YOM POST GRADUATE COLLEGE

DEPARTMENT OF PROJECT PLANNING AND

MANAGEMENT

COURCE TITLE: -PROJECT RISK MANAGEMNT

COURCE CODE: - PPM 512
INDIVIDUAL ASSIGNMENT
SECTION-1

SUBMITTED TO
Belay Tizazu (PhD)

SUBMTTED BY
Hanamariam Chanyalew
ID NO: - GSR/2439/13
Jun 17, 2021
Assignment I
 Major objectives of the article(paper)
The articles major objective is to provide the conditions or the structure for organizing a dialogue
between experts, stakeholders, regulators and the public on risk issues for an effective,
competent and democratic conflict resolution, environmental planning and risk management.
 The key messages and agreements of the article regarding project risk management
The article was able to view the following key points regarding project risk management
 Risk communication between the experts, stakeholders and the general public is better for
management of risk.
 Any projects in any scale could have a most effective and productive chance of risk
management if risks are communicated well among the relevant parties and also could have
a better chance of execution.
 Risk communication have a large impact on improving risk management in a way it
facilitates society involvement in both the development and execution of projects.
 By creating a discourse (a two-way communication) between the public or any relevant
parties to the project and the experts could have a mutual understanding and precautions
about the seriousness of risks, priorities and managing them.
 Also a two-way communication has the capacity to bring peoples who have different values,
perception and worldviews and who have different priorities into a common point of view
regarding risk management.
 Building(creating) an effective discourse process builds a mutual trust which helps
concerned parties in achieving their goal while becoming willing in sharing risk concerns,
commitments and managing risks.
The article also lay out problems associated with risk communication and ways to address them
like: -
 How risk manager collects public values, preferences, worldviews, integrate public input
the risk management process.
 How to ensure that the risk management process reflects competence, efficiency and fair
burden sharing.
 How to assign roles to technical experts, stakeholders, and the public appropriately.
 Informing and educating the general public about risks and hazardous events helps risk
management agencies in keeping their reputation and legal question from the courts.
 Risk communication have a large significance especially in building projects like nuclear
energy plants, genetic engineering, high technology risks and environmental risks, which
requires a more direct input from stakeholder and the general public in order to ensure their
safety and cooperation.
The target of risk communication process is to create a common platform for member of the
public, representatives of stakeholder groups, professionals, technical experts and regulatory,
which helps to reach three major goals in risk management process
 To include the best available expertise on existing risk level and reduction methods.
 To ensure that the concerns and values affected by risk management decisions are
integrated in the deliberation process.
 To adjust regulations to the values and visions of those who need and want to be protects
from hazard
In the project management process, the project manager is spending approximately 90% of
his/her time on communication, which emphasizes that in a constantly changing environment
communication is very significant, since the slightest changes could end up creating big
problems and when the subject matter is risk communication becomes critical, because risk
events not only they can cause problems but also project failures, so the article showed key
points regarding project risk communication
 How well are conclusions of each article aligned with the findings of the study?
The articles purpose was to view and discuss the role of risk communication in effective conflict
resolution and risk management process. The paper outlines that all participants (relevant parties)
should have equal saying (input, contribution) on the subject matter if effectiveness of risk
communications is needed. Also the inputs and values the public, representatives of stakeholders,
technical experts and regulatory suggestions must be included in the process of providing
deliverables in order to ensure and initiate effective two-way communication process and
willingness.
An organization model is used to assign roles to each contributor and to make sure inputs are
embedded in the dialogue structure, so that the arguments and information are shared. Using
cooperative discourse method for getting preferences and educated responses of citizens in a
rather short time period. Dismissing the public input for the technical expert’s opinion or
avoiding the technical expert’s opinion and valuing only the public input doesn’t support the
target of the risk communication process.
The success of risk communication in conflict resolution and improvement of risk management
lies on the person who process all available information in order to create well balanced findings
with consideration of the arguments and inputs of all sides, factual evidences and his/her values
and preferences.
As a whole the article’s conclusion holds key messages that align with the findings of the study
 Strengths and weakness of the paper
The following constitute strength of the article: -
 Supporting the article with his(authors) actual experiences makes the article more reliable
and worthy.
 Giving a detail explanation in most of the topics the article viewed helps readers understand
the paper purpose.
 Even if it is rough, showing how to organize a discourse setting helps the peoples who want
to conduct two-way communication by giving a highlight.
The following constitute weakness of the article: -
 The article could have used literature review to support or dismiss the concept, so the
readers will be able to understand more and see other alternative methods of using risk
communication for conflict resolution and risk management.

Assignment II
 It is true that project risk management should be established as a
continuing integrative function throughout the project’s life cycle. Thus,
argue and clearly discuss how the function of project risk management
is tied into the remaining nine project management body of knowledge
areas (PMBOK) management functions.
First, trying to manage any project without considering for possible risk events that might
happen in the projects life cycle will definitely lead to project failure. Which makes risk
management a crucial factor in project management. Risk events affect the essential areas to the
success of the project such as schedule, scope, budget, agreed quality of the deliverables,
communication, stakeholder engagement and other significant areas. And when unanticipated
events happen and there is no risk management, the process of project management becomes
difficult and related situations might lead to failure of the project.
Project managers must plan for every uncertainty and put a greater focus on each events related
with knowledge areas that have a potential of becoming risk. The project manager also needs to
try embed risk management ideology in to the team’s consciousness in order to ensure the
process of managing every knowledge area is a success.
Project risk management is the process of identifying, analyzing, responding and monitoring
threat or opportunity events that could have a significant impact on the other knowledge areas in
return will affect the success of the project.
Since each project is carried out in a very different and unique set of circumstances and
conditions, every knowledge areas involves multiple events that have a potential to be a risk
either positive or negative.
Every stakeholder or concerned party will have expectation from the project manager regarding
the project like remaining in the schedule and delivering on time, implementing project activates
within the budget, providing deliverables according to the requirements, producing quality
product or providing quality service and money other. Meeting these expectations and project
objectives and goals with risk events and risk management processes included make the progress
both simple and complex.
There might be an event in each nine knowledge areas which will lead to risk such as: -
 Not meeting activity, milestone deadline or not being able to provide the deliverables
according to the schedule
 Lacking basic and critical resources like skilled staff and necessary equipment and
machinery
 Vague scopes and unrealistic requirements
 Poor communication within the project team or between the project team and relevant
parties
 Inappropriate way of engaging stakeholders and forgetting or leaving out influential and
powerful stakeholders in the planning process from the beginning
 Not meeting the required quality of deliverables
 Reduction of budget or shortage of funding
 Not conducting legally binding contracts
All of the above events have the capacity in creating situations that will lead to the total failure of
the project entirely.
Projects are implemented in a dynamic environment and every knowledge area incorporates
events which could become a source for project failure or an opportunity that could result in
project deliverable improvement, as a result making the risk management process a priority will
be a proactive approach. Implementing risk management needs to be planned carefully and
implemented smoothly without interfering other activities related with the nine knowledge areas.
Even if risks generally known as negative, they can be positive or become an opportunity for the
project. So when managing risks, the manager also need to look and plan for capturing events
involving each knowledge area that have a possibility of bringing positive impacts and better
results to the project in the best possible way.
In general, by applying risk management process throughout the life of the project regarding
events in every knowledge area a project manager could be able to ensure the success completion
of the project.

Assignment III
 Select a certain project you interested and evaluate how the project risk
management process are addressed and mention the types of risks that occur
frequently.
Project name: - The MSC Meraviglia cruise ship
Project description: - Building the biggest liner cruise ship in history with 315m long, 43m
wide, 65m high and 171,598 tons of gross weight. The cruise ship was built by STX Europe in
France at saint Nazaire ship yard costing more than $950 million dollar. The project was about
being able to build self-sufficient environmental friendly city for thousands of habitants that will
be boarding after the completion of the construction process.
  How the project risk management processes are addressed in the
construction of the Meraviglia cruise ship?
In the ship building business there are common risk problems and most of the events that could
become risk need to be addressed almost always before the construction process starts that is
from the design, preparation, production to the management phase. Because most of the risks can
be catastrophic if discovered in the middle of the building process and the failure because of it
costs in millions.
The construction of the Meraviglia was integrated with sophisticated technologies and
simulations like Monte Carlo, CFD computational fluid dynamics and many other technologies
to perform analysis of events that could happen and involve risks like too much and unexpected
big turbulence. The process of building was coupled with a continuous and immense research
and monitoring process to avoid and take corrective action if any risk events happen.
The risk management process in building the Meraviglia cruise ship project was focused on
avoiding the events that have the potential to be a risk by performing tasks efficiently from
designing, preparation, production and management before and during the execution process and
developing different types of action plans for multiple risks during the project life cycle like
coming up with a response that is revolutionary in the ship building business that is building a
bulb for the wave created by the ship bow, which is used for increasing speed and reduce carbon
emission by reducing fuel consumption of the biggest cruise ship in the world making it
environmental friendly.
The most important thing regarding the Meraviglia construction was the risk management
process needed to be addressed even before the building process began and the risk management
was focused on avoiding and closely monitoring and controlling any events that could become
risk by executing the following tasks with careful and conscious thinking because if any
unexpected events emerge during the building process it will cost the STX Europe and also the
clients a huge investment.
In case of the Meraviglia the following risk management process were executed from the
beginning to the end: -
 In the process of building the Meraviglia the risk management procedure started from
negotiating the construction deal with the client in creating realistic time line and
excellent budget and cash flow because if the schedule is beyond the building crew can
achieve the quality could be compromised.
 In the process of risk management regarding the Meraviglia ship, designing every single
detail of the ship with attainable scope and impeccable design was the most critical part
because if there is a design risk the entire project will fail almost instantly. Also getting
the qualified personnel to do the design job for avoiding any possible features that could
become unclear, unrealistic and could contradict any general, sea or environmental
related laws and also protecting the projects uniqueness. Example if unexperienced or
unskilled designer put a propeller that have too much weight on the design it could create
 a big problem during the installation and also increasing unwanted weight on the
generator shaft which will result in malfunctioned working mechanism and also failure of
a project. So STX Europe hired an experienced and skilled designer to avoid this risk
event happening.
 And deciding where to manufacture components and choosing the appropriate and
adequate ship yard to build the ship since it is the biggest cruise ship ever build. And also
making sure that the ship yard doesn’t consistently get hit by large waves which can
disrupt the building process and cause hazards.
 Hiring labor force who are experts in their field with lots of year of experience, discipline
and commitment since it was a very strict deadline with a four-year schedule and
extremely unique ship considering if the employees doesn’t have the appropriate
knowledge, skill, creativity and flexibility the project design wouldn’t be executed as
planned which results in failure of the project entirely or a lawsuit from the clients.
Example if a welder didn’t weld sheet metals of the ship properly it will create cracks if
not discovered early it will contribute for the ship to sink in the middle of the ocean or the
sheet metals will start to tear apart when other parts install to it. In order to avoid this
problem from happening beside hiring qualified and experienced welders, they create a
laser beam machine that will detect a hole in the welding and also a testing process after
the building process is completed, which will fix the problem immediately without
causing any risk events, accidents or hazards.
 And the most important thing to make all of the above effort productive the management
process was managed by the most qualified and competent functional managers for every
department and general manager for the entire project in order to ensure each activity is
executed meticulously and every deliverable is produced with specifications the design
requires and making sure every stakeholder from the employees to the board members do
their part right.
 Mention the type of risks that occur frequently in the building the
Meraviglia cruise ship
 Health and safety risk
Working on the ship yard have uncomfortable and dangerous health conditions, small scale
machinery hazards, cramped spaces, exposure to high pressure and heat. Examples are welding
on a very high temperature condition, installing parts on tight places, operating laser cutting
machines and living on the deck for almost four years.
 Environmental risk
Associated with keeping the design and building of the ship in line with the environmental
regulations since the ship this big releases larger number of carbon compared to other cruise
ships, which needed a special attention and design requirements. The Meraviglia was built with a
12-cylinder engine which have the capacity to drive a 171,598 tons of its weight and more than
4500 passengers on board. So an engine this big will emit a large portion of carbon more than
other ships do as a result the designers and technical teams was obligated to come up with a new
revolutionary component and mechanism in order to reduce the carbon and fulfill the amount
carbon emission allowed. If the carbon emission was above the amount allowed the Meraviglia
won’t have a right to sale on any ocean ever.

Assignment IV
Choose the best answer from the options given below
1.B 2.C 3.A 4.D 5.D 6.D 7.C 8.B 9.B 10.E 11.E 12.E 13.D 14.C 15.B 16.C
17.A 18.C 19.C 20.B 21.D 22.A 23.C 24.B 25.C 26.C 27.D 28.D 29.D 30.B
31.A 32.C