Risk Management Plan for Port Phillip Bay

Channel Deepening Project under AS/NZS 4360

Framework

SCHOOL OF AEROSPACE, MECHANICAL AND

MANUFACTURING ENGINEERING
 CONTENTS
EXECUTIVE SUMMARY ....................................................................................................... 4

1. INTRODUCTION................................................................................................................. 5

1.1 BACKGROUND ......................................................................................................... 5

1.2 ESTABLISH THE CONTEXT.................................................................................... 7

1.3 THE AS/NZS 4360: RISK MANAGEMENT FRAMEWORK .................................. 7

1.4 CHARACTERISTICS OF THE RELEVANT ORGANIZATION............................. 8

1.5 UNDERSTANDING PROJECT OBJECTIVES......................................................... 8

2. IDENTIFICATION OF THE RISKS.................................................................................... 9

3. ANALYSIS OF THE RISKS ...............................................................................................11

3.1 CLASSIFICATION METHODOLOGY ....................................................................11

3.1.1 STASTISTICS .................................................................................................11

3.1.2 RISK LEVEL ANALYSIS ..............................................................................11

3.2 RISK LIKELIHOOD AND CONSEQUENCES....................................................... 13

3.2.1 VALIDATION OF SERIAL 1 RISKS............................................................ 13

3.2.2 VALIDATION OF SERIAL 2 RISKS............................................................ 13

3.2.3 VALIDATION OF SERIAL 3 RISKS............................................................ 14

3.2.4 VALIDATION OF SERIAL 4 RISKS............................................................ 14

3.2.5 VALIDATION OF SERIAL 5 RISKS............................................................ 15

3.2.6 VALIDATION OF SERIAL 6 RISKS............................................................ 15

3.2.7 VALIDATION OF SERIAL 7 RISKS............................................................ 16

4. EVALUATION OF THE RISKS........................................................................................ 17

4.1 RISK CATEGORIZATION ...................................................................................... 17

4.2 ACTIONS REQUIRED ............................................................................................. 19

5. RISK CONTROL OPTION ................................................................................................ 21

5.1 AVOIDANCE............................................................................................................ 21

5.2 ACCEPTANCE ......................................................................................................... 21

5.3 SUBSTITUDE ........................................................................................................... 21

5.4 ENGINEER ............................................................................................................... 21

2
 5.5 PROCEDURAL OR ADMINISTRATIVE CONTROL ........................................... 22

6. RISK TREATMENT PLAN ............................................................................................. 23

6.1 IMMEDIATE RISK TREATMENT PLAN.............................................................. 23

6.2 LONG TERM RISK TREATMENT PLAN.............................................................. 24

7. CONCLUSION ................................................................................................................... 26

8. REFERENCE ...................................................................................................................... 27

3
EXECUTIVE SUMMARY

The Port Phillip Channel Deepening Project (CDP) began on 8 February 2008 to
deepen Melbourne's shipping channels in Port Phillip to 14 meters (46 ft) draught to
allow greater access for container ships. The substantial economical benefits implied
from the CDP project are expected to Victoria and the project to accommodate the
port growth in economic sense. During the meantime, there is opposition voice
opposed on the execution of the project mainly due to the environmental concerns
which pose risk issues upon the project. Importantly, this report aims to highlight the
risk issues through AS/NZS: 4360 Risk Management Framework employing the
likelihood and consequences analysis to identify the risk level of each potential risk to
acquire the comprehensive understanding of the potential environmental effects of the
project, in terms of magnitude and likelihood, as well as appropriate management
responses to assist the assessment ability of the project would be proceeded on an
environmentally acceptable basis.

4
1. INTRODUCTION

1.1 BACKGROUND

The Port of Melbourne is currently Australia’s largest and busiest container port,
handling 37 percent of the nation’s container trade. It already has well-developed land
transport links and these are being further developed. Currently, ships entering the
Port of Melbourne are restricted to 11.6 m (38.1 ft) draught (12.1 m (40 ft) at high
tide). Larger container ships instead need 14 m (46 ft) to carry full loads. It is
estimated that up to 40% of the ships visiting the Port were already potentially
affected by draught limitations because the channel did not allow for the extra depth
(http://www.channelproject.com/global/faqs/index.asp, accessed on 5 April 2009),
The Port Phillip Channel Deepening Project (CDP) aims to deepen Melbourne's
shipping channels in Port Phillip to 14 metres (46 ft) draught to allow greater access
for container ships. The proposed deepening of the commercial shipping channels
from Port Phillip Heads to the Port of Melbourne is a key infrastructure priority of the
Victorian Government (http://www.dse.vic.gov.au, 5/04/09).

However, there are risks issues opposed on the project which mainly lie in the
environmental concerns in light of the potential for disastrous long-term environment
consequences of the disposal of dredged materials. In particular, contaminated
materials as a result of past industrial waste discharges have sunk to the sea floor. It is
believed that dredging the bay will stir up these contaminated materials and
redistribute them across the food chain. In addition, the rock-fall incident occurred
during the trial dredging in 2005 which causes some of the rock in this area scours
and disintegrates.

5
 Figure 1: Mapping of the Channel Deeping Project
(http://www.channelproject.com/aboutproject/project_overview.asp, 5/04/09)

The PoMC has specified four project 'areas' of the bay to be completed progressively.

Project
Shipping Dredging volumes/Type of
No. and Location Status Start
channel(s) material dredged
Area
1. Yarra
Yarra River & 5.38 million m3 of clay and silt,
River and In 24 April
Williamstown approximately 2.07 million m3
Hobsons progress 2008
Channels of this contaminated
Bay
29 2.40 million m3 of mainly clay,
2. North of Port Melbourne In
[1] February approximately 43,000 m3 of this
Bay Channel progress
2008 contaminated
8
3. South of In 14.59 million m3 of mainly
South Channel [2] February
Bay progress sound
2008
4. The The Great Ship In 5 April 0.55 million m3 of
Entrance Channel progress 2008 limestone/sandstone

6
1.2 ESTABLISH THE CONTEXT

Risk management is an interactive process consisting of well-defined steps which are

taken in sequence, support better decision-making by contributing to a greater insight
into adverse events and their impacts. This report will identify, categorize, analyze
and treat the risks according to the various stages as indicated in the AS/NZS 4360
Risk Management Framework through establishing the context to treat the potential
risks.

1.3 THE AS/NZS 4360: RISK MANAGEMENT FRAMEWORK

The AS/NZS 4360 is the framework used as the basis for analysis in this report. It is
the only internationally accepted risk management standard. The Standard provides a
generic guide for establishing and implementing the risk management process
involving identification, analysis, assessment, treatment and continuous risk
monitoring (http://www.standards.org.au/, 5/04/09) as amplified in below Figure 2

Figure 2 : AS/NZS 4360 Risk Management Framework

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1.4 CHARACTERISTICS OF THE RELEVANT ORGANIZATION

Before conducting a risk management analysis, it is firstly important to obtain an

understanding of the organizations which are responsible for the Channel Deeping
Project (CDP). The main organizations of the Port Melbourne Channel Deepening
Project and their inter-relations are indicated in below Figure 3
Figure
Victoria Government
(VG)

Statutory body
Port of Melbourne established by VG
Cooperation (PoMC) responsible for running
the Port

RBW is the contracted

Royal Boskali
Dutch company to carry
Westminster
out the project on behalf
of PoMC

Figure 3: The main organizations of the Port Melbourne Channel Deepening

Project
It is obvious that Port of Melbourne Cooperation assigned by Victoria Government is
the primary authority to carry the responsibility of monitoring and controlling the
acceptable standards of risk issues.

1.5 UNDERSTANDING PoMC’s OBJECTIVES

The key objective of PoMC for running this project is to optimize the economic
efficiency of deepening shipping channels to the Port of Melbourne in terms of the
economic benefits of improved opportunities for trade relative to the economic costs
associated with the CDP.

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2. IDENTIFICATION OF THE RISKS

Risk is identified as the danger that undesirable events represent to human being, the
environment and economic values. Risk can be expressed quantitatively in different
ways, usually by means of the frequency or probability and consequence of the
undesirable event (P 28 Risk Overview). The potential risks are identified in below
Table1.

Identify risks Explanations Causes

1. Risks to the Eco-systems
- 1.1 The reduction on plant - Due to the turbid plume
productivity due to reduced generated by dredging which
light availability, as well as results in the reduction in light
some interference with plant availability and the rock spill.
and animal physiology, and
also animal feeding behaviour.
- As a result, there is likely to
be some reduction in both
plant and animal productivity,
and hence potentially the catch
of some fish species.
- 1.2 The impact of rock spill
from dredging in the Great
Ship Channel on both
intermediate and deep reef
communities

2. Risks to the human health - Potential for increased risks - Due to the toxic algal blooms
to human health as a result of and mobilization of
toxic algal blooms and contaminated sediments.
mobilization of contaminated
sediments;
3.Risks to the recreational - The turbid plume and the - Due to the reduced water
users of local areas of the Bay associated activity of the quality, noise and the visual
dredging could affect presence results from the
environmental amenity for dredging.
recreational users of local
areas of the Bay where
dredging is occurring, in
relation to water quality, noise
and the visual presence of the
dredge.
4.Risks to the industrial - The plume represents a - Due to the turbid plume
operations potential hazard to some generated by dredging which
9

5. Risks to the user of the Bay
and lower Yarra River water
6. Risks to the Bay’s
environment and users
7.Risks to the interference
with third-party infrastructure
Table 1: Risk Identification Matrix
industrial operations results in the reduction in light
depending on water intake availability
from the Yarra River or Bay.
- Potential for economic - As a result of diminished
impacts on other users of the water quality, displacement of
Bay and lower Yarra River activities or increased risks to
waters, as a result of the infrastructure.
diminished water quality,
displacement of activities or
increased risks to
infrastructure;
- Potential changes in the risks - Caused by increased wake,
to the Bay’s environment and changed risks of collisions and
users from larger ships and spills
changes to shipping movement
patterns
- Risks to the interference with - Due to dredging activities
third-party infrastructure itself.
crossing the river, including
telecommunications, a gas
pipeline and a trunk sewer.
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3. ANALYSIS OF THE RISKS

3.1 CLASSIFICATION METHODOLOGY

3.1.1 STASTISTICS

The limitations when undertaking the analysis of this study include using a majority
of theory used from a variety of resources. Some of the conclusion drawn in this
report therefore may not be suitable in a practical sense or different considerations due
to the information and statistics available. Nevertheless, the analysis and the
recommendations given which are employing measurements from the AS/NZS
4360:1999 framework would demonstrate the understanding of the methodology for
this case scenario.

3.1.2 RISK LEVEL ANALYSIS

The risk level analysis obtains through a synthesis of:

• The risk consequence measure
• The risk probability /likelihood
• Risk level based on the likelihood and consequence analysis.
The three measurements can be charted as the following three tables:

DESCRIPTION MEANING

The consequences would threaten the survival of not only the

program, but also the organization, possible causing major
problems for clients, the administration of the program or for a
large part of the public sector. Revenue loss greater than assumed
Catastrophic
in this case scenerio AUD 500 Million being managed would
have extreme consequences for the organization, both politically
and financially.

The consequences would threaten the survival or continued

effective function of the program, or require the intervention of
top level management. Revenue loss greater than assumed $200
Major
million being managed would have very high consequences for
the organization both financially and politically.

11
 The consequences would not threaten the program, but would
mean that the administration of the program could be subject to
significant review or changed ways of operating. Revenue loss
Moderate greater than of the $50 million being managed would have
medium consequences for the organization both financially and
politically.

The consequences would threaten the efficiency or effectiveness

of some aspects of the program, but would be dealt with
Minimal internally. A loss of revenue below the tolerance level of less than
$5 million applied to clients would be of low consequence.

The consequences are dealt with by routine operations. A loss of

revenue below the program tolerance level of $1 million applied
Insignificant
to clients would be of negligible consequences.

Table 2: Measure of Consequence

DESCRIPTION RISK FREQENCY DETAILS

Almost certain The event has occurred on an annual basis or more frequently
Likely The event has occurred several times or more in every three years
Moderate The event could occur once in your career or could occur at any
time
Unlikely The event has not yet occurred but could occur at some time
Rare Heard of something like this occurring elsewhere

Table 3: Measure of Likelihood

LIKELIHOOD CONSEQUENCES
Insignificant Minimal Moderate Major Catastrophic
Almost certain H H E E E
Likely M H H E E
Moderate L M H E E
Unlikely L L M H E
Rare L L M H H
E Extreme - immediate action required
H High - senior management attention
M Moderate - management responsibility specified
L Low - managed by routine procedures
Table 4: Risk Matrix
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3.2 RISK LIKELIHOOD AND CONSEQUENCES

3.2.1 VALIDATION OF SERIAL 1 RISKS

Serial 1, risk is a set of the risk to the ecology system with the reduction on
biodiversity as well as the rocks pill caused by dredging which results in reduced light
availability and the increase in the rate of suspended sediments. It is assumed that the
likelihood of Series 1.1 is moderate as it could happen at any time without the light
availability. In addition, the consequences of such an event occurring is internal which
is minimal. As the ultimate result would not threaten the program, but the change of
the way it operates is subject to significant review and requires alternated way of
management

LEVEL OF
SERIAL DESCRIPTION LIKELIHOOD CONSEQUENCE RISK
1 Risks to the Ecosystems
The reduction in
biodiversity and Likely Moderate High
1.1 productivity.
The impact of rock
Moderate Moderate Moderate
1.2 spill

Table 5: Serial 1 Level of Risk

3.2.2 VALIDATION OF SERIAL 2 RISKS

LEVEL OF
SERIAL DESCRIPTION LIKELIHOOD CONSEQUENCE RISK

2 Risks to the human health

-Potential for
increased risks to
human health as a
result of toxic algal
Likely Moderate High
blooms and
mobilization of
contaminated
2.1 sediments;

Table 6: Serial 2 Level of Risk

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3.2.3 VALIDATION OF SERIAL 3 RISKS

LEVEL OF
SERIAL DESCRIPTION LIKELIHOOD CONSEQUENCE RISK
3 Risks to the recreational users of local areas of the Bay
The turbid plume
and the associated
activity of the
dredging could
affect environmental
amenity for
recreational users of
Unlikely Insignificant Low
local areas of the
Bay where dredging
is occurring, in
relation to water
quality, noise and
the visual presence
3.1 of the dredge.

Table 7: Serial 3 Level of Risk

3.2.4 VALIDATION OF SERIAL 4 RISKS

LEVEL OF
SERIAL DESCRIPTION LIKELIHOOD CONSEQUENCE RISK

4 Risks to the industrial operations

The plume
represents a
potential hazard to
some industrial
Moderate Insignificant Low
operations
dependent on water
intake from the
4.1 Yarra River or Bay.

Table 8: Serial 4 Level of Risk

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3.2.5 VALIDATION OF SERIAL 5 RISKS

LEVEL OF
SERIAL DESCRIPTION LIKELIHOOD CONSEQUENCE RISK
5 Risks to the user of the Bay and lower Yarra River water
-Potential for
economic impacts
on other users of the
Bay and lower Yarra
River waters, as a
result of diminished Unlikely Moderate Moderate
water quality,
displacement of
activities or
increased risks to
5.1 infrastructure;

Table 9: Serial 5 Level of Risk

3.2.6 VALIDATION OF SERIAL 6 RISKS

LEVEL OF
SERIAL DESCRIPTION LIKELIHOOD CONSEQUENCE RISK

6 Risks to the Bay’s environment and users

-Potential changes in
the risks to the Bay’s
environment and
users from larger Unlikely Moderate Moderate
ships and changes to
shipping movement
6.1 patterns

Table 10: Serial 6 Level of Risk

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3.2.7 VALIDATION OF SERIAL 7 RISKS

LEVEL OF
SERIAL DESCRIPTION LIKELIHOOD CONSEQUENCE RISK

7 Risks to the interface with third-party infrastructure

- Risks to the
interface with
third-party
infrastructure
crossing the river, Likely Minimal Low
including
telecommunications,
a gas pipeline and a
7.1 trunk sewer.

Table 11: Serial 7 Level of Risk

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4. EVALUATION OF THE RISKS

4.1 RISK CATEGORIZATION

The likelihood and consequences categories which obtain from the level of risk
categorization apply to set a risk as acceptable or non-acceptable. In addition, the
risks that require immediate treatment would be highlighted.
The levels of risk regarded as a categorization of high or extreme are deemed to be
unacceptable conditions. Owing to the level causes of large revenue loss, high
financial and political consequences. These risks have a couple of impacts on the
environment, human and finance. Therefore, immediate treatment plans must be
employed in order to decrease the size of damage into an acceptable level.
The levels of risk regarded as a categorization of Moderate are deemed to be
acceptable conditions. However, it requires future action. The future actions need
management responsibility specified. In addition, the levels of risk regarded as a
categorization of Low are deemed to be acceptable conditions and managed by
routine procedures.
The risk categorization is illustrated in the risk management log table.

LEVEL
ACCEPTABLE/UNACCE
SERIAL DESCRIPTION L/HOOD C/QUENCES OF
PTABLE
RISKS

1 Risks to the Ecosystems

The reduction in
1.1 biodiversity and Likely Moderate High Unacceptable
productivity

The rock spill

results in rock
1.2 Moderate Moderate Moderate Acceptable – future action
scour and deep
reef impacts

2 Risks to the human health

17
 -Potential for
increased risks to
human health as a
result of toxic algal
2.1 Likely Moderate High Unacceptable
blooms and
mobilization of
contaminated
sediments;
3 Risks to the recreational users of local areas of the Bay
The turbid plume
and the associated
activity of the
dredging could
affect
environmental
amenity for
recreational users
3.1 Unlikely Insignificant Low Acceptable – no action
of local areas of
the Bay where
dredging is
occurring, in
relation to water
quality, noise and
the visual presence
of the dredge.
4 Risks to the industrial operation
The plume
represents a
potential hazard to
some industrial
4.1 operations Moderate Insignificant Low Acceptable – future action
dependent on
water intake from
the Yarra River or
Bay
5 Risks to the user of the Bay and lower Yarra River water

18
 Potential for
economic impacts
on other users of
the Bay or lower
Yarra River
waters, as a result
5.1 Unlikely Moderate Moderate Acceptable – future action
of diminished
water quality,
displacement of
activities or
increased risks to
infrastructure;
6 Risks to the Bay’s environment and users
Potential changes
in the risks to the
Bay's environment
6.1 users from larger Unlikely Moderate Moderate Acceptable – future action
ships and changes
to shipping
movement patterns
7 Risks to the interface with third-party infrastructure
Risks to the
interface with
third-party
infrastructure
7.1 crossing the river, Likely Minimal Low Acceptable – future action
including
telecommunication
s, a gas pipeline
and a trunk sewer
ȱ
Table 12: The risk management log
ȱ

4.2 ACTIONS REQUIRED

According to AS/NZS 4360:2004, the risk levels are evaluated based on the
combination of consequence and likelihood. Based on the evaluation, in this case
scenario, management attention is required for high (H) level risks; routine activities
are sufficient for moderate (M) level risks. There is no specific action requirement for
low (L) level risks but they should be monitored continuously to ensure that they are
escalated unnoticed. The management of environmental risks is directed towards
19
achieving acceptable outcomes.
According to the Port of Melbourne Cooperation’s Supplementary to Environment
Effects Statement (SEES), The environmental management plan (EMP) developed as
part of the SEES to manage the residual impact of the CDP, specifically addresses
“significant” predicted effects and risk events, which have respectively been defined
as:
• A predicted effect on an asset of “moderate” or greater consequence; and
• A risk event of “medium” or greater risk level.

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5. RISK CONTROL OPTIONS

The options for risk control can be divided into five major categories which are;
• Avoidance
• Acceptance
• Substitute
• Engineer
• Procedural or administrative control
5.1 AVOIDANCE
• Testing equipment used and practices adopted in this project properly.
• Review the environmental management plan of the entire project.
• Provide a transparent framework, with clear accountability for managing
environmental risks associated with the project to achieve acceptable
outcomes.
• Minimise and manage environmental impacts and risks by applying scientific
knowledge, verified predictive modelling or proven technical concepts.
5.2 ACCEPTANCE
• Ensure that appropriate disaster recovery and standard operating plans are
conducted and implemented.
• Ensure that strategies for monitoring and management (avoidance, mitigation
or control) of residual environmental risks are performed.
• Ensure that the entire project is managed well so that every process in the
project is completed timely.

5.3 SUBSTITUTE

• Ensure that investment management and contractual arrangement are

preformed efficiently.
5.4 ENGINEER
• In order to enable the effective and transparent implementation of the project,
a suitable framework for authorisation, regulation and administering

21
 implementation of the project are required.
• Ensure that all contractual and preventive maintenance are conducted and
performed regularly.
• Try to decrease and eliminate causes of potential risks.

5.5 PROCEDURAL OR ADMINISTRATIVE CONTROL

• Ensure that disaster recovery and standard operating plans have a
contingency plan. Importantly, they should be updated and improved
continuously.
• Create contingency planning, pricing policy and public relation in order to
able to control potential risks.

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 6. RISK TREATMENT PLAN
6.1 IMMEDIATE RISK TREATMENT PLAN
According to table 1 - Risk Identification Matrix, the level of risk to human health is
considered high. Therefore, immediate risk treatment plans need to be created in this
situation. Generally, sources of risk to human health are examined by considering the
direct or indirect effects of exposure to contaminated sediments and the possibility of
increased occurrence of toxic algal blooms.
Risk from contaminated sediments: In addition to the potential for risk to biota
determined by the proposed CDP dredging of contaminated sediments, the potential
for risks to humans that need to be considered are:
• Potential effects on human health through bioaccumulation in fish of
contaminants from dredged sediments.
• Ingestion of contaminated seawater by swimmers and beach users.
Risk from algal blooms: Algal blooms occur in the Bay under natural conditions and
are generally related to the physico-chemical factors including light, temperature and
the availability of nutrients which drive plant life, or primary productivity.
However, in order to reduce effects or damages from these risks, the action plan or the
migration plan needs to be set up immediately.

Estimate
Cause of risk Mitigation action Timeframe Cost

Mobilization of contaminated
sediments
• assurance in monitoring of contaminant
The possibility of increased levels in fish
5 months $2M
• assurance in dredging of contaminated
occurrence of toxic algal
sediments
blooms

Table Risk 13: Risk Treatment Plans

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6.2 LONG TERM RISK TREATMENT PLAN
In fact, the level of risks can be increased in the next future. For example, risks in
moderate level can be eventually developed into the high or extreme level. Therefore,
immediate risk treatment plans are not sufficient to prevent risks. This situation leads
to another method which is called long term risk treatment plans in order to be able to
deal with any risk in a long term aspect effectively.
According to Channel Deeping Project (CDP), we mostly focus on an environment
issue which is the most important issue in term of potential risks. In term of long term
risk treatment plans for an environment issue of the project, the environmental risk
management needs to be set up. It generally consists of:
• Risk assessment
• Environmental Management Plan
Importantly, the main objectives of the environmental risk management are to provide
a transparent framework with clear accountability for managing environmental risks
related to the CDP to achieve acceptable outcomes effectively.
Risk assessment: It aims to provide a transparent and proportionate assessment of
risks of adverse environmental outcomes. In addition, it consists of the following
steps which intend to enable a rigorous approach to the assessment of CDP risks to
bay assets and systems
• Characterise the environmental assets, values and dependent uses which might
be affected by the CDP, based on a sound understanding of the Bay system.
• Characterise potential hazards arising from the CDP.
• Identify and justify proposed performance criteria to protect the environmental
assets and dependent uses of the Bay.
• Assess the environmental effects and associated consequences, as well as
their likelihood, and the associated level of risk for CDP project design,
technology and environmental management options.
• Evaluate residual risks against the proposed performance criteria.
• Ensure strategies for monitoring and management (avoidance, mitigation or
control) of residual environmental risks.

24
Environmental Management Plan (EMP): It generally intends to minimise and
manage environmental impacts and risks by applying scientific knowledge, verified
predictive modelling or proven technical concepts. Importantly, EMP consists of the
two important aspects which are:
• Best practice design, technology and approaches which minimise and manage
environmental risks and protect key environmental assets.
• A practicable and adaptive management approach which assists to meet
environmental protection objectives.
(http://www.dse.vic.gov.au/CA256F310024B628/0/1EC822FB9E347AA7CA257384
007F0A5B/$File/FINAL_CDP_ASSESSMENT_301007.pdf ,5/04/09)

25
7. CONCLUSION

The risk issues of the Port Phillip Channel Deepening Project (CDP) can be analyzed
and identified by applying AS/NZS: 4360 Risk Management Framework which
focuses on the likelihood and consequences analysis to identify the risk level of each
potential risk to obtain clearly the comprehensive understanding of the potential
environmental effects of the project. According to the project, the potential risks are
identified in many terms such as human, the environment and economic values. In
fact, environment issues which are the most important issue in term of potential risks
are mainly focused in this report.

According to the project, the levels of potential risks are categorized as low, moderate
and high. For example, the level of risk to the industrial operations is categorized as
low, the level of risk to the Bay’s environment and users is categorized as moderate
and the level of risk to human health is categorized as high. Generally, high and
extreme risk levels are considered unacceptable which can cause a couple of impacts
on the environment, human and finance. Therefore, in order to decrease the size of
damage into an acceptable level, immediate risk treatment plans including the action
plans or migration plans must be set up immediately and timely. For moderate risk
levels, the levels of risk regarded as a categorization of Moderate which can be
eventually developed into the high or extreme level in the future are deemed to be
acceptable conditions. So, future actions and long term risk treatment plans are
required necessarily. In addition, the levels of risk regarded as low are deemed to be
acceptable which can be managed by using routine procedures.
According to immediate risk treatment plans such as assurance in monitoring of
contaminant levels in fish and assurance in dredging of contaminated sediments also
long term risk treatment plans which is the environmental risk management , those
plans need to be performed correctly and strictly. As a result, all potential risks are in
control and objectives of the project will be achieved effectively and efficiently.

26
8. REFERENCE

[1] Billinton, R and Allan, R. N.1992, Reliability evaluation of engineering systems:

concepts and techniques, 2th Ed., Plenum Press, New York.
[2] http://www.capitalmarket.com/macro/Outcomebudget/PLANNING.pdf, 5/04/09.
[3] http://www.channelproject.com/global/faqs/index.asp, 5/04/09.
[4] http://www.dse.vic.gov.au, 5/04/09.
[5] http://www.standard.org.au, 5/04/09.

27