives of the proposed project are:
 Replacement of the old trains with the new trains
 Providing quality of services and facilities to the customers
 Increasing connectivity between Perth and other regional offices

 Improving train management program
 Deploying maintenance program for the new trains
2. Risk Management process
The risks management process is deployed for completing the project smoothly within the
given time frame. The identification and analysis of the risks at a project start-up phase helps
in minimizing the project complexities during the project implementation phase (Lammi,
2014). The diagram below shows the risks management process which is used for identifying
the risks associated with the train replacement program which is deployed by the NSW
regional railway fleet government in Western Australia and taking effective action plan for
minimizing its impact on the completion of the project.
(Source: Otieno, F. (2014). The role of monitoring and evaluation in projects. 1st ed.)
3. Establishing Context
Internal Context
The NSW regional railway fleet government has signed a contract with the Momentum trains
for providing newly designed train models which are effective for providing quality of
service and facilities to the customers. The trains which are older than 36 years will be
replaced by new trains. The NSW regional railway fleet government in Western Australia is

looking forward to replace old trains with new trains which are comprised of providing good
and clean toilets, reversible seating arrangements, buffet system, luggage storage system,
automatic door opening and close system, CCTV cameras, charging pints for laptops and
mobile phones, and others. The train model should be designed which helps in increasing the
satisfaction level of the customers by fulfilling their requirement. The manufacturing of the
new trains helps in accelerating the connectivity between the Perth and other regional offices
such as Canberra, Brisbane, and others.
External Context
The project is signed with the Momentum train for developing new trains creates new job
opportunities for the local residential people. The economic rate and GDP of the nation also
get increased due to the new government project deployed in Australia for replacing the old
trains with new trains.
Risk Management Context
The process and operational plan for replacing the old train with new trains should be studied
and evaluated so that the risks associated with the development plan of the project can be
clearly identified and required action plan can be prepared for minimizing their impact on the
operational plan of new train replacement program (Kharaiweish, 2013).
Risk Criteria
The risks should be identified in relation to the following prospects:
 In identifying the in-scope activities
 Managing risks and challenges
 During time management program
 Risks analysis process
 Monitoring and maintenance program (Schell, 2012)
 Team management plan
 Communication management plan
 Stakeholder engagement plan
Risk Assessment process
The risks assessment process is comprised of five step process which are as follows:
 Identifying challenges and problem domain in completing the project activities: The
issues and challenges should be identified which are associated with the replacement
of the old trains with new trains and development of the services and facilities
provided to the customers (Asadi, 2015)
 Identifying the impact of risks on the development process: The impact of risks
identified should be evaluated on the replacement program of the train
 Evaluating the risks and development of the control program: The risks should be
evaluated with respect to the impact so that priority can be set to the identified risks.
The top priority risks will be resolved first before the other risks (Wilson, 2012)
 Evaluation of the mitigation plan: The risks mitigation plan developed for minimizing
the impact of the risks should be evaluated so that the efficiency and the improvement
can be identified (Monnappa, 2017)
 Reviewing the risks assessment: The corrective action plan should be developed by
implementing the alternative risks mitigation solution if risks is not resolved during
the development program of the project (Ortenzio, 2014).

Risk Identification
The risks identification is the important step in the risk management program. The risks
should be identified from all the project phases and the development plan of the project. The
risks are highlighted below in the table which are identified in the NSW regional railway fleet
government project of train replacement in Western Australia.
Risks Identified
Poor documentation of contract
Service level agreement is not prepared properly
Poor management
Poor scheduling of the project
Technical problems
Delay in the replacement of trains
Utilization of train coaches not properly done
Services are not adequately provided
Human resource resistance
Financial Risk
Communication risks
Wrong estimation of project cost
Unclear definition of role and responsibilities
Unclear definition of project scope
Legal risks
Political risks
Failure of train machinery and engine
Poor designing of train infrastructure
Poor designing of monitoring and maintenance plan
Unskilled labour
Operational risks
No coordination between NSW regional railway fleet government in Western Australia and
momentum train
(Source: Created By Author)

4. Risk Analysis
(Source: Created By Author)
Bow and Tie Diagram
NSW REGIONAL
RAILWAY FLEET train
replacement program
Poor documentation
of contract
Technical
problems
Delay in the
replacement of
trains
Services are
not adequately
provided
Train coaches
not utilized
Service level agreement
is not prepared
properly
Poor
management
Poor scheduling of
the project
Human
resource
resistance
Financial
risks
Communication
risks
Unclear
role
Legal Risk
Wrong estimation of
project cost
Political
Risks
Unclear
scope Failure of train
machinery
Unskilled
labour
Poor
infrastruct
ure
Developmen
t of NSW
railway Fleet
in WA
Poor documentation of
contract
Service level agreement
is not prepared properly
Poor Management
Technical problems
Poor Scheduling
Ineffective replacement
plan can be developed
Conflict and chaos
Supply and demand not
met
Project Delay
Overrunning of cost

5. Risk Register
Risks
Identification
Risks Description Risks Impact Risks
Severity
Risks
Likelihood
Risks
Ranking
Poor
documentatio
n of contract
The
documentation of
problem domain
and the
improvement plan
is not properly
done
Ineffective
replacement plan
can be developed
3 2 5
Service level
agreement is
not prepared
properly
The service level
agreement is not
signed with the
momentum train
The supply of
resources are not
properly managed
by the momentum
train contractor
company which
results in project
delay (Tan, Steel,
Toleman, 2009)
2 1 3
Poor
management
The operational
plan is not
properly
scheduled
The conflict and
chaos occurred in
the completing
the project
2 2 4
Poor
scheduling of
the project
The project plan is
not properly
scheduled
Project delay 4 4 8
Technical
problems
Technical
complexities
associated with
the train
management
program is not
defined
New trains are not
effective
3 4 7
Delay in the
replacement
of trains
The service level
agreement is not
signed with the
momentum train
The supply of
resources are not
properly managed
by the momentum
train contractor
company which
results in project
delay (Gahan,
Seivewright, and
Evans, 2014)
2 1 3
Utilization of
train coaches
not properly
done
The momentum
train company is
not using the train
coaches of the
existing train
effectively
Overrunning of
cost due to the
additional cost of
train coaches
1 1 2
Services are Designing of the Good quality 3 1 4

not adequately
provided
train coaches is
not properly done
services and
facilities are not
provided to the
customers
Human
resource
resistance
The goals and
objectives of the
NSW regional
railway fleet
government is not
clear to the
working
employees so they
put resistance in
completing the
given project
Project Delay 4 1 5
Financial Risk Wrong estimation
of the cost and
budget
preparation will
increases the
financial risks of
the project
Overrunning of
the cost
2 4 6
Communicati
on risks
No
communication
between NSW
regional railway
fleet government
and Momentum
train
Requirement does
not meet
4 4 8
Wrong
estimation of
project cost
Wrong estimation
of the cost and
budget
preparation will
increases the
financial risks of
the project
Overrunning of
the cost
2 4 6
Unclear
definition of
role and
responsibilitie
s
The goals and
objectives of the
NSW regional
railway fleet
government in
Western Australia
is not clear to the
working
employees so they
put resistance in
completing the
given project
(Loganathan,
2014)
Project Delay 4 1 5

Unclear
definition of
project scope
The in-scope
activities are not
clearly defined
It affects the
working project
schedule and the
quality of the
project outcome
2 1 3
Legal risks Legal
documentation is
not prepared for
signing the
contract between
the NSW regional
railway fleet
government in
Western Australia
and Momentum
train contractor
company
Affects the
quality of the
project outcome
1 4 5
Political risks Terms and
condition of the
NSW regional
railway fleet
government in
Western Australia
is not clearly
defined in the
service level
agreement
(Siriruttanapruk,
and
Anantagulnathi,
2014)
Political
implications can
occur in the
replacement
program of the
train
1 1 2
Failure of
train
machinery and
engine
Technical
complexities
associated with
the train
management
program is not
defined
New trains are not
effective
3 4 7
Poor
designing of
train
infrastructure
The infrastructure
of the new train is
not adequately
designed
according to the
requirement
specification plan
1 2 3
Poor
designing of
monitoring
and
maintenance
Maintenance and
monitoring
program is not
adequately done
Long term
sustainability of
the project is not
achieved
4 3 7

plan
Unskilled
labour
Availability of
skilled staff
Effects the quality
of the project
outcome
2 3 5
No
coordination
between NSW
regional
railway fleet
government
and
momentum
train
Communication is
not properly
management
between the NSW
regional railway
fleet government
in Western
Australia and
momentum train
which results in
unclear
requirement
Quality of the
project
deliverables will
be affected in
terms of services
and facilities
provided to the
passengers
2 2 4
(Source: Created By Author)
6. Risk Treatment Plan
Risks
Identification
Risk
Probabilit
y
Risks Mitigation plan
Poor
documentation
of contract
High The site engineer and analyst is appointed for identifying the
problem domain of the existing railway architecture
Service level
agreement is
not prepared
properly
Low Service level agreement should be signed between the NSW
regional railway fleet government and the Momentum train
Poor
management
Medium The project schedule should be prepared for systematic flow
of activities
Poor
scheduling of
the project
Medium Historical records should be checked for the allocation of
resources, cost, and time duration
Technical
problems
Low Technical planning of the train engines and other
mechanical component should be done for the long term
sustainability of the project
Delay in the
replacement of
trains
High Service level agreement should be signed between the NSW
regional railway fleet government in Western Australia and
the Momentum train
Utilization of
train coaches
not properly
done
High The contract should defined the term and condition for using
the existing train coaches in the development and designing
of the new trains
Services are
not adequately
provided
Low Experienced designer or consultant should be appointed for
designing the services and facilities and incorporated in the
project schedule (Taiwo, 2013)

Human
resource
resistance
Medium Stakeholder engagement plan should be prepared for
minimizing the conflicts and disputes among the team
members
Financial Risk Low Project sponsors should be asked for required funds.
Historical data and market analysis should be conducted for
preparing the project budget
Communicatio
n risks
High Communication plan should be developed for managing
coordination and clear estimation of the requirement
Wrong
estimation of
project cost
Medium Project sponsors should be asked for required funds.
Historical data and market analysis should be conducted for
preparing the project budget
Unclear
definition of
role and
responsibilities
Medium Stakeholder engagement plan should be prepared for
minimizing the conflicts and disputes among the team
members
Unclear
definition of
project scope
Low Clear scope management plan should be prepared focusing
on in-scope activities, out of scope activities, assumptions,
project constraints, and success criteria. The sign off of the
stakeholders should be taken
Legal risks High Legal documentation should be prepared and contract
should be signed between the NSW regional railway fleet in
Western Australia government and Momentum trains in
presence of witness (LLveskoski, 2014)
Political risks Low Terms and condition should be clearly defined in the service
level agreement for minimizing the political control on the
working process
Failure of train
machinery and
engine
Low Technical planning of the train engines and other
mechanical component should be done for the long term
sustainability of the project (Sterling, 2013)
Poor designing
of train
infrastructure
High Experienced designer or consultant should be appointed for
designing the services and facilities and incorporated in the
project schedule
Poor designing
of monitoring
and
maintenance
plan
Medium The contract should be expandable for managing the
maintenance operations for achieving the long term
sustainability
Unskilled
labour
High Training program should be organized for improving the
operational capability of the labour staff members
No
coordination
between NSW
regional
railway fleet
government
and momentum
train
High Communication plan should be developed for managing
coordination and clear estimation of the requirement
(Passenheim, 2015)
(Source: Created By Author)

7. Risk Responses
Identified Risks Response
Strategy
(Accept, Avoid,
Transfer, and
mitigate)
Response Responsible
Person
Contingency
plan
Poor
documentation
of contract
Accept Proper
documentation
System analyst Legal agreement
Service level
agreement is not
prepared
properly
Accept Service level
agreement
Project Manager
Risk Manager
Legal
documentation
Poor
management
Mitigate Project Schedule Project Manager
Risk Manager
Use of software
Poor scheduling
of the project
Mitigate Project schedule Project Manager
Risk Manager
Use of software
Technical
problems
Transfer Technical Plan Project Manager
Risk Manager
Historical plan
Delay in the
replacement of
trains
Mitigate Project schedule Project Manager
Risk Manager
Setting of
milestones
Utilization of
train coaches not
properly done
Avoid Service level
agreement
Project Manager
Risk Manager
Legal
documentation
Services are not
adequately
provided
Mitigate Service level
agreement
Project Manager
Risk Manager
Legal
documentation
Human resource
resistance
Accept Stakeholder
engagement plan
Project Manager
Risk Manager
Change in
responsibilities
and arranging
training program
Financial Risk Accept Cost estimation
and budget
Project Manager
Risk Manager
Historical
evidences and
market analysis
Communication
risks
Accept Communication
tools
Project Manager
Risk Manager
Use of social
media platform
Wrong
estimation of
project cost
Mitigate Cost estimation
and budget
Project Manager
Risk Manager
Historical
evidences and
market analysis
Unclear
definition of role
and
responsibilities
Transfer Stakeholder
engagement plan
Project Manager
Risk Manager
Change in
responsibilities
and arranging
training program
(Mansfield
community,
2013)
Unclear
definition of
Avoid Scope
management
Project Manager
Risk Manager
Identification of
In-scope and out

project scope plan of scope
activities
Legal risks Mitigate Proper
documentation
System analyst Legal agreement
Political risks Avoid Proper
documentation
System analyst Legal agreement
Failure of train
machinery and
engine
Transfer Technical Plan Project Manager
Risk Manager
Improvement in
technical plan
with the
consultant
Poor designing
of train
infrastructure
Mitigate Technical Plan Project Manager
Risk Manager
Improvement in
technical plan
with the
consultant
(Otieno, 2014)
Poor designing
of monitoring
and maintenance
plan
Mitigate Monitoring and
maintenance
plan
Project Manager
Risk Manager
Consultant for
improving
maintenance and
monitoring plan
Unskilled labour Mitigate Stakeholder
engagement plan
Project Manager
Risk Manager
Change in
responsibilities
and arranging
training program
No coordination
between NSW
regional railway
fleet
government and
momentum train
Mitigate Communication
tools
Project Manager
Risk Manager
Use of social
media
(Source: Created By Author)
8. Recommendation
It is recommended to take corrective action plan for settling down the risks associated with
the train replacement program proposed by the NSW regional railway fleet government in
Western Australia. The service level agreement should be signed between the momentum
train and NSW regional railway fleet government so that no complexities occur in the
development cycle of the project. The site engineer and analyst should be appointed for
identifying the problem domain of the existing railway architecture. Project sponsors should
be asked for required funds. Historical data and market analysis should be conducted for
preparing the project budget. The investigation of the passengers requirement should be done
prior to the development of the project plan so that the quality of services and facilities can be
provided to the passengers and their level of satisfaction can be improved.

9. References
Asadi, Z. (2015). An investigation of risks management strategies in projects. Retrieved from
https://www.researchgate.net/publication/307849736_An_investigation_of_risk_mana
gement_strategies_in_projects
Gahan, P., Seivewright, B., and Evans, P. (2014). Work Place health and safety business
productivity and sustainability. 1st ed. Retrieved from
https://www.safeworkaustralia.gov.au/sites/swaseminars/files/workplace-health-
safety-business-productivity-sustainability_0.pdf
Kharaiweish, M. (2013). Project Monitoring and control measures. International Journal of
computer science and information technology, 5(5). Retrieved from:
http://airccse.org/journal/jcsit/5513ijcsit03.pdf
Lammi, H. (2014). Supplier Evaluation and Selection process. 1st ed. Retrieved from:
https://www.theseus.fi/bitstream/handle/10024/105758/Lammi_Hannele.pdf?
sequence=1
LLveskoski, O. (2014). Building construction. 1st ed. Retrieved from:
https://www.theseus.fi/bitstream/handle/10024/82098/HAMK_Building_construction
_2014_ekirja.pdf?sequence=1
Loganathan, R. (2014). The influence of leadership styles on Job satisfaction. 1st ed.
Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.892.1090&rep=rep1&type=pdf
Mansfield Community. (2013). Introduction to project management. 1st ed. Retrieved from
http://www.mansfield.vic.gov.au/Libraries/Community_Development/Intro_to_Projec
t_Management_Manual.sflb.ashx
Monnappa. (2017). Project scope management: What it is and why it is important. 1st ed.
Retrieved from https://www.simplilearn.com/project-scope-management-importance-
rar89-article
Ortenzio, C. (2014). Understanding change and change management processes: A case
study. 1st ed. Retrieved from
http://www.canberra.edu.au/researchrepository/file/81c02a90-6a15-91ae-c7a2-
ff44c96d60b2/1/full_text.pdf
Otieno, F. (2014). The role of monitoring and evaluation in projects. 1st ed. Retrieved from:
https://www.irbnet.de/daten/iconda/CIB8942.pdf
Passenheim, O. (2015). Project Management. 1st ed. Retrieved from
http://home.hit.no/~hansha/documents/theses/projectmanagement.pdf
Schell, C. (2012). Action planning: A programmed approach for Managing change. 1st ed.
Retrieved from
https://www.emeraldinsight.com/doi/abs/10.1108/01437739110139434
Siriruttanapruk, S., and Anantagulnathi, P. (2014). Occupational health and safety situation
and research priority in Thailand. 1st ed. Retrieved from
https://www.jniosh.go.jp/oldsite/old/niih/en/indu_hel/2004/pdf/42-2-6.pdf

Sterling, J. (2013). Translating strategy into effective implementation. 1st ed. Retrieved from
http://www.smocksterling.com/comm/pdf/SS-C-013.pdf
Taiwo, O. (2013). Leadership style: Impact on employee. 1st ed. Retrieved from
https://www.theseus.fi/bitstream/handle/10024/54847/Taiwo_Olawale.pdf;sequence=
1
Tan, W., Steel, A., Toleman, M. (2009). Implementing IT service Management: A Case study
focussing on managing critical success factors. International journal of computer
information system, 50(2). Retrieved from
https://www.researchgate.net/publication/239591143_Implementing_it_service_mana
gement_A_case_study_focussing_on_critical_success_factors
Wilson, D. (2012). Project Governance. Retrieved from
http://www.masterresearch.com.au/downloads/pdfs/Project_Governance_V2.pdf