Risk Analysis and Mitigation Project

Risk analysis and Mitigation Project TABLE OF CONTENTS PART A: PROJECT OVERVIEW 3 Overall Budget for the project 3 Social and economic rationale 3 Key Statistics4 Funding Mechanism5 Key Stakeholders of the project5 PART B: RISK ANALYSIS 5 Risk Analysis 5 PART C: RISK MITIGATION PLAN 8 Risk mitigation plan for identified risks 8 REFERENCES 10 PART A: PROJECT OVERVIEW Western Sydney International Airport is the Australia's second site for the Sydney airport which is located in suburb of

Risk analysis and Mitigation
Project

TABLE OF CONTENTS
PART A: PROJECT OVERVIEW .................................................................................................3
Overall Budget for the project.....................................................................................................3
Social and economic rationale....................................................................................................3
Key Statistics...............................................................................................................................4
Funding Mechanism....................................................................................................................5
Key Stakeholders of the project..................................................................................................5
PART B: RISK ANALYSIS............................................................................................................5
Risk Analysis..............................................................................................................................5
PART C: RISK MITIGATION PLAN............................................................................................8
Risk mitigation plan for identified risks......................................................................................8
REFERENCES..............................................................................................................................10

PART A: PROJECT OVERVIEW
Western Sydney International Airport is the Australia's second site for the Sydney airport
which is located in suburb of Badgerys Creek. This airport is to be planned to have a curfew free
operations. The construction of this airport began in 24th of September in 2018 and is expected to
get completed in December 2026. The site of this airport is officially designed by the Federal
Government 2014 and has a great debate on the location of 2nd airport in Sydney. The site of the
location of the airport lies 13 Kilometres away from south of Penrith CBD and 7 kilometres of
Blue Mountain National Park. The Federal Government of Australia has claimed that it is the
important project for Australia and also claimed that its initial stage of construction phase is
expected to generate more than 4,000 jobs and after the development of airport 34,000 jobs will
generated by 2035. The construction of airport is legislated through the Commonwealth
Government Airport Act 1996 and is named as Sydney Airport under this act.
Overall Budget for the project
In order to get the job of delivering the Western Sydney Airport and establishing WSA
Co in order to develop the entire project and for this Government is providing an equity
investment of $5.3 billion in to the WSA Co fund. The construction has started in late 2018 and
on its completion this airport will have the capacity for 10 million passengers and will also have
a 3.7 Km runway (Facts and benefits, 2019.). Australian Government and New South Wales are
investing $3.6 Billion on the major infrastructure upgrades in order to connect Western Sydney
Airport with Western Sydney to support growing population and this will be done trough
Western Sydney Infrastructure Plan. The entire budget of this project was announced in 2017-
2018 budgeting plan and also announced the investment of $5.3 billion in the project.
Social and economic rationale
One of the major benefit of this project will be for the local population of Western
Sydney as this project has already generated 4,000 jobs in its initial investment and after its
completion it is estimated that airport will offer more than 35,000 jobs by 2035. In long term
proposed airport would result a great economic benefits for Western Sydney and wider region
and in 2063 proposed airport could generate additional value of $5.8 billion and approximately
$1.5 billion of this value-add will be generated in Western Sydney alone. Its benefits will extend
to the employees and businesses in this sector like trade, transport, construction, retail, utilities,

tourism and hospitality sector, administration and professional services (Mignan and et.al.,
2015). So, these benefits will also have effects on the individuals which will increase house hold
income and will give greater access to opportunities for employment.
Key Statistics
The size of Western Sydney Airport is approximately 1,780 hectares which is twice the
size of Sydney Kingsford Smith Airport site. The site of the airport is preserved for the
development for nearly about the developments of 30 years. The planning for this airport has
ensured that there will be the best use for the site for the airport with minimising its impacts on
the surrounding areas and it is also in the plan that land will be preserved for the long term
growth of the airport. In Australia Western Sydney is one of the fastest growing region and
culturally diverse and is home for more than half of the Sydney population. So, this airport can
prove beneficial for the people and for the government too. This project will also help in meeting
the growing needs of the population and will result in the economic growth. The total budget
which have been invested in the project by the Federal Government is $5.3 billion for the airport
and $5.7 billion for Wilton and $1.7 billion for transport links to Badgerys Creek. The cost of
international terminal is estimated to be $1,812 million, costs for domestic terminal will be $583
million, car parking costs will be $202 million, project management and design $707 million and
costs for runways and taxiways will be $551 million approximately. The construction of Western
Sydney has started in September 2018 and will be set to open in December 2026 which is the
estimated time line for the project. The cost for the initial development is estimated to be $2.4
billion and it is believed that initial phase of the project will include only one runway and there
are various key elements for this project like road connections in order to link the airport with
surrounding areas which includes up-gradation of Northern Road to a minimum four lanes and
up-gradation of Bringelly Road to a minimum of 4 lanes between Camden Valley Way and
Northern Road. Another key element is Rail connection, it was released in the final report in
March 2018 that two lines of railway connects will serve the airport one is East-West link from
Parramatta to Badgerys Creek Aerotroplis and another link is North-South Link from Schofields
to Macarthur. The long-term development at the site of airport will have a set of impacts on the
environments which may include:
 Edge effects may result in the reduction of the habitat quality and quantity for fauna and
flora in the adjacent areas.

 Transportation, mobilisation, erosions, etc could increase the dust and could reduce the
health of the animals and plants in the native areas of the site and it could also have the
negative impact on the vegetation.
 It would generate lot of noise, vibrations, lights and pollutions which will have the
negative impact on the environment.
Funding Mechanism
The major funds for the projects have come from the Australian Federal Government and
have committed to invest up to $5.3 billion to fund a company for constructing and operating
Western Sydney Airport. This funding will support two phases one is Airport infrastructure
delivery and second is for the development of the business. \
Key Stakeholders of the project
The stakeholders of Western Sydney Airport are Regulatory Authorities, economic
entities, community and users (Western Sydney Airport More than just an airport, 2019).
PART B: RISK ANALYSIS
Risk Analysis
There are various risks associated with the project like the aircraft safety issues which are
associated with the entire project of building of Western Sydney Airport.
Initiation: At the initiation stage of the projects there are various risks associated with it that
may bring hindrance in the initiating the project. Some common risks which will be faced this
stage are as follows:
 Unknown conditions of the chosen site, the can be also for the risk of the project i.e. the
unknown conditions, the authorities may not be aware of the conditions before choosing
the site like its environmental conditions which may be one of the risk at this stage
(Viswanathan, Tripathi. and Jha,, 2019).
 Poorly written contracts with the construction company, where the terms and conditions
may not be clear.
 Shortage of labour can prove another risk for the project.
 Unexpected increase in the cost of the materials can prove another risk for the projects
(Dyer, 2017).

 Incomplete drawings of the project and poorly defined scope of the project can be another
risk for the project.
Planning Stage: There are various risks which are associated with the planning stage of the
projects one of the major risks associated will be that poorly developed budgeting plan for the
project, incompletion of the project at the given time line, change orders may be another risk
associated with the planning of the project. Change in the design or additional improvement can
prove to be another risk for the Western Sydney Airport Project as this will go against the entire
plan of the project which may result in delay of the project (Scolobig, Pellizzoni and Bianchizza,
2016).
Execution stage: This is the stage where the actual plan is implemented for the project there are
also various risks which are associated within this stage of a project. One of the major risk
associated with this project is that poorly implementation of the plan for the project which can
result in the financial loss, loss of image, delay in the projects, etc. This can be due to poor
management of project which failed to implement the plan in a manner in which it has to be
implemented. During this stage there may be the issues from the suppliers or subcontractors
which may stop supplying the resources for the project can be another risk associated with it.
Another risk associated with this stage lack of safety which may result in injuries and loss of life
of the workers. So, these are risks which can have a negative impact on the execution of the
project.
Monitoring and controlling: This is one of the important stage of the project, which can result
in the success of the entire project. Poor monitoring and controlling can also result in the risks
for the project it may result in lack of quality, accuracy and will decrease the progress of the
airport project. In monitoring and controlling it includes various areas like costings, quality
control, health and safety, timelines and targets, etc. Lack of proper monitoring and controlling
measures can result in negative impact on the projects which may create major problems like
delays, poor designs, increase in the chances of accidents, financial loss, etc.
Closing: When above stages are not followed properly it may have the impact on the closing
stage, any problem in above stage can result in the delay of the project, it may result in the loss
of image of the project for the stakeholders and rest of the world.
Gantt chart

Task Mode Task Name Duration Start Finish Predecessors
Auto
Schedule
d
Initiation 4 days Mon 4/22/19 Thu 4/25/19
Auto
Schedule
d
Planning Stage 6 days Fri 4/26/19 Fri 5/3/19 1
Auto
Schedule
d
Execution stage 8 days Mon 5/6/19 Wed 5/15/19 2
Auto
Schedule
d
Monitoring and
controlling 6 days Thu 5/16/19 Thu 5/23/19 3
Auto
Schedule
d
Closing 4 days Fri 5/24/19 Wed 5/29/19 4
Risk Matrix
ACCEPTABLE TOLERABLE GENERALLY
UNACCEPTABLE

NOT LIKELY RISE IN COST OF
MATERIAL
REVOCATION OF
CONTRACT
LOSS OF IMAGE
POSSIBLE RISE IN LABOUR
COST
ENVIRONMENTAL
RISKS
INJURIES AND
ACCIDENTS
PROBABLE INADEQUATE
OUTCOME
RISE IN COST OF
MATERIAL
FINANCIAL RISK
PART C: RISK MITIGATION PLAN
Risk mitigation plan for identified risks
Risk mitigation planning can be defined as the process of providing the various options
and actions in order to enhance the opportunities of the project and reducing the threats for the
project objectives (Albalate and et.al, 2015). It is the document which has to be prepared by the
project manager of Western Sydney Airport in order to minimise risks. As discussed above there
are various risks where identified in the risk matrix, these risks may have a negative impact on
the project development or progress of the project. So, it is important to formulate the strategies
for minimising these risks so that it can result in the success of a project and does not result in
the delay of the project. The risk mitigation plan or strategies for the identified risks are as
follows:
Financial risk: Financial risk can be minimised by making the budgeting plan of the airport
quite flexible so there will be chances for making the changes which any need arise like
uncertainty or rise in the material cost. For this project managers have to develop a solid plan and
keep reviewing their budgeting plan (Hulett, D., 2016).
Lack of information: This risk can be minimised by making a proper survey for the project and
gather a proper and adequate information for the project which can be helpful from the initiation
till completion of the project. This can be done making in depth research for the project like
identification of potential risk, stakeholders, modes of financing, key elements for the project,

environmental issues, etc. So, collecting of valid information through proper survey will be
helpful for the project and can lead in the success of the project.
Loss of image: This is also the one of the major risk which is associated with the project, this
risk can be minimised by following the strategies and proper implementation of the plan can help
in minimising the risk (Tomanek and Juricek, 2015). As there are lots of hopes which are
associated with project as this project will prove beneficial for the local population so it is
important to focus on the plan.
Injures and Accidents: This is a major project and huge amount of money and people are
involved in the project but there are also the chances of accidents and injuries for the worker
working in the project. Such type of risks can cause hindrances and delays so it very important to
minimise this risk. This can be done by regular checking of safety measures, ensuring the
workers are following the safety measures proper formulation of safety plans for the workers and
keep continuously reviewing it.
Rise in cost of materials: This is also the risk associated with the project i.e. uncertain rise of
material cost. As the estimated completion date of the project in 2026 so there are high chances
of rise in cost of the materials so, this risk can mitigated by keeping flexibility in their budgeting
plan or signing the contract with the suppliers to provide the raw materials at a fixed cost
irrespective of the conditions in the future (Zhang, 2016). Another way of minimising this risk is
to follow the local buy policy by purchasing most of the raw materials locally.
Revocation of the contract: This is also one of the major risk that can have a negative impact o
the project in order to minimise this risk project managers should review the terms and
conditions of the contract with the parties involved in the project. This risk can also be
minimised by formulating the proper contract with the contracting parties with no errors and
omissions.
Inadequate outcome: This is also the one of the major risk which can cost the project, lower the
image, result in delays. This risk can be minimised by effective implementation of the plan and
with proper monitoring and control of a project.
CONCLUSION
The whole report is based on Western Sydney Airport and all risks which are associated
with each step of project management process. It could be concluded that there are many type of
risk which is associated with each step in the management of project which all need to be

managed and resolved on timely bases. Revocation of contract is one of the major risk linked
with closing step of management and this should be resolved by learning about all legal
requirements beforehand only.

REFERENCES
Books and Journals
Albalate, D and et.al., 2015. Risk mitigation and sharing in motorway PPPs: A comparative
policy analysis of alternative approaches. Journal of Comparative Policy Analysis:
Research and Practice. 17(5). pp.481-501.
Dyer, R., 2017. Cultural sense-making integration into risk mitigation strategies towards
megaproject success. International Journal of Project Management. 35(7). pp.1338-
1349.
Hulett, D., 2016. Practical schedule risk analysis. Routledge.
Mignan, A and et.al., 2015. Induced seismicity risk analysis of the 2006 Basel, Switzerland,
Enhanced Geothermal System project: Influence of uncertainties on risk
mitigation. Geothermics. 53. pp.133-146.
Scolobig, A., Pellizzoni, L. and Bianchizza, C., 2016. Public Participation and Trade-Offs in
Flood Risk Mitigation: Evidence from Two Case Studies in the Alps. Nature and
Culture. 11(1). pp.93-118.
Tomanek, M. and Juricek, J., 2015. Project risk management model based on PRINCE2 and
SCRUM frameworks. arXiv preprint arXiv:1502.03595.
Viswanathan, S. K., Tripathi, K. K. and Jha, K. N., 2019. Influence of risk mitigation measures
on international construction project success criteria–a survey of Indian
experiences. Construction Management and Economics, pp.1-16.
Zhang, Y., 2016. Selecting risk response strategies considering project risk
interdependence. International Journal of Project Management. 34(5). pp.819-830.
Online
Facts and benefits. 2019. [Online]. Available Through:
<https://www.wsaco.com.au/the-project/facts-and-benefits>.
Western Sydney Airport More than just an airport. 2019 [Online]. Available Through:
<https://www.architectureanddesign.com.au/getmedia/7130f002-81bc-4ba1-b2e6-
3c78353d4c42/fnbl-team-four-final-proposal.aspx>.