Risk Management Plan for Water Features - Report Example

Risk Management Plan for Water Features Risk Management Plan Proposed Darling Harbour Water Feature Prepared by XXXXX XXXXX Date This report provides the risk management plan for the installation of new water features and public realm. The project is undertaken as part of the Convention Centre Redevelopment project by the NSW government. It is carried out according to IEC/ISO 31010:2009, SA/SNZ HB 436:2013, and AS/NZS ISO 31000:2009 standards. In the introduction a brief introduction of Darling Harbor, the new water features that will replace the urban stream water channel, the objectives and the scope of the project as well as the provide a summary of the risk management plan that will be used to mitigate the risks that will come about as a result of the installation of the three new water features is provided. The second section introduces risk management processes as well as provides analysis of stakeholders. The third and the fourth section discuss about risk identification and risk analysis processes. Risk evaluation which is developed from possible risks that may come about because of this project is also discussed. Risks severity matrix is applied in the analysis. The matrix together with FEMA analysis is used in the identification of the probability of occurrence and to provide the possible effects. ALARP principle was also applied for the evaluation and identification purposes. Risk treatment for the risk prioritized in this project is also addressed. The monitoring and review stage helps in the continuous improvement of the project. Most of the risks that has been addressed in this report originated from the health and safety bodies and the workers. Table of Contents 2 Table of Contents 3 Introduction 5 Overview of the project 5 The scope of the project 6 Project Objectives 6 Project Boundaries 7 Risk Management context 7 Risk Management Process 7 Stakeholder Analysis 8 Communication process 8 Risk assessment process 8 Risk Identification 9 Brainstorming 10 Checklist 10 SWOT Analysis 10 Risk Analysis 13 Method of analysis 13 Description of the terms 14 Risk acceptance criteria 15 Risk Evaluation 15 Evaluation process 15 Risk Treatment 16 Possible Treatment Actions 16 Mitigation of the risks 17 Risk Monitoring and Review 18 Risks closure 19 References 20 Australian Standards 2009, Risk Management –Principles and guidelines, AS/NZS ISO 31000- 2009, Standards Australia, Sydney 20 Appendix A – FMEA Analysis 21 Introduction It is important to identify risks and manage them in order to achieve the objective of the project. Thus, risk management plan is established according to AS/NZS ISO 31000:2009 so as to address the possible risks that may occur in this project. This section will provide a brief introduction of Darling Harbor, the new water features that will replace the urban stream water channel, the objectives and the scope of the project as well as the provide a summary of the risk management plan that will be used to mitigate the risks that will come about as a result of the installation of the three new water features. Overview of the project This project is part of the redevelopment of Darling Harbour. It is one of the world-class integrated exhibition and convention precincts known as the international convention centre in Sydney which is expected to cost $1 billion (nsw.gov.au). The project will cover the installation of the three water features to replace the urban stream water channel and the improvement of the public realm. This will include improvement of the pedestrian connections to most part of Sydney. Darling harbor is at the central location in the Sydney city in Australia and has many other attractions features such as museums and parks (Smith, 2010). The exhibition centre is expected to hold many exhibitions and annual events, which will ensure that Sydney will remain open to business. Three new water features will not only replace the urban stream, but it will also have other features such as the pools, suspended seats, reflective and dry pool, and fog discharge about the water features. Unlike the urban stream which was passive to the public and the public was not allowed to play in water, the new water features will be active. This means that the public will be allowed to engage actively with new water feature. The objective of the project is to improve public engagement and attract more visitors, as well as encouraging the growth of business. The project is expected to boost the Australia’s economy by creating thousands of jobs directly during the construction and more after the project is complete as well as through businesses that will emerge as a result of the development. The government of New South Wales funds this project and the goal is to increase visitors into the city of Sydney (NSW, 2014). The scope of the project This project is defined in the following terms a) Seeking approval for the new construction near existing buildings b) Authorization for excavating and constructing structures besides pool areas and installing water motor, dry pool and water jets. c) Approval for the using heavy duty machinery like bulldozers and excavators for the construction on the site. d) Availability of the funds and completing the project. e) Approvals for the usage of the machinery which provide noise that exceed the standard limit such as the generators and drillers. f) Licences for access to Darling Harbour even after closing hours for construction purposes. g) Construction of the suspended seats design above water like net material. h) Installation of interactive sensors for jumping jest or fog components i) Construction of system for water filtration and mechanical ventilator j) Installing jumping jets that triggers popping of water jets over the pool k) Constructing pools with varying depths of 300mm, 200mm and 200mm at the Chinese Garden. l) Construction of water storage, water filters, storm water, waste water discharge points and water inlet m) Construction of jellyfish jets at the pool n) Installation of fog emission elements at teen play site o) Construction dry pool together with reflective pool feature and pavement. The reflective pool will be 200 m2, with a depth of 2-15mm Project Objectives The objectives of the project include the following. Increase the number of local and international visitors Ensure that the project is completed within budget plan Improve the economy of Sydney city through increase in job opportunities and increased number of tourists Create better water features that can be used by the public for leisure and entertainment Improve the status of Darling Harbour Project Boundaries To ensure that the assessment of the risk is performed successfully the boundaries of the project are defined according to the following. Risk analysis of the workers is not considered due to lack of information of the surrounding public realm and the new water features. The scope defined for the construction of the new water features and the improvements of the public realm are considered alone but under the entire redevelopment of ICC. Risk analysis is carried out based on the potential risk during the reconstruction Risk Management context This risk management plan is aimed at minimizing any risk which is likely to cause adverse effect on the public, employees, and the project objectives. The approaches that will be used to assess risks include identification, analysis and evaluation of different risks. The management of risk in this project will involve risk assessment and risk treatment processes. Risk assessment focuses on the technique that will be applied in the identification, analysis and evaluation of various risks that may be encountered in the project (Kendrick, 2009). The risk management plan is aimed at providing a framework structure used by to manage risks related to the construction of the water features and the improvement of the adjacent public realm. Besides, all of the risks assessment will focus on one main issue: health and safety of the public. Risk Management Process The focus of this report is to eliminate or reduce all possible risks which may have adverse effect of the project objectives and the project stakeholders. The project’s success and the safety of the public are dependent on the assessment of all of the possible risks. This section will focus on the identification of the related risks, their analysis and evaluation of the extent of the problem that may be caused. This risk assessment process is in compliance with AS/NZS ISO 31000:2009. The various approaches used to assess risk in this report are according to IEC/ISO 31010:2009. It is a requirement to assess the risk management plan and provide definite roles and responsibilities to every internal stakeholder. It is very important to choose the correct methodologies by understanding the circumstances of the possible risks. Stakeholder Analysis There are a number of stakeholders in this project and they can either be internal or external. The following is a list of stakeholders Table 1: Identification of Stakeholders Category of stakeholders Description Internal stakeholders The government Site supervisor, Project manager Contractors Members of the board External factors Suppliers of the construction materials Visitors Environmental bodies Local residents Banks Temporary and permanent workers Communication team Communication process An effective communication channel and among all the stakeholders can reduce or eliminate risks that may affect the effectiveness of the project and the safety of the public. The objective of communication in risk management is for gathering information from the stakeholders and to find areas that are of great concerns. Ensure periodic update on the project progress. It also ensures transparent and clear sharing if information and detection of roles for all the stakeholders (Kendrick, 2009; Carroll, 2009). Risk assessment process The risks criteria adopted for the project on new water features is reflected by the objectives and the assessment context. The criteria are periodically reviewed during the process of assessing the risk. The categories through which risk assessment will be undertaken before risk criteria are the following. Protection of the environment – it should be ensured that waste materials are removed in timely manner and the crowd should be discouraged from entering into the construction area. The teen play area and the pool should be kept clean and hygienic environment should be maintained at all times. Functional performance – the fog emission in teen play area should keep working and should not cause harm to the public. The jet water should also work continuously and do not exceed the set limit. Health and safety of the people – the safety of the staff and the visitors should prioritized. Safety measures should be taken by everyone working in the site. Healthy pool facilities with clean water should be provided to the visitors. The following points are taken into account when setting out risk criteria The probability of risks, their consequences and their size The internal goals like visitor satisfaction, improving the image of Darling Harbour and the completion of the project according to the risk management regulations and principles. Establishment of risk categories Assessment whether the risk are tolerable by comparing them with the set standards Determination of risks Risk Identification At this stage, all of the possible risks which may be detrimental or beneficial to the project are identified. This identification process enables identification of the possible risks that are related to the project. Thus three approaches that will be used in this report include brainstorming, checklist and SWOT analysis. Brainstorming This technique is applied at the beginning of the project. Various approaches can be used here. In this case, the management organized brainstorming in three stages. The first stage involves the meeting between the government officials and the business partners representatives, the second meeting included the project manager, and in the third meeting other stakeholders who include representatives of the local residents and the site supervisor were also included. This meeting generated insights into various possible risks related to the project that can be evaluated further in later stages. These meeting provided insights to various potential risks in relation to the risk areas. The risk identification checklist is available on the Appendix A. Checklist This technique assists in the identification of all the potential risks and their effects. It can be implemented using a list of a number of questions. SWOT Analysis SWOT analysis is an analytical method used to identify the potential risks situation and is normally used in the management purposes by organizations. It involves identification of Strength and Weakness of the project, and Opportunities and Threats which are present due to the project (Knapp, 2010). Strengths – these are internal factors that support the projects in order to achieve its objective Weaknesses – these are the internal factors that could prevent the project from becoming successful Opportunities – these are external factors that support the process of achieving the objectives Threats – external factors that could hinder the success of the project and may lead to failure of the project to achieve its objective In this case, SWOT for this project can be summarized in the following table. Table 2: The table for SWOT analysis Strengths Trained and well motivated staff Excellent location of the site Excellent implementation of the project Well designed features Weaknesses Delay in completion of the project Non-cooperative members Insufficient funding Delays in releasing of funds Overrunning cost Opportunities Improved image branding Increase in business opportunities Growth of economy Increased jobs Threats Inflation problem Legal issues Rise in completion New enactment of environmental laws Occurrence of inflation The results of risk brainstorming, checklist and SWOT are summarized in the following table. Table 3: Possible Risks generated Risk Possible issues Legal issues The local residents may complaint due to the construction of the project The existing business units may press charges against the project due to loss of business due to the restriction in the construction leading to loss of customers The environmental organizations may be raise concerns on issues that may arise out of poor collective responsibility Socio-cultural issues Since the project is part of the International Convention Centre, it may attract more delegates compared to tourists Taxpayers may fail to comply because of the believe tax compliance is a waste of money Laws and regulations Workers being late for work thereby breaking the regulations Workers not following the regulations set by OHSC Working over time may lead to breaking the regulations. Not following the regulations during the construction process Issues related to finance There may be problems that may cause delay in transfer of funds that are necessary for the implementation tasks Occurrence of inflation of interest rates may affect bank loans Partners may exit Cost overruns Interactive Technology Incorrect installation of technology Malfunctioning of overflow in the pool Malfunction of interactive technology used in water jets Political issues The funding of the project may result in delay of other projects by the government Change of the government before the project is complete may affect the completion of the project Corruption by the officials may be detrimental to the success of the project Suppliers There may be delay in supply of the materials Cancellation of contract Poor quality of materials from the supplier Misinterpretation of buyer vendor agreement Security issues Theft of the materials Attack of the workers and staff members Robberies at the project site Competition from similar projects The competitors may install better features Similar projects in other parts may affect the profitability of the business Project management There may be poor management of the project due to management technique The exiting of the board of members may affect the success of the project Poor collection of project information Poor decision making Health and safety issues Contamination of water by food waste and other waste materials Animals and birds may contaminate water through their excretes Economic issues The delay in project may cause budget overruns The project may fail to attract local or international tourists Poor economy may detrimental effects Workers The labour force may not have skills Workers may be injured during the process of construction The workers may demand for more wages Poor working ethics by the labours Environmental issues The environmental laws may be violated The environmental regulations may change The environmental organization may not like the project technique Risk Analysis This step involves the analysis of the likelihood of the identified risks to occur and the consequences of the risks on the project. They are used in determination of the severity of the risks based on their ratings/score. Method of analysis A qualitative risk assessment matrix is used in scoring the risks in terms of their probabilities and their effects. The table shown below enables us to concentrate and prioritize on significant risks that are to be managed. Table: Quality Risk Assessment Matrix Probability Likelihood Consequences Insignificant Minor Moderate Major Extreme Almost certain 90 – 100 % M H H E E Likely Very high M M H VH E Possible High L M H VH VH Unlikely Moderate L M M H VH Rare Low L L M M H Description of the terms Likelihood – the probability of occurrence Consequences – the result of the risk occurrence, which in this case is undesirable Risk level – is the measurement of the severity of risks which is equivalent to likelihood of occurrence x its effects. Table 4: the table for likelihood rating Probability Description Frequency of occurrence Score Rare The event is unlikely to happen Occur once in one or two years 1 Unlikely The event may not happen May occurs in six months 2 Moderate The event may or may not happen May happen in a week 3 Likely The event has got high chances of occurring Occurs once in day 4 Almost certain The event has definite possibility of happening It occurs a number of times in a day 5 Table 5: Table for impact of the risk The effects Description Score Insignificant Very small effect on the project 1 Minor Low level of the business, but can be worked out instantly 2 Moderate The impact is noticeable but can be reversed 3 Major Causes huge damage leading to very big loss of life and business 4 Catastrophic Cause disastrous effect on the project and lead to loss of life and business 5 Table 6: Table for description of risk level Risk level Description Low These type of risks are managed using regular procedure Medium The type of risks are acceptable and needs to be treated and monitored High The risks need the top management level to resolve it Extreme The level of risk that require all parties to be involved and it require thorough assessment and treatment Risk acceptance criteria The identified risks are then analysed using FMEA analysis. The identified risks, their impacts and the action used to eliminate or reduce them has been arranged in the matrix as shown in appendix A. The severity (S) and the possibility of occurrence (P) are used to generate risk priority number. Risk Evaluation The next step in risk management after identification and analysis is the evaluation of those risks. According to AS/NZS ISO 31000:2009, risk evaluation process evaluates FMEA analysis of both the identified and the potential risks. All the risks listed are evaluated so as to focus on the risks with higher priorities and the correct risk treatment. Evaluation process The risks are evaluated to determine the risks to be treated and the treatment level needed by use of As Low As Reasonably Practical (ALARP) principle (Thomas, et al., 2014). The use of this method allows the risks to be compelled towards tolerable region and as a result, the benefits are validated. The figure below shows three categories of risks treatment and their significance. Figure 1: The figure showing ALARP principle The risks that falls in the upper region require prompt response regardless of the cost. Those in the middle region requires the implementation of risks reduction measures as much as possible, and also taking into consideration the measures that are available, the cost and the recommended practice. The risks in the lower region should be managed and reduced continuously (Thomas, et al., 2014). Each treatment was assessed against this classification by comparing with the sacrifice required such as time, against the benefits before validating it. The risks that falls in the upper and the middle region are not acceptable, and treatment process are done to reduce them. The risks that falls in the lower region regarded as tolerable and are considered negligible (Peterson, 2006). Risk Treatment Risk treatment is the next stage after ALARP analysis. The aim of risk treatment is to focus mainly on risk treatment of risks that are obtained from ALARP. There are a number of options that can be used treat risks taking into account the situation. The treatment may not necessarily give practical solutions, as they may require change of change of the project process or it may cost more (Thomas, et al., 2014). They include the following. Elimination of the risks as reasonably practicable Transferring the risk to an acceptable level Alter the possibility of occurrence and the risk effect Increase the risk to increase the benefits Accepting and retaining the risk Avoidance of the risk by not undertaking the task Possible Treatment Actions In compliance to AS/ NZS ISO 31000:2009, there are a number of actions that can be taken to treat risks. The treatment of the risks can be put into the following options. Providing appropriate means of communication Prioritizing treatment Preparing and implementing risks treatment Balancing the cost of the implementation The stakeholders perceptions Timing and monitoring the risks Treatmnet of risks which may come up in the process. Mitigation of the risks The most probable risk treatment options taken for the risks that have been evaluated are shown below. Table 8: The table for risk mitigation plan Risk description Mitigating action Technology failure Find warranty and guarantee on the project Have contract with reputable companies Workers breaking OHSC regulations Applying penalties for not following the regulations Bank exiting Ensure that the banks have good reputation Provide clear expenditure for the project Non-compliance by taxpayer Provide improved leisure features Provide project assurance Change of government Stabilize the economy Begin the project only when the government is stable. The environmental officials giving the legal notice due to poor social responsibility Ensure that social responsibility is improved Take environmental regulations seriously Provide training for working regarding the significance of adherence to environmental laws Theft of the materials Install CCTV to enhance security Improve security in and around the site Poor skilled workers Hiring only experienced workforce Assessing the skills of the workers before employment Economic depression Study the inflation patterns and the market before starting the project Stop beginning the project Exiting members of the board Proper assessment of the project team managers Poor quality of the materials Demand for refund for poor quality materials Application of penalties on poor material quality Change of environmental laws Assessing the environment law and finding out if there is the possibility of changing in the sooner Competition from similar projects in other locations Analysis of the competition from other locations before initiating the project Installation of improved features Poor hygiene at the project site Applying penalties on the unlawful garbage disposal Perform more inspection to ensure that hygienic environment is maintained Risk Monitoring and Review This is the final stage which is vital for compliance with the standards. It involves monitoring and reviewing of the risks continuously to ensure that the project is executed successfully. This is because risk is not static and fresh risks may come about in the process of construction. Thus the organization continues implementing the risk treatment and also generating awareness of the emergence of new risks. With respect to the current project, i.e. the construction of three new water features and improvement of public realm, this step is implemented as follows. Regularly assessing the risk management plan Reviewing risk management plan and policies periodically Internal audits to assess the finance status of the organization External audit to assess the project framework. Capture new risk and application of risk assessment periodically Recording new risk and providing information to relevant authorities The resources that will be used to handle the risks are provided by the authorities. Various responsibilities of individuals required in this stage are shown in the following table. Table 9: the table showing monitoring and review process Individuals Responsibilities Staff personnel Ensures that the regulations are followed so as to minimize or prevent the occurrence of the risks Reporting any risk which may arise Monitoring and reducing the risks effect Manager Provide training to the personnel in order to manage and treat risk effectively Risk management and treatment based on priorities Ensure that the regulations are adhered to by the staff personnel in order to minimize risks Ensure that the staff personnel are aware about the risks Produce database that can be used in future Business partners Approval of allocation of resources to used for personnel training Approval of allocation of resources to used for inspections of safety Approval of allocation of resources to used for risks management and treatment Risks closure The risk manager can close any risk if the following items are completed If the treatment action has been undertaken If the risk has been reduced If there is no additional risk after the treatment process The top management team reviews the risk closure before approving it. Such events are put in records. References Australian Standards 2009, Risk Management –Principles and guidelines, AS/NZS ISO 31000- 2009, Standards Australia, Sydney Carroll, R. (2009). Risk management handbook for health care organizations. San Francisco: Jossey-Bass, from . International Standards 2009-11, IEC/ ISO 31010 Risk Management- Risk Assessment Techniques, 1st edn, IEC, Geneva, Switzerland Kendrick, T. (2009). Identifying and managing project risk: Essential tools for failure-proofing your project. New York: AMACON. . Knapp, B. W. (2010). A project manager's guide to passing the Project Management (PMP) exam. Phoenix?: Sturgeon Pub. in association with The Project Management Excellence Center. New South Wales, 28th May 2014. https://www.nsw.gov.au/media-releases-premier/work-starts-international-convention-centre-sydney Peterson, D. C. (December 01, 2006). Precaution: principles and practice in Australian environmental and natural resource management*. Australian Journal of Agricultural and Resource Economics, 50, 4, 469-489. Smith, H. (2010). Sydney & Australia's New South Wales. Edison, N.J: Hunter Publishing, Inc. http://www.myilibrary.com?id=227539 Thomas, M., Phillips, I. C., & Coventry, B. J. (January 01, 2014). Risk Management and Human Factors. Appendix A – FMEA Analysis Table showing the FMEA analysis Function Possible failure Impact The cause Risk before Action taken Risk after Legal issues Receiving legal notice from the environmental authorities delay or failure of the project Poor systems 3 2 Socio-cultural Noncompliance to task payment Opposition to initiating the project More taxes 3 Provide incentives for project assessment 1 Technology Failure of technology Injury to tourists Poor installation 4 Conduct a test before opening to the public 2 Laws and regulations Workers not following the OHSC regulations Injury to workers Poor training 3 Penalty 1 Finance Bank exit Project shutdown Non-credible banks 3 Looking for credible banks 1 Political issues Government change Project shutdown Poor leadership 2 Strong governance 1 Suppliers Poor quality of the materials Project failure Supplier not following ethics 2 Penalty 1 Staff Unskilled workers Poor quality work Poor skills 3 Skill assessment 1 Management Exiting managing team Project delay Lack of interest in the project 2 Proper assessment of the managing team 1 Security Material theft Delay of completion of the project Poor security 3 Installing CCTV 1 Competition Improved project in other places Impact on the image of the business Competition 2 Improved design 1 Economy Economy depression Delays or failure of the project Inflation 2 Keep in check inflation 1 Read More

c) Approval for the using heavy duty machinery like bulldozers and excavators for the construction on the site. d) Availability of the funds and completing the project. e) Approvals for the usage of the machinery which provide noise that exceed the standard limit such as the generators and drillers. f) Licences for access to Darling Harbour even after closing hours for construction purposes. g) Construction of the suspended seats design above water like net material. h) Installation of interactive sensors for jumping jest or fog components i) Construction of system for water filtration and mechanical ventilator j) Installing jumping jets that triggers popping of water jets over the pool k) Constructing pools with varying depths of 300mm, 200mm and 200mm at the Chinese Garden. l) Construction of water storage, water filters, storm water, waste water discharge points and water inlet m) Construction of jellyfish jets at the pool n) Installation of fog emission elements at teen play site o) Construction dry pool together with reflective pool feature and pavement.

The reflective pool will be 200 m2, with a depth of 2-15mm Project Objectives The objectives of the project include the following. Increase the number of local and international visitors Ensure that the project is completed within budget plan Improve the economy of Sydney city through increase in job opportunities and increased number of tourists Create better water features that can be used by the public for leisure and entertainment Improve the status of Darling Harbour Project Boundaries To ensure that the assessment of the risk is performed successfully the boundaries of the project are defined according to the following.

Risk analysis of the workers is not considered due to lack of information of the surrounding public realm and the new water features. The scope defined for the construction of the new water features and the improvements of the public realm are considered alone but under the entire redevelopment of ICC. Risk analysis is carried out based on the potential risk during the reconstruction Risk Management context This risk management plan is aimed at minimizing any risk which is likely to cause adverse effect on the public, employees, and the project objectives.

The approaches that will be used to assess risks include identification, analysis and evaluation of different risks. The management of risk in this project will involve risk assessment and risk treatment processes. Risk assessment focuses on the technique that will be applied in the identification, analysis and evaluation of various risks that may be encountered in the project (Kendrick, 2009). The risk management plan is aimed at providing a framework structure used by to manage risks related to the construction of the water features and the improvement of the adjacent public realm.

Besides, all of the risks assessment will focus on one main issue: health and safety of the public. Risk Management Process The focus of this report is to eliminate or reduce all possible risks which may have adverse effect of the project objectives and the project stakeholders. The project’s success and the safety of the public are dependent on the assessment of all of the possible risks. This section will focus on the identification of the related risks, their analysis and evaluation of the extent of the problem that may be caused.

This risk assessment process is in compliance with AS/NZS ISO 31000:2009. The various approaches used to assess risk in this report are according to IEC/ISO 31010:2009. It is a requirement to assess the risk management plan and provide definite roles and responsibilities to every internal stakeholder. It is very important to choose the correct methodologies by understanding the circumstances of the possible risks. Stakeholder Analysis There are a number of stakeholders in this project and they can either be internal or external.

The following is a list of stakeholders Table 1: Identification of Stakeholders Category of stakeholders Description Internal stakeholders The government Site supervisor, Project manager Contractors Members of the board External factors Suppliers of the construction materials Visitors Environmental bodies Local residents Banks Temporary and permanent workers Communication team Communication process An effective communication channel and among all the stakeholders can reduce or eliminate risks that may affect the effectiveness of the project and the safety of the public.

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