Project assignment on Risk Analysis & Mitigation Plan

Question

Task: You are a project analyst at a large construction company. You have been asked to develop a risk analysis and mitigation plan for one of the below five projects:

1. Sydney Light Rail:
https://www.parliament.nsw.gov.au/researchpapers/Documents/CBD%20and%20South%20East%20
Light%20Rail.pdf Also see:
• https://www.railway-technology.com/features/sydney-light-rail-fiasco/
2. Singapore Sun Cable: https://www.suncable.sg/ Also see:
• https://www.theguardian.com/environment/2019/jul/14/just-a-matter-of-when-the-20bn-plan-topower-singapore-with-australian-solar
• https://www.straitstimes.com/business/economy/20b-plan-to-supply-solar-power-fromaustralia-to-spore
3. Future Frigates (War Ships)
https://www.defence.gov.au/CASG/EquippingDefence/SEA%205000%20Phase%201.asp Also see:
• https://www.defence.gov.au/casg/Multimedia/Hunter_Class_FFG_Fact_Sheet-9-9243.pdf
• https://www.defence.gov.au/casg/Multimedia/GCSInfographic-9-9233.pdf
4. Cross River Rail, Brisbane: https://crossriverrail.qld.gov.au/
5. Hudson Yards, New York: https://www.hudsonyardsnewyork.com/about/building-hudsonyards/
6. Western Sydney Airport, https://westernsydneyairport.gov.au/

Answer

Part A: Project Overview
Overall budget
SEA 5000 Phase 1 has been observed to be a project or venture explored in the project assignment which is targeted to serve the Royal Australian Navy (Future Frigate: Equipping Defence: Department of Defence, 2020). The venture has also been known as Future Frigate Project, which is fundamentally targeted at providing nine frigates, enhanced and improved for anti-submarine combat. The venture would aid in replacing the Anzac class frigates. Hence, giving rise to a new class altogether, which would be known as the Hunter class? The project is specifically targeted at serving the Royal Australian navy, the related requirements to benefit the entire country. The government-monitored project would be overseen by the Government and the Defence department and would be aiding the Australian defence mechanism. The entire cost of the project has been budgeted at around $6 billion for the prototyping and related milestones of the project (Future Frigate: Equipping Defence: Department of Defence, 2020). Apart from the mentioned details within the project assignment, the entire project encompasses varied outcomes with its fundamental result to be set in late 2020. However, it is important to take into account that due to the pandemic of COVID-19, the venture may suffer some damages of time efficiency and budgeting.

Social and economic rationale
The social and economic rationale could be broken into two significant parts where the social ration would be dealing with the social factors of Australia. It is important to understand that the venture is targeted at upgrading the specific fleet of the Royal Australian Navy tor anti-submarine combats.

Benefits: The project would advance the mechanism of naval forces to detect and neutralise enemy submarines in the Australian territories (Defence.gov.au, 2020). Hence, it is clear on this project assignment that the massive project would cause tensions, specifically military tension among the countries that do not share a friendly relation with Australia.

Drawbacks: However, the venture would entrust the faith and supremacy among the residents and the entire fleet of Australia. Additionally, the entire venture is of $6 billion, and it is not a small amount of economic value. However, provided that Australia had a GDP of 2.2% in 2015, the commencement year and declaration of project, it is clear that the venture would not take a deep toll on the economic value (Product, 2020).

Key Statistics

• Scope and Size: the scope of the entire venture outlined in the project assignment seems to be widespread as it specifically targets the defence system of a country. Hence, the project describes the upgrade that would be conducted over the Royal Navy fleet of Australia, providing better defence mechanism for future combats and would allow the entire country to gain specific knowledge in the related field. However, it is specifically important to understand that the venture would be huge compared to the fact that it would take five years for completion.
• Budget and estimated cost: it has been observed that the estimated cost or the budget of the entire project to be $6 billion (gov.au, 2020).
• The time required to complete the project: the forecasted timeline for the project has been observed to be a total of 5 years, which starts in 2015 and is set to end in late 2020. However, the data are as current as of June 2018, which prophases the idea for its current state and how it would be combating the engagements due to pandemic scenario of 2019-2020 (gov.au, 2020).
• Key construction elements or phases: the fundamental element for the entire venture has been identified as the Anzac Class frigates, which would be replaced with the Hunter class frigates. Apart from the information mentioned herein project assignment, the phases of the entire venture are as follows:
  • Project Year of Commencement
  • Government First Pass Approval
  • RFT released
  • Combat Management System selected
  • Government Second Pass Approval
  • Commence Construction
  • First Future Frigate in Service
• Environmental costs or benefits: the project illustrated within this project assignment has no specific environmental benefits associated with it, however, if the cost is considered, it could be stated that due to construction, there would be a compromise of environmental standards.

Funding mechanisms
The budget has been well established to $6 billion; however, the funding process involves the government reserves and allocation for military development as per the Australian Government. Here, mainly contractual funding mechanism applied. Also, cooperative agreement made along with the government.

Can you identify the key stakeholders in the case of project assignment?
The stakeholder is an essential part of the entire venture. However, it is specifically important to note that the venture is Government monitored. The key stakeholders as identified for the entire project are listed in the following section of project assignment:

• Project manager for the venture
• Planner
• Documenter
• Shipbuilders
• Australian Government
• Royal Australian navy
• Australian commoners or citizens
• International Government

Part B: Risk Analysis
Potential risks
While dealing with a large scale project and a government project which dependents on various aspects, it is specifically important to note that various things could go wrong. Hence, the section of the project assignment has been directed towards the various planning aspects and the analysis of the risks that have been identified in correlation with the project or the venture mentioned (Dyer, 2017). The section of the project assignment would be directed towards the identification and understanding their possible impacts over the mentioned project for the analyst of their propagation. The effective liberation of the task would be required to receive the PMBOK strategy, which is trailed by certain stages, for example, subjective hazard investigation, quantitative hazard examination, chance recognizable proof, chance administration arranging, chance checking and control, and hazard reaction arranging (Mohammaddust et al., 2017).

Risk management planning: this progression assists with making a compelling arrangement that can help in relieving the hurtful effects of the hazard factors. Right now, the undertaking group is required to talk about with the customer before starting the venture and structure the railroad organize since the financial backing has been resolved.

Risk identification: this progression helps in distinguishing the dangers for helping the undertaking to be submitted effectively. The recognized hazard components of this undertaking project noted in the context of project assignment are an expansion of in general spending plan, delay in development, wasteful temporary worker, wasteful representatives, unfit to lessen the number of transports and natural hazard (Salines, Andraud and Rose, 2017).

Qualitative risk analysis: this progression gives the plan to adjust the task to the past case narratives for gathering accommodating data. Old case accounts can help in unraveling the hazard factors by giving imaginative thoughts. The task authority can consider assessing the past records of railroad organize development ventures for settling the hazard factors.

Quantitative risk analysis: the probability of the hazard factors is lined up with the quantitative hazard investigation. It furnishes the chance to manage the recognised hazard factors and limit the destructive effects of the variables on the task (Yoon et al., 2018).

Risk response planning: the identified risks illustrated in the project assignment would be mitigated with the help of specific controls and the response needed for every risk in consideration for the entire project to be executed.

Risk monitoring and control: it is the last advance of the PMBOK system, which can help in observing the distinguished hazard factors for having a report with respect to the components. This progression provided within the project assignment likewise helps in controlling the effects of the elements by serving the potential alleviations (Ceres, Forest and Keller, 2019).

Risk matrix

Part C: Risk mitigation plan for the project explored in the project assignment
Risk evaluation

Risk Mitigation plan

• Risk of novelty

The risk mentioned in the project assignment would be mitigated with the help of reduction or limitation strategies, which would include specifically the involvement of prior knowledge to such work propagated by other nations. Hence, this would allow a deeper understanding of the identified risks and all the potential aspects associated with it (Tucker et al., 2018). Hence, providing a possible strategy is to eliminate the risk from the occurrence.

• Not meeting deadlines

The mentioned risk would be specifically combatted with the help of the mentioned strategy, where it would involve the project manager and the planner (Qazi et al., 2017). The associated individuals would be in-charge of coming with a detailed schedule to eliminate the risk and stay on track. This could be further detailed in the project assignment with the help of tracking short-term deadlines associated with the venture.

• Not being able to stay in budget – it is important to mention that the risk identified doesn’t require prioritized attention, however, being an identified risk it would be unsafe to completely avoid it

This being a common risk and the venture being specifically being laid over five years of execution, the tolerance to the risk is none. However, the risk obtained in the context of project assignment would be mitigated with the help of proper planning for every deadline and milestones associated with uncertain events to render the allotted funds

• Uncertainty of venture - it is important to mention that the risk identified doesn’t require prioritized attention, however, being a controllable risk it would be unsafe to not address the risk

The venture being a completely new one, it is possible to face challenges out of the norms. Hence, consideration of the venture would help in reducing and planning for the entire risk to be eliminated. Further, the integration of international and national historical data on a similar venture would help to combat the risk.

• Complexities due to pandemic

The risk being completely uncontrollable for its origins and aspect, the best policy would be to accept the risk and go ahead with the assigned tasks for the completion of the venture.

• Limitation of resource

The possible limitation of resources could be caused due to various reasons. Hence, it can be stated in the project assignment that mitigating the risk would involve the various reduction or limitation strategies that would help in identification of various subcomponents of the risk and carefully drafting plans to reduce them, such could be done with the help of proper planning and keeping a vast resource on hold for emergency or such purposes (Shah et al., 2017).

• Skill gap of associated team

The risk mentioned in the segments of project assignment would be combatted with the help of proper on-job or before-job training by a designated team. This would allow the entire risk to be faced head-on and specifically be limited to very little impact. The same will be reduced if such training programs be provided occasionally to the project team for any possible skill gap as identified while the venture is being executed (DuHadway, Carnovale and Hazen, 2019).

• Political constraints

Such risks being controllable, it is important to be faced and be avoided. This would be specifically due to the severity of the risk and the invalid possibility to reduce such risk by the authorities associated with the venture. The Government has to take charge of the risk if faced.

• Environmental calamities

The outsourcing of designated teams to face such risk would be important as it would specifically allow the entire venture to be on track and deliver its end results accordingly.

It is fundamentally important to note herein project assignment that though Risk 3 and has been identified as risk that would not need priority attention; they are still controllable and identified risk. A risk is always a lingering factor of threat if not eliminated. Hence, primary measures would be taken to reduce the risks. Apart from the mentioned, the risk mitigation strategies have been observed to be executed internally apart from Risk 5, 8 and 9. There specific risks if encountered would breakeven the budget allocated for the project. Hence, from the overall discussion on project assignment, it would be necessary to conduct a budget for establishing mitigation to the identified risks. However, the mitigation plan is cost efficient related to the entire venture and the allocated budget.

Reference List
Ceres, R. L., Forest, C. E., and Keller, K. (2019). Optimisation of multiple storm surge risk mitigation strategies for an island City On a Wedge. Environmental Modelling and Software, 119, 341-353.

Defence.gov.au. (2020) project assignment Available at: https://www.defence.gov.au/casg/Multimedia/Hunter_Class_FFG_Fact_Sheet-9-9243.pdf (Accessed: 16 April 2020).

DuHadway, S., Carnovale, S., and Hazen, B. (2019). Understanding risk management for intentional supply chain disruptions: Risk detection, risk mitigation, and risk recovery. Annals of Operations Research, 283(1), 179-198.

Dyer, R. (2017). Cultural sense-making integration into risk mitigation strategies towards megaproject success. International journal of project management, 35(7), 1338-1349.

Future Frigate : Equipping Defence : Department of Defence (2020). Available at: https://www.defence.gov.au/CASG/EquippingDefence/SEA%205000%20Phase%201.asp (Accessed: 16 April 2020).

Mohammaddust, F., Rezapour, S., Farahani, R. Z., Mofidfar, M., and Hill, A. (2017). Developing lean and responsive supply chains: A robust model for alternative risk mitigation strategies in supply chain designs. International Journal of Production Economics, 183, 632-653.

Ngan, S. L., How, B. S., Teng, S. Y., Leong, W. D., Loy, A. C. M., Yatim, P., ... and Lam, H. L. (2020). A hybrid approach to prioritise risk mitigation strategies for biomass polygeneration systems. Renewable and Sustainable Energy Reviews, 121, 109679.

Product, G. (2020) Australia GDP - Gross Domestic Product 2015, countryeconomy.com. Project assignment Available at: https://countryeconomy.com/gdp/australia?year=2015 (Accessed: 16 April 2020).

Qazi, A., Quigley, J., Dickson, A., and Ekici, ?. Ö. (2017). Exploring dependency based probabilistic supply chain risk measures for prioritising interdependent risks and strategies. European Journal of Operational Research, 259(1), 189-204.

Salines, M., Andraud, M., and Rose, N. (2017). From the epidemiology of hepatitis E virus (HEV) within the swine reservoir to public health risk mitigation strategies: a comprehensive review. Veterinary research, 48(1), 31.

Shah, A. A., Ye, J., Abid, M., and Ullah, R. (2017). Determinants of flood risk mitigation strategies at household level: a case of Khyber Pakhtunkhwa (KP) province, Pakistan. Natural hazards, 88(1), 415-430.

Tucker, J. D., Pan, S. W., Mathews, A., Stein, G., Bayus, B., and Rennie, S. (2018). Ethical concerns of and risk mitigation strategies for crowdsourcing contests and innovation challenges: scoping review. Journal of medical Internet research, 20(3), e75.

Yoon, J., Talluri, S., Yildiz, H., and Ho, W. (2018). Models for supplier selection and risk mitigation: a holistic approach. Project assignment International Journal of Production Research, 56(10), 3636-3661.