Project Risk Management MRT 2

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Project RISK Management MRT 2
Risk Management (Universiti Teknologi MARA)
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Faculty of Civil Engineering
ECD733 RISK MANAGEMENT
RISK MANAGEMENT FOR MASS RAPID TRANSFER (MRT) 2 SUNGAI BULOH-

SERDANG-PUTRAJAYA LINE
(SIERRA 16 – CYBERJAYA NORTH)
NAME STUDENT ID
NUR SHUHADA BINTI NOR SHAHRUDIN 2020956557
NORAZLINDA ELISA BINTI ALIAS 2020778779
AMIRA NISA BINTI ROSLI 2020122103
NURUL HIDAYAH BINTI SABERI 2020983471
MELISSA BINTI ROSLAN 2020733603
AHMEDNUR MOHAMED ABDIRAHMAN 2020347637
PREPARED FOR: DR. NUR KAMALIAH MUSTAFFA
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Table of Contents
1 INTRODUCTION 2
1.1 Background of Project 2
1.2 Summary of Project 3
2 PROJECT DETAILS 7
2.1 Project Context 7
2.2 Purpose of Project 8
2.3 Scope of Project 9
3 RISK MANAGEMENT 10
3.1 Risk Management Organization 10
3.2 Terms and Definition of Project Risk 11
3.3 Project Risk Management Objective 12
3.4 Effective Risk Management 13
4 RISK MANAGEMENT PROCESS 14
4.1 Risk Identification 15
4.1.1 Root-Cause Analysis 15
4.1.2 Risk Identification Techniques 15
4.1.3 Risk Identification Tools 16
4.2 Risk Analysis 19
4.2.1 Categories of Risks 19
4.2.2 Severity Description 20
4.2.3 Probability Description 22
4.2.4 Risk Severity Table 23
4.2.5 Risk Analysis Table 24
4.3 Risk Prioritisation Error! Bookmark not defined.
4.3.1 Risk Prioritization Grid (9-Square Tool) 26
4.3.2 RVCE Prioritization Matrix 28
4.4 Risk Response 32
4.5 Risk Monitoring & Control 33
5 RISK REGISTER 36
6 CONCLUSION 37
7 REFERENCES 38
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1 INTRODUCTION ECD733 RISK MANAGEMENT
The Project Risk Management Plan (RMP) gives a system and depicts the project risk
management process utilized on the venture to design, distinguish, survey, sort, measure, handle,
and report/track risk related to the accomplishment of Proposed Construction and Completion of a
project. To meet the task objective, the risk management process is required to such an extent
that risk can be persistently assessed and overseen so as to limit the result of adverse events.
A definitive objective of risk management is to build the likelihood of the project and action
accomplishment by concentrating attention o problem area early and reducing the amount of
costly rework in the future. For every single risk, there is a potential effect of costs, plan deferrals,
safety, and environment and to the public. Subsequently, risk management will be applied
constantly throughout the project life cycle and will develop and adjust to suit the different project
stages.
1.1 Background of Project
The MRT is the nation's biggest infrastructure project and is an entre point project under
the Economic Transformation Program's Greater Kuala Lumpur/Klang Valley National Key
Economic Area (Greater KL/KV NKEA).
With the MRT just as different activities to improve public transportation, it is trusted that
the occupants of the Greater Kuala Lumpur/Klang Valley territory will no longer endure any
issues with mobility. Target to accomplish half of all excursions to be finished by public
transportation by 2020 and the MRT will be critical towards accomplishing this objective.
Systematic risk management empowering the venture to improve effectiveness through

risk acceptance and evasion. Decent risk management will improve effectiveness on how a task
works, giving a guide to accomplishing key objectives and targets just as affirmation in how risk
is overseen. Accomplishment in overseeing ventures requires educated, proactive, and
opportune risk management.
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ECD733
The specific objectives of this risk management plan and the RISK MANAGEMENT
approach taken are:
i. Identify all the related risks perceived in an MRT project.
ii. Perform risk assessment for the MRT project.
iii. Proposed risk response plan for the identified risks.
iv. Proposed risk management plan for the MRT project.
1.2 Summary of Project
The Putrajaya Line (recently known as Sungai Buloh-Serdang-Putrajaya Line) is the

second line of the KVMRT project to be created. It will serve a hall with a populace of around 2
million individuals extending from Kwasa Damansara, another township advancement in
northwest Kuala Lumpur and its southern rural areas, to Putrajaya, Malaysia’s federal
administrative center.
The length of the alignment will be 56.2km, comprising of 42.7km of elevated tracks and
13.5km going through underground tunnels. It will have 36 operational stations of which 27 are
elevated and 9 underground. A further 4 stations have been accommodated what's to come.
There will be 10 interchange stations and associating stations, making it a lot simpler for
commuter to move from the Putrajaya Line to existing and future rail lines, including the future
Kuala Lumpur-Singapore High-Speed Rail. 16 stations will have park and ride offices.The
Government approved the introduction of the Putrajaya Line in 2014. Public inspection pursuant
to Section 84 of the Land Public Transport Act 2010 was then carried out from May to August
2015 to provide input and complaints to members of the community.
The final approval of the Putrajaya Line Railway Scheme was granted by the Government
in October 2015, enabling the acquisition of land and the procurement process to continue.
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ECD733 RISK
Table 1: The information of Sungai Buloh-Serdang-Putrajaya MANAGEMENT
(SSP) line
INFO
PROJEK MASS RAPID TRANSIT LALUAN 2:
SG BULOH-SERDANG-PUTRAJAYA (SSP)
Contract Title PACKAGE V209: Construction and Completion of Viaduct Guideway

and Other Associated Works from Persiaran Alpinia To Persiaran Apec
PACKAGE S209: Construction and Completion of Elevated Stations

and Other Associated Works At 16 Sierra and Cyberjaya North
Client MRT CORP
Supervising
KHAIRI CONSULT SDN BHD
Authority
Contractor ACRE WORKS SDN BHD
V209 – MARCH 2017

Commencemen
t Date
S209 – OCTOBER 2017
Completion
APRIL 2020 (Phase 2 Line completion)
Date
Contract Period 37 Months
V209 (RM715.99MIL.)
Contract Value
S209 (RM137.9MIL.)
The groundbreaking ceremony, which was arranged by then Prime Minister Dato's Sri
Mohd Najib Tun Abdul Razak, took place on 15 September 2016 at the site of the future
Putrajaya Sentral Station, marking the beginning of the construction of the Putrajaya Line.
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Phase one from the Kwasa Damansara Station to the Kampung Batu Station will start
operation in July 2021, while the remainder of the line from the Kampung Batu Station to the
Putrajaya Sentral Station will be operational under Phase Two in January 2023.
At beginning of full help, the Putrajaya Line is required to have an underlying ridership of
more than 104,000 travelers after opening. This is relied upon to additionally improve the
interminable traffic clog as of now looked by Kuala Lumpur.
The SBK Line navigates along parkway and exceptionally developed regions in Kuala
Lumpur and Selangor The Project traverses areas under the jurisdiction of the 5 local
authorities namely:
Majlis Perbandaran Sepang and as table below.
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ECD733pleasing
MRT stations are designed to give commuters an aesthetically RISK MANAGEMENT
experience and a
convenient and safe journey while providing functional efficiency.
Figure 1: Station name of SSP line
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2 PROJECT DETAILS ECD733 RISK MANAGEMENT
This chapter discuss the project in detail in terms of the context, the purpose and the
scope of works.
2.1 Project Context
The aim and purpose of this group project is to evaluate how the risk management plan is
being used in the industry specifically in Mass Rapid Transit (MRT) construction and to get a
clearer view on how the construction key player such as client, consultant and contractor deal
and manage with risk throughout the construction phase. All the risk management steps learned
during lecture is implemented to give us better understanding about the risk management
process. The risk management plan is divided into four parts which the process start from Risk
Identification, Risk Assessment, Risk Response and finally Risk Monitoring Plan.There are
many methods /techniques and tools to carry out a comprehensive risk analysis during this case
study for example:
1. Monte Carlo Simulation

2. Cost Benefit Analysis.
3. Multi Criteria Decision Analysis.
4. Decision Tree Analysis.
5. Cause and Effect Analysis.
6. Markov Analysis.
7. Root Cause Analysis.
8. Cause consequence analysis.
For the MRT project we use Root Cause Analysis. This method is a systematic way of
identifying the underlying cause of an issue, instead of only the surface, this method is
established based on the idea that prevention is crucial rather than just treating the symptoms.
All the risk is first identified by using this method, then a convincing response was given in the
Risk Response part to give a clearer view for the board of MRT SSP LINE construction player
on how the risk will be minimize and can be prevent. Finally, Risk Monitoring part is described to
complete this Risk Management Plan before further action were taken.
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2.2 Purpose of Project
The purpose of risk management plan is to gain an understanding of the project risk
management. The objectives of this report are to provide information below:
 Identification of existing and potential risks in an MRT project as continuous process
 Analysis of the existing and potential risks identified in an MRT project.
 Perform prioritization on risk analyzed in an effective and economical manner.
 Propose and execute risk response accordingly.
 Conduct monitoring and control based on risk responses.
 Enable decision making to improve iteratively in order to create the best solution
throughout lifecycle of the project
 Perform high-quality MRT project in timely, cost-effective manner with adequate

manpower and resources.

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2.3 Scope of Project
Putrajaya Line is one of the three planned MRT rail lines of the Klang Valley Mass Rapid
Transit Project for MRT Corp. It has been divided by two phase of operation. Phase I is
expected to be operated by July 2021 of Kwasa Damansara - Kampung Batu while Phase II for
Kampung Batu – Putrajaya Sentral in January 2023.
Currently, the project phase have achieved Degree 2 requirement which the detailed
control baseline of the project work is monitored for the task starts and completions and also the
progress control except for Cyberjaya North Station that has been affected due to the
Movement Control Order (MCO).
This MRT SSP Project has been managed by two entities, the Mass Rapid Transit
Corporation (MRT Corp) as the project owner and project manager. Their main focus is the
underground design and build package. Another one is MMC Gamuda JV, the project delivery
partner that involved for the elevated and system works packages.
SSP Line Project Division in the MRT Corp has been responsible for the construction of
tunnels and stations, the eleveted guideway depots and also the elctrical and mechanical
systems for the whole railway scheme. This project used the Building Information Modelling
(BIM) at the fullest in designing the required models and purposes, outline the objectives and
having an achievable project lifecycle from the concept and design phase to the final project
phase.

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3 RISK MANAGEMENT
The risk management process needs to be clearly comprehended first before any project
is undertaken. The terms and definition of project risk and the objectives must be justified in
order to achieve effective risk management.
3.1 Risk Management Organization
The managing of risk is not exclusive to risk department. For this case, the contractor
involved is the one responsible for the management of risks. The organization chart of the
contractor can be seen below.

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3.2 Terms and Definition of Project Risk
Project risk that is defined by PMI means “an uncertain event or condition that if occurs
has positive or negative effects on a projects’s objectives”. Project Risk Management include
the process to identify, analyze and give response towards the risks that arise in a life cycle of a
project. This course helps the project to remain on path and achieve its goal. Project risk
management include:
 Risk management planning – a systematic process that prepared to foresee risks,

estimating the impacts and response to the risks which include in the risk
management activities throughout the project.
 Risk identification – a process to determine risks that might potentially affect or

impact the objectives of the project.
 Qualitative risk analysis – an analyses that help to assess impact and likelihood for
the risks identified they would be given on a project using a scale. It is to prioritize
the risks according to their probability and impact.
 Quantitative risk analysis – an analyses that involves numeric estimation or

quantitative rating to assess the effect of the risk. It provides a quantitative approach
for the decision making if there is uncertainty.
 Risk respond planning – involves the process of develop strategic options,

determine actions, increase opportunities and reduce any threats in a project.
 Risk monitoring and control - an ongoing process for the project’s life cycle. It keep
track the risk responses to the plan and also identify if any new risks arise in the
cycle.

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3.3 Project Risk Management Objective
The ultimate goal of applying risk management to the project is:
i. Increase the probability that the project will achieve its objectives.
ii. Generate a positive risk reduction culture within the project team.
iii. Implement a systematic framework for risk identification, analysis and

treatment.
iv. To facilitate in the decision-making and selection of potential risk mitigation

strategies.
v. To provide managers with the means to decide where they can better spend
their resources and time in risk mitigation.
vi. Prioritizing risk to maximize management effort.

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3.4 Effective Risk Management

Faculty of Civil Engineering ECD733 RISK MANAGEMENT
Effective project risk management will be accomplished if:
i. Across the Works Package Contractor (WPC) awareness exists that can be a
significant contributor to project failure due to insufficient risk management.
ii. The WPC is clear about the project objectives
iii. WPC 's recognition that the project is always in trouble even though well
designed and has comprehensive cost and scope control systems in place,
therefore requiring efficient and competent risk management practices.
iv. It has acknowledged that future results will be strengthened by the application
of lessons learned.
v. There is awareness of the need for the WPC to be well informed of the most
serious risks, their immediacy, the likelihood of occurrence and the potential
impact they face.
vi. Sufficient time and resources are devoted to risk management and control.
vii. There is a strong duty and accountability for risk management.
viii. The assessment of risk characteristics is based on accurate, timely and up-to
- date information subject to review and competitive challenge.
ix. Risk management is constantly implemented during the contract.
Top-level WPC dedication to risk management. The WPC Project Director 'buys into' risk
management and understands that the time spent on risk management improves both the
efficiency and productivity of the project.
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4 RISK MANAGEMENT PROCESS ECD733 RISK MANAGEMENT

The construction risk management process will include planning the process
examining and evaluating information, communicating results and following up.
Risk Management Process is a method by which risk to the project (e.g to the scope,
deliverables, timescales or resources) are formally identified, quantified and managed during
the execution of the project. The process entails completing a number of actions to reduce
the likelihood of occurrence and the severity of impact of each risk.
A Risk Management Process is used to ensure that every risk is formally:
 Identified
 Quantified
 Monitored
 Avoided, transferred or mitigated.
Although the Risk Management Process is undertaken during the ‘Execution’ phase of
the project risks may be identified at any stage of the project lifecycle. In theory, any risk
identified during the life of the project will need to be formally managed as part of the Risk
Management Process. Without a formal Risk Management Process in place the objective of
delivering a solution within ‘time, cost and quality’ may be compromised.
The Construction Risk Management will be undertaken on this project through the
implementation of five key processes:
i. The identification of project risks.
ii. The logging and prioritizing of project risks.
iii. The identification of risk mitigating actions.
iv. The closure of project risks.

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4.1 Risk Identification

The first step in the risk management process is the risk identification. To identify risks,
there are several tools and technique available. The method used for the identification of
risks in this project is root-cause analysis.
There are wide variety of tools and techniques which can be used to identify risk in
ptoject management. The technique used to identify the risks in this project are mostly by
gathering information.
4.1.1 Root-Cause Analysis
Root-cause analysis is one of the methods used in the risk management process. It
is a systematic way of identifying the underlying cause of an issue, instead of only the
surface, this method is established based on the idea that prevention is crucial rather than
just treating the symptoms. The ultimate goal of this method is to investigate what, how,
when it happened and the further action that should be done to treat it now and also to
prevent in the future.
The benefits of this method are the solutions are found permanently to treat the
problem through a systematic process, in which one process is the result of another. This
method focuses on the principles of why, not who. The 5 whys tool is only a vague guide, as
the why can be more than 5. The why asked are repeated 5 times to achieve a clear solution
to the problem. However, the challenge of this method is that the thought process is linear.
4.1.2 Risk Identification Techniques
There are several techniques available in order to identify risks. The techniques are
divided into groups such as information gathering, documentation and research. However,
the techniques used in this project are only the information gathering method which
comprise of the following:
 Brainstorming
 Interviews
 Questionnaires

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4.1.3 Risk Identification Tools ECD733 RISK MANAGEMENT

The tool used for the identification method in root-cause analysis is 5 Whys. 5 Whys
is a convenient way to easily track the root cause of a surface problem. Other tools can also
be used such as fault tree and fishbone diagram. However, there are limitations for this tool
such as the process is a linear one and the assumptions made. This tool assume that the
root cause is singular instead of multiple. Moreover, this tool also assumes that once the root
cause is solved, the problem is solved immediately as there is only one root cause.

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Proximate Cause Intermediate Cause Root Cause

Problem 1st Why 2nd Why 3rd Why 4th Why 5th Why
Lack of data during Did not engaged

Poor cost estimate Cost estimates are Lack of experience in
1. Cost overrun formulating the stakeholders during the
by contractor not updated regularly project management
budget estimation phase
Communication
Private owner (IOI Common
2. Land acquisition between lawyers and Landowner rights are Compensation is
Properties) does not understandings are
problems at Sierra 16 landowner is not not protected relevant to market value
want to sell not established
clear
Early investigation Current contractor

Design is not suitable Contractor tried to Differing site condition
3. Adverse site conditions did not highlight the does not want to take
to ground condition claim additional cost clause is not established
ground problem the responsibility
4. Variations and changes

The stakeholders do Design does not Specifications is not Stakeholder is not
in design requested by Slow discussions and
consultant (ICE, SC) & not agree with the meet required scrutinized before updated at every
project partner (MMC- decision-making
design specifications changes are made changes urgently
Gamuda KVMRT)
Did not track and

Suppliers facing Client is not aware of
5. Late delivery of Notice of delay is Back up supply plan monitor schedule every
shortage of raw the late delivery in
ironmongery materials sent late is not carried out week for each delivery
materials advance
and time of usage
6. Approval of earthworks Approval is Long review and Did not do follow up Application may be Did not prepare early
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theMANAGEMENT
ECD733 RISK documents required
Faculty of Civil Engineering rejected due to
approval process; such as layout plans,
from Majlis submitted late to with Majlis insufficient
may take up to 30 contour plans,
Perbandaran Sepang OSC Perbandaran Sepang documents and need
days development proposal
to be re-submitted
report (LCP), etc.
Need to apply for Workers at site do Permit may not be

7. Spread of virus; Project is suspended Permit may be
permit to resume not follow specified approved immediately
COVID-19 due to MCO retracted
construction work SOP due to long waiting list
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4.2 Risk Analysis

Once a risk is identified the next step is to assess the severity of the risk to project
objective if not mitigated or resolved. The table below shows the various categories of
construction risk those are relevant for this project. Each identified risk is then categorized
following the table below.

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4.2.1 Categories of Risks

CATEGORY OF RISKS
 Cost overruns
 Land acquisition problems at Sierra 16
 Adverse site conditions

A - Construction risks
 Variations and changes in design requested by
consultant (ICE, SC) & project partner (MMC-
Gamuda KVMRT)
 Late delivery of ironmongery materials
 Approval of earthwork from Majlis Perbandaran

B - Legal risks
Sepang
C - External risks  Spread of virus; COVID-19

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4.2.2 Severity Description ECD733 RISK MANAGEMENT

Impact Severity
Impact
1 2 3 4 5
Criteria
Minimal Minor Moderate Major Critical
Project level >1Mil 5 > 5 Mil ≤ > 10 Mil

<1 Mil ≥ 20 Mil
cost Mil 10 Mil ≤ 20 Mil
Minor Major
None / Multiple Fatality /
Safety injury / <4 injury / ≥ 4
First aid major multiple
Incidents days loss days loss
Required injuries Fatalities
time time
Cost package
level (Contract >1Mil 2.5 >2.5 Mil ≤ > 5 Mil ≤
<1 Mil ≥ 10 Mil
MORE than Mil 5 Mil 10 Mil
400 Mil)
Cost package
level (Contract >1Mil 2.5 >2.5 Mil ≤ > 5 Mil ≤
<1 Mil ≥ 10 Mil
LESS than 400 Mil 5 Mil 10 Mil
Mil)
2–4 4–6 > 6 weeks

Project delays No < 2 weeks
weeks weeks impact to
for risks PDP impact to impact to
impact to impact to critical path
impacting critical critical
critical critical (beyond
critical path path path
path path agreed limit)
Program Delay
> 8 weeks >
per Package >4 weeks
<4 weeks ≤ 12 12weeks ≥ 16 Mil
8 weeks
weeks ≤ 16 Mil
(Contract)
Minor Contamina Contamina Major

Catastrophic
Environmental contamin nts contain nt / source of
environmenta
Impact ant at within the pollution contamin
l damage
work work area / into public ant

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causing
Faculty of Civil Engineering space
light adverse
causing
nuisance public
area public
outside the health &
nuisance /
work area well
discomfort
being
Blockage
of Elevated
drainage & Ground
Local Inundation of
leading to Local Level
flooding to UGW
local flooding to Depots /
excavation Tunnels /
flooding entire site Stations /
area Stations
to Utility
adjacent building
area

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4.2.3 Probability Description ECD733 RISK MANAGEMENT

SEVERITY
LIKELIHOOD Minimal Minor Moderate Major Critical
1 2 3 4 5
Almost certain (75% - 100%) /

5 5 10 15 20 25
Likely to occur 12 times or more per year
Very Likely
4 4 8 12 16 20
(50% - 75%) / Likely to occur 4 times or
more per year
Likely – could happen occasionally (25%

- 50%) /
3 3 6 9 12 15
Likely to occur once a year
Unlikely - could happen rarely (5% -

2 2 4 6 8 10
25%) / Likely to occur once in 5 year
Very Unlikely – probably will not happen

(0% - 5%) /
1 1 2 3 4 5
Unlikely, but may exceptionally occur
Each identified risk is then ranked depending on the severity of the risk impact. The
table below shows the risk severity classifications and the potential impact on the project.
4.2.4 Risk Severity Table
RISK
LEVE RISK DESCRIPTION ACTION PLAN
L
LOW RISK (Need to be Supervision needed to ensure risk

1~4
monitored) level is low

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MEDIUM RISK (Will have time, Require action

ECD733 RISKand attention after
MANAGEMENT
5 ~ 11 cost or quality impact if not ‘High Risk’ has been resolved
damaged)
HIGH RISK (Will severely impact The most critical issue. Need
12 ~
project if not managed) immediate action and attention to
25
control the risk
After analysis of each, the Project Team then formulates a response or mitigation
action to either close/eliminate or minimize the identified risk. The risk analysis is tabulated
in a risk analysis table as shown below and entered into the project risk register which has to
be maintained and updated monthly through the life of the project.

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4.2.5 Risk Analysis Table ECD733 RISK MANAGEMENT

The risks have been ranked as Low, Medium and High Severity Risks using the criteria
explained previously.
Description
Existing Control Likeli Risk
Consequences Severity
(A-Construction Measures hood Rating
Risk)
Good project planning,

vendor's capability,
stay within scope
planned, good
scheduling tools and
8
charts, stakeholders in
Cost overruns Budget increase 2 4
the project are on the
(Medium)
same page, constantly
track and measure the
progress,
Land acquisition Carry out new, detailed
problems at Sierra SI, identify the problem

Project delay 8
16 on site, constantly
4 2
track and measure the
(Medium)
Adverse site progress, close
conditions supervision
Variations and Project delay - Identification of

changes in design
commencement overhead obstacles 12
requested by
consultant (ICE, of works must be included, 3 4
SC) & project (High)
discussion and
partner (MMC-
Gamuda KVMRT) decision making be
made as soon as
Late delivery of 4 3 12
ironmongery possible, stakeholder
materials involve in every stage,
(High)
by adding more labor,
working longer hours,
re-sequencing the

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work
Description
Existing Control Likeli Risk

(B- LEGAL RISK) Consequences Severity
Measures hood Rating
Approval of Project delay Submit document 9

earthworks from
earlier, do follow up, 3 3
Majlis Perbandaran
Sepang make a backup plan (Medium)
Description Existing Control Likeli Risk

Consequences Severity
Measures hood Rating
(C- EXTERNAL
RISK)
Safe operating
16
Spread of virus; procedures, carried
Fatality 4 4
COVID-19 out under a permit to
(High)
work

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4.3 Risk Prioritization

The priorities of the risks are different according to the rating given in the Risk
Assessment Matrix. Their impact of assessmens and probabilities of the occurences will be
process to derive the rank-order for the identified risks and then determine their priorities.
The purpose of prioriting risks is to pave a reasonable mitigation action according to allocate
resources.
4.3.1 Risk Prioritization Grid (9-Square Tool)
This tool is an organizational system to sort all the risks into a diagram. It helps to
gives a rough visual representation of different factors such as impact and priority for each
risks included in the project. The risks has been designated according to the rating scale
(refer 4.3.5 Risk Analysis Table).
Risk Prioritization Grid

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Indication:
Green- response should be minimal and under monitor or possibly ignore
Yellow- response should be planned basically
Red- response should be highly planned and more sophisticated
Risk ID:
I: Cost overruns
II: Land acquisition problems at Sierra 16
III: Adverse site conditions
IV: Variations and changes in design requested by consultant (ICE, SC) & project
partner (MMC-Gamuda KVMRT)
V: Late delivery of ironmongery materials
VI: Approval of earthworks from Majlis Perbandaran Sepang
VII: Spread of virus; COVID-19
Based on the risk prioritization grid, it shows that four risks are in the yellow category
which action planning and response should be organize. It is a type of medium risk that can
impact the cost, time and quality of the project if further mitigation planning not carrry out.
For example, this type of risk can incurred increase in budget, project delay and cause
damages or deficit during the construction phase. These risks can be implemented after the
high category risk have been resolved.
The second category involves is red with three risks included that need full attention.
The response should be highly planned with more practical method. They are the most
demanding matter that need to make immediate action to control the risks because it can
impact the project severely such as prolong project delay and fatality. This category need to
prioritize in the first place before others.

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4.3.2 RVCE Prioritization Matrix ECD733 RISK MANAGEMENT

The Risk-Value-Cost-Effort (RVCE) prioritization matrix is based on the four criteria to

categorize risks and considers the competing priorities. It helps organization to focus on
important issues and making wise decisions to achieve strategic and operational goals. The
criteria are:
 Risk - potential of gaining or losing something value
 Value - desirability or quality of something considered worthwhile
 Cost - investment of time and money
 Effort - quality and quantity of resources, management, man-hours needed to

realize project benefits

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RCVE Project Prioritization Matrix ECD733 RISK MANAGEMENT

Description:
a. Quadrant 1- the risks should be avoided as they are high risk and cost plus low
value.
b. Quadrant 2- the risks can be considered in the future as the more important ones
need to be implemented first. Might be a lower type of risk as the is more important
things to get done.
c. Quadrant 3- the risk should be prioritized and implemented since they are high
value and effort.
d. Quadrant 4- the risk are high in all four decision criteria but still need to be
investigated as the time and effortmaybe substantial.

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Risk prioritization based on RCVE Matrix ECD733 RISK MANAGEMENT

Conseque Existing Control

Quadrant Risks RCVE Description
nces Measures
The risk should be

1 VII: Spread Safe operating avoided as it may
of virus; Fatality procedures, carried out cause loss of life,
Avoid COVID-19 under a permit to work project may stop
during the MCO
II: Land
These risks have high
acquisition Carry out new, detailed SI, value and at the
problems at identify the problem on same time required
Sierra 16 site, constantly track and high effort to achieve
III: Adverse measure the progress, the objectives. All
Project close supervision
3 site parties involved need
delay
conditions to act fast, always
Prioritize monitor and keep
VI: Approval
updating to the
of
Submit document earlier, project’s progress.
earthworks
do follow up, make a Neglecting the risks
from Majlis
backup plan may affect project
Perbandaran
completion.
Sepang
4 Good project planning, These risks are high

vendor's capability, stay for all criteria.
Investigation within scope planned, Although the
good scheduling tools and quadrant has high
charts, stakeholders in the risk and may incurred
I: Cost Budget
project are on the same more cost but it
overruns increase
page, constantly track and involves the main
measure the progress, did construction’s works
not engaged stakeholders which still need to be
during the estimation acknowledge. So,
phase detail investigation
must be carried out to
IV: Variations Project Identification of overhead
determine the source
and changes delay - obstacles must be
of risks to overcome it
in design commence included, discussion and
and appropriate
requested by ment of decision making be made

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consultant ECD733 RISK MANAGEMENT

(ICE, SC) &
project
partner as soon as possible,
(MMC- stakeholder involve in

works
Gamuda every stage, by adding
KVMRT) more labor, working longer mitigation measures.

hours, re-sequencing the Neglecting the risks
V: Late work. may cause severe
delivery of
impacts.
ironmongery
materials

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4.4 Risk Response

Risk response is the action taken as part of the strategy to react towards the certain
risk encountered. There are a few reponses that can be taken including avoid, transfer,
mitigation and accept. Based on the MRT SSP Line case study the objective of this project is
to be completed within the time schedule. Mitigation is probably the most common risk
response strategy and it is certainly the one used the most in this project. It is where the
contractors project team come up with an action to make the risk less of a problem if it does
happen again. The contractor needs to develop scientific mitigation measures to overcome
or minimize each risk from happening. The preventative measures need to be taken to
eliminateach the possible risk from happening. There are a few methods to mitigate the risk
carried out by the contractor project team in the following ways ; Risk avoidance, Risk
sharing, Risk reduction and risk transfer.
Risk avoidance is usually used to develop an alternative strategy that has higher
probability but usually at higher cost associated with accomplishing aproject task. An
example of risk avoidanve technique is to use an existing and proven technologies rather
than adopting a new techniques, even though that the new techniques may show promising
and better results and performance at a lower cost. Contractor can choose their previous
sub contractor or supplier with a proven track record over a new vendor that will surely gives
significant prices incentives and rates or work to avoid the risk of working with the new
supplier or sub-contractor. In this case study also we can see that the contractor of this
project use the conventional methods and software to identify and to control the risk during
the construction timeline and process,
Risk Sharing involves partnering with others to share responsibilities for the
construction activity. Many organization that works on international or bigger and more
complex projects will reduce political, legal, labor and other risk types by developing a joint
venture with a company located at that country. Another ways to share the risk is by
partnering with the other company so that risk can be shared together, rathers than the risk
and problems faced by only one partaker. The risk associated with a portion of the project is
adventageous when the other companies partnering in the project have their own expertise
and experience handling the project that the other participant don’t have. By chance if any
risk event does occur, the partnering company will share the consequence and also absorb
all of the negative nad positive impact of the event. The benefits or profits gained by the
successful projects will also will be derive by both company.

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Risk transfer is a reduction method that shifts the risk from the project to another party.
For example
Faculty is Engineering
of Civil ECD733
the purchase of an insurance of a certain items RISK
is one wayMANAGEMENT
of the risk transfer
method. The risk from the project is transfer to the insurance company. All the construction
workers normally covered with an health insurance so that incase of any accidents or helath
problems faced by them during the construction duration the insurance company will cover
all the medical cost and expenses. The purchase of the insurance covered will be
usuallytaken in areas that the project team cannot control for example weather, polical
problem, labor strikes that can give a significant impact to the project.
If this risk is still happening in the future a concrete and contingency measures need to
be taken to minimize the impact caused and to remidiate the impact and this risk response
can be changed through out the project process and lify cycle. The preventative measures
and contingency measures will be in detailed discussed by all the construction player and
will be concluded in the method of statement, project quality plans, health and safety plans,
emergency response plans, communication and etc. before the work of the project
commence.
4.5 Risk Monitoring & Control
Risk monitoring and control are part of the process involved in risk management
whereas it was implemented in order to ensure all the risk identify are monitored and fully
control. Contractor involves will have to attend the Monthly Risk Workshop with the Project
Delivery Partner (PDP) which representative of the client. For MRT project, there will be the
Person In-Charges (PIC) who will monitor and control any risk issue. The process of risk
monitoring and controlling are advised by Planning Department. The process of monitoring
and controlling are referred to timeline and schedule data. Referring to the risk identification,
the table below is the outcome as to monitor and control the risk. For example, there was a
method used by the Project Delivery Partner (PDP) in order to track any changes in the
building design. Any changes related to the building will be updated in the online system. It
helps to control any discrepancy in terms of design. Besides that, any changes will be
reviewed by the Person In-Charges appointed by the PDP. By the implementation of using a
tracker, risk mitigation could be completed. According to the table, the risk will be controlled
by a parties and the status of controlling. In this project, most of the monitoring and
controlling the risk event are still open since the process of controlling is still on going.

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Risk Monitoring and Controlling

Risk Identification
Progress and Compliance Statu
Method Risk Owner
Reporting s
Prepare financial project flow in tabulation

All budget and uses are recorded in
Cost overruns form. Contractor Open
tabulation data.
Record all factors caused of overruns
Update the process of negotiation.

Ensure compensation given as per
Land acquisition problems at Sierra 16 Prepare a timeline track as to know Developer Open
contract/agreement.
the date of compensation given.
Record any problem on site condition and

Adverse site conditions Review all reported problem. Contractor Open
cost needed.
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Faculty of Civil Note all reference used in construction. Use a transmittal form as a to
ECD733 record
RISK MANAGEMENT
Variations andEngineering
changes in design
Ensure construction process are based on all the chnages. Consultant &
requested by consultant (ICE, SC) & Open
the design as to avoid any possible Prepare a monthly tracker to list all Contractor
project partner (MMC-Gamuda KVMRT)
changes. changes related.
Updated and review the schedule

Monitor the track delivery properly. Contractor &
Late delivery of ironmongery materials weekly. Open
Seek a solution with supplier. Supplier
Followed up the timeline of delivery.
Approval of earthworks from Majlis Set the tracker to trace date of Followed up with parties involved in
Developer Open
Perbandaran Sepang submission. the process.
Ensure no virus infection among site staff. Construction works follow the
Spread of virus; COVID-19 Provie a medical test as to identify any Standard of Procedure. Site Safety Open
infection among workers. Monitor the test results.
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5 RISK REGISTER ECD733 RISK MANAGEMENT

A Risk Register is a tool for documenting risks, and actions to manage each
risk. The Risk Register is essential to the successful management of risk. As risks
are identified they are logged on the register and actions are taken to respond to the
risk. Risk is evident in everything we do. When it comes to project management,
understanding risk and knowing how to minimize its impacts.
The Risk Register is essential to the management of risk. As risks are identified
they should be logged on the register and actions should be taken to respond to the
risk. Most frequently Risk Managers attempt to reduce the likelihood of the risk
occurring or the impact if the risk does occur.
The responses are documented on the Risk Register and the register should
regularly review to monitor progress. Ideally the Risk Register should be reviewed in
every project team meeting. It should certainly be review at the end of each phase of
the project lifecycle. It is clear that risk exists and that when managing a project, it
requires a system to identify and track. So, now let us dissect the parts of risk log
tracking so when it can get the most out of one when to use it.
Management of risk should be a constant ongoing process with the project

team raising risks with the Risk Manager or Project Manager who then logs the risk
and identifies actions that can be taken to mitigate the risk. To properly respond to a
risk, the Risk Manager may need to bring in experts to understand the actions that
can be taken to reduce the likelihood of the risk occurring or the impact.
Get the team together to brainstorm potential risks. Every team member is
responsible for different areas of the project, so to use their expertise to help identify
potential project derailing risks. that also need to inform with stakeholders to make
sure their concerns are brought to mind, and are tracking their risks, too. The size of
the risk register will likely depend on the complexity of the project. To make sure to
exhaust all areas of potential impact, from market forces to resources to the weather.
The next thing needs to be done is to describe the risk. It has to be tried as
thorough as it can while keeping the description to the essentials. Having too vague a
risk, will be a challenge to truly understanding whether a risk has become a real
37
37
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issue or not. For example, don’t write, “The Weather,” for a risk contingent on the
Facultyweather. Rather, go for something specifically relatedECD733
of Civil Engineering RISK MANAGEMENT
to the project
38
38
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6 CONCLUSION ECD733 RISK MANAGEMENT

Referring to the construction process of MRT, the project flow is based follow the
standard provided by the client who represent by the Project Delivery Partner (PDP).
As compared to other construction process, the MRT project are well managed the
risk management process. Since the MRT Corp also involves in Risk Management
Forum 2019, it shows that the MRT Project is fully monitored in all aspect, include in
terms of risk management process. A good risk management process is very
important in order to control the risk in site.
Basically, the impact of good risk response can be identified when the process of
the construction project is less in delayed, no pending project either in terms of
workers or material. Since MRT is a well-known project in the construction industry.
Most of the process involved in the process of construction can be used as a
reference, for example the risk management process.
The risk management processes for MRT project are mostly standardize for
every Packages. No denial can be made since the MRT project also involves in a
certain unexpected incident, such as the incident happen in Tun Razak Exchange
MRT whereas one of the workers died when he was trapped under the debris.
According to what has been reported, site has been closed in order to proceed the
investigation of the incident.
Based on the issue, it stated that MRT has management process would help to
encounter the risk. As refer to all the risk identified, it mostly high related to the
process of construction. This can be relating that the highest risk come out during the
construction process was in term of construction rather than the safety issue. As the
safety is a rare issue, most highlighted regarding MRT was an accident issue.
By follow the good step of construction, the problem during construction can be
avoided for examples, the delayed due to materials, inexperienced workers and
financial problems. The implementation of a risk management also involves many
parties as the contribution and cooperation of other parties will influenced the
management flow. In this issue, it can be conclude that, the consultant, client and
contractor need to know their scope of work as to ensure they are also part of the
parties who helps a good risk management in construction process. As refer to the
MRT management process, the PDP appointed plays an important role in order to
39
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help contractor and consultant to run the project. As a conclusion, a good risk
Facultymanagement need an attention from the superior to ECD733
of Civil Engineering RISK MANAGEMENT
the workers as it focuses on the
risk management in construction process.
40
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7 REFERENCES ECD733 RISK MANAGEMENT

 https://chatpropertymalaysia.com/mrt-line-2-alignment-map-and-proposed-station-
location-sungai-buloh-serdang-putrajaya-line-ssp-line/
 http://mrt.com.my/ssp/Cyberjaya_North_Station.htm
 https://www.mymrt.com.my/events/risk-management-forum-2019/
 http://mrt.com.my/g-around/MRT_Incidents_and_Accidents.htm
 https://www.thestar.com.my/lifestyle/living/2017/12/18/strategic-solutions-for-riskier-
venture/
 https://smartnet.niua.org/sites/default/files/resources/Report%20on%20Metro%20Vs
%20Monorail.pdf
 https://www.processexcellencenetwork.com/lean-six-sigma-business-
performance/articles/decisions-decisions-the-rvce-prioritization-matrix
 https://www.velaction.com/9-square-prioritization-tool/
 https://texasleansixsigma.com/risk-management-part-1-overview/
 http://www.constructionplusasia.com/my/mrt-line-2-ssp-underground-work-2/
 https://www.globalmasstransit.net/archive.php?id=22622
41

Project Risk Management MRT 2

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Project RISK Management MRT 2

Risk Management (Universiti Teknologi MARA)

Studocu is not sponsored or endorsed by any college or university

Faculty of Civil Engineering

ECD733 RISK MANAGEMENT

ECD733 RISK MANAGEMENT

RISK MANAGEMENT FOR MASS RAPID TRANSFER (MRT) 2 SUNGAI BULOH-

(SIERRA 16 – CYBERJAYA NORTH)

NUR SHUHADA BINTI NOR SHAHRUDIN 2020956557

NORAZLINDA ELISA BINTI ALIAS 2020778779

AMIRA NISA BINTI ROSLI 2020122103

NURUL HIDAYAH BINTI SABERI 2020983471

MELISSA BINTI ROSLAN 2020733603

AHMEDNUR MOHAMED ABDIRAHMAN 2020347637

PREPARED FOR: DR. NUR KAMALIAH MUSTAFFA

Faculty of Civil Engineering

ECD733 RISK MANAGEMENT

Faculty of Civil Engineering

1 INTRODUCTION ECD733 RISK MANAGEMENT

1.1 Background of Project

Systematic risk management empowering the venture to improve effectiveness through

Faculty of Civil Engineering

i. Identify all the related risks perceived in an MRT project.

ii. Perform risk assessment for the MRT project.

iii. Proposed risk response plan for the identified risks.

iv. Proposed risk management plan for the MRT project.

1.2 Summary of Project

The Putrajaya Line (recently known as Sungai Buloh-Serdang-Putrajaya Line) is the

Faculty of Civil Engineering

PROJEK MASS RAPID TRANSIT LALUAN 2:

Contract Title PACKAGE V209: Construction and Completion of Viaduct Guideway

PACKAGE S209: Construction and Completion of Elevated Stations

Client MRT CORP

Contractor ACRE WORKS SDN BHD

V209 – MARCH 2017

Contract Period 37 Months

Faculty of Civil Engineering

Majlis Perbandaran Sepang and as table below.

Faculty of Civil Engineering

Figure 1: Station name of SSP line

Faculty of Civil Engineering

2 PROJECT DETAILS ECD733 RISK MANAGEMENT

2.1 Project Context

1. Monte Carlo Simulation

2.2 Purpose of Project

 Identification of existing and potential risks in an MRT project as continuous process

 Analysis of the existing and potential risks identified in an MRT project.

 Perform prioritization on risk analyzed in an effective and economical manner.

 Propose and execute risk response accordingly.

 Conduct monitoring and control based on risk responses.

 Perform high-quality MRT project in timely, cost-effective manner with adequate

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2.3 Scope of Project

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3.1 Risk Management Organization

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3.2 Terms and Definition of Project Risk

 Risk management planning – a systematic process that prepared to foresee risks,

 Risk identification – a process to determine risks that might potentially affect or

 Quantitative risk analysis – an analyses that involves numeric estimation or

 Risk respond planning – involves the process of develop strategic options,

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