Risk management Assignment Example | Topics and Well Written Essays - 4000 words

Risk management - Assignment Example The bottlenecks realized during peak hours are quite frustrating and the need for a more convenient solution cannot be understated. The construction of the viaduct, however, comes with its risks and challenges and which must be borne carefully for a successful construction period. The demand for a better transit for the people living in the south of Auckland needs to be considered from all fronts with the risks of seismic performance, load capacity and environmental conditions being carefully considered. As part of the risk management outlook, the report herein will look at some of the attributes that the government and the construction companies ought to look out for in dealing with the construction of the NGA newmarket viaduct and how these risks can be mitigated or minimized. Categories As an agency, identifying and categorizing the possible risks and evaluating how important they are in the overall construction of the Newmarket Viaduct is essential. The categories will be discuss ed under four distinct provisions. The first risk is the operational risk. This is where the construction company has to look for alternatives that could cost the company due to improper process implementation and how system failure would affect the operations within the company and during the construction period. ... The company has to look for a better way of ensuring that the project does not fail in any way nor does it stall due to some attributes that could easily be sorted out through better planning (Flyvbjerg, Nils, and Werner, 2003). The third attributed risk category is that of a budget deficit risk. Wrong estimates coupled with changing financial prospects in the world could hamper the proper completion and adherence to the budget provisions available. This risks stalling the project since the government must get a clear picture as to why they have to add more money to a project that they had completely financed according to their initial estimates (Flyvbjerg, Holm and Buhl, 2002). The other type of risk is the quality and process risk where the company is wary of making blunders during its construction period (Cox, 2002). The issue of quality especially on a public system is important and requires that each guideline to be used is tailored to meet expected results. As a matter of fact, opening the area around the viaduct is paramount and proper construction coupled with timely delivery of the project will open up the south and give the people the quality they aspire to. By working on these categories, the company will ensure that the people of Auckland receive that which they desire and that which is greater and better quality than what they have at the moment. Risk identity and response Operational risk The first risk that had to be courted was the operational risk. This is the risk that played the greatest role in shaping the way the construction of the Newmarket Viaduct would be conducted. Risk identity: Priority had to be given to the most essential resources and provide continuity despite the delays that would result