Sample MEM602 Engineering Risk Management Report 2

MEM602 Engineering Risk Management Report 2 Sample

Task Summary

The case study shown below provides an overview of Road Transit Systems (RTS) - a specialist preventative vehicle maintenance program operator in NSW, Australia. A number of attributes have been provided in the case study to give the reviewer (i.e., you as student) the opportunity to draw on material and construct a response that is relevant to the information provided (in the case study). Reference to the case study is required for ALL three assessments and your critique of the case study will differ across ALL three assessments.

For assessment 2 the Managing Director of RTS has assigned you as Project Engineer to oversee the development of a risk management plan for the organisation based on the findings provided in the Risk Strategy Report. Critical to the Risk Strategy Report were a number of external and internal risk-based issues that impacted RTS’s approach to compliance and governance. The findings from the Risk Strategy Report, suggested to RTS senior management that the engagement of key personnel across the organisation and engagement of interested parties external to the organisation was inadequate. To rectify this situation, a stakeholder analysis together with a risk management plan has been benchmarked for action. As Project Engineer, you will work with other colleagues in providing a formal report in 2500 words (+/- 10%) that outlines a risk management plan as an action plan for RTS. Your group report will be broken into 4 main categories: discussion of the risk issues, review of risk controls, performing a risk assessment (identify and analyse) and undertaking a cause and effect analysis. Within these categories you will address the likelihood and consequence of the risk occurring, evaluating the risk (treatment) and prioritise the significance of the risk. Please note, this is a group assessment and it is expected that you undertake appropriate academic cues in preparing your submission.

Task Instructions – Assessment 2

To complete this assessment, you need to critically analyse the case, develop appropriate plans and review of current systems for further action and benchmark an innovative approach to furthering compliance and organisational effectiveness in view of actioning an ‘organisational risk evolving culture’.

Report criteria:

1. Refer to the Case Study. Take into account ALL of the case’s context;

2. Produce a risk management plan;

3. Develop and map a stakeholder analysis;

4. Address the risk issues identified in the strategy report by:

• discussing the risk issues;

• reviewing the risk controls;

• performing a risk assessment (identify and analyse risks–some of which must be process-based risks);

• undertake a cause and effect analysis

5. From addressing the risk issues determine the likelihood and consequence of the risks occurring and;

6. Prioritise the significance of the risk through the use of a risk register

The following diagram will aid you in this process:

Report structure:

1. Executive Summary (what is the purpose and nature of the report);

2. Contents page;

3. Introduction - Background information;

4. Body (as outlined in report criteria);

5. Conclusion;

6. Recommendations;

7. List of References;

8. Appendices

This assessment is relevant to the following SLOs (subject learning outcomes):

a) Develop a systematic risk management approach to strategically and operationally identify, evaluate, analyse, manage and govern risks in an engineering context;

b) Implement a risk management approach in engineering practice workplace situations;

c) Assess and apply methodologies and tools to improve safety, reliability and to reduce hazards;

d) Develop risk management plans for engineering projects and systems in accordance with appropriate risk management standards;

e) Consider and be able to adapt technologies and innovative ideas to improve risk management processes.

Assessment criteria and weighting is as follows (also refer to the assessment rubric).

1. Evidence of addressing the SLOs for the assessment: 20% of this assessment

2. Analytical depth and discussion: 35% of this assessment

3. Academic and Industry evidence to support arguments: 45% of this assessment

4. Quality of the style and structure of the response: 10% of this assessment 

Solution

Risk Management Plan

The above Figure 1 represents the steps involved in the Risk Management Plan. Risk management helps the project manager to look ahead of the potential risk and reduce its negative impact. Academic interest in risk management has significantly increased in recent years (Rampini et al., 2019). In reducing the risk related to preventive maintenance programs, the Road transit system (RTS) has to undertake a series of steps to maintain a smoother flow of vehicles and prevent risk regarding vehicle maintenance.Risk management process requires to identify the inherent risk and optimal avoidance measure of the project(Banerjee Chattapadhyay et al., 2021)

Establishing the Context

RTS is involved in pricing vehicle maintenance programs in New South Wales in Australia which is mostly preventive. It is involved in reducing the maintenance cost of vehicles and reducing the cost due to unpredictable behaviors. The maintenance of vehicles has to be done based on the local policies and conditions. For Assignment Help, Topography, Urban services and weather must be considered. A proper risk management plan is to be adopted by RTS to prevent the risks and accidental hazards which could happen during the vehicle maintenance program.Assessments of interassociation are required in mega projects among the risk for segmenting them in various categories(Banerjee Chattapadhyay et al., 2021).

Communication and Consultation

After identifying the extent of the risk and mitigating tool RTS will be required to acquire and contact the local regulatory authorities to inform them about it. Effective communication must be maintained with the vehicle owner and vehicle maintenance centers for taking the preventive measures.The present situation regarding the defects in the vehicle maintenance is to be consulted and communicated with regulatory authorities.Risk management help to determine the future consequences nad help to identify possible risk factors which have a significant impact on risk management(Banerjee Chattapadhyay et al., 2021)

Identifying the Risk

As RTS works as a preventive vehicle maintenance program operator in Australia RTS will be required to identify the issues vehicles are facing like unpredictable repairs, increasing maintenance costs and unpredictable reports. The preventive maintenance program must be loaded so that it will be able to identify the issue more quickly so that necessary action can be taken to deal with it. Maintenance and operation have their own impact in each field (Kamlu et al., 2019).

Analyzing the Risk

The scale of the damage that can happen to vehicles while running off the road must be measured on the basis of the local conditions throughout Australia. The scale of damage must be measured with the help of the PMP inspection process. The solution which is to be used for mitigating the risk must be considered after calculating the damage it may cause to the individual. Risks are considered as the negative or positive probable events which impact any of the project objectives (Ullah et al., 2021).

Evaluating the Risk

RTS needs to adopt the principle and framework of ISO 31000 for managing the risks. ISO 31000 provides a certain level of reassurance in terms of economic resilience, professional reputation and environmental and safety outcomes (ISO, 2023). It will help RTS to determine whether the uncertainty of the objectives is considered negative or positive. Business decisions are made under risks and uncertainty (Dvorsky et al., 2021)

Treating the Risk

Risk treatment for RTS can be conducted by including proper safety management, forecasting working conditions, providing proper PPE to maintenance workers and by implementing proper supervision and management on work sites. Complying with ISO 31000 guidelines for safety and risk management is a vital part of risk treatment.Risk management policies are important in the construction of megaprojects(Banerjee Chattapadhyay et al., 2021))

Monitoring and reviewing

After identifying the risk RTS needs to grow the project to staff which poses the necessary qualification to deal with the preventive maintenance of the vehicles. The local road condition and life of the vehicle are to be reported to the necessary steps for vehicle maintenance can be undertaken. Reporting must be done to local authorities regarding the conditions of the road and conducting changes in the transport infrastructure to avoid accidental hazards and risks.Risk management is considered as a rapidly changing field which helps to navigate the complexities for a rewarding career(Chance and Brooks, 2021).

Stakeholder analysis

Figure 2: Stakeholder Matrix
(Source: self-created)

Stakeholder analysis involves the process of collecting information regarding any person who is to be impacted by the project. It helps to identify all of the stakeholders and their needs and importance in the project. It helps to identify the individuals who are involved in the process and communicate the plan and goals regarding the ways RTS will be able to conduct risk management in activities. Stakeholder analysis has helped to identify who is the stakeholder and how it has helped to understand the interactions between them (Heslinga et al., 2021). Customers, employees, suppliers and manufacturers are required to be kept satisfied. Employees are ordered to adopt the risk management standard of ISO 31000. ISO 31000 helps organizations increase the likelihood of achieving objectives and improve the identification of threats and opportunities (ISO, 2023). These people are considered at the forefront of the services which RTS provide so taking necessary steps to reduce the risk which will not impact them is necessary. Government authorities and policymakers must be managed closely. Primary and secondary lenders must be managed with minimum effort as they do not play such an important role in the function of the business. Insurers and local communities are required to be kept informed about the risk as they are the most affected by it. They are to be informed of the changes RTS is implementing in its operation so they can be aware of it which will help to remove any kind of misunderstanding.

Table 1: Stakeholder Analysis
(Source: Self-created)

Table 2: Stakeholder Concerns
(Source: Self-created)

Figure 3: Risk Analysis
(Source: Self-created)

Risk analysis involves the process of identifying the potential future events which will adversely affect the company. It helps to understand the financial implications of the event. In the above figure, the risks which are severe and are more likely to happen are highlighted in red while the risks which are not significant are highlighted with yellow and light colors. This risk can be faced by RTS while providing its vehicle maintenance services.

Figure 4: Strategic Risk Management Plan
(Source: Self-created)

A risk management plan helps to define how the project risk management will be executed and enables the project manager to see ahead of the potential risk and reduce its negative impact. It helps to identify the potential problems before they occur. In the above figure the activities which are to be taken by RTS to deal with the calculated risks of vehicle maintenance are highlighted.

Recommendations

Implementing Routine Maintenance programs

Routine maintenance activity involves machine serving regular inspections which is important for keeping the vehicle system up to date and functional. It will help RTS to reduce the cost of maintenance. It will lead to fewer failures, increased productivity and improved safety for the vehicle which will help to manage and prevent risks. Routine maintenance can be done on the basis of the ISO 31000 principles and guidelines of risk management. It will help in improving the performance. ISO 31000 quality management standards help to work more efficiently and help to reduce product failures (ISO, 2023). It will help to customize the maintenance process. Regular maintenance will also help in providing mechanics with a detailed idea of the road condition in Australia which will help to deal with the issue. As mentioned in the identification of the risks in the Risk management plan Routine maintenance programs will help to identify the risk associated with vehicle maintenance which will contribute to improving the safety of passengers

Hiring Experienced staff

RTS should focus on hiring mechanics to reduce risk in conducting the preventive maintenance of vehicles. Experienced individuals will be able to maintain the railways applying the knowledge of the industry regulations and standards. They will more likely remain in compliance. It will help to reduce the cost of repairs and ensure that the same issues are not raised further with an increase in the level of safety and maintenance. It will help to conduct activities in a scheduled manner. It will help RTS to evaluate the inspection process which will help to put more emphasis on the tracking reports and the work order and maintaining the guidelines and principles of ISO 31000. . As mentioned in the measurement in Risk Management Plan Staff who possess experience in vehicle maintenance will be able to analyze the extent of damage to the vehicle which will help to reduce the chances of further risk.

Using Data

RTS must focus on obtaining data about the road condition, and the vehicle features. It will help to manage the risk-related issues. Data plays a vital role in preventing risk. It will help to conduct top decision support making. Data risk assessment helps to shed light on the necessary sensitive information which is vital for the job. Implementing data management will be vital for the RTS which will involve the process, procedures, governance and compliance and will help to reduce the data risks. Data regarding the rural area where the trains run, the local topography and weather and service designs are to be collected for providing maintenance services to vehicles in accordance with their place of use. As observed in the measurement in the Monitoring and Reporting Risk Management Plan will help to assess the future risk which may arise during vehicle maintenance and necessary steps can be undertaken to mitigate it.

References