Risk Assessment Assignment: Stakeholder Management Plan For New Sydney Cruise Terminal

Question

Task:
Write a risk assessment assignment presenting the risk assessment and stakeholder management plan for the project of New Sydney Cruise Terminal.

Answer

Introduction
The current report focuses on assessing the risks that might emerge due to the construction of large cruise ships in the Yarra bay. On analysis of the risks for the New Sydney Cruise Terminal, a comprehensive risk management plan shall be developed. Stakeholders have an important role to play in the project and hence their engagement strategy for the project shall be discussed in detail. The case study depicts the key risks in the construction of the New Sydney Cruise Terminal that needs to be mitigated for ensuring successful project delivery. In this regard, a comprehensive risk assessment and stakeholder management plan shall be performed for the project that is linked to the case study.

Risk management plan
Risk analysis

Risk analysis in risk assessment assignment 1

Description of risk management functions
(Source: Buertey et al. 2016)

The figure above illustrates the description of risk management functions that overview the risk management process. Risk identification refers to the initial step in the risk management process. The key objective of the report is to implement the risk management process in the construction project of large cruise ships with the potential risk in diverse situations.

Analyze specific risks and hazards in the construction project (Burkov et al. 2018)
Develop a risk management plan with its potential risk

Risk methodology

Risk analysis in risk assessment assignment 2

Risk management and project phases
(Source: Molwus et al. 2017)

The construction project is expected to meet the expected outcomes with the condensation of a proactive approach namely the PDCA cycle. There is a significant hazardous risk that needs to be assessed and mitigated for successful project delivery. For this, a dedicated team, shall be working on it which is discussed in the table provided below:

Project team responsibilities for risk management

Risk assessment
Risk assessment comes with two key components namely internal and external risks that are discussed below:

Internal risks
HR risks: The Yarra bay cruise ship construction project for the New Sydney Cruise terminal can face issues relating to HR practices as this requires effective workforce planning and conducting training sessions which are not considered easy. Thus, the risk in the context of HR factors that relate to recruitment and selection.

External factors
Environmental risks: The Yarra bay construction project can face issues relating to climatic change, natural disasters, water quality issues, and changes in environmental regulations (Renault & Agumba, 2016). The changes in climate change and sudden changes in the weather conditions can result in a disruption in the areas of resource supply as well as greater labor demands.

Risk response

*Sl.no*	*Risk*	*Description*	*Likelihood*	*Severity*	*Impact*	*Consequence*	*Contingency plan*
R1	Construction risks	This includes the risks relating to defective design, equipment commissioning, late drawings and instructions, site access reactions, and accidents	5	5	25	This would cause delays for the project	Revisit the schedules with the project team and request for high-risk items that are not properly defined or removed for the scope
R2	Financial and economic risks	This risk includes the fundings and inflation	4	3	12	Ensure to have back up by the government agencies involved (Srinivasan and Dhivya, 2020)	Hold regular meetings and analyze the areas of weakness in term of project budget
R3	Performance risks	This includes the issues with the productivity of labor, defective work, labor disputes, productivity of equipment	4	2	8	Delays in the project	Notify authorities and follow procedures
R4	Contractual and legal risks	This risk includes the permits, licenses, inconsistent costs, quality objectives new stakeholder, changes in funding in the fiscal year, and additional needs identified by stakeholder	4	4	16	This might put a halt to the project and result in huge losses	Notify relevant authorities such as the project board and police
R5	Physical risks	This includes the risks related to topography, subsurface condition, natural catastrophes, and geotechnical conditions	2	5	10	Ensure insurance in place and familiar the team with emergency procedure	Escalate t project boards and recommend action (Chatterjee et al .2018)
R6	Technical risks	The risks include the issues in the designing process such as changes in the criteria, owner's involvement in the design, water consumption demand, traffic demand, and errors in the completion of the foundation.	3	4	12		Initiate escalation and resolve the issue
R7	Contractual relation risks	These risk raises due to delays in dispute resolution, changes over negotiation, and delayed payment on the contracts	2	5	10	This would hamper the project performance	Ensure to prepare test cases and project testing as well as quality assurances
R8	Project management risks	This includes the lack of control over the objectives, absence of coordination, inexperienced workforce, estimation and scheduling errors	4	5	20	This would result in an overall disruption of the project (More and Hirlekar, 2017)	Include late penalties in the contracts
R9	Social factors	This includes the restrictions posed by the local communities	3	2	6	This can cause a violation of public norms and rules which would cause a delay in the project	Involve the community while detailing the scope of the project and its deliverables
R10	Organizational risks	These risks include the inexperienced staff assigned to the project, losing the critical staff at crucial points in the project, and insufficient time to initiate plans. Apart from this, there might inconsistency in the time, scope, quality, and cost of the project (Alfreahat and Sebestyén, 2020)	5	3	15	The project sponsors shall brief the team manager on the significance of the project	Revisit the Schedule with the project team

Impact assessment matrix

	Severity
likelihood		1 (very low)	2 (low)	3 (medium)	4(high)	5 (very high)
	1(very low)
	2 (low)					R7
	3 (medium)		R9		R6
	4 (high)		R3	R2	R4	R8
	5(very high)		R5	R10		R1

Stakeholder management plan
Stakeholder identification

Stakeholder	Influence	Impact by the project	Information required	Consultation methods	Outcome desired
Project manager and employees	The manager shall bring changes in the methods of deployment of the project elements to chive desired outcomes	The manager and employees shall understand the current scenario of the project issue	The manager shall look for the issues relating to the payments in the construction of the project	Video conferencing, emails, telephone	Manager shall achieve success in identifying the issue and resolving it
Government of Australia	They shall try to understand the key issues currently faced in the project	They would understand then there have been changes in the scenario due to the new set of regulations imposed (Oppong et al. 2017)	They would need the information on the steps that the construction owners shall consider	Video conferencing, emails, telephone	They shall look after the project budget issues and ensure that the project meets budget requirements
Construction engineers	They would try to finish the work faster such that expected outcomes can be gained	Through the project, they would understand the areas that require significant expertise	They would need information relating to the new technologies	Focus group meetings and calls	They want the project to be completed at a faster rate
NGOs	They would ensure that no damage to the environment is due to the construction	They would analyze the requirements and areas where the project construction shall be initiated	They would need information relating to the project construction areas (Xia et al. 2018)	Video conferencing, emails, focus group meetings	They would secure the environment from any damage with the help fo the government
Construction owners	They would try to tie up with other agencies for the improvement of the conditions	They would know the steps through which effective management in the project can initiate	They would try to provide resources and other materials needed for the successful project completion	Video conferencing, emails, telephone	They would achieve stability in terms of the project outcome

Interest and influence for the project

Stakeholder	Messages	Medium	Frequency	Communicators	Feedback of tracing
Project sponsor	Checkpoints of the previous days are achieved	Weekly status report	Monthly	Project sponsor	Email and In-person
Project team	Communicate to resolve the issue	Team meetings	Weekly	Team members	In the person-in conference
Project manager	Communicate updated project status	Board meetings	Daily	Project management team	Teleconference
Project chartering committee	Escalate issue and offer a solution	Weekly executive reports	Weekly	Administrative members	Shared drive

In the current project, the relevant stakeholders shall work effectively with the local suppliers and cruise industry to ensure and understand the level of local NSW supplies. Through this, they would identify the possible ways to reduce the intake of NSW products and services. Apart from this, the stakeholder shall be investigating the funding requirements for the sustainable development of the large cruise ship and support calls at the potential region of the reports in partnerships with the local authorities (Yang et al., 2018). Apart from this, the stakeholder shall be investigating the scope for eliminating the regulatory barriers for the entry of the cruise in the merging markers and shall be seeking for appropriate policies with other governments. As far as the employees are considered, the government shall be supporting the cruise industry for education and training requirement fulfillment for the employees in the construction sector.

The project scope and deliverables shall be utilized at the initial levels and shall explicitly work in collaboration with the local governments. Moreover, the government shall be working with the industry and other stakeholders in conjunction with the development of a new cruise terminal (Nguyen et al. 2018). For this, there is a need for assessment of elements such as environment, heritage, and indigenous requirements, drafting and delivering plans, effective planning, engaging with the stakeholders, and developing detailed designs. The stakeholder shall be considering the register which would record the relevant contact details, engagement dates with the comment as well as the follow-up requirements. Thus, it can be stated that the stakeholder engagement within the project process is critical with respect to assisting the risk management process (Ninan et al. 2019). There are two key processes that are necessary to be included to ensure effective engagement:

Providing feedback to the stakeholder in the areas of impact assessment and mitigation measure
Gathering the input of the stakeholders on the areas of impact assessment and identified measures of enhancement

Engagement strategy
The current project shall be considered an engagement strategy that demonstrates the ways in which the companies can sustain the constructive relation over time and thereby create shared value. For this, the stakeholders are required to engage early and often as well as based on what they hear.

Step 1: engagement strategy
Establish the missions and level of ambition required for the engagement as well as a review of the past engagements

Step 2: Stakeholder Mapping
Illustrate the criteria for the identification and prioritization of the stakeholders. Based on this, the selection and engagement mechanism shall be conducted.

Risk analysis in risk assessment assignment 3

BSR's five-step approach
(Source: Lane and Devin, 2018)

Step 3: Preparation
Focus on the goals that are framed on long term criteria for drawing the relevant approaches of the project. Based on this determine the resources for the engagement and develop the rules

Step 4: Engagement
Operate the engagement itself and ensure equitable stakeholder contributions as well as eliminate the tensions while focusing on the areas of priorities (Caputo et al. 2016)

Step 5: Action plan
Select the opportunities for the areas of feedback and thereby determine action, revisit the goals as well as plan for the following steps for the future engagements.

Monitoring, reviewing and reporting
The central body shall be monitoring the performance as well as corresponding effectiveness in the areas of project activities conducted. It shall modify the process and communication channels in the light of any such feedback being received or identified in the process of monitoring. The performance indicators shall help in effective monitoring and information flow Kissi (Kissi et al. 2019). The key elements for the evaluation include the examination of the project needs and requirements for the achievement of the intent of consultation.

Availability and timely distribution of the data to the stakeholders as well as the community
Currency as well as inquiries accuracy with the complaint management system
Quality of reporting
Quality of responses as well as response timeframes
The feedback that is received on the updates and other responsiveness of the construction agencies involved in the project

Reporting
Monthly reports
The employees shall be provided with the responsibility of preparing the monthly reports on the stakeholder engagement activities for the operational director. This includes:

Tasks operated during each month
Public outreach set of activities entries or the concern register and commitment
New stakeholder groups (Tengan and Aigbavboa, 2017)
Demonstrating progress in the areas of partnerships and social projects
Number visitation in the project center
Plans for the coming month

The monthly reporting for the cruise development project shall be used for the annual report that would be reviewed by the senior managers at the construction company. Herein the central body governing the project shall compile the report which would summarize the results of the project tasks and activities undertaken on a quarterly basis. This would contain the grievances, resolution, and consultation issues and shall be further demonstrating the findings from the informal meetings.

Objectives and measure for the stakeholders

To offer the stakeholder with a clear process for raising the issues relating to the project construction
To let the stakeholders with the opportunity to raise comets on the areas that require expert handling through the suggestion to communicate
To arrange and manage the comments handling comments, responses, grievances as well as monitoring of the mechanism effectiveness

It is vital to monitor the effectiveness of the project phases and appropriate measures for this shall include reporting the key risks that are identified during the project execution phases. This shall be undertaken by the central body and shall report it to the genre manager (Jayasuriya et al. 2016). As a part of the review process, the analysis of the time taken for mitigating the issues shall help in evaluating the efficacy of the mechanism followed.

Conclusion
The current report has assessed the reliability and authenticity of the risks that are associated with the construction of the large cruise ship at the Yarra Bay. The report has discussed the risk measure, mitigation plan, and approaches which are essential to consider for ensuring effective project delivery. In terms of the stakeholder management plan, various elements for evaluating effective communication and bonding across the stakeholder involvement in the project has been evaluated.

References
Alfreahat, D. and Sebestyén, Z., 2020, July. Development of a Risk Management Process for the Construction Sector. In Creative Construction e-Conference 2020 (pp. 40-45). Budapest University of Technology and Economics.

Buertey, J.I.T., Amofa, D. and Atsrim, F., 2016. Stakeholder management on construction projects: A key indicator for project success. American Journal of Civil Engineering, 4(4), pp.117-126.

Burkov, V., Burkova, I., Barkhi, R., & Berlinov, M. (2018). Qualitative Risk Assessments in Project Management in Construction Industry. In MATEC Web of Conferences (Vol. 251, p. 06027). EDP Sciences.

Caputo, F., Evangelista, F. and Russo, G., 2016, September. Information sharing and communication strategies: a stakeholder engagement view. In 9th Annual Conference of the EuroMed Academy of Business.

Chatterjee, K., Zavadskas, E.K., Tamošaitien?, J., Adhikary, K. and Kar, S., 2018. A hybrid MCDM technique for risk management in construction projects. Symmetry, 10(2), p.46.

Jayasuriya, W., Zhang, G. and Yang, R., 2016, July. Strategies for successful stakeholder analysis and stakeholder engagement in PPP projects. In The 40th Australasian Universities Building Education Association Conference (Vol. 6).

Kissi, E., Agyekum, K., Baiden, B.K., Tannor, R.A., Asamoah, G.E. and Andam, E.T., 2019. Impact of project monitoring and evaluation practices on construction project success criteria in Ghana. Built Environment Project and Asset Management.

Lane, A.B. and Devin, B., 2018. Operationalizing stakeholder engagement in CSR: A process approach. Corporate Social Responsibility and Environmental Management, 25(3), pp.267-280.

Molwus, J.J., Erdogan, B. and Ogunlana, S., 2017. Using structural equation modelling (SEM) to understand the relationships among critical success factors (CSFs) for stakeholder management in construction. Engineering, Construction and Architectural Management.

More, S. and Hirlekar, T., 2017. Effectiveness of risk management and chosen methods in construction sector. International Research Journal of Engineering and Technology, 4(11), pp.2006-2009.

Nguyen, T.S., Mohamed, S. and Panuwatwanich, K., 2018. Stakeholder Management in Complex Project: Review of Contemporary Literature. Journal of Engineering, Project & Production Management, 8(2).

Ninan, J., Mahalingam, A. and Clegg, S., 2019. External stakeholder management strategies and resources in megaprojects: an organizational power perspective. Project Management Journal, 50(6), pp.625-640.

Oppong, G.D., Chan, A.P. and Dansoh, A., 2017. A review of stakeholder management performance attributes in construction projects. International journal of project management, 35(6), pp.1037-1051.

Orlova, V., Ilin, I. and Shirokova, S., 2018. Management of port industrial complex development: Environmental and project dimensions. In MATEC Web of Conferences (Vol. 193, p. 05055). EDP Sciences.

Renault, B. Y., & Agumba, J. N. (2016). Risk management in the construction industry: A new literature review.

Srinivasan, N.P. and Dhivya, S., 2020. An empirical study on stakeholder management in construction projects. Materials Today: Proceedings, 21, pp.60-62.

Tengan, C. and Aigbavboa, C., 2017. Level of stakeholder engagement and participation in monitoring and evaluation of construction projects in Ghana. Procedia engineering, 196, pp.630-637.

Xia, N., Zou, P.X., Griffin, M.A., Wang, X. and Zhong, R., 2018. Towards integrating construction risk management and stakeholder management: A systematic literature review and future research agendas. International Journal of Project Management, 36(5), pp.701-715.

Yang, R.J., Jayasuriya, S., Gunarathna, C., Arashpour, M., Xue, X. and Zhang, G., 2018. The evolution of stakeholder management practices in Australian mega construction projects. Engineering, Construction and Architectural Management.

Tags: project management critical analysis stakeholder management plan sydney

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