Risk Management Plan

The paper reflects on the implementation of the Western Australian rail fleet project and the risks associated with it. It discusses the risk management framework, qualitative risk assessment, risk response plan, and risk analysis. Recommendations are provided for avoiding risks in the project.

Running head: RISK MANAGEMENT PLAN
Assignment 2: Case Study: Project - Regional Rail Fleet in Western Australia
Name of the Student
Name of the University
Author’s Note

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Executive Summary
The paper mainly reflects on the implementation of Western Australian rail fleet project between
Perth and regional Centres. It is found that the Western Australian government mainly aims to
replace the rail system in order to enhance safety, comfort, reliability as well as accessibility of
the customers from Sydney to different regional centres. However, it is analyzed that while
undertaking this project there are a number of risks that can occur within the project. The paper
mainly implements risk management plan in order to determine, access, evaluate as well as
mitigate the risks and challenges. In addition to this, the paper uses fish bone diagram for
analyzing the risk. Moreover, the paper also provides proper recommendations for avoiding the
risks and challenges within the Australian rail fleet project.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Risk management framework......................................................................................................3
2.1 PMBOK Risk management framework.................................................................................3
2.2 Qualitative risk assessment....................................................................................................5
2.3 Risk response plan...............................................................................................................15
2.4 Risk analysis........................................................................................................................16
2.5 Risk responses.....................................................................................................................26
2.6 Risk implementation............................................................................................................27
2.7 Monitoring risk....................................................................................................................33
3. Recommendations......................................................................................................................34
Bibliography..................................................................................................................................36

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1. Introduction
The paper mainly reflects on the implementation of a rail system between Perth and
regional centres in Western Australia. The Western Australian government is taking the initiative
of replacing the ageing Western Australia rail fleet including EXPLORER, Endeavour trains as
well as XPT that mainly includes trains of 36 years old. The main aim of the government is to
undertake the project in order to stimulate the regional economy for creating proper sustainable
job opportunities as well as skills. In addition to this, the new train facility would be helpful in
improving safety, comfort, reliability as well as accessibility of the customers from Sydney to
different regional centres. However, while undertaking the project, there are number of risks that
can create negative impact on the progress of the project. The paper mainly aims to undertake
qualitative risk assessment which will be supported by PMBOK in order to identify, analyze as
well as implement proper risk management strategies in order to resolve the risks that occur in
Western Australian rail project. Furthermore, the paper provides recommendation with suitable
justification on the lessons that are learnt in context to risk responses and monitoring plan.
2. Risk management framework
2.1 PMBOK Risk management framework
According to Project Management Institute (2017) the PMBOK project risk management
knowledge areas are generally categorized into seven different processes that include risk
management planning, risk identification, qualitative risk analysis, quantitative risk analysis,
planning of risk responses, implementing risk response as well as monitoring of project risk. It is
found that the initial step of the project mainly involves production of proper risk management
plan which is considered as one of the important component for the overall project management

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plan. It generally includes risk categorization as well as identification of different types of
procedures in order to reassess the risks and for defining the probability as well as impact of the
risk. On the other hand, it is stated by Brioso (2015) that a proper list of potential risks for the
project cost, schedule as well as other critical success factors are generally considered as one of
the key for proper risk management. It is found that checklist is one of the good source for
identifying the risks that are associated with the project. The tools and techniques that are
utilized for determining the risks mainly include expert judgement as well as data gathering.
On the other hand, it is stated by Qian and Lin (2016) that qualitative risk analysis is
generally done in order to prioritize the risks as well as challenges that are associated with the
project. Some of the risk components are generally categorized into impact and probability of
occurrences. Each of the risks that are present on the risk register must be analyzed by ranking
two of the underlying variables (Project Management Institute, 2017). It is found that risk data
quality assessment as well as risk probability and impact assessment matrix are generally utilized
in order to perform qualitative risk analysis. In addition to this, it is found that while planning the
risk responses, it is quite important to create proper action plan for successfully monitoring the
risk triggers so it will be easier to get possible warning.
Furthermore, the implementation of risk response is needed in order to mitigate the risks
as well as challenges which are associated with the project. It is found that the implementation of
risk responses is generally done during the execution phase of the project. It is found that expert
judgement as well as interpersonal and team skills are generally required for properly
implementing the risk responses (Qian & Lin, 2016). It is found that throughout the entire
project, the risk register needs to be monitored properly. Moreover, it is identified that re-

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analysis of risks generally generates different priorities as well as necessities for implementing
the risk response plan.
2.2 Qualitative risk assessment
Expert judgement is one of the terms that mainly refers to one of the technique in which
judgement is generally made upon proper set of criteria or expertise that has generally be
acquired in a proper area of knowledge or industry. It is found that the risks that can be faced by
the NSW government is analyzed with the help of expert judgement technique (Hwang, Zhao &
Yu, 2016). With the help of this technique, it is found that there are a number of risks that can
create obstruction within the progress of the rail project between Perth and regional centres in
Western Australia. The risks that are assessed are generally reflected below by reflecting on
impact and probability of occurrence of the project risks.
S.NO CATEGORY RISK
TITLE
DESCRIP
TION
IMPACT PROBAILI
TY
RISK
OPPORTU
NITY
1
Technical risk Utilities The cost
that is
required
for
maintainin
g the
utilities
generally
get
Minor Possible Risk

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increased
in
Australian
rail project
Technology
issues
Utilization
of
outdated
technolog
y for the
developme
nt of
Western
Australian
rail fleet.
High Likely Risk
Estimates,
Assumptions
and
Constraints
Failing to
gather
proper
data about
the rail
fleet
project in
Western
Australia.
Minor Likely Opportunity

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2 Management
risk
Stake holder
management
If the
project
managers
are
unexperie
nced then
they are
unable to
manage
the
stakeholde
rs
Moderate Possible Risk
Delays in
schedule
Due to
safety
related
concerns,
it is found
that delay
occurs
within the
schedule
of the
project.
Severe Likely Risk

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Delay of
matrix
supply
Delay of
matrix
supply
occurs due
to
schedule
slippage.
Moderate Possible Risk
Learning
new skills
Due to
improper
training
facility,
the team
members
are unable
to learn
new skills.
Significant Likely Opportunity
Scope creep If the
project
scope is
not
followed
then the
chances of
Significant Likely Risk

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scope
creep is
quite high.
3 Commercial
risk
Contract
issues
Disagreem
ent within
the project
team is
seen due
to contract
related
challenges
.
Significant Possible Risk
Funding of
the project
If the
sponsor
does not
provide
funding to
the project
then the
progress
of the
project get
obstructed
Severe Likely Risk

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.
Employment Due to
presence
of
improper
profession
al skill,
the
chances of
employme
nt is quite
high.
Moderate Possible Opportunity
Shortage of
technical
work
Due to
unavailabi
lity of
technical
team
members,
there is
shortage
of
technical
work.
Significant Possible Risk

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4 External risk
Changes in
Government
Recently,
the
Western
Australian
governme
nt changes
and it is
analyzed
that this
can create
negative
impact on
the
project.
Moderate Possible Risk
Changes in
regulations
Due to
change in
regulation,
it would
be quite
difficult
for the
new
Moderate Possible Risk

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project
manager
to
understand
the
changes
within the
regulation
effectively
.
Increase in
costs
The
increment
in project
can cause
a number
of
financial
issues.
Significant Possible Risk
weather Due to
improper
weather
condition,
the work
Significant Possible Risk

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of the
project
can be
obstructed
Improving
of machines
Improvem
ent of
machines
generally
needs
huge
amount of
money but
creates
positive
impact on
the
project.
Moderate Possible Opportunity
Impact
Likelihood
Negligible Minor Moderate Significant Severe
Very
likely
Likely Estimates, Technology Delays in

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Assumptions
and
Constraints
issues,
Learning
new skills,
Scope
creep
schedule,
Funding
of the
project
Possible Technical
risk
Stake holder
management,
Delay of
matrix
supply,
Employment
,
Changes in
Government.
Changes in
regulations,
Improving of
machines
Contract
issues,
Shortage of
technical
work,
Increase in
costs,
weather
Unlikely
Very
Unlikely

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2.3 Risk response plan
According to Chapman (2016), the risk response planning is defined as one of the way
that helps in determining proper ways for reducing the threats which are related with the project
and also helps in providing proper opportunities for enhancing their impact. It is the role of the
project managers to eliminate the threats that are generally associated with the Western
Australian rail fleet project. For those threats that cannot be get mitigated, then the project
manager generally creates a proper contingency plan (Wang et al., 2016). It is not always needed
to mitigate the risk due to time and resource constraints however, it is quite necessary to review
the risk in the entire lifecycle of the project. The risk response strategies that are generally
developed for the Western Australian rail fleet project are generally reflected below:
S.NO CATEGORY RISK TITLE RISK RESPONSE
1
Technical risk Utilities Mitigate
Technology issues Avoid
Estimates, Assumptions
and Constraints
Avoid
2 Management risk
Stake holder
management
Avoid
Delays in schedule Mitigate
Delay of matrix supply Mitigate
Learning new skills Avoid
Scope creep Mitigate
Contract issues Avoid

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3 Commercial risk Funding of the project Mitigate
Employment void
Shortage of technical
work
Avoid
4 External risk
Changes in Government Mitigate
Changes in regulations Mitigate
Increase in costs Avoid
weather Mitigate
Improving of machines Accept
2.4 Risk analysis
Fishbone
According to Coccia (2018), cause and effect diagram is often known as the fishbone
diagram that generally helps in brainstorming for determining the possible causes of the problem
as well as helps in sorting different ideas into useful categories. A fishbone diagram is
considered as one of the more structured approach or tools that are generally available for the
purpose of brainstorming a problem (Chang, 2015). The Fishbone diagram helps in identifying
the possible reasons of the issues and challenges that can create impact on the Western
Australian rail fleet project. The fishbone diagram for the Australian rail fleet project is generally
provided below:

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Figure 1: Fishbone diagram
(Source: Created by Author)
Roles and responsibilities of stakeholder
Stakeholder Roles and responsibilities
Steering committee The steering committee is mainly responsible
of monitoring the quality of the project that is
developed by providing proper advice about
the changes.
Risk analyst Risk analyst is the person who analyses the
risks that are associated with the development
of Western Australian rail fleet.
Project manager It is found that the project manager is the
individual who takes the entire responsibility

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of managing the project effectively on time.
Project team The project team is mainly responsible of
managing the work that is associated with
managing risks that occurs due to the
construction of Western Australian rail fleet.
Risk analysis table
S.N
O
CATEGOR
Y
RISK
TITLE
IMPAC
T
PROBAILIT
Y
RISK
OPPORTUNI
TY
SUMMAR
Y
1
Technical
risk
Utilities Minor Possible Risk It is found
that due to
rise in cost
of utilities
maintenanc
e, it creates
minor
impact on
the project
Technolog
y issues
High Likely Risk It is found
that the
probability
of

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technologic
al risk is
likely and it
creates
high impact
on the
project
Estimates,
Assumptio
ns and
Constraints
Minor Likely Opportunity It is found
that it
generally
creates
minor
positive
impact on
the project.
2 Managemen
t risk
Stake
holder
manageme
nt
Moderate Possible Risk It is found
that the
probability
of
manageme
nt risk is
possible
and it

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creates
moderate
impact on
the project
Delays in
schedule
Severe Likely Risk Delays
within the
project can
create
severe
impact on
the project
Delay of
matrix
supply
Moderat
e
Possible Risk The delay
of matrix
supply has
medium
possibility
of
occurrence
and it
generally
create
moderate
impact on

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the project
Learning
new skills
Significa
nt
Likely Opportunity Improper
learning
skills
creates
significant
impact on
the project.
Scope
creep
Significa
nt
Likely Risk The
problem of
scope creep
mainly
creates
significant
impact and
the
probability
of
occurrence
of this risk
is likely.
3 Commercial
Contract
issues
Significa
nt
Possible Risk The
contractual

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risk issues
generally
creates
significant
impact on
the project.
Funding of
the project
Severe Likely Risk Improper
funding
creates
severe
impact on
the project
and the
probability
of
occurrence
of such risk
is likely.
Employme
nt
Moderate Possible Opportunity It
generally
creates
moderate
impact on

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the project.
Shortage
of
technical
work
Significa
nt
Possible Risk It generally
create
significant
impact on
the project
and the
possibility
of
occurring
of such risk
is
considered
to be high.
4 External
risk
Changes in
Governme
nt
Moderate Possible Risk Change in
government
creates
moderate
impact on
the project.
Changes in
regulations
Moderate Possible Risk Changes in
regulation

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creates
moderate
impact with
high
possibility
of
occurrence
of such
risks.
Increase in
costs
Significa
nt
Possible Risk It is found
that
increase in
cost can
generally
creates
significant
increase
inn cost.
weather Significa
nt
Possible Risk Due to
improper
weather
condition,
significant

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impact on
the project
is generally
created.
Improving
of
machines
Moderate Possible Opportunity It is found
that
improveme
nt of
machines
creates
moderate
impact on
the project
Probability Impact coloured matrix
The probability Impact matrix for the risks that can occur within the Australian fleet
project are generally reflected below:
Impact
Likelihood
Negligible Minor Moderate Significant Severe
Very
likely
Likely Estimates,
Assumptions
Technology Delays in

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and
Constraints
issues,
Learning
new skills,
Scope
creep
schedule,
Funding
of the
project
Possible Technical
risk
Stake holder
management,
Delay of
matrix
supply,
Employment
,
Changes in
Government.
Changes in
regulations,
Improving of
machines
Contract
issues,
Shortage of
technical
work,
Increase in
costs,
weather
Unlikely
Very
Unlikely

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2.5 Risk responses
S.NO CATEGORY RISK TITLE RISK
OPPORTUNITY
RISK
RESPONSE
1
Technical risk Utilities Risk Mitigate
Technology issues Risk Avoid
Estimates,
Assumptions and
Constraints
Opportunity Avoid
2 Management risk
Stake holder
management
Risk Avoid
Delays in schedule Risk Mitigate
Delay of matrix
supply
Risk Mitigate
Learning new
skills
Opportunity Avoid
Scope creep Risk Mitigate
3 Commercial risk
Contract issues Risk Avoid
Funding of the
project
Risk Mitigate
Employment Opportunity void
Shortage of
technical work
Risk Avoid

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4 External risk
Changes in
Government
Risk Mitigate
Changes in
regulations
Risk Mitigate
Increase in costs Risk Avoid
weather Risk Mitigate
Improving of
machines
Opportunity Accept
2.6 Risk implementation
The risk implementation plan for the risks that can occur within the Australian rail fleet
project are generally reflected in the table below:
S.NO CATEGORY RISK TITLE RISK
OPPORTUNITY
Measures
implementation
1
Technical risk Utilities Risk It is quite
necessary to
manage the
budget of the
project properly
so that the
increment in cost

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for maintaining
the utilities does
not create any
type of impact on
the project.
Technology issues Risk It is quite
important for the
Western
Australian
government to
utilize proper
technologies that
are necessary for
the project.
Estimates,
Assumptions and
Constraints
Opportunity Proper estimation
as well as
assumption are
required for
keeping the
project on the
track and for
avoiding issues
Stake holder Risk It is quite

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2 Management risk
management necessary for the
HR managers to
take proper
important steps
for resolving the
risks as well as
challenges that
are associated
with improper
stakeholder
management.
Delays in schedule Risk Weekly tracking
of project
schedule is quite
important for
avoiding delays
within the project.
Delay of matrix
supply
Risk It is quite
necessary to
follow the project
schedule properly
for avoiding
delays within the

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project.
Learning new
skills
Opportunity It is very much
necessary to learn
new skills in
order to manage
the work of the
project.
Scope creep Risk Following the
scope of the
project is quite
important for
avoiding the
problem of scope
creep.
3 Commercial risk
Contract issues Risk The contractual
issues related
with the project
needs to be
resolved by
implementing
proper strategies.
Funding of the
project
Risk It is necessary to
have enough

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amount of
funding for the
project in order to
start with the
project work
Employment Opportunity It is quite
important to
arrange proper
employment
facilities for the
workers of the
organization.
Shortage of
technical work
Risk Training and
workshop
facilities must be
arranged in order
to improve the
technical skills of
the team
members.
Changes in
Government
Risk It is found that the
organization must

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4 External risk accept the risk for
progressing with
the work of the
project.
Changes in
regulations
Risk The changes in
regulation must
be accepted for
avoiding negative
impact.
Increase in costs Risk Proper
management of
project budget is
generally
necessary for
avoiding the risks
that occur due to
improper budget
management.
weather Risk Alternative
options must be
present for
avoiding the
difficulties as

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well as
obstruction within
the project due to
weather
conditions.
Improving of
machines
Opportunity The
improvement of
machine must be
done properly for
providing proper
facilities to the
workers who are
engaged with the
Western
Australian rail
fleet project.
2.7 Monitoring risk
The steps that are generally required to be taken in order to analyze the success or failure
of the risk responses that are created for resolving the risk that can occur within the Western
Australian rail fleet project. The steps that are generally taken for monitoring the risks are
generally elaborated below:

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Weekly tracking: It is quite necessary to track the risks that can create impact on the
Western Australian project on a weekly basis for ensuring that the risk mitigation strategies that
are implemented are helpful in resolving the risks (Leveson, 2015).
Reporting: Reporting about the progress of risk management generally helps in
providing proper idea that the risk management strategies that are implemented are quite helpful
in resolving the challenges and issues that are related with the project.
Auditing and evaluating: Auditing as well as evaluation on regular basis is quite
important for ensuring whether the implemented risk management strategies have become
successful for not (Tupa, Simota & Steiner, 2017).
3. Recommendations
Recommendations
The recommendations that must be followed by the Western Australian rail fleet project
in order to avoid risks are generally elaborated below:
Tracking of project on regular basis: Tracking of project on regular basis is needed for
ensuring that the entire project is on track and it will get completed on proper time and thus the
project risks can be avoided to some extent.
Proper management of project: Proper management of project with proper strategies
are generally required for avoiding the risks that are mainly associated with the project.
Hiring experienced and skilled team members: It is found that hiring skilled as well as
experienced team members will not face any type of difficulty in progressing with the project
and can generally complete the project by handling the issues that occur.

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Lessons learnt
It can be learnt from the entire project, that the risks that are associated with the project
must be identified in the initial stages for reducing its impact on the project and then the
identified risks must be analyzed with the help of risk management tools like fish bone diagram
in order to analyze the reasons behind the risk. Moreover, I have learnt proper implementation of
risk response are beneficial in resolving the risks and challenges and further it is also necessary
to utilize proper risk monitoring steps for analyzing whether the implemented strategies are
helpful or not.

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