Identifying and Mitigating Risks in Different Engineering Projects

This report delves into the multifaceted risks inherent in engineering projects, emphasizing the importance of timely identification and mitigation. It highlights various risk categories, including financial, operational, strategic, compliance, reputational, and unforeseen risks, and their potential impact on project success. The report analyzes risks in diverse engineering projects such as geothermal power production, invasive species management, natural hazard mitigation, coastal lake assessment, biophysical oceanography, saltwater intrusion management, and disease detection, illustrating the varied challenges faced across different domains. It underscores the need for effective risk management, including strategic pest management, environmental impact considerations, and ecological preservation, to ensure project efficacy. The conclusion stresses that while complete risk elimination is unattainable, proactive mitigation is crucial for project success, providing valuable insights for professionals and students alike.

Running head: RISK IN ENGINEERING PROJECTS
Risk in Engineering Projects
Name of the student:
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Author Note:

1RISK IN ENGINEERING PROJECTS
Introduction
Risks are an integral part of any business project. Engineering projects are associated
with various kinds of predictable as well as unforeseen risks that hinder the steady progress
of these projects. However, risks are an important part of any engineering project. It is
important that the risks are identified on time, and mitigated or curbed down in intensity,
before it proves to be malicious. This assignment highlights the various risks that are
associated with the various engineering projects, along with the ways the risks could be
avoided or mitigated. Risk assessment has a major role to play, in ensuring that the risks are
not of high intensity.
Research aim
The aim of this research is to highlight the various risks, along with the causes of the
risks, such that they could be mitigated.
Research objectives
 To highlight the various risks that are associated with the engineering projects
 To analyse the causes of the risks
 To recommend ways to mitigate these engineering project risks
Research questions
 What are the various kinds of risks that are associated with the engineering projects?
 What are the causes of the risks?
 What ways could be recommended to mitigate these engineering project risks?
Literature review
Risks associated with various engineering projects

2RISK IN ENGINEERING PROJECTS
Risks could be defined as a situation that exposes an engineering project to a
dangerous situation. The risks could be predicted or unforeseen. The various risks that are
associated with the engineering projects include the following:
1. Financial risks
Financial risks highlight the risk in money in the business or a project, such that the
project might cease to make further progress (Batkovsky, Batkovsky & Klochkov, 2016).
Financial risks highlight that the budget allocated for a project is not sufficient enough to
ensure the success of the project. Engineering projects might be aborted midway, if it faces
financial risks. Sudden bankruptcy of the company taking up the engineering project might
also cause financial risks.
2. Operational risks
Operational risks are caused due to internal failures in the projects. The internal
processes, the people and the system failure comprises of the operational risks. Thus, unlike
the financial risk, there is no return on the operational risk.
3. Strategic risks
The strategic arises from the operation within a specific industry. With time if the
customers are no more in demand of the project, then the company carrying out the project
faces operational risks.
4. Compliance risks
The risks associated with the risk of compliance with the rules and legislations leads
to compliance risk. The engineering projects have to comply with the legislations of the
country, in order to be completed successfully.

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5. Reputational risks
One of the greatest assets that a company possesses is the reputation of the company.
The loss of reputation might result in negative publicity. Reputation takes a lot of time and
efforts to be build, but can be lost easily (Euchner & Ganguly, 2014). Thus, the reputational
risk is a major risk that is faced by any company.
6. Unforeseen risks
Along with the above mentioned risks, there are certain other risks that cannot be
predicted, and the company cannot take precautions, in order to curb down these risks
(Franks et al., 2014). The losses of efficient and trained employees in a huge number, or
natural calamities are some of the major unforeseen risks.
Risks in various engineering projects
Geothermal power production in Australia is one of the main engineering projects.
The hot rock geothermal production of power relies on the use of the buried hot rocks to heat
water, as well as for the production of electricity ("Induced seismicity associated with
geothermal power production in Australia - data.gov.au", 2017). Australia is considered to
have high geothermal resources. With enriched resources, Australia is able to produce low
emission, cost competitive energy. However, a lot of risk is associated with the production of
the energy. One of the greatest hazards that are faced is the induced seismicity. This term is
used to refer to earthquakes that are caused due to human activities. The induced earthquakes
are associated with the movement of the geothermal resources in and out of the earth. These
are caused due to human activities such as underground mining or development of hot rock
reservoirs ("Induced seismicity associated with geothermal power production in Australia -
data.gov.au", 2017). With the increase in the geothermal power production, this risk of

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induced seismicity has been increasing day by day. As the intensity and the risks associated
with the induced seismicity is low, hence it could be further reduced with effective risk
management and monitoring ("Induced seismicity associated with geothermal power
production in Australia - data.gov.au", 2017). It is essential that these risks are mitigated, to
avoid malicious effects.
The NERP TE project is one of the major engineering projects that are undertaken in
the wet tropical region ("NERP TE Project 7.2 Invasive species risks and responses in the
Wet Tropics (CSIRO) - data.gov.au", 2017). The risks that are associated with this project are
the responses of invasive species. The risk management includes the development of strategic
pest management that takes into account the assets and the ecology of the wet tropic regions
("NERP TE Project 7.2 Invasive species risks and responses in the Wet Tropics (CSIRO) -
data.gov.au", 2017). The wet lands are the homes to a wide variety of flora and fauna, hence
they should be protected.
The risk of the natural hazard in Perth is a major risk for Western Australia. A major
area of Perth is situated on the flood prone river Swan ("Natural hazard risk in Perth,
Western Australia - Cities Project Perth Report - 2005 - data.gov.au", 2017). Moreover, it is
also close to the most active earthquake zone of Australia. The northern region of the city has
several limestone belts ("Natural hazard risk in Perth, Western Australia - Cities Project Perth
Report - 2005 - data.gov.au", 2017). Due to this the coastline of Perth suffers from coastal
erosion. Thus, the risks of the natural hazards are high along with the risks of earthquake
hazards.
The Coastal lake assessment and management is another Australian project. The
CLAM tool assists the stakeholders to assess the economic as well as the environmental
tradeoffs, that is associated with the development as well as the remediation of the estuaries

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and the coastal lakes ("Management of saltwater intrusion in coastal aquifers in Queensland,
Australia - data.gov.au", 2017). However, in order to complete the project successfully, the
environmental impacts are to be considered. Moreover, the landscape management has to be
done effectively, in order to minimise the adverse effects of the project.
The biophysical oceanography project is one of the government projects that are
undertaken by the government of Australia ("Project overview: Biophysical Oceanography-
SRFME - data.gov.au", 2017). This project has the aim of examining how the forcing of the
climate influences the plankton and the nekton dynamics, with special reference to the
continental shelf off Perth. The objective of this engineering project is to highlight the on-
shore as well as the off-shore biophysical ocean structure. It also monitors the annual
seasonal cycle and its inter-annual variability, which is based on remote sensing data
("Project overview: Biophysical Oceanography- SRFME - data.gov.au", 2017). However,
risk is associated with this project. It is important that the ecosystem is preserved and the
planktons are not harmed. Thus, along with maintaining the ecology of the planktons and
nektons, the project is to be carried out ("Project overview: Biophysical Oceanography-
SRFME - data.gov.au", 2017).
The management of the saltwater intrusion in the coastal aquifers in Queensland is
also another major engineering project taken up by the Australian government. Most of the
rivers in Queensland have extensive deltas, with large reserve for the groundwater
("Management of saltwater intrusion in coastal aquifers in Queensland, Australia -
data.gov.au", 2017). These deltas contain fertile land that is most suitable for agricultural
activities. In order to carry out this project it is to be ensured that management technique has
to be developed and implemented, such that sustainability could be ensured.

6RISK IN ENGINEERING PROJECTS
Another engineering project includes the detection of the disease and the prevention
of the spread in Torres Strait. The project mainly focuses on the enhancement of the methods
to detect the introduction of the exotic animal diseases in Torres Strait. The persistence of the
disease in the wildlife has to be detected ("NERP TE Project 11.2 Improved approaches for
detection of disease and prevention of spread in Torres Strait (JCU) - data.gov.au", 2017).
However, the major risk lies in maintaining the ecological balance, while conducting this
project. These risks are to be mitigated by ensuring that the detection of the disease is done
without affecting the ecology.
The manufacturing industry also has various risks. The engineering project on the
manufacturing of the Portland cement in Papua and New Guineas is an important engineering
project ("Geological notes on the supply of raw materials for cement manufacture at Port
Moresby, Papua - data.gov.au", 2017). However, the risk lies in the supply of the raw
materials, along with the procurement of the machineries.
From the above-mentioned examples, it has been seen that most of the engineering
projects are associated with various kinds of risks. Complete mitigation of these risks is not
possible. However, they could be curbed down, in order to ensure that the risks do not
hamper the effectiveness of the engineering projects. Along with the project specific risks,
some common risks are associated with every project. The safety of the employees, along
with ensuring that all the equipments are in proper working condition, can also curb down the
intensity of risks.
Conclusion
Risks are an integral part of any engineering project. The various kinds of risk that are
associated with the engineering projects include the induced seismicity, disturbances of the
ecological balance, operational risks, unforeseen risks, financial risks. However, it is essential

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that these risks are identified as soon as possible and ways to mitigate these risks are
recommended. The engineering projects cannot be aborted due to the potential risks;
however, they have to be curbed down in intensity, to make the engineering projects
successful. This assignment has highlighted various engineering projects, along with the risks
that are associated and recommended ways to mitigate the risks.

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References
Batkovsky, A. M., Batkovsky, M. A., & Klochkov, V. V. (2016). Implementation Risks in
Investment Projects on Boosting High-Tech Business Production Capacity: Analysis
and Management. Journal of Applied Economic Sciences. Romania: European
Research Centre of Managerial Studies in Business Administration, 11(6), 44.
Euchner, J., & Ganguly, A. (2014). Business model innovation in practice. Research-
Technology Management, 57(6), 33-39.
Franks, D. M., Davis, R., Bebbington, A. J., Ali, S. H., Kemp, D., & Scurrah, M. (2014).
Conflict translates environmental and social risk into business costs. Proceedings of
the National Academy of Sciences, 111(21), 7576-7581.
Geological notes on the supply of raw materials for cement manufacture at Port Moresby,
Papua - data.gov.au. (2017). Data.gov.au.
Induced seismicity associated with geothermal power production in Australia - data.gov.au.
(2017). Data.gov.au.
Management of saltwater intrusion in coastal aquifers in Queensland, Australia - data.gov.au.
(2017). Data.gov.au.
Natural hazard risk in Perth, Western Australia - Cities Project Perth Report - 2005 -
data.gov.au. (2017). Data.gov.au.
NERP TE Project 7.2 Invasive species risks and responses in the Wet Tropics (CSIRO) -
data.gov.au. (2017). Data.gov.au.
NERP TE Project 11.2 Improved approaches for detection of disease and prevention of
spread in Torres Strait (JCU) - data.gov.au. (2017). Data.gov.au.

9RISK IN ENGINEERING PROJECTS
Project overview: Biophysical Oceanography- SRFME - data.gov.au. (2017). Data.gov.au.