The paper “ Risk Management in High-Speed Railway Line Project” is a fascinating example of a case study on the management. The railway line speed running from Melbourne to Mildura via Tullamarine Airport, Bendigo as well as all the major towns between Bendigo and Mildura will be one of the most prominent projects the state government has established. However, as a project manager, it is of utmost importance to identify and analyze risks, develop a stakeholder management plan and the projected project schedule in order to make it more successful, avoid conflicts and mitigate and eliminate risks that may occur (DAS 2006, p. 18). Risk and risk managementRisk can be universally be defined as the utmost combination of an event probability as well as its consequences. by so sating, it means that, in every scenario, there is a high chance of consequences and events that comprises of opportunities for upside benefits or downside threats to success WALKER 2015, p. 7o).
In this project, the risks involved will encompass both the negative and positive aspects of risk. In other words, in order to manage the risks involved, it will be wise to consider risks from both perspectives.
In the project management field, it is generally accepted that consequences of events are in most cases negative therefore management of these events solely revolves around the mitigation and prevention of the risks (DAS 2006, p. 10) Risk managementThe risks that may affect the high-speed railway can be caused by factors that emanate from both internal and external to the organization and the project as well. Additionally, some risks may have an impact on both external and internal organization drivers and may, therefore, overlap the two aspects.
Some of the external risks that may affect the high-speed railway project implementation and planning include; first is financial risks which come in the form of foreign exchange, credit, and interest rates as far as the railway is concerned (RESTI & SIRONI 2007). The high – speed railway line may also be influenced by strategic risks that may occur in terms of competition, customer demand, customer changes and industry changes (WALKER 2015, p. 75). The railway line may also be affected by operational risks, which basically occurs as a result of regulations, culture and board composition.
The fourth type of external risk that may influence the railway line externally is hazard risks which consist of contracts, natural events, suppliers and environment. Internally driven risks that may influence the railway line project comprises management and accounting integration, recruitment, supply chain, accounting controls, liquidity cash flow, research, and development as well as intellectual capital (RESTI & SIRONI 2007, p. 14). The risk management process in any project management organization goes through a number of stages. In simple terms, it is basically a process of identifying, assessing and establishing strategies that can be used to manage the identified risks (DAS 2006, p. 13).
It is therefore of utmost importance to allocate some resources, time, budget for making a risk management plan of the railway line project. By so doing, it will enable the project management team to realize and meet legal obligations for establishing a safe working place as far as the high-speed railway line is concerned and in the process reduce the likelihood of a risk incident impacting the project negatively.