MGT5IPM: Risk Management Plan for ATA East Timor Solar Project

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Added on  2023/06/04

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This report outlines a risk management plan for ATA, a non-profit organization aiming to install solar lighting systems in East Timor. It identifies potential risks during the design, development, and execution phases of the project, including cost overruns, time delays, staff shortages, technical challenges, grid stability issues, maintenance risks, operational risks, and environmental risks. The plan assesses these risks based on their impact and likelihood, prioritizes them, and proposes mitigation strategies. Mitigation strategies include adequate project contingencies, incentives for timely completion, capacity augmentation for staff, technical assessments, grid stabilization measures, maintenance programs, and environmental management plans. The report emphasizes the importance of continuous risk monitoring and adaptation to ensure the successful implementation of the solar power project while adhering to project objectives and environmental considerations. Desklib provides access to similar solved assignments and past papers for students.
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Running head: RISK MANAGEMENT PLAN
Risk Management Plan: ATA case scenario
Name of the student:
Name of the university:
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1RISK MANAGEMENT PLAN
Introduction
This paper depicts the role of risk management plan and program for the successful
implementation of the solar lighting system design for ATA. It is a small non-governmental
Non-profit (NGO & NTP) organization whose aim is to install about 100 solar lighting systems
to a remote village area of East Timor (Queslicai). The village is comprises of around 70
households among which they are willing to provide this service to around 100 homes. However
during the phases of design development and execution of such system the project head faces
certain risks those are identified and mitigated in this report from the project management
perspectives.
Risk management planning
In order to resolve the risks and uncertainty associate to this specific project, the project
should not only just identify the risks but also assess those risks based on some assessment
factors (Frisari and Stadelmann 2015). The phases of risk management process are as follows:
Risk identification: In this phase the risks that may interrupt its success ate identified
Risk assessment: The root cause of the risks and the way through which these risks can
negatively impact the solar energy conversion project are indicted in this phase
Risk prioritization: Based on the complexity and effects these risks are all prioritized
rather ranked by the project associates in this phase.
Risk mitigation strategy: This is the last phase of project risk management where, the
risks are mitigated through different strategic approaches.
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2RISK MANAGEMENT PLAN
The details of the risks, their impact, ranking and mitigation strategies are also identified
in the below risk management table:
Description of the risks Assessment results Mitigation strategies
The estimated cost for the
project may overrun
Medium During the project
development phase it may
happen that, additional cost
are required. Adequate project
contingencies are to be
provided by the project
manager (Ahmed et al. 2015).
In the project biding document
the different conditions for
price variation are to be
incorporated. Not only this but
also advanced initiative
towards project procurements
are necessary for the project
manager to incorporate to
avoid the issues of cost
overrunning.
Time overrun for the project Medium If it is found that, the
estimated time for the
completion of the project is
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3RISK MANAGEMENT PLAN
exceeded then positive
incentives in terms of price
bonuses, early commotion can
resolve these risks (Santos,
Ferreira and Araújo 2016).
Moreover at the project
initiation phase, a feasibility
study should be done to
measure that whether the
project will be successful or
not.
Shortage in technical staffs High The project management
committee should provide
capacity augmentation to
mitigate the issues of staff
management or lack if
numbers f technical experts. In
order to administrate the
project the project manager
should play active roles of
both a leader and motivator
(Adil and Ko 2016). All the
project resettlement aspects
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4RISK MANAGEMENT PLAN
are also required to be
considered by the project
manager during the period of
tender processing. Not only
this but also arrangement of
on job training facility can
also minimize the issues of
shortage in technical experts.
Technical challenges High This may happen that, during
the project progress period
ATA will face technical
challenges while achieving
accurate photovoltaic level of
penetration. In order to resolve
this risk the grid capacity,
match demand, electricity
supply and dispatch should be
accessed. The technical
standards of IEEE 1547 and
UL1741dminstrates all the
rules regarding the
photovoltaic penetration.
Challenges in achieving grid High With the help of stable grid
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5RISK MANAGEMENT PLAN
stability frequency and voltage this
kind technical risks can be
mitigated (Brookes and
Locatelli 2015). From accurate
study and simulation of the
photovoltaic system the basic
design of the grid can be
identified. In addition to this,
matching to the load profiles
the equipments are to be
applied by the project head to
operate the system
successfully (Ho et al. 2015).
Besides this, the system
stabilization, battery storage
are also needed to resolve the
risks of technical challenges.
Maintenance risk Medium Design and implementation
are not the ultimate risk
solution for this project
(Kerzner and Kerzner 2017).
Even after the final
implementation of the system
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6RISK MANAGEMENT PLAN
proper maintenance program
are also to be adopted by the
project managers. With the
help of long term building
capacity the maintenance risk
can be resolved. Regarding the
ATA activities timely request
report should be requested by
the staffs. The project
management team should
carry out the necessary actions
considering all the necessary
project actions (Samper,
Eldali, and Suryanarayanan
2019). Apart from this an
environmental management
program should also be
prepared by the project
manager to mitigate these
application level risks.
Operational risks High If the system fails to serve all
the necessary actions then the
technical experts should take
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7RISK MANAGEMENT PLAN
the responsibilities of change
management program for
system resolves the system
level risks.
Risks with location of
different nearby chemical
plants
High If it is found that, in the
nearby location any chemical
plant is located then proper
monitoring actions including
environment management plan
should be incorporated
(Ahmed et al. 2015). The
chemical wastes disposal
should be done in proper
location (Frisari and
Stadelmann 2015). In addition
to this, frequency location and
power factor requirements
analysis are the factors to be
considered by the project head
to avoid the risks of
environmental risks.
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8RISK MANAGEMENT PLAN
Conclusion
From the overall discussion it can be concluded that, only proper identification,
assessment and risk mitigation strategies can successfully implement the project as per the
preliminary project objectives. It is not mandatory that the negative impact of all the risks will be
equal thus, a risk prioritization is required. Both the technical and non technical factors should be
considered for the success of solar power energy supply project. Not only has this but also proper
risk management tools and techniques associated to this specific project been to be identified by
the project manager. In addition to this, the project should also incorporate the environmental
management plan to avoid further project level risks.
References
Adil, A.M. and Ko, Y., 2016. Socio-technical evolution of Decentralized Energy Systems: A
critical review and implications for urban planning and policy. Renewable and Sustainable
Energy Reviews, 57, pp.1025-1037.
Ahmed, S., Elsholkami, M., Elkamel, A., Du, J., Ydstie, E.B. and Douglas, P.L., 2015. New
technology integration approach for energy planning with carbon emission
considerations. Energy Conversion and Management, 95, pp.170-180.
Bahramara, S., Moghaddam, M.P. and Haghifam, M.R., 2016. Optimal planning of hybrid
renewable energy systems using HOMER: A review. Renewable and Sustainable Energy
Reviews, 62, pp.609-620.
Brookes, N.J. and Locatelli, G., 2015. Power plants as megaprojects: Using empirics to shape
policy, planning, and construction management. Utilities Policy, 36, pp.57-66.
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9RISK MANAGEMENT PLAN
Frisari, G. and Stadelmann, M., 2015. De-risking concentrated solar power in emerging markets:
The role of policies and international finance institutions. Energy Policy, 82, pp.12-22.
Ho, W., Zheng, T., Yildiz, H. and Talluri, S., 2015. Supply chain risk management: a literature
review. International Journal of Production Research, 53(16), pp.5031-5069.
Join, C., Fliess, M., Voyant, C. and Chaxel, F., 2016. Solar energy production: Short-term
forecasting and risk management. arXiv preprint arXiv:1602.06295.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Samper, M.E., Eldali, F.A. and Suryanarayanan, S., 2019. Risk assessment in planning high
penetrations of solar photovoltaic installations in distribution systems. International Journal of
Electrical Power & Energy Systems, 104, pp.724-733.
Santos, M.J., Ferreira, P. and Araújo, M., 2016. A methodology to incorporate risk and
uncertainty in electricity power planning. Energy, 115, pp.1400-1411.
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