RISK MANAGEMENT PART II

 RISK MANAGEMENT PART II

 
Table of Contents

Introduction	2
Treatment of risks	2
Risk management plan	6
Recommendations	13
Conclusion	16
References	17

Introduction 
In the report about a new regional railway fleet project introduced by the New South Wales Government, the risks and their probable treatments have been discussed. A risk management plan chart has been given which identifies potential risks and measures to manage or mitigate them. The project responsibility is given to Momentum Trains who will design and structure the train fleet project as well as see over the maintenance facility, which would maintain this fleet effectively. Suitable recommendations for developing the fleet and justifications regarding the chosen recommendations are stated. These justifications would analyze in detail why they said recommendations are suited to the project in question. The regional coach and rail services are monitored and controlled by NSW Train Link who is also the authority who will be operating the new fleet.
Treatment of risks 
The risks, which have been identified, need to be provided adequate treatments or responses in order to either manage or control them. The elements relating to risk responses or treatments involve avoiding, optimizing, transferring or maintaining the risks. The internal risks are related to project management, organizational operations, stakeholders, and sponsors. Whereas the external risks might be from the environment and other miscellaneous factors (Moura et al., 2017).
Treatment /responses to internal risks:
●	Project management risk measures include monitoring any issues, which have the ability to stall the project. Stakeholders have to be identified in time and their opinions have to be considered so that nothing is missed out while creating responses that suit a particular risk (Martin, 2018).
●	Project management internal risks also include financial related issues like fewer funds, the liquidity of assets, and confiscation of assets due to non-payment of dues. Financial issues also involve improper allocation of funds and unutilized funds being wasted. 
●	To solve financial issues, strategies related to financial management have to be implemented by a finance expert. The contract holders have to see that financial issues do not result in the compromise of quality.
●	Treatment plans for other issues like getting sponsors for a project involve much research. Adequate sponsor hunting requires planning and design. Sponsors need to be informed about the project design, structure, and how it is to be implemented. A model or blueprint of the project is to be made by railway engineers and designers. Such a blueprint would help sponsors assess the magnitude and importance of the project. Sponsors generally give their nod to projects, which involve fewer risks, and bottlenecks, therefore risk treatment strategies have to be implemented accordingly (McDonald & Dean, 2016).
●	There are issues in long and short distance railway networks. The risks are related to building a conventional railway network while also maintaining synchronization with main radial routes of railways. To solve this, railway networks need to be developed individually for each sector, urban or local. Multi- railway networks need to be seamlessly integrated into a united system so that both regional and urban railway services can interact and result in positive economic growth (Arabian & Chan, 2017).
●	Organizational operation related risks include timely and accurate transport mobility. Timeliness and accurateness in transport like railway systems go a long way in improving the overall infrastructure of a country's economy. Passenger information systems have to be developed in an orderly manner so that passengers do not miss out any notable information. A passenger information system can be improved by digital voice announcement systems that work automatically when a train schedule is on time, or way behind schedule (McDonald & Dean, 2016).
●	Internal risks can be treated by modifying any negative outcomes, which can come from any inherent risk. They can be avoided by stopping or eliminating any activity, which has the potential to cause problems in the overall operational management. Risks can be shared with any stakeholders who can manage or handle the risk effectively. It has also to be kept in mind that not every stakeholder can manage risks effectively. Outcomes of the results can be modified by meeting with the sponsors so that outcomes do not affect the project management in any manner (Arabian & Chan, 2017).
Treatment/responses to external risks:
●	External risks as mentioned come from external factors like environment, functional or any other factors. Environment factors include climate change, functional factors include engine or track related issue, and other factors might be political or sociological. 
●	The treatment or responses to external risks that are related to the e