Project Risk Management for Regional Rail Fleet Project

This report provides a risk management plan for the regional rail fleet project proposed by the NSW government. It includes the feasibility of the project, risk events that may arise during the operation of the rail system and possible risk treatment and management plan in the events of occurrence.

Running head: PROJECT RISK MANAGEMENT 1
Regional rail fleet project
Student’s name
Institution

PROJECT RISK MANAGEMENT 2
Background information
NSW government has proposed a regional rail fleet project which will run from Sydney to other
regions around the state since there has been difficulty in communication following congestion
on the public transport system and jam traffic in the city roads. The NSW government has
contracted the project of construction of the rail line to the local leading construction company.
Industry Report review
The content of this thesis provides a report based on the risk management plan for the regional
fleet rail contract awarded by the NSW government in their attempt to facilitate transport system
in the country. The report is based on the need for the regional rail by the country's citizen for
their ease in transport communication, the feasibility of the proposed project, risk events that
may arise during the operation of the rail system and possible risk treatment and management
plan in the events of occurrence.
Introduction
Regional rail fleet project is a proposed project based on the transport system by the NSW
government to facilitate transportation system and to solve the people problems on transport. The
NSW government has contracted the project to a local construction firm where they expect the
project's progress report and recommendations about the project.
The report provided includes risk management plans, avoidance, and treatment in case of the
occurrence. (Aven, 2015). The contracted firm is expected to gather information about the
project based on the need for the project, the feasibility, risk, risk treatment and management pl

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Data Collection for the project
The data collection method involved quantitative analysis where information related to the
regional rail fleet was obtained. The data collection method involves an internet questionnaire in
which various information was retrieved based on the rail travelling time table, project budget
and operation route schedule.
Project Budget
Items listed below are for example only
Total Cost
$
‘00000000’
Requested
$
‘00000000’
Personnel 23.00 23.00
Salaries: (include full-time and part-time folks that
will work in the project) think of drivers, workers,
etc)
45.00 44.00
Fringe benefits 12.00 14.50
Total Personnel Costs 79.00 81.50
Equipment 1 1
desktop computers 0.7 1
laptop computers 0.3 1
printer 0.7 1

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scanner 0.6 1
chairs 0.44 1
digital camera 0.66 1
Total Equipment 3.57 7
Total Non-Personnel Expenses
Total Direct Costs (personnel and non-personnel
expenses)
234 234
Total Project Costs/Total Request 365 365

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Australian government’s need for the project
To facilitate the movement of people and goods with ease within the country was the main
reason why the need for such a project arose. (Bessis, 2015).
Another related need to the projects was to generate more revenues into the economy since
the since the rail line is estimated to cover almost all the border cities to the neighboring
countries in which it will be accessed by good number of commuters.
Feasibility of the project
The feasibility of the project refers to the capability or how conveniently a project may be
undertaken. Feasibility of the regional rail fleet proposed by the NSW government thus
according to the research conducted by the contracted firm reported that the project was valid
and could greatly benefit the country locals in terms of easy communication.
The degree of the project being done was considered very high depending on the availability
of the required resources which were earlier availed by the government, this includes the funding
of the project and readily availed resources like labor and engineers responsible for the
construction of the project. (Burtons haw-Gunn, 2017).

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Project associated risk
The regional rail fleet proposed project associated risk includes the uncertainty in the various
fields like safety of the workers, labor supply during the construction process and change in
project management body which are categorized as positive and negative risk events related to
the project.
Negative and positive risk events
Negative risk events
The uncertainty of the occurrences related to the proposed project of regional rail fleet
construction and its operations to the people and the NSW government includes managing
change orders, labor shortages, safety hazards which its likelihood to occur is very high.
(Brindley, 2017).
The firms might be faced by the labor shortage challenges during the construction of the
regional rail fleet. To some parts of the country where weather conditions are not friendly like
excess drought may lead to low labor turn out since very few laborers will persevere the ash
climatic condition in the area. Conditions like war or attack from communities’ members who
did not welcome the idea of the rail construction may result in low turnout by the working force.
(Chance & Brooks, 2015).
Taxation and production cost on the construction materials may result in an unexpected
increase in the price of the construction materials needed for the completion of the project.
(Haimes,2015).

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Safety hazards like accidents and injuries to the working force occurring at the site are
some of the common risk events which often do happen in the course of constructing. This arises
from the dangerous and poisonous tools and machines being used by the workers which are very
harmful to the body when in contact hence negatively affects the performance of the individual
injured. (Glendon & Clarke,2015).
Positive risk events
Positive risk events in the regional rail fleet project includes engineering, design and building
process where every manager wish for the smooth completion of the proposed project without
many breakdowns in construction process upon commence of the project. With successful
completion of the project and the outcomes favors the management expected outcome. The event
will be treated as positive risk event by the company.
Project management risk framework
Risk management framework is the possible structures involved in the risk management by
the company. Risk management structures applied by the management body include the risk
management plan and strategies designed by managers.
Risk management plans employed by the contracted company to undertake the construction
work includes risk treatment strategies like acceptance, avoidance and reduction of possible risk
related to the project are discussed in the report below.

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Risk treatment strategies
Treatment of risk after the occurrence is very important to most of the organizations and
companies since when the risk occurs it will result from either financial loss to the involved
parties or physical injuries to the parties involve and thus treatment after the occurrence is
preferred by managers. (Hulett, 2016).
According to Kerzner & Kerzner (2017). Risk avoidance as a treatment strategy of risk
involves avoiding performing activities which may lead to injuries or financial loss to the firm.
Avoiding risk by the risking parties is a better way to treat risk since through avoiding such risky
actions, there will no casualties or financial loss to the operating firms hence the management
will not incur the extra cost of handling the risk in case of occurrence. Reduction of the risk is
another strategy to treat uncertainty.
Modarres (2016) argued that, transferring of risk to the third party like insurance companies
will take the full responsibility of the firm in case of risk occurrence through compensation or
replacement of the damaged property
Risk acceptance is the choice of the management body of a particular firm or organization to
face the risk in case of occurrence.
Risk management plan
A risk management plan is designed by the manager in an attempt to eliminate or reduce the
effect of risk events when they occur. Identification, control, and assessment of the risk are some
of the discussed plans in risk management. (Sadgrove, 2016).

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Risk identification involves a manager determining the possible causes of risk and
establishing a correspondence measure on possible ways of handling such risk when it finally
occurs.
Control of risk as a management plan designed by the manager refers to the possible ways
one can employ in order to reduce the impact of the risk upon its occurrence.
Assessing the risk by the manager is a management plan for the risk since the manager will
assess the possible causes of such risk event and design preventive measures against a similar
occurrence. (Sweeting, 2017).
Recommendations
i. The NSW government should proceed with its proposed project of building a new regional
rail fleet. This because it will benefit the entire population of the country either directly or
indirectly.
ii. The government should inform the public on the proposed project the clearly estimate the
amount of land required for the construction. This is necessary to avoid community dispute on
land for the project.

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Literature review
The report provided by the contracted company on the need and possible risk events related to
the construction of the regional rail project has identified some of the common risk which
requires government intervention in management. Such risk is categorized as positive and
negative risk which should be treated accordingly to ensure success of the proposed project.
Findings based on the research conducted shows that the government need for the project
Conclusion
Following the above report, NSW government should continue with the proposed project
since it will be more beneficial to the people of Sydney and also it will aid to boost the country's
economy since upon completion of the construction work, the regional rail fleet will generate
revenues to the NSW government since the rail will cover long distance thus serves a large
number of commuters.

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References
Aven, T. (2015). Risk analysis. John Wiley & Sons.
Bessis, J. (2015). Risk management in banking. John Wiley & Sons.
Brindley, C. (2017). Supply chain risk. Routledge.
Burtonshaw-Gunn, S. A. (2017). Risk and financial management in construction. Routledge.
Chance, D. M., & Brooks, R. (2015). Introduction to derivatives and risk management. Cengage
Learning.
Glendon, A. I., & Clarke, S. (2015). Human safety and risk management: A psychological
perspective. CRC Press.
Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons.
Hulett, D. (2016). Practical schedule risk analysis. Routledge.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Modarres, M. (2016). Risk analysis in engineering: techniques, tools, and trends. CRC press.
Sadgrove, K. (2016). The complete guide to business risk management. Routledge.
Sweeting, P. (2017). Financial enterprise risk management. Cambridge University Press.