Question:

Answer:

Introduction

Risks refer to the loss and unfavorable outcomes that are associated with an action. The loss in the preferred results and outcomes of project in a business organization can be maintained by risk management. This report deals with a case study of an explosion in Tianjin port, China.

This report focuses on risks involved in the Explosion in Tianjin port, China. This report has helped in risk assessment process in the given case study. This report deals with providing proposal for mitigating the risks sin the scenario.

This report outlines analysis of the identified risks in the case scenario. The risks assessment process has been provided in the report. The different communication plans are discussed in the report that helps in mitigating the risks involved in the business.

Key issues which have a significant impact on risks associated with engineering activities including safety and environmental management systems

Risk management deals with identification and prioritizing of risks involved in the business organization or any place. The application of economic resources is considered for attaining various risks and minimizing the threats (Shedden et al., 2016). In this case, the risks management process is an important tool for mitigating the risks and analyzing the risks involved in the explosion in Tianjin Port, China. This technique helps in maintaining the control over the disastrous incidents. The identification of the risks in the business organization is important for the analyzing risks. There are various categories of engineering risks:

Human Resource

The availability of the team members and project staffs became less that causes crisis in the human resources. The use of the human resources helps in maintaining a proper structural overview of the company in the market (Suter II, 2016). The production of company is very dependent on human resources. The project is completed by employees and staffs of the company. The employee engagement in company plays a vital role in the development of company. However, there is a risk involved in case employee satisfaction is poor in this company.

Engineering

Various tasks are planned and prepared by the concerned engineers. This helps in getting a clear understanding about the blueprint of the project. The engineers help maintaining the project in a correct manner (Li, 2014). However, there are risks involved in the engineering activities. The major risk is human error. Maximum tasks and calculation are done by engineers that might night cause errors in the calculation. This might result in huge damage to the project. Therefore, the engineering service also contains risks in them.

Technical

The technical risks involve poor performance by the experts involved in the project. The technical knowledge is only acknowledged by the technician. Therefore, absence of technical expert might cause major impact on the project (Schwing & Albers, 2013). The main agenda of the expert is to solve the technical issues in the project. Therefore, these create risks in the absence of an expert.

Political

There are various political pressures on any project outgoing in an area. The political parties of area have to be in support for smooth running of project. The political and legal measures of the government have to be followed on the project (Thakor, 2016). Therefore, this creates a risk in the project completion. In this case, the Chinese government was not alert about the explosion in the port. The political parties are responsible to provide support to staffs of the company working in project. In this case, the Chinese government has helped in providing fund to the affected areas.

In other words, process of risk identification includes techniques of brainstorming. The main objectives of the paper are to identify the risks in scenario (Boritz,  Carnaghan & Alencar, 2014). The solution of the risks is done by the risk assessment and applying various steps. The identification process includes strategies, goals and objectives of the study.

Analyzing Risk

The analysis of risks involved in a project deals with the level and depth of the risks involved in the organization. The analyzing process of the risks includes the risks framework that helps in identifying different risks involved in the project. There are various methods for identification of risks in the project including expert investigation method, checklist method and graphic method. In this case, of Tianjin explosion in China, authorities have claimed for murders of 50 individuals during the explosion (Haimes, 2015). The blast occurs in a modern zone containing lethal chemicals and gas that harms less than 700 individuals in the state. The Tianjin Administration of Work Safety organizes a meeting with the organization for taking care of risk materials in the state. As per the report of the government ecological examiners, the stock room was unsafe in the office. There was dangerous chemical substance sodium cyanide and compacted gaseous petrol the area that have caused risk in engineering management. Once the controls have been distinguished, and their adequacy examined, an appraisal is made of the probability of the hazard happening furthermore, the result if the hazard were to happen (Covello & Merkhoher, 2013). This creates an exact, though subjective, appraisal of the level of hazard or chance rating and helps in the following stage to decide if dangers are satisfactory or require facilitate treatment.

Risk assessment as a decision making tool

In given context, anti-chemical warfare troops were sent to site after the blast occurred in the Tianjin Port. These troops investigated and analyzed the area for finding the reasons of blast (Thakor, 2016). The Risk Assessment process is appropriate to an organized and efficient approach.

Figure 1: Engineering risk management steps

(Source: Viehmann, 2016, pp. 7)

Initial situation without risk source

Data and information related to risk and damage has been collected. It includes geographical, geometrical and topological information related to the scenario.

Description of risk source

The description of risk source includes distribution, geometry, mass, position and velocity. These factors help in analyzing the level of risk and mitigating risk in the area. The description of the source of the risk is important for analyzing the effect of the risk in the affected area.

Risk Propagation and analysis

The risk analysis includes potential dispersion, load distribution and impact of the enhanced mechanism work on the risks (Torabi, Giahi & Sahebjamnia, 2016). The high and low levels of the risks have helped in propagating in the decision-making scenario in Tianjin Port, China.

Risk communication

Risk communication deals with the communication of risk with experts and third party. The risk comparable to risks involved in various attributes. Risk communication has been an important factor in making decisions in the organization (Mcube, Gerber & Von Solms, 2016). This has helped in participating in risks assessment procedure in the scenario. Communication is the principle tool for developing the mitigating strategies in the risk prevailing area.

Decision making tool

Risk assessment can be used as a decision making tool in an organization. The evaluation of risks prevailing in the organization might help in obtaining a proper decision related to strategies for mitigating those issues. The use of the risks assessment in risk management process provides an empirical approach towards monitoring risks involved in case scenario. In the case of Tianjin Port, the risk involved in the blast has been identified and properly analyzed. Therefore, with the help of risk assessment process, various decision related to strategic planning of mitigating risks can be made.

Communication plan

Table 1: Communication plan

Clear Description of Process used to analyze strategic Issues

The risk management plan manages all risks that are involved in the scenario. There are four basic division of the plan that are discussed below:

Acknowledgement

The project manager is responsible for acknowledging about risks in the area. The project manager helps in maintaining the record of the risks involved in the project (Gollenia, 2016). In the case if the explosion in Tianjin port, these risks were not properly analyzed in the area that have caused explosion.

Controlling

The controlling of the risks in perceiving performance activities for limiting the emergency in the course of action creating a chance of causing an accident (Sadgrove, 2016). The strategies to control the risks shave to be prepared at this stage. This helps in controlling the damage caused due to the risk in that area.

Avoidance

The strategies for mitigating the risks in the area are created in this stage. The strategies are used for maintaining and avoiding the risks in the area. A successful implementation of the strategies helps in avoiding accidents in the region due to specific risks.

Transferring

The transferring of risk with another area or by exchanging at extent minimizes the risks. This helps in mitigating risks using various strategies at particular activities in the scenario. These activities are considered to be undertaken by the execution design and risks examination procedure (Holick, 2017). Describing main factors that drive the risks in the area and causes destruction. These factors are analyzed during the risk assessment method that helps in controlling risks. The assessing of the risks maintains consistency of controlling the risks involved in the scenario.

Risk management tools

The entrepreneurial organization real joins speculation with chip away at offering opportunities to test hypotheses, models, and procedures learned in classroom. Understudies influence bona fide attractive procedures, to wear down other field exercises, and acquire passageway and comprehension from entrepreneurial business bunch pioneers (Meier et al., 2016). The organization noteworthy empowers chiefs in changing overall economy to see total endeavor and fathom forces that shape an affiliation’s course, procedures, and targets for course of MBA. The course moreover empowers boss to hone singular expert’ in supervising delegates.

The engineers will apply key human science educates and examine systems to organization and expert issues in the all-inclusive community and private divisions. Building risk administration to some more prominent degree that tends to modify the venture system and thus fabricated methodologies against a plan of the described essentials, particulars and specific standards (Nachman et al., 2017). Organization models connected to system whose convenience and execution has been orchestrated by correspondence and interconnection.

Risk management Plan

Risk Management Plan courses of action should be set up to deliberately track and survey ampleness of danger response exercises against lilt up estimations. Designing activities contain their offer of dangers. A couple of techniques that can be used for checking and controlling dangers:

Earned Value: This system takes a gander at estimation of work completed to date with estimation of work anticipated that would be performed by then in schedule.

Program Metrics: Formal, periodic execution evaluations surveying whether the risk organization configuration is fulfilling its goals.

Technical Performance Measurement (TPM): A way to deal with evaluates the specific execution of an undertaking and differentiates and the particulars required for wander accomplishment (Shao et al., 2016).

Self-control is how much a job gives a delegate the mindfulness and has the flexibility to design the work as indicated by the prerequisite and thus choose how the function must be done. Bigger ranges of train at work can be useful to extend work satisfaction, and on occasion, motivation to play out the movement. In regular organization, just those laborers at bigger sums had self-administration. In any case, new legitimate structures, similar to the compliment affiliations, have just cut freedom at down levels (Aven, 2016). Besides, presently numerous organization make use gatherings of self-decision work. Freedom in the workplace can have points of interest for delegates, gatherings, managers, and the association largely. Controls and codes are nonspecific. They can just manage foreseen occasions, and cannot anticipate each conceivable circumstance. Architects should take a deliberate, yet difficult way to deal with potential dangers, regardless of whether directions apply. Specialists should:

• act as per implicit rules
• think about and conform to the law in nations where they are working or where their items will be utilized
• perceive and comprehend the goal behind principles and codes, and comprehend when their cutoff points are being drawn nearer
• consent to current pertinent legitimate prerequisites representing building hazard issues
• look for counsel where important
• where it is sensibly practicable, look for encourage changes, accordingly installing a culture of looking for persistent change
• be receptive and abstain from holing up behind controls

Deficiencies in correspondence are available in about all disappointments in the administration of hazard. Discussing successfully with clients, customers, providers, subcontractors and partners is vital to guarantee that dangers and their suggestions are seen legitimately (Vojinovic et al., 2016). Inside an association, hazard administration ought to be conveyed as center esteem.

Successful oversight and examination forms are essential shields in controlling dangers. They ought to challenge, and completed with freedom from those making the hazard or endeavoring to control it. The impression of hazard among the general population is affected by a scope of components, including passionate ones (Nachman et al., 2017). Engineers have an essential part in bringing issues to light and comprehension about the genuine levels of hazard and advantage, and counteracting mis-conception.

The building calling perceives that hazard is inborn in the exercises embraced by its individuals. Proficient engineers and building technicians have a noteworthy part to play in constraining or disposing of hazard and there is an individual commitment on them to keep up and improve their ability in their general vicinity of hone. Hazard is available in all designing ventures because of vulnerability and natural perils. A few components of hazard might be evaluated, for instance the databases that archive segment disappointments. In any case, novel designing undertakings will regularly include a level of vulnerability where experience offers a fragmented guide (Holick, 2017). In all cases, there is a requirement for architects to work out educated judgment and administration keeping in mind the end goal to deal with the hazard, since exorbitant hazard avoidance will prompt innovative stagnation and deny society potential advantages. Society’s view of hazard may vary from the engineer’s, and in this manner, engineers ought to take a stab at clearness when conveying about hazard, and impart in wording justifiable by non-experts.

Conclusion

It can be concluded that the engineering risks has been creating problems in the Tianjin Port causing to a massive explosion. The identification of the risks in the scenario has been provided in the report. A proper analysis of the identified risks has been provided in the report that helps in understanding the effect of the risks in the given scenario. Various steps have been taken to analyze the strategies for mitigating the risks in the scenario. The use of the mitigating strategies has helped in controlling and avoiding the risks in the area. The risk mitigating plans has been provided in the report that has helped in monitoring the risks prevailing in the Tianjin Port, China.

References

Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), 1-13.

Boritz, J. E., Carnaghan, C., & Alencar, P. S. (2014). Business modeling to improve auditor risk assessment: An investigation of alternative representations. Journal of Information Systems, 28(2), 231-256.

Covello, V. T., & Merkhoher, M. W. (2013). Risk assessment methods: approaches for assessing health and environmental risks. Springer Science & Business Media.

Gollenia, L. A. (2016). Business transformation management methodology. Routledge.

Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons.

Holick, M. F. (2017). Skeletal Fragility, a Common Menopausal Burden: Risk Assessment, Diagnosis, and Management. In Essentials of Menopause Management (pp. 145-164). Springer International Publishing.

Li, W. (2014). Risk assessment of power systems: models, methods, and applications. John Wiley & Sons.

Mcube, U., Gerber, M., & Von Solms, R. (2016, May). Scenario-based IT risk assessment in local government. In IST-Africa Week Conference, 2016 (pp. 1-9). IEEE.

Meier, M. H., Hall, W., Caspi, A., Belsky, D. W., Cerdá, M., Harrington, H., … & Moffitt, T. E. (2016). Which adolescents develop persistent substance dependence in adulthood? Using population-representative longitudinal data to inform universal risk assessment. Psychological medicine, 46(4), 877-889.

Nachman, K. E., Love, D. C., Baron, P. A., Nigra, A. E., Murko, M., Raber, G., … & Navas-Acien, A. (2017). Nitarsone, inorganic arsenic, and other arsenic species in turkey meat: exposure and risk assessment based on a 2014 US market basket sample. Environmental health perspectives, 125(3), 363.

Sadgrove, K. (2016). The complete guide to business risk management. Routledge.

Schwing, R. C., & Albers, W. A. (2013). Societal risk assessment: How safe is safe enough?. Springer.

Shao, Z., Wang, Y., Chen, X., Zhang, Y., He, J., & Wang, Z. (2016, September). A network risk assessment methodology for power communication business. In Network Infrastructure and Digital Content (IC-NIDC), 2016 IEEE International Conference on (pp. 40-43). IEEE.

Shedden, P., Ahmad, A., Smith, W., Tscherning, H., & Scheepers, R. (2016). Asset Identification in Information Security Risk Assessment: A Business Practice Approach. CAIS, 39, 15.

Suter II, G. W. (2016). Ecological risk assessment. CRC press.

Thakor, A. V. (2016). The highs and the lows: a theory of credit risk assessment and pricing through the business cycle. Journal of Financial Intermediation, 25, 1-29.

Thakor, A. V. (2016). The highs and the lows: a theory of credit risk assessment and pricing through the business cycle. Journal of Financial Intermediation, 25, 1-29.

Torabi, S. A., Giahi, R., & Sahebjamnia, N. (2016). An enhanced risk assessment framework for business continuity management systems. Safety science, 89, 201-218.

Viehmann, J. (2016, October). Business Driven ICT Risk Management in the Banking Domain with RACOMAT. In International Workshop on Risk Assessment and Risk-driven Testing (pp. 3-10). Springer, Cham.

Vojinovic, Z., Hammond, M., Golub, D., Hirunsalee, S., Weesakul, S., Meesuk, V., … & Abbott, M. (2016). Holistic approach to flood risk assessment in areas with cultural heritage: a practical application in Ayutthaya, Thailand. Natural Hazards, 81(1), 589-616.