Risk Management Plan for Melbourne Metro Tunnel

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This risk management plan outlines the strategies and processes for managing risks in the construction of the Melbourne Metro Tunnel project. It includes consultation and communication strategies, establishing the context, risk assessment process, risk treatment, and risk monitoring and review.

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Running head: RISK MANAGEMENT
Risk management plan- Project: Melbourne Metro Tunnel
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Introduction............................................................................................................................3
1.1 Project information...........................................................................................................3
1.2 Project scope....................................................................................................................3
1.3 Project objectives.............................................................................................................4
1.4 Risk management process................................................................................................4
2. Consultation and communication strategies...........................................................................5
2.1 Internal communication...................................................................................................6
2.2 External communication..................................................................................................7
3. Establishing the context.........................................................................................................8
3.1 Internal context.................................................................................................................8
3.2 External context...............................................................................................................9
3.3 Risk management context................................................................................................9
3.4 Risk criteria......................................................................................................................9
3.5 Stakeholders...................................................................................................................11
3.6 Roles and responsibilities...............................................................................................12
3.7 Risk management policy................................................................................................13
4. Risk assessment process.......................................................................................................13
4.1 Risk identification..........................................................................................................13
4.2 Risk analysis...................................................................................................................16
4.3 Risk evaluation...............................................................................................................17
5. Risk treatment......................................................................................................................18
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5.1 Probable treatment options.............................................................................................18
5.2 Effective treatment option..............................................................................................19
6. Risk monitoring and review.................................................................................................20
6.1 Process............................................................................................................................20
6.2 Risk closure....................................................................................................................21
Bibliography.............................................................................................................................22
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1. Introduction
1.1 Project information
The paper mainly reflects on the construction of “Melbourne metro tunnel”. It is
found that the main aim of the project is to develop an end-to-end rail line in south east with
very much high capacity of trains as well as five underground stations. The project of metro
tunnel that will be undertaken will generally be helpful in creating proper capacity on the
entire network in order to enable about one and half million passengers across Melbourne.
The concept of metro tunnel is created as Melbourne is growing steadily and therefore it is
not possible to have more trains in the city as the city loop is full (Metrotunnel 2019).
Therefore, a new dedicated pathway is generally created through the inner Sunbury,
Cranbourne as well as Pakenham services such that more trains can run across the city. In
addition to this, it is found that the construction of metro tunnel in Melbourne is considered
as one of the key for the expansion in the future by successfully enabling the growth of the
transport system.
The metro tunnel that will be constructed will generally include twin rail tunnel of
nine kilometres from west to south-east of the city. The project also includes construction of
new underground stations with very much high capacity of signalling for maximizing the
effectiveness of the new fleet that consists of proper capacity of the trains. Moreover, wider
network generally comprises of a number of works including proper infrastructure for
facilitating the access to sidings and improvement within the signalling headway.
1.2 Project scope
The scope of the project mainly includes:
Twin rail tunnels of nine kilometre from Cranbourne line to Sunbury line
Five new stations will be constructed underground

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High capacity of signalling for maximizing the efficiency of the new fleet
Interchange of trams between the Domain interchange and Anzac station
1.3 Project objectives
The project objective is to construct metro tunnel for the city of Melbourne for
creating a new end-to-end rail line in south east in order to provide a new dedicated pathway
through the inner Sunbury to Cranbourne such that more trains can run across the city
without creating any problem for the trains that runs on the city.
1.4 Risk management process
As the project that is undertaken mainly engages in the construction of a metro tunnel
and it is analyzed that the construction of the project will face high degree of uncertainties.
According to (McNeil, Frey and Embrechts (2015), risk is mainly defined as one of the event
that generally has a probability of either creating a positive or a negative impact on the
project progress. Thus, it is analyzed that the project of Metro tunnel in Melbourne is facing a
number of issues and challenges as the there is no project that does not have uncertainties, If
the risk and challenges of the project are properly managed then it will be helpful in ensuring
the final project success.
In order to properly ensure the effectiveness of project risk management, it is quite
necessary to adopt proper standard method that should be applied and it is necessary to
include AS/NZS ISO 3000:2009 within the risk management plan so that it can provide
proper guidance to the entire risk management procedure. It is found that AS/NZS ISO
3000:2009 assist in making better commitment in order to understand as well as manage the
risks whether positive or negative (Ho et al. 2015). In addition to this, it is mainly utilized in
order to properly harmonize the entire risk management procedures and further helps in
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giving a common approach in order to support different types of standards in order to deal
with different risks that is generally not intended for the certification process.
Figure 1: Risk management process in AS/NZS ISO 3000:2009
(Source: Created by Author)
2. Consultation and communication strategies
It is found that in order to undertake the construction of metro tunnel, it is necessary
to prepare a good consultation and communication plan. Both the consultation as well as
communication plays a significant role in giving information about the different types of risks
that are associated with the project and their impact on the success of the project (Bromiley et
al. 2015). Thus, consultation and communication plan are generally categorized into internal
and external which are generally elaborated below:
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2.1 Internal communication
The internal communication that is required for the project is generally outlined in
the table below by reflecting on the person responsible, frequency of the communication as
well as on the use of proper communication strategy.
Type Frequency Communication
method
Responsible person
Pre-start meeting Daily Pre-starting meeting
is generally
conducted for
reflecting the aim of
the discussion.
Engineers,
construction workers
and site supervisors
Safety committee Monthly Discussion on the
safety procedure
with the help of on-
site meetings.
Safety coordinator,
project manager and
senior managers
Site induction Weekly Induction procedure
will be undertake for
the undertaken
project.
Engineer, safety
coordinator
Safety consultation Weekly The safety
committee generally
discusses the safety
related concerns and
reviews all the work
that are undertaken
Site supervisor,
construction workers

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by the stakeholders.
2.2 External communication
All the external parties that are generally related with the project must remain linked
with the success which may occur. Thus, communication with this parties are generally done
with the help of personal consultation method or electronic method for making sure that the
stakeholders are not facing any type of challenges. The table that is provided below reflects
on the risks that are associated with external stakeholders.
Type Frequency Communication
method
Responsible person
Incident notification Queerly Information will be
provided to the
external parties of
any type of incidents
that occur with the
help of format
reports or email.
Project manager
Audit report Occurrence of
reports for incidents
Any type of
conformances are
generally informed
and rectified to the
close out procedure
will be completed.
Safety manager,
Project manager,
client and
supervisors.
Public signage Daily It is found that
signage by the
legislation should be
Site personnel,
engineers
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provided.
3. Establishing the context
It is found that in context to AS/NZS ISO 31000:2009, it is quite significant to
properly define that specific context by successfully outlining the risk criteria, stakeholders,
internal and externa context, roles and responsibilities as well as the proper management
policy for proper management of the project.
3.1 Internal context
The project of Metro tunnel that is mainly undertaken for allowing proper operational
separation of different types of exiting lines that further helps in increasing the capacity of the
rail network to the frequencies of metro style. In addition to this, it is found that the project is
one of the part of the PTV network development plan. It is found that in February 2015, state
government of Melbourne (Metrotunnel 2019). It is found that in the year 2015, the state
government take the initiative of establishing the Melbourne metro rail authority with the
funding of around $40 million in funding for properly overseeing planning of the project and
around $1.5 million for commencing land as well as property acquisition as well as proper
detailed route related investigation. It is found that the most of the project would be built as a
public private partnership were the private sector generally requires funding much of the
estimated $9 billion cost upfront.
3.2 External context
It is found that the Metro tunnel will generally helpful in creating proper end-to-end
rail line from the south east to west line with appropriate capacity of trains and five different
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underground trains. It is found that the creation of the tunnel will be helpful in developing
proper network which will further helpful in enabling more than half a million passengers
who will generally cross the network of the train for utilizing proper rail system during the
entire peak periods. In addition to this, it is found that by creating a proper dedicated
pathway with the help of Sunbury and Pakenham services, it is found that more trains will
generally run by crossing the line of metropolitan rail network (Metrotunnel 2019).
Moreover, the construction of metro tunnel is one of the key to the future expansion for
enabling the entire transport system with the growth within the community.
3.3 Risk management context
The risk management plan mainly aims to properly identify the risks for providing
proper risk mitigation plan in order to reduce the risks that might create adverse impact on the
project employees as well as on the objectives of the organization. The risk assessment
procedure generally focuses on the different approaches that are manly used in order to
determine, analyze as well as evaluate different types of risks (Wiengarten et al. 2016). It is
found that the risk management plan that is generally designed for providing proper
structured framework for the various individuals who are mainly involved with the project for
managing the project risks as well as challenges. In addition to this, it is quite necessary to
assess the risks by properly focusses one of the major issue.
3.4 Risk criteria
The project must utilize a clear outline with the help of Hazard and risk management
policy in context to liability for various risk criteria that is generally related with the work
site. It is found that in order to properly grade the risks as well as proper acceptance criteria it
is found that 5 point scoring system is mainly utilized for reflecting the degree of the risk that
generally concentrates on the likelihood, consequence as well as detectability for each of the
risks that are identified.

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Risk score description
Risk score Description
Low The risk is managed by various routine
related procedures.
Medium It is quite necessary to follow procedures as
per SWMS
High It is identified that proper immediate action
is generally required.
Extreme In this particular situation, immediate action
is generally needed
Likelihood vs consequence matrix
Likelihood
Consequence
Catastrophic Major Moderate Minor Insignificant
Almost
certain
Extreme Extreme High High Medium
Likely Extreme High High Medium Medium
Possible High High Medium Medium Low
Unlikely High Medium Medium Low Low
Rare Medium Medium Low Low Low
Likelihood criteria
Likelihood Rating Probability Description
Rare 1 0-5% This mainly occurs in different
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exceptional circumstances.
Unlikely 2 5-30% This can occur at some time.
Possible 3 30-60% Might occur at some time.
Likely 4 60-90% Will generally occur in most of the
circumstances
Almost
certain
5 90-100% This occurs in most of the circumstances
3.5 Stakeholders
The stakeholders who are mainly involved with the work of project are generally
categorized into internal as well as external risk. The table that is provided below helps in
outlining the internal as well as external stakeholders who are mainly associated with the
project in the table below:
Internal stakeholder External stakeholder
Engineering team Contractors
Workers Suppliers
Construction team Federal government
State government
Sub-contractors
3.6 Roles and responsibilities
The table that is provided below reflects on the roles and responsibilities of the project
team members who are mainly related with the construction of metro tunnel project.
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Internal stakeholder External stakeholder
Engineering team
The engineering team generally undertakes
the work of the project in order to complete
the construction of metro tunnel.
Contractors
Contractors are the individuals who directly
employs or engages in the work that is
related with construction for properly
managing the work of the construction.
Workers
The workers who are mainly associated with
the project generally undertakes all the work
for constructing the metro tunnel.
Suppliers
The main responsibilities of the supplier is
to deliver the services as well as other needs
that are generally required within the
project.
Construction team
The construction team generally engages in
constructing the metro tunnel.
Federal government
The federal government generally manages
the department of the environment as well
as Australian infrastructure.
State government
The state government generally helps in
making key decision that is related with the
project.

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3.7 Risk management policy
It is found that in order to implement the metro tunnel project, it is found that the
potential risks generally create threat the project in terms of objectives, functions as well as
persons. The risk management plan is to properly read the risk management policy AS/NZS
ISO 31000:2009 so that this principle will be helpful in guiding the project.
4. Risk assessment process
The risk assessment procedure generally focuses on AS/NZS ISO 31000:2009 for
identifying, analyzing as well as evaluating the risks which are mainly related with the
established criteria of the project. It is found that the specific technique that is utilized for the
procedure of risk assessment are mainly associated with IEC/ISO 31010:2009.
4.1 Risk identification
Identification method
Risk identification is one of the procedure that helps in listing the potential risks and
their characteristics. The results that are related with the risk identification are generally
documented in a risk register which mainly includes a list of project risks along with proper
potential sources, risk categories as well as proper risk response (Cole, Gine and Vickery
2017). It is found that the risks that are identified from the metro tunnel project are generally
identified with the help of the risk identification procedure.
It is found that there are a number of methods that are helpful in determining the risks
that are associated with the project however, it is found that for determining the risks which
are mainly related with the metro tunnel project are generally identified with the help of
brainstorming as well as checklist procedure.
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Risk register
A risk register is generally created for documenting all the different types of risks that
are generally identified from the project. It is found that this document helps generally
contains information about the risks and proper data and information that are mainly related
with the impact and probability of the project (Burtonshaw-Gunn 2017). In order to ensure
reliability as well as for implementing the project, it is quite necessary to review the project
on a weekly basis.
# Risk What
may
happen?
How it may
happen
Conseque
nt as
Likelihoo
d
Consequenc
es
Risk
level
1 Budget
shortfal
l
Due to
shortfall
of budget,
the
contractor
s may face
financial
issues in
completin
g the
metro
tunnel
project
It happen
as the
budget that
is needed for
the
completing
the work of
the metro
tunnel
exceeded.
It
generally
creates
financial
risks on the
project and
as result
the
constructio
n of metro
tunnel
project get
affected.
Severe Likely High
2 Schedul
e
Due to
slippage
This
generally
It
generally
Significa Almost High
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slippag
e
of
schedule,
delay can
occur in
completin
g the
constructi
on of
metro
tunnel.
occurs as the
team
members
does not
take the
responsibilit
y of
properly
tracking the
project such
that the
work of
metro tunnel
get
completed
effectively.
causes
delay in
the project
and further
creates a
number of
financial
issues so it
will be
quite
difficult to
manage the
metro
tunnel
project
nt certain
3 Lack of
material
s
If the
materials
that are
required
for the
constructi
on of
metro
tunnel is
This
generally
occurs due
to improper
management
of resources
by the
project
manager
Lack of
materials
creates
problems
in
completing
the project
Moderate Possible Mediu
m

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not
available
then it can
construct
the project
progress.
who are
engaged
within the
metro tunnel
project.
4 Quality
related
risk
Due to
quality
issues, it
creates a
number of
issues and
challenges
in
completin
g the
metro
tunnel
constructi
on
This mainly
occur if the
project
manager
does not
follow
quality
standards for
constructing
the metro
tunnel.
It creates a
number of
quality
related
issues and
challenges
within the
project for
completing
the metro
tunnel
constructio
n.
Moderate Possible Mediu
m
5 Improp
er
design
of the
project
If the
design that
is created
for the
project is
This mainly
occurs as the
designer wo
creates
design is
Deign
related
issues a
cause
schedule
Moderate Likely Mediu
m
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not proper
then it will
be
difficult to
proceed
with the
project
progress
inexperience
d.
slippage
and can
create
negative
impact on
the project
budget.
4.2 Risk analysis
All the risks as well as challenges that are general identified with proper level of
probability as well as impact of occurrence needs to be analyzed properly with the help of
appropriate technique (Brustbauer 2016). With the help of proper risk analysis, it is found
that the potential issues are analyzed which generally can create negative impact on the
progress of the metro tunnel project. The table below is helpful in analyzing the risks
effectively in context to their consequences as well as likelihood.
Likelihood
Consequence
Catastrophic Major Moderate Minor Insignificant
Almost
certain
Schedule
slippage
Likely Budget
shortfall
Quality
related
risk
Possible Lack of
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materials,
Quality
related
risk
Unlikely
Rare
4.3 Risk evaluation
After the identification and analysis of the project risk, it is quite important to
properly evaluate the risks as well as challenges. It is quite necessary to properly evaluate the
risks that are mainly associated with the Metro tunnel rai project for applying proper
treatment of risk. This particular section is generally helpful in properly evaluating the risks
in context to AS/NZS ISO 31000:2009, for the various risks that generally needs proper
treatment.
It is found that evaluation principle is generally utilize for properly determining the
risks and for providing proper treatment of project risks is ALARP (As Low As Reasonably
Practicable). It is found that this particular methodology generally helps in allowing the
organization for properly determining whether the risks are treated by not considering the
benefit which is mainly related with the project.
The key risks that are associated with the project of metro tunnel are generally listed
below:
Budget shortfall
Schedule slippage

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Lack of materials
Quality related risk
Improper design of the project
Inexperienced team members
5. Risk treatment
5.1 Probable treatment options
It is found that in order to treat the risks that are mainly associated with the metro
tunnel project for either reducing their consequences or their likelihood for the nominated
risks. The entire risk treatment plan for treating the risks that are associated with the project is
generally provided in the table below:
Risk Ways of
treatment
Method Likelihood
rating
Responsible
person
Budget
shortfall
Proper
management of
project budget is
necessary for
avoiding
financial issues
within the
construction of
metro tunnel
project.
Accept 2 Financial manager
Schedule
slippage
Tracking the
schedule of the
Accept 1 Project manager
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project regularly
can be one of
the important
option for
tracking the
project
schedule.
Lack of
materials
The project
manager must
take care about
the utilization of
materials so
that the excess
or improper
utilization of the
resources can be
avoided.
Accept 2 HR manager
Quality
related risk
Quality
assessment
needs to e
undertaken
about the
project materials
in order to
check their
Accept 1 Quality analyst
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quality and for
ensuring that
proper quality
of materials are
used by the
government for
the construction
of metro railway
project.
Improper
design of the
project
Proper design
for the project is
generally
created so that
the entire
project can be
constructed
effectively
within the
assumed
timeline by the
government of
Melbourne.
Accept 1 Designer

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5.2 Effective treatment option
It is found that further there as a number of treatment options that are generally
available for each of the risk however at this specific stage, it is found that it is not possible to
properly differentiate which one generally sets with the cost time, situation as well as
feasibility of the project. Thus, for the metro tunnel project, the effective treatment option
that are generally followed are mainly listed below:
Identification of various types of potential options
Determining the drawbacks as well as benefits for each option
Selection of the best method
Identification of the trigger that needs to be implemented
Retaining records that reflects the results as well as outcomes.
6. Risk monitoring and review
6.1 Process
The steps that are generally followed in order to monitor the risks and challenges that
are associated with the project are general listed below.
Risk Monitoring process
Budget shortfall The budget of the project must be monitored by
tracking the budget of weekly basis.
Schedule slippage Tracking of schedule generally helps in properly
managing the schedule of the project so that the
project gets complete on proper budget and time.
Lack of materials It is found that by selecting proper strategies , the
problems that is associated with materials can be
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identified quite easily.
Quality related risk The quality of the materials must be checked on
regular basis for avoiding quality related problems
and for ensuring that the project utilizes proper
quality of materials for constructing the metro
tunnel as per the quality assessment criteria.
Improper design of the project Focussing on the design progress of the project for
ensuring that the undertaken project is appropriate.
6.2 Risk closure
It is found that it is the responsibility of the project risk manager for closing the risks
once the items are generally satisfied which are reflected below:
Implementation of proper actions for treating the risk
Receiving negative feedback
It is not possible to reduce risks as a result of the proper treatment procedure.
Furthermore, the risk closure must be properly reviewed as well as approved by the
top management of the organization however proper documentation for such type of project
ca generally be achieved. It is found that before the closure of the project, it is quite necessary
to take sign off in the project and engage in proper post project review for resolving the
project risks. Moreover, the facility of documentation must be present so that information
related with the project must be properly documented so that proper information can be used
from the document whenever needed.
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