Project Risk, Finance and Monitoring - Desklib

This article discusses the project risk, finance and monitoring of the New Sydney City Deals. It includes identification of the case, size and scope of the project, benefits, expected difficulties, risk assessment analysis, and list of key stakeholders.

Running head: PROJECT RISK, FINANCE AND MONITORING
Project Risk, Finance and Monitoring
University Name
Student Name
Authors’ Note

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PROJECT RISK, FINANCE AND MONITORING
Table of Contents
Solution to Part A.......................................................................................................................2
Solution to Part B.......................................................................................................................7
Solution to Part C.....................................................................................................................13
References................................................................................................................................16

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Solution to Part A
Identification of the case:
The project case selected for the current study is the “The New Sydney City Deals”. The
Western Sydney City Deal can be considered to be a partnership between Australian
Government, NSW Government and regional governments of the Blue Mountains, Camden,
Campbelltown, Fairfield, Penrith, Wollondilly, Hawkesbury and Liverpool.
Overall budget
In essence, the City Deal has the plan for development of future planning along with
streamlined procedures for presenting new homes. This can help in meeting expectations of
the community of regional character, appropriate design along with accessibility to services
as well as transport. As per the federal government, it is a $30 million housing package that
includes “The Western Sydney Housing Package”. In essence, it is anticipated that around
184500 homes will be required over the subsequent 20 years with the NSW government to
generate five along with 20 year targets of housing. In actual fact, this liveability package is
said to entail a $150 million investment in various community facilities as well as amenities
(Nsw.gov.au 2018).
Size and scope of the project with discussion on aims and objectives
The Australian government along with the NSW governments have come together with
regional governments in assenting on a set of commitments (Nsw.gov.au 2018). This can
unlock opportunities in specifically education, employment as well as business for the entire
Western City and its people.
The scope of the current project at a glance includes the following:-

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- Realising the 30 minute city by means of delivering the project of North South Rail Link
-Generating 2, 00,000 jobs by way of supercharging both Aerotropolis as well as agribusiness
precinct as channels (Nsw.gov.au 2018).
-Skilling all the residents in this region and initiating all the Aerospace Institute (Bessis 2015)
-Respecting and at the same time building on regional character by means of $150 million
Liveability Program
-Coordination and innovation by means of a Planning Partnership
-Getting on with the process of delivering for the Western Parkland City with tri-level
governance (Nsw.gov.au 2018).
-Speedy bus service relating Liverpool, Campbelltown as well as Penrith together with the
Aerotropolis by opening of airport
Rationale for the project including benefits
The Australian as well as NSW governments have specific plans for handling growth as well
as delivering infrastructure in the cities. The policy settings include smart cities plan and the
Western City District Plan. The potential for Western Sydney along with its people over the
subsequent 10 years to 20 years can be considered to be really limitless (Nsw.gov.au 2018).
Essentially, at the core of the potential is necessarily a new city, upheld by construction of
new Western Sydney Airport that will link the entire region along with the people of the
region Western Sydney to the whole world. In essence, this investment is said to create world
class opportunities of jobs and superior quality of life (Hillson and Murray-Webster 2017).
This project on Western Sydney City deal has a strong focus on particularly liveability, and
this can benefit all the resident as well as business for many generations to come. In addition

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to this, there remains a strong commitment from both the Federal as well as the State
Government to operate together to concentrate on regional communities as well as local
communities. This will generate more connected along with sustainable Western City that
might prove to be beneficial for the eight government areas engaged, counting the
Hawkesbury.
Therefore, the benefits can be hereby presented below:
- Connectivity: This city deal can help in connecting the Western City thorugh road, rail,
aviation as well as digital infrastructure (Nsw.gov.au 2018).
-Employment opportunity: This project can help in generation of employment and building
the exclusive opportunity of specifically the Western Sydney Airport to drive investment as
well as growth in employment (Hillson and Murray-Webster 2017).
-Development of skills as well as education: The current project necessarily takes up
coordinated approach towards development of education and sharpening of skills (Hillson
and Murray-Webster 2017). Essentially, particular training programs are undertaken to make
certain that different individuals have the opportunity to equip themselves with the requisite
skills to acquire advantage of considerable employment opportunities.
-Planning as well as Housing: A particular package of reform across the entire spectrum of
planning can enhance housing supply along with affordability (Luhmann 2017)
-Liveability as well as environment: Operating together to make certain that Western City is a
nice place to reside in, where there is a inclusive culture that welcomes different communities
and celebrate diverse natural assets (Luhmann 2017)
-Governance: This reflects a shared vision and reveals the plan for implementation for the
project on Western City.

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Any expected difficulties or drawbacks
The expected difficulties in this project include problems in understanding the exact
definition of the set goals of the project. Sometimes the people involved in the project might
start the project without distinct objectives, a particular direction along with a prepared plan.
In case if the goals as well as objectives of the project are not properly defined, then in that
case the project might fail (Hillson and Murray-Webster 2017). Therefore, the entire team
involved in the process need to be clear regarding the roles, accountabilities along with
deliverables right from the beginning.
Again, another expected difficulty in the project development process is the establishment of
unrealistic deadlines. It can be seen that majority of the projects fail owing to unrealistic
deadlines that are unachievable and are driven by enumerated business necessities (Lam
2014).
Scope creep is yet another difficulty that might perhaps be faced. Essentially, this can put
different project managers as well as team members in a difficult spot since unpredictable or
else new alterations can necessarily direct the way towards project failure (Hopkin 2017).
There are lot of little alterations that are as bad as one big change.
Insufficient team skill is also another expected difficulty. Majority of the times, the members
of the team are assigned on their availability and there are contingencies that can affect
availability of the project (Glendon et al. 2016). In case if members of the team are not
skilled or else trained adequately to satisfy the challenges and perform assigned tasks, it can
position various development projects in a hazardous spot.

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List of key stakeholders, groups or individuals involved in the project
-Individuals that reports to different customers
-Sponsors both internal and external
-Upper management as well as executives
-Human Resources
-Workforce outside the project team
Solution to Part B
Risk Assessment Analysis
Principles outlined in the Project Management Body of Knowledge include risk management,
communication management, human resource management, quality management, cost
management, time management, scope management and integration management. As rightly
indicated by McNeil et al. (2015), risk assessment can be considered to be qualitative,
quantitative as well as semi-quantitative. For the purpose of the present study, qualitative
assessment for supporting further analysis of quantitative, but can also deliver information
required for risk evaluation. Essentially, one of the most common mechanisms for qualitative
risk analysis is necessarily the impact probability matrix (Carey et al. 2016). In this two
different variables are in actual fact risk component. In particular, actual technique/process of
this mechanism is the assignment of specific scores for assessment of likelihood and
influence of risk categories. The first step includes setting the impact on a specific scale
ranging between 1 and 5 (Carey et al. 2016).
Impact Analysis: The authorities responsible for undertaking the project on developing the
“The New Sydney City Deals” cam carry out the impact analysis. In addition to this,

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magnitude of influence ranges between very high, high, medium, low and insignificant. The
implication of the impact can be illustrated is as presented below:
Thereafter, the governing unit of the project can consider defining probability of occurrence
of risk. The likelihood level with implications of the score can be assigned to the activities
involved in the project (Verner et al. 2014). The subsequent step is to ascertain exposure to
risk directing values in a table as is presented below:
Based on the steps mentioned in the risk assessment procedure, impact analysis for then
current project can be analysed herein:

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Risk Matrix
Severity/Probability Catastrophic Marginal Critical Negligible
Certain Extreme Extended
delays in
stages of
completion
of the
tasks- High
Extreme High
Likely Extreme Localised
concern
regarding
the housing
package
that has no
influence
on long
term
feasibility-
High
High Extreme
Possible Extreme Moderate Minor
Operational
disruptions,
Internal
dispute-
High
Low
Unlikely Extreme Moderate Financial
Loss -Low
Sustained
worsening

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in working
conditions-
Low
Rare Serious injury
to the people
involved in
the project
(high)
Low
This risk matrix can be considered to be a widespread tool for analysis of risk. In essence,
this can be used to ascertain risk size and whether or not identified risk can be adequately
controlled (Bommer et al. 2015). As per the matrix drawn above, probability as well as
severity of incidents can be evaluated using the matrix.
Serious injury caused to the people involved in the project can be referred to as rare but at the
same time catastrophic. Again, sustained poor working conditions are negligible and unlikely
at the same time. Minor Operational disruptions along with internal dispute in the corporation
can be considered to be possible event and at the same time possible. Again, the events of
Localised concern regarding the housing package that has no influence on long term
feasibility is said to have marginal as well as likely effects (Glendon et al. 2016). In addition
to this, serious injury to the individuals involved in the project can be regarded to be rare and
catastrophic at the same time.
Other processes of assessment of risk include the following:
Root Cause Analysis: In addition to this, authority responsible for the current project can
consider undertaking the root cause analysis (RCA). In this regard, risks associated to the

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project can be analysed using safety based root cause analysis, analysis of failure, production
based analysis, system based analysis as well as process based analysis. Thorough study of
the project under consideration shows that there is risk involved as regards the occupation
health of the workforce that gets involved in the process (Acemoglu et al. 2015). In addition
to this, failure analysis can be utilized in assessment of different technological systems that
can be linked to reliability along with maintenance of the project under consideration.
Detailed analysis reflects that
Production based root-cause analysis shows that there is risk associated to the field or area of
quality control for particularly construction and development of the smart city deals (Reardon
et al. 2017). There are necessarily industrial concerns and quality concerns and quality
control issues associated to tasks involved in the process of developing the housing package.
Additionally, process based root-cause analysis also helps in evaluating business processes
engaged in the tasks of the projects (Bessis 2015). Finally, the system based intricate system
aids in the process of analysing previous areas that required amendments and the amended
considered to correcting the detected areas, management of risk along with analysis of
systems.
Failure Modes and Effect Analysis (also simply referred to as FMEA): Management of the
project under deliberation can consider carrying out risk analysis utilizing the tool of FMEA
(Hewitt 2014). This is necessarily a technique that can be utilized for identification of the
ways in which diverse components, procedures or else systems can fail to satisfy intention of
the design. This tool helps in detecting the following aspects of the project under
consideration:
- All the probable failure modes of different parts of the identified system

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-Analysis of the effects or else impacts of these identified failures on the entire system under
deliberation (Haimes 2015)
-Evaluation of various mechanisms of the failure
-Evaluation of the ways to avoid the failures and mitigate the influences of the detected
failures on the entire system
Evaluation of risks related to project reveals that there are risks related to financial loss.
Therefore, to a certain extent there is apprehension regarding the financial success of the
firm. In this regard, it can be said that potential financial loss can be said to be a root cause of
risk in the area under consideration (Renn 2017). In addition to this, human factors can also
be found to be an important factor that can lead to certain detected risks. For example,
potential injury to the workforce involved in the project can also be considered to be root
cause of risk. In addition to this, legal compliance can again be regarded as a root cause of the
legal risks. Essentially, breaches to specified regulations to various confirmed regulations
stipulated by diverse authorities are also a risk factor under the fundamental factor of legal
compliance. Thereafter, operational functionalities are another root aspect that might lead to
various operational disruptions and can be defined as a risk (Acharya et al. 2017). Further, it
can be hereby added that adverse influences that of negative reputation can be regarded to be
risk. Therefore, reputational risk can be considered to be a root cause of deterioration of the
brand equity of the organization under consideration.

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Solution to Part C
Risk Mitigation Plan and Strategy
The management of the project can consider the following options that include the following:
- Assuming and accepting- Acknowledging the entire existence of a specific identified risk
and make a deliberate decision to accept the same without involving special efforts to control
the recognized risk (Luhmann 2017). In this case, approval of the particular project or else
leaders of the program are essential. In this case, management responsible for the Western
Sydney City Deal can consider the conventional costs, project schedules along with specified
performance parameters. In this case, the identified risks can be characterised as influence to
mission performance resulting from decreased technical performance or else capability
(Hillson and Murray-Webster 2017). Therefore, development of a comprehension of the
impacts of the risks can help in understanding the state of affairs. This option of assuming
and accepting can be ultimately selected as this can help users in deciding whether accepting
the consequences of a particular risk is at all acceptable. Essentially, this can present the
vulnerabilities that affect diverse risk, counter specific dimensions that can be carried out and
several residual risk that might perhaps take place. In this way, management of Western
Sydney City Deal can understand the costs in respect of both time as well as money.
- Avoiding: management of the project can consider adjustment of various requirements of
the program else wise constraints for the purpose of elimination or reduction of various
identified risks (Bromiley et al. 2015). In essence, this kind of adjustment can necessarily be
accommodated by means of alteration in the process of financing, scheduling or technical

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necessities. In this regard, it can be said that working collaboratively can help in attaining a
collective understanding implications of the risk (Lam 2014). In essence, this can help in
understanding projections of specific schedules adjustments required to lessen the risk related
to the project Western Sydney City Deal (particularly, risks related to maturity of technology
or supplementary development to enhance performance).
-Controlling: Implementation of actions for the purpose of minimization of the influence or
else likelihood of the identified risk can be said to the process of controlling the detected risks
(Hopkin 2017). This can help in controlling various identified risks by undertaking analysis
of different options of mitigation. For instance, one alternative is to utilize a commercially
available potential in place of the contractor developed option. For the purpose of developing
alternatives for the purpose of controlling risks in the current program, they can seek out
various probable solutions for identical risk situations (Glendon et al. 2016). At the time of
considering specific solutions, management can take care in the process of evaluating any
architectural alterations required along with their implications.
-Transfer: Management of the firm can take into account reassignment of organizational
liability, accountability along with authority to yet another stakeholder that is willing to
accept overall risk identified in the task. In this context, it can be hereby said that
reassignment of the liability for identified risk zone to yet another organization can be
considered to be a viable option for averting the risks (McNeil et al. 2015). The authority
accountable for then Western Sydney City Deal can transfer the risk when the risk identified
engages a narrow specialised expertise that is not commonly discovered in the own program.
However, transferring a specific identified risk to yet another organization can lead to
dependencies along with lack of control.

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-Watch: Management of the project under consideration can consider adequate monitoring of
the entire environment for diverse alterations that might affect overall nature or else impact of
identified risks.

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References
Acemoglu, D., Ozdaglar, A. and Tahbaz-Salehi, A., 2015. Systemic risk and stability in
financial networks. American Economic Review, 105(2), pp.564-608.
Acharya, V.V., Pedersen, L.H., Philippon, T. and Richardson, M., 2017. Measuring systemic
risk. The Review of Financial Studies, 30(1), pp.2-47.
Bessis, J., 2015. Risk management in banking. John Wiley & Sons.
Bommer, J.J., Crowley, H. and Pinho, R., 2015. A risk-mitigation approach to the
management of induced seismicity. Journal of Seismology, 19(2), pp.623-646.
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Carey, S.C., Colaresi, M.P. and Mitchell, N.J., 2016. Risk mitigation, regime security, and
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Haimes, Y.Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
Hewitt, K., 2014. Regions of risk: A geographical introduction to disasters. Routledge.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
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implementing effective risk management. Kogan Page Publishers.
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Luhmann, N., 2017. Risk: a sociological theory. Routledge.
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techniques and tools. Princeton university press.
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https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/western-sydney-city-deal/
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