University Project: Risk Management Plan for WA Rail Fleet Project

This case study examines the implementation of a risk management plan for the Western Australian rail fleet project, focusing on the replacement of the aging rail system between Perth and regional centers. The project aims to enhance safety, comfort, reliability, and accessibility. The paper utilizes the PMBOK framework, qualitative risk assessment, and a fishbone diagram to identify, analyze, evaluate, and mitigate potential risks, including technical, stakeholder, commercial, and external challenges. It provides a detailed risk analysis, including impact and probability assessments, and outlines a risk response plan with specific strategies like mitigation, avoidance, and acceptance. The study also covers risk implementation, monitoring, and provides recommendations to improve project outcomes. The assignment emphasizes the importance of proactive risk management in ensuring the successful delivery of the rail fleet project, addressing challenges and capitalizing on opportunities.

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

1
RISK MANAGEMENT PLAN
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.

2
RISK MANAGEMENT PLAN
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

3
RISK MANAGEMENT PLAN
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

4
RISK MANAGEMENT PLAN
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-

5
RISK MANAGEMENT PLAN
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

6
RISK MANAGEMENT PLAN
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

7
RISK MANAGEMENT PLAN
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

8
RISK MANAGEMENT PLAN
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

9
RISK MANAGEMENT PLAN
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

10
RISK MANAGEMENT PLAN
.
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

11
RISK MANAGEMENT PLAN
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