Risk Management Plan of Western Australia Rail System
Verified
Added on  2023/01/19
|18
|4219
|32
AI Summary
This report discusses the risk management plan for the Western Australia rail system project, including possible risk treatments and responses. It also provides a summary of the negative and positive risks and recommendations for the project.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: RISK MANAGEMENT Risk Management Plan of Western Australia Rail System Name of the Student; Name of the University:
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
1RISK MANAGEMENT Table of Contents Introduction......................................................................................................................................2 1. Possible risk treatments/responses...............................................................................................2 2. A risk management plan..............................................................................................................4 2.1 Summary of the negative and positive risks..........................................................................5 2.2 Risk management of the identified project risks...................................................................8 3. Recommendations......................................................................................................................13 Conclusion.....................................................................................................................................14 References......................................................................................................................................15
2RISK MANAGEMENT Introduction NSW Government is replacing the NSW regional rail fleet with new trains as it will progress, reliability as well as accessibility for the customers those can travel from Sydney to other centres in NSW, Melbourne and also Brisbane. The key benefits of this new train’s development are to become comfortable and also functional design, automatic selective doors openingforstationswithmodernCCTVequipmentsandelectronicdevices (Transport.nsw.gov.au, 2019). Thereportisbasedonpossiblerisktreatments,riskmanagementplanand recommendations regarding NSW project with the justification of overcoming with negative and positive risks collected so that the project can get success in its plan. The risk responses strategies help to reduce the project risks so that the project plan will get success. The risk management plan also helped to identify the risks which are occurred in the construction project and mitigate those risks using mitigation actions against each of the identified positive as well as negative risks. 1. Possible risk treatments/responses The risk response is a process to control identified project risks. It is a step into the risk management process.Chen, Ong, & Hsu(2016) stated that the risk response is a planning in addition to decision making process where the project stakeholders can deal with each of the project risks. Based on the identified project positive and negative risks in the previous part, there are various types of risk treatments or responses which are summarized as below:
3RISK MANAGEMENT Avoid:There is change in strategy and plan in order to avoid the project risks. It is a treatment of the negative risks. The negative risks are being avoided by change to the project plan in some way for bypassing those risks (PMBOK, 2017). Change into the project plan in risk removal involves change to the project scope, resources and time, while it can be right responses. Mitigate:In order to reduce the project risks, the risk manager can take possible actions against the identified risks. It is a treatment of the negative risks. Actions are taken to reduce the likelihood of the project risks which are occurred and impact that it has (Burtonshaw-Gunn, 2017). The risk manager can take measures to reduce likelihood of the risk occurred into the construction and development plan of railway in Western Australia. It is a proper option than reduction of severity as it is not better to experience the risk occurrence in initial place. There is reduction of impact of project risks on critical success factors of this particular project plan. Transfer:The risks are to be transferred to the third party. It is a treatment of the negative risks. When the risk manager is not able to mitigate the risks, then those risks are moved to other person those can able to overcome it (Iqbal et al., 2015). Shifting consequences of the project risks to the third party is not easier but it is overlooked. Accept:The risk manager decided to take the project risks and accept it. It is a treatment of the negative risks. Those negative risks are accepted when it has lower impact and likelihood. The contingency plan is being identified should it occurs (Lock, 2016). When a better response strategy is not identified, then risk acceptance is adequate to carry on with the project plan. Share:There is distribution of the project risks across various partners and project team members. It is a treatment of the positive risks (PMBOK, 2017). The risks are shared among the
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
5RISK MANAGEMENT 2.1 Summary of the negative and positive risks The positive and negative risks are with its respective risk response strategy and risk mitigation is shown in following table: Type of risksRisk response Risk mitigation Positive risks Endtheproject beforedelivering date EnhanceTheprojectmanagermanagestheWesternAustralia railway project and it is required to compete in scheduled time. If the project is completed earlier, then the team membersshouldawareofhighercostforearlier completion(PMBOK,2017).Theprojectmanager decided to motivate the team and promise to provide extra bonus for earlier completion. Increase in return of investment ExploitWhen the project is completed before delivering time and schedule, then there is an increase in return of investment (McGuigan et al., 2016). The project manager decided to transfer the resources to the project form and pay overtime to salaried staffs to exploit the project situation (Qazi et al., 2016). Reductionof congestiononthe road EnhanceThe project manager is planned to participate into the projecttender,but thescope of thisprojectwork is requiredtechnicalcapabilitytoworkintheproject. Therefore, the project manager is persuaded a company
6RISK MANAGEMENT where there is technical capability to collaborate with the company (El-Sayegh & Mansour, 2015). Positiveusageof the land EnhanceThe land which is used to construct and develop railway project is of positive usage and the project manager can mitigate it by using the land for benefit of the public of Western Australia (de Carvalho et al., 2015). Job opportunitiesShareThis new train development project helps to create a sustainable job opportunities as well as skills to capture opportunity for the project benefit (Regional Rail, 2019). Connectionof different suburbs AcceptThe project manager should manage NSW project and it is a railway project. The project manager of this project came to the project site and proposed to sell materials withlowerprices(Transport.nsw.gov.au,2019).This particular situation is being evaluated as well as accepted. Negative risks Delaysintothe deliveryofthe project MitigateThe project manager should schedule the project plan based on the project requirements of Western Australia railway project (Van Staveren, 2018). Project scheduling tool is used by the manager so that there is mitigation of project delay. Over budget of the planned costs MitigateThe project manager should estimate the project cost based on the project activities. Before starting the plan, they should estimate all additional project requirements
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
7RISK MANAGEMENT and expenses. Thelogisticsrisks areincluded unavailability of the transportation facilities, unavailability of the equipments. AcceptThere is building of collaborative relationships with the suppliesandknowingwhichofthesuppliersare representing the alternative sources (Brockett, Golden, & Betak,2019).Shareforecastaswellasdemand informationwiththetradingpartnerssothatitis responsible for fluctuations of customer’s demands. There is required to increase visibility into the supply chain operations which enable tracking along with monitoring the materials flow. There is uncertainty oftheproject resourcesand availabilityof thee materials, inadequatesite investigation, incompletedesign arethetechnical risks. AcceptThe project manager should track the availability of the human resources and hired the resources based on their skillsandknowledge(Brustbauer,2016).Theproject leader should manage workload allocation for tracking resource availability. It views the project schedule to monitor the progress of project tasks (Sears et al., 2015). The project manager should monitor resource productivity on the dashboard of the project. The architect should design a blueprint of a proper railway architecture so that based on it, they can plan and design entire project work. Theenvironmental risksareincluded naturaldisasters, AvoidTheprojectfinancepartnersshouldconcernonpre- existing conditions as well as their effect on successful completionoftheprojectdelivery.Theenvironment
8RISK MANAGEMENT weatherandalso seasonal implications. interestgroupcanidentifytherisksofthenatural resources(Kliem&Ludin,2019).Contractualdue diligence as well as risk allocation metrics should be used to assess and confirm the project risks. Thesocio-political risksareincluded customs as well as importrestrictions and also difficulties disposingofthe equipments. TransferThesupplychainmanagercanmakeastockofthe equipmentsrequired for the constructionwork in the warehouse so that in case of any political risks or crisis, theycanusetheresourcesandmaterialsforthe construction work (Hillson, 2017). 2.2 Risk management of the identified project risks The risk management is the document that the risk manager prepares to review the construction risks, estimate the impacts of those risks as well as define the response to project risks. It consists of a risk assessment matrix which helps to determine the impact as well as likelihood of the project risks. Apart from the positive and negative risks into the project plan, there are also various project risk based on the railway construction project are as follows along with its risk management plan (Carvalho & Rabechini Junior, 2015). The identified project risks, its respective details of each risks, impact, likelihood, and risk score, and mitigation plan for each risks, schedule date and responsible person to mitigate the risks are shown in the risk management plan as described below:
9RISK MANAGEMENT Risk ID Type of riskDetailsImpactLikelihoodRisk score Mitigation planScheduled start date Responsible person 1Project schedule risk Endtheprojectbefore delivering date Moderate (3) Likely (4) 12The project manager should plan the schedule of the construction plan so that all the project activities are to be completed on time and there is no possibility of any project delivery. 04/16/2019Project Manager 2Cost riskIncreaseinreturnof investment and Over budget of the planned costs Major (4) Likely (4) 16Thefinancialofficershouldestimatethe project cost for each individual project tasks. 04/24/2019Financial officer 3Infrastructure risk Reductionofcongestionon the road and positive usage of the land Moderate (3) Moderate (3) 9Thecivilengineershoulddesignsucha railway infrastructure so that it can reduce congestion on the road along with usage of the land for development of the railway. 05/03/2019Civil Engineer 4Operation riskJob opportunitiesModerate (3) Unlikely (2) 605/07/2019 5Logistics riskThelogisticsrisksare included unavailability of the transportationfacilities, unavailabilityofthe equipments. Minor (2) Likely (4) 8Before staring the project work, the operation managershouldpredictthetransportation facilities along with equipments which are required to complete the construction work. All the construction related equipments are properly maintained so that the development work is conducted properly and efficiently. 05/19/2019Operation Manager
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
10RISK MANAGEMENT Share forecast as well as demand information withthetradingpartnerssothatitis responsibleforfluctuationsofcustomer’s demands. 6Resource riskThereisuncertaintyofthe projectresourcesand availability of thee materials, inadequatesiteinvestigation, incompletedesignarethe technical risks. Moderate (3) Likely (4) 12There is hiring of resources for the project so that all the construction work is completed on time. When one of the team member is not present in the construction site, then backup of the project resources are also taken. 06/05/2019Human Resource Manager 7Environmental risk Theenvironmentalrisksare includednaturaldisasters, weatherandalsoseasonal implications. Major (4) Moderate (3) 12The project manager should take help of the weather forecastingsoftware to forecast if thereareanypossibilitiesofrain,natural disasters and other seasonal implications on the site. Then, it provides a bad effect on the environment which influence on the project completion date. Contractual due diligence as well as risk allocation metrics should be used to assess and confirm the project risks. 06/20/2019Project Manager 8Socio-political risk Thesocio-politicalrisksare included customs as well as importrestrictionsandalso Minor (2) Unlikely (2) 4Before starting the construction project work in Western Australia, the project manager and project owner should require to perform a 06/29/2019Project Manager
11RISK MANAGEMENT difficultiesdisposingofthe equipments. Sometimes, it is seenthatsomeofthe constructionequipmentsare unavailable which are due to restriction in the country. researchontheimportrestrictionsofthe country where the construction work is being performed. The supply chain manager can make a stock of the equipments required for the construction work in the warehouse. 9Equipment risk There is lack of raw materials andconstructionequipments which are required to develop the rail system. Moderate (3) Moderate (3) 9The operation manager should purchase the required raw materials as well as construction equipments for the rail system so that the projectshouldcompleteinscheduled timeframe. 06/28/2019Operation Manager 10Management risk There is lack of management supportfromthetoplevel management as they are not interested to provide support totheprojectteam.The managementisnot provided theprojectmanagerwith fundsfortheconstruction work. Major (4) Rare (1) 4The management should put interest into the project work and also motivate the employees and team members to work so that they can help to collect fund for the project plan. 06/30/2019Project Manager
12RISK MANAGEMENT Likelihood Impact Rare (1) Unlikely (2) Moderate (3) Likely (4) Almost certain (5) Frequent (5) Major (4) Management risk Environmenta l risk Cost risk Moderate (3) Operation risk Infrastructure risk, Equipment risk Project schedule risk, Resource risk Minor (2) Socio- political risk Logistics risk Negligible (1) Table 1: Likelihood and impact matrix From the above table, it is analyzed that there is a high risk with risk score of 16 such a cost risk or budget risks (Sadgrove, 2016). When the estimated project cost is exceed its limit, and then there is possibility of over budget of the entire project work. There are seven medium risks such as environment risk, infrastructure risk, equipment risk, project schedule risk, resource risk, logistics risk and operation risk. There are two low risks such as socio-political risk and political risk. The risks provide higher impact on the entire rail development plan in Western Australia. The risk manager takes accurate steps to overcome with identified project risks and
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
13RISK MANAGEMENT taken at highest priority (Heagney, 2016). The project manager develops a rail system for Western Australia such that all the project related tasks are to be finished on scheduled project time as well as in estimated budget. 3. Recommendations Following are recommendations which are suggested to the management of NSW Government so that the construction work of railway in Western Australia is being improved such as: Health and safety rules and regulations:It is recommended that the construction organization should implement strict health and safety rules and regulations for the employees those are working in the construction site. The organization should require taking safety management of their workers so that they are not harmed at the site. It helps to safe the workers from harmful hazards which are common at the construction work site. Riskmanagementframework:Theorganizationshouldfollowriskmanagement framework so that on time the risks are identified and also mitigated such that the project development plan can get success. The risk response strategies help to assess and control the risks. This framework provides process which can integrate security as well as risk management activities in the system development life cycle. Information security program:The organization should require to document and set the information security policies, guidelines as well as standards in the business. This particular program should offer roadmap to the security management practices as well as controls. It is recommended to implement in the organization so that all the construction related design,
14RISK MANAGEMENT documents, blueprints of the railways infrastructure and other confidential documents are kept secured. It helps to protect integrity as well as availability of the critical assets of the project organization. Conclusion It is concluded that the project manager takes the main responsibility to complete the development work of railway in Western Australia within delivery time by identifying possible positive as well as negative risks in the project. All the project related risks are identified and risk response strategies for each risk are also determined to overcome with the risks and manage them properly. The risk management plan provides assurance to the organization that it is created and implemented as effective way to minimize the project losses and prevent from the risk occurrence. The risk management plan is implemented strategies and techniques which are used to identify and confront the vulnerabilities that the organization faces while constructing the rail system.Thereisrequiredofeffectivecommunicationwiththeprojectstakeholdersin progressingaswellaschangingtotheprojectrisks.Theorganizationrecommended implementing health and safety regulations for ensuring safety of the construction workers at the site from physical harms and physical hazards. Therefore, with proper risk management plan, the risk manager manages and handles the risks in the construction project of rail system.
15RISK MANAGEMENT References Brockett, P. L., Golden, L. L., & Betak, J. (2019). Different Market Methods for Transferring FinancialRisksinConstruction.InRiskManagementinConstructionProjects. IntechOpen. Brook, M. (2016).Estimating and tendering for construction work. Routledge. Brustbauer,J.(2016).EnterpriseriskmanagementinSMEs:Towardsastructural model.International Small Business Journal,34(1), 70-85. Burtonshaw-Gunn, S. A. (2017).Risk and financial management in construction. Routledge. Carvalho, M. M. D., & Rabechini Junior, R. (2015). Impact of risk management on project performance:theimportanceofsoftskills.InternationalJournalofProduction Research,53(2), 321-340. Chen, P. H., Ong, C. F., & Hsu, S. C. (2016). Understanding the relationships between environmentalmanagementpracticesandfinancialperformancesofmultinational construction firms.Journal of cleaner production,139, 750-760. de Carvalho, M. M., Patah, L. A., & de Souza Bido, D. (2015). Project management and its effects on project success: Cross-country and cross-industry comparisons.International Journal of Project Management,33(7), 1509-1522. Ding, L. Y., Zhong, B. T., Wu, S., & Luo, H. B. (2016). Construction risk knowledge management in BIM using ontology and semantic web technology.Safety science,87, 202-213.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
17RISK MANAGEMENT RegionalRail.(2019).NSWGovernment.Retrievedfrom https://www.transport.nsw.gov.au/system/files/media/documents/2019/FAQ-Regional- Rail.pdf Sadgrove, K. (2016).The complete guide to business risk management. Routledge. Sears, S. K., Sears, G. A., Clough, R. H., Rounds, J. L., & Segner, R. O. (2015).Construction project management. John Wiley & Sons. Transport.nsw.gov.au.(2019).NewIntercityFleet|TransportforNSW.Retrievedfrom https://www.transport.nsw.gov.au/projects/current-projects/new-intercity-fleet Transport.nsw.gov.au.(2019).RegionalRail|TransportforNSW.Retrievedfrom https://www.transport.nsw.gov.au/projects/current-projects/regional-rail Van Staveren, M. (2018).Uncertainty and ground conditions: a risk management approach. CRC Press.