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MSIT403 – Project and Change Management in ICT.pdf

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Canterbury Institute of Management (CIM)

MSIT403 – Project and Change Management in ICT

1. Identify 5 general categories of Risk involved in this project.

1. Technical Risks
Technical risks encompass problems connected with the engineering aspects of the rail
network and technological factors of its improvement. This involves the deployment of
new technologies, the procurement of new infrastructure for high-speed trains, and the
development of new transit links. Considering the project is aimed at increased rail line
capacity and speed, the overcoming of technical barriers is very crucial to achieve this
aim.
2. Financial Risks

Financial risks include but are not limited to, budget overruns, funds shortages, and
variability of materials and labor prices. The budget of the project is 200 million dollars,
which necessitates a strategic plan on how the monies are utilized so as not to
jeopardize the financial sustainability of the venture. In terms of financial risks, prices
can rise due to unforeseen delays or technical engineering situations.
3. Operational Risks
The operational risks are concerned with the threats that may emanate from
operational processes when the railway is in the upgrading process and trying to
achieve the project objectives after completion. This should also comprise providing for
extra rail space capacity in this regard as well as maintaining superior service quality
during and post-transition.
4. Environmental Risks

Among the environmental risks are the impact of the project on the natural environment
and the possibility of getting familiar with the existing environmental protection
regulations that can lead to the delay of the project. These tasks include those
associated with constructing the required new infrastructure the upgrade of the existing
lines and navigating through the approval process.
5. Stakeholder Risks
Stakeholder risks consist of the agreements of the interests and expectations of the
group of organizations that influence or have a direct by-product on the project.
Network to bring the community, the local council, the subcontractors, and the eventual
rail users on board. A significant factor for the advancement of the intended project is

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the consultation of the involved community with concerns including land use, noise
pollution, and benefits for the neighbourhood.
2. Provide a minimum of 2 risk identifiers (Descriptions) for each of the Risk category.

Technical Risks

1. Risk Identifier: Delays due to unforeseen engineering challenges.

 Likelihood Score: High (80) - Considering the complexity of upgrading to a
high-speed rail system.

 Impact Score: High (80) - As it would lead to increased costs and delayed
benefits.
2. Risk Identifier: Incompatibility of new technology with existing infrastructure.
 Likelihood Score: Medium (60) - Given the potential discrepancies
between new and old systems.
 Impact Score: High (80) - Potential incompatibility could lead to significant
modifications or overhauls.
Financial Risks
1. Risk Identifier: Budget overruns from unexpected cost escalations.
 Likelihood Score: Medium (60) - Construction projects often face
unforeseen costs.
 Impact Score: Very High (100) - Overruns can jeopardize the entire project
financially.
2. Risk Identifier: Lack of financial resources coming from economic deterioration
or policy adjustment.
 Likelihood Score: Low (40) At a given point, policy risks are still potentials
for uncertainty.

 Impact Score: Very High (100) - The lack of budget can make the project
stop running.

Operational Risks
1. Risk Identifier: Lack of service throughout the period of construction results in
negative customer response.

 Likelihood Score: High (80) - Upgrades to active systems typically face

interruptions.

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 Impact Score: Medium (60) - Dissatisfaction may affect the reputation and
future ridership.
2. Risk Identifier: While the continued disturbance of rail services for an extended
period of time due to renovations.
 Likelihood Score: Medium (60) - It is rather disputable to hold
programmatic tasks in complex projects in schedule adherence.
 Impact Score: High (80) - Longer downtime has a serious impact on
service performance, which might be catastrophic for business.
Environmental Risks
1. Risk Identifier: Issues of environmental impact assessment or environmental
clearance due to strict regulations.
 Likelihood Score: Medium (60) - Environmental assessments are
unpredictable.

 Impact Score: High (80) - Delays can lead to increased costs and project
rescheduling.

2. Risk Identifier: Social resistances from public due to environmental reasons.

 Likelihood Score: Low (40) - Environmental issues and paying due care to
nature have become widespread today.
 Impact Score: High (80) - If they operated in such an environment, it could
have serious consequences like protests, legal challenges, and project
suspension.
Stakeholder Risks
1. Risk Identifier: Discrepancies in project output vs. what stakeholders expected.

 Likelihood Score: Medium (60) - Stakeholder engagement challenges are

common.
 Impact Score: High (80) - Could lead to resistance, negative publicity, and
loss of support.
2. Risk Identifier: Community protest inevitably, neighboring communities might
disrupt during construction.
 Likelihood Score: Medium (60) - Disturbances, as some of the least
desirable conditions related to construction may be particularly annoying.
 Impact Score: Medium (60) - Unrest in community might be a reason for

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project delays and accelerate public relations activities.

3. During this work, each risk identifier was assigned a likelihood, impact score and
priority score.
Priority score = [likelihood+impact]/2

Risk ID Likelihood Impact Priority Priority

Score Score Score Rating
Delays due to engineering challenges 80 80 80 High
Incompatibility of new tech with old 60 80 70 High
systems
Budget overruns due to cost 60 100 80 High
escalations
Funding shortfalls due to economic 40 100 70 High
downturns
Service disruptions leading to 80 60 70 High
dissatisfaction
Extended downtime of rail services 60 80 70 High

Environmental clearance delays 60 80 70 High

Public opposition due to 40 80 60 Medium

environmental concerns
Misalignment with stakeholder 60 80 70 High
expectations
Local community resistance 60 60 60 Medium

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4. Draw the Probability/ Impact Matrix.

Impact Very Low Medium (60) High (80) Very High

 Low (40) (100)
(20)
Very
High
(100)
High Service Delays due to engineering
(80) disruptions challenges
leading to
dissatisfaction
Medium Local 1. Incompatibility of Budget
(60) community new tech with old overruns
resistance systems due to cost
2. Extended downtime escalations
of rail services
3. Environmental
clearance delays
4. Misalignment with
stakeholder
expectations
Low Public opposition due to Funding
(40) environmental concerns shortfalls
due to
economic
downturns
Very
Low
(20)
Likelihood

5. Provide Risk Registry for one of the risks.

Let's choose one of the high-priority risks identified earlier: "Budget overruns due to
unexpected cost escalations." Here's how the Risk Register for this particular risk could
be structured:

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Risk Register Entry:

1. Risk ID: RR-002

2. Risk Category: Financial

3. Risk Description: This risk pertains to the potential for the project costs to
exceed the initial estimates due to unexpected cost escalations in labor,
materials, or due to changes in project scope.
4. Likelihood Score: Medium (60)

5. Impact Score: Very High (100)

6. Priority Score: 80 (High Priority)

7. Early Warning Signs:
 Increase in raw material costs in the global market.

 Legislative changes leading to increased labor costs.

 Frequent changes in project scope during the design phase.

8. Trigger Events:

 Receipt of invoices that exceed cost estimates.

 Change requests that significantly deviate from initial plans.
9. Current Status: Active – Monitoring market trends and regulatory environment.
10. Risk Owner: Chief Financial Officer (CFO)
11. Mitigation Plan:

 Strategy: Implement a proactive media procurement and devise strict

change control mechanisms.
 Actions:

 If possible, obtain prices by contracting to get fixed prices.

 Introduce a robust review process for all scope change requests
that calls for a re-evaluation.
 Ensure consistently encompassing the project's budget with exact
cost projections and anticipating forecasts.

12. Contingency Plan: In case the risk materializes:

 Access a predefined contingency reserve allocated for such overruns.

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 Reassess and prioritize project activities to defer non-critical tasks if

necessary.
13. Risk Response Owner: Project Manager

14. Monitoring Plan:

 The Project Management Office (PMO) will conduct monthly reviews of

project expenditure.
 The CFO will provide a quarterly financial report to stakeholders,
highlighting any deviations from the budget.
Documentation and Communication Plan:
 Documentation: Documentation of all the cost management activities will be
dictated by the PMIS and readily available for anyone who desires them.

 Communication: During regular team meetings, risk identification and

appropriate mitigation measures will be communicated to the project team
members. In bi-monthly prognosis meetings, stakeholders will be informed of
any emerging financial risks.

6. Provide possible preventive action to be taken to minimize those risks.

Technical Risks
Preventive Actions for "Delays due to unforeseen engineering challenges":
1. Detailed Engineering Assessments: Conduct thorough surveys and assessments
of the existing infrastructure before designing the plan, so that all the mistakes
and weaknesses can be corrected in the design.
2. Prototyping and Piloting: Pilot programs or simulations as a test base to ensure
that abstract ideas are feasible and to raise any potential problem earlier on the
critical technical components.
Preventive Actions for "Incompatibility of new tech with existing infrastructure":

1. Feasibility Studies: Before implementing the new technologies, their assessment

and compatibility with existing platforms will be ensured through feasibility
studies, which will be conducted through the examination of the impacts of
technology on humans.

2. Vendor Collaboration: Work in cooperation with the technology suppliers so that

the latter are allowed effective integration into the existing infrastructure, and

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they are lively.

Financial Risks
Preventive Actions for "Budget overruns due to unexpected cost escalations":

1. Fixed-Price Contracts: Contraction which is stable as well as prices flexibility of

suppliers.
2. Regular Cost Reviews: Planning for periodic systematic spending on regular
monthly bills or without any missing financial audit can detect and help rectify
the departures from the budget earlier.
Preventive Actions for "Funding shortfalls due to economic downturns or policy
changes":
1. Securing Multiple Funding Sources: Be proactive and eliminate the burden of
shortfalls by using various funding sources and keeping the finances viable.

2. Contingency Funds: Keeping enough reserves that are non-recirculated to

unforeseen financial problems and the implementation of the project on
schedule.

Operational Risks
Preventive Actions for "Service disruptions during construction leading to customer
dissatisfaction":
1. Staggered Construction Scheduling: Give permits in phases to avoid service
chaos.
2. Customer Communication Strategy: Define a customer strategy focused on
impression management of customers and delivering periodic construction
update.
Preventive Actions for "Extended downtime of rail services":
1. Alternative Service Plans: Develop a replacement service option, such as buses
and private cars, when trams stop the operation.
2. Enhanced Maintenance Protocols: Developing effective maintenance procedures
and quick response protocols to help minimize the time spent in case services
are interrupted.
Environmental Risks

Preventive Actions for "Environmental Clearance Delays":

1. Early Engagement with Regulatory Bodies: Interact with environmental agencies

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from the onset of the project for them to provide requirements that will then be
integrated into the problem-solving mechanism.
2. Environmental Impact Assessments: Conduct in-depth environmental impact
assessments before the project commencement to dodge any legal barriers in
the future.
Preventive Actions for "Public opposition due to environmental concerns":
1. Community Outreach Programs: Enact community initiative to provide
knowledge and to incorporate the local groups in the environmental planning.
2. Sustainability Measures: Employ sustainability mechanisms that will clearly
reflect the environment's care by using eco-friendly materials and practices.

Stakeholder Risks
Preventive Actions for "Misalignment between project outcomes and stakeholder
expectations":

1. Stakeholder Analysis and Engagement: Execute periodic stakeholder analyses

and create an engagement calendar to ensure transparency and engagement
amongst all the stakeholders.

2. Expectation Management: Set out the plans through transparent communication

concerning the project targets, deadlines and ramifications that might be brought
about.
Preventive Actions for "Local community resistance":
1. Community Benefit Programs: The community wellbeing should be effectively
examined by setting up community benefit programs to mitigate the construction
inconvenience.
2. Responsive Feedback Mechanisms: Establish a quick feedback system that
effectively captures community concerns and handles same in a responsible and
empathetic way.
These preventive actions, if well-designed and properly monitored, contribute to the
project risk management and reduce considerably its exposure to risk factors. From
this viewpoint, it is important that every step is well planned, active management is
responsive and the communication with the all project participants is effective. The next
step like regular reviews of risk management plan is essential to updating the activities
being developed as the project progresses and with the appearance of new risks or the
change of the existing risks.

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