$1.$ Project risks can$/$cannot be eliminated if the project is carefully planned. Explain.

$2.$ The chances of risk events occurring and their respective costs increasing change over the project life cycle. What is the significance of this phenomenon to a project manager?

$3.$ What is the difference between avoiding a risk and retaining a risk?

$4.$ What is the difference between risk mitigation and contingency planning?

$5.$ Explain the difference between contingency reserves and management reserves.

$6.$ How are the work breakdown structure and change control connected?

Part B: Class Assignment $($To be submitted for the weekly assessment for AT$1).$

Create a Risk Plan $-$ After an independent enquiry into the state of the rail sector, the NSW government has decided to upgrade he rail network in the local region. The upgrade will provide local coastal communities with a fast rail service, enabling more rail users to access the rail network, more frequently and more cheaply than before. This extensive project will enable an additional $500,000$ users to access the rail network per day and it will provide a major boost to the coastal economy, population, employment and quality of life. Estimated cost is $$200$ million.

On June $7$th$,2007,$ the Department of Transport established a formal project to undertake this expensive network upgrade, and shortly thereafter I was appointed project manager. The project will result in the

$$ reopening of several coastal rail lines

$$ linking of coastal towns to the metropolitan area

$$ re$-$development of the main street station

$$ upgrade of the existing rail infrastructure

$$ creation of a new transit link to the airport

By providing a new fast rail link to the coastal area and upgrading the existing rail infrastructure, the benefits will be realized:

$$ travel time on existing routes will be reduced.

$$ more train routes will be available for the public.

$$ A larger number of new users will be able to use the rail network.

$$ Rail users will have safer, more comfortable, convenient, and affordable rail service.

The first step in this project will be to upgrade the existing rail infrastructure to handle train speed of at least $160$Km$/$h$.$ Next, we will upgrade the main street station to accommodate more rail users. We will then establish the coastal and airport high$-$speed transit link, and refurbish and reopen old coastal stations. Not only will this project allow for faster passenger service, but rolling stock services will also benefit from the new infrastructure.

This three$-$year engineering project will involve the coordination of a larger number of suppliers to construct the deliverables on time, with budget and to specification.

As the overall Project manager, I initiated this project by documenting a business case, undertaking a feasibility study.

$1.$ Identify $5$ general categories of Risk involved in this project.

$2.$ Provide a minimum of $2$ risk identifiers $($Descriptions$)$ for each of the Risk category.

The risk quantification can be identifying as to its likelihood and its impact on the project. Use the following scoring mechanism to identify the likelihood and impact of each risk type.

Likelihood

Title Score Description

Very low $20$ The risk is highly unlikely and will be recoded but not monitored

Low $40$ The risk is unlikely, but will be monitored throughout the project

Medium $60$ The risk is likely as it is clear that the risk may occur

High $80$ The risk is very likely, based on the circumstances of the project

Very High $100$ The risk is highly likely, as the circumstances that will cause this risk to occur are also very likely to occur

Impact

Title Score Description

Very low $20$ The risk will have insignificant impact on the project

Low $40$ The risk will have a minor impact on the project

Medium $60$ The risk will have a measurable impact on the project

High $80$ The risk will have a significant impact on the project

Very High $100$ The risk will have major impact on the project

$3.$ During this work, each risk identifier was assigned a likelihood, impact score and priority score.

Priority score $=[$likelihood$+$impact$]/2$

Complete the following table for all the types of risk identifiers defined in section $4.$

Risk ID Likelihood Score Impact Score Priority Score Priority Rating

$4.$ Draw the Probability$/$ Impact Matrix.

$5.$ Provide Risk Registry for one of the risk.

$6.$ Provide possible preventive action to be taken to minimize those risks.