Project Management Assignment help online study writing review analysis :: Oresund Case Study on Risk Management

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Write a description analysis of a case study on Oresund risk management??

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Risk management

Risk management can be defined as a systematic application of various practices, policies and procedures for assessing and managing the various risks. Large projects have a very complex nature. It can be said that there are two different approaches when it comes to the material or corporeal damages in the case of large projects. They are High Reliability Approach and the Normal Accident Theory.  In high reliability approach it is considered that accidents can be avoided provides there is good organisation and and management. In normal accident theory, accidents cannot be avoided when it comes to the complex systems (Charrel & Galarreta, 2007).

It is a usual tendency that the projects tend to take an extended period of time and take a wide range of resources that includes people, finance, facilities, materials and the intellectual property. The major role of the project risk management is to minimize the risks to the extent as possible, of not meeting the targets and the objectives that are preset and thus to identify them and to take advantage of the various opportunities. It is with the help of the risk management that the priorities are set, resources are allocated and actions are implemented. It can be said that risk management facilitates better business and project outcomes (Cooper et. al, 2004).

Risk and its sources

According to Phil Rosenzweig, corporate risks tend to arrive from four different sources of uncertainty. The sources of these risks are

• External environment: There is a high level of uncertainty where the globalised world is concerned. The demand for the product or completion of the project, absolution of the industry because of innovations and supply chains are some of the elements that constitute the external environment (Bonham, 2008).
• Customers: There is a high focus on the uncertainty of the project where the customers are involved. The acceptance or rejection of the product on creation is highly essential for the success of the project. There are high chances for the customers to engage in predatory litigation in case they are not satisfied with the project (Bonham, 2008).
• Technology: Technological revolution now acts as one of the major sources of uncertainty. Some of the examples for this are digital music which disrupted the musical industry, internet demolishing the travel agencies. It is highly important to implement innovation in all forms of available technology (Bonham, 2008).
• Internal environment: Internal capabilities or operation is also a major source of concern. Some of the factors that questions internal capability includes selection of the right projects and decision making and improvement in rapid pace (Bonham, 2008).

Risks tend to generate from these four uncertainties and can further be divided in to three different types of risks. They are credit risk, market risk and operational risk (Bonham, 2008).

General Risk Management Methodology

Risk management methodology use logical and structures method for establishing a context in which the risk is identified, analysed, evaluated, treated, monitored and communicated. It also plays an integral role in project management. Risk management lasts through out the life time of the project. Risks should be continuously identified and treated, iteratively assessed, evaluated, and monitored (Frame Group, 2012).

Figure 1 Risk Management Methodology

Source: (Frame Group, 2012)

Following is the Figure of Classic Risk Management

Figure 2 Classic Risk Management Strategy

Source: (Bonham, 2008)

It is important to identify the risks and arrange them. It includes planning, scoping, designing/plans specifications & setting up an estimate and construction. Progressive elaboration is one of the major ways to deal with risk identification. Reviewing of various projects on peer level, documentation of the project, reports, studies, preliminary plans, estimates and schedules will help in the identification of risks. Some of the ways to gather information includes brainstorming, and searching for results from the lessons learned database. Potential responses to the identified risks are also thus calculated. In the case of risk quality analysis the impact and likelihood of the identified risks are assessed and prioritized. It acts as a screening for reviewing the project risks. This process involves both quantitative risk analysis and qualitative risk analysis has discussions carried over in groups. Appropriate participants can be used for defining terms and staying focussed to record the results and prioritize them. Quantitative analysis numerically estimates the risk. Some of the effective tools in the contest can be Monte Carlo simulation (WSDOT, 2010).

Projects require involvement of highly experienced professionals and one should appreciate the importance of expert judgement. Following are some of the methods and tools that can be used for the purpose of early detection of risks and handling them

“1. Informal direct assessment of risks-experienced judgement

2. Checklists-lists of risks that have happened before or features of a project generally thought to be risky

3. Risk indicator scales-scoring schemes

4. structured brainstorming and evaluation

5. Probability-impact calculations

6. Probabilistic modelling of costs, schedules and cash flows (Grey, 2007).”

The following table sets an example for the kind of the risks that may have to be faced for the purpose of the implementation of a project.

Source: (Bonham, 2008)

The risks that are to be faced in any projects tend to be related to the above table and it is the duty of the project manager to identify, pre-plan and mitigate any risk that are bound to happen. These are the risks that can be identified by the executives when corporate and enterprise risk management strategies are developed. Strategic external risks are the risks that are considered in phase one. During the implementation of the second phase a central risk management organisation can be organised for meeting the various targets and defying the risks. All the risk both internal and external is to be considered in this phase. This offers and enterprise view of the whole project. The third phase offers an operational view and is highly related to the performance level within an organisation (Bonham, 2008).

As it is mentioned already, the major aim of the risk management is have better and reliable results. This can be done only by understanding the sources of major risks, arranging them in accordance with their priority on comparison to other risks. On the basis of the identified risks, it is also important to establish budgets, targets and contingencies that are realistic in nature where commercial contracts and internal performance agreements are concerned (Grey, 2007).

Various responses can be taken where threats and opportunities are concerned. Some of the strategies that are taken against risks or threats are to avoid, mitigate or transfer the threats and opportunities should be exploited, shared and enhanced. The risks that are bound to occur are detected early can be eliminated by clarifying the requirements, obtaining information, improving communication and acquiring expertise. Two different kinds of actions can be taken in the context and it involves removing the cause of the risk and executing project in a different way by eliminating the risks to achieve the already set objectives. This can be turned into an opportunity by eliminating the particular upside risk. The threats that are bound to occur can be transferred to another party and this helps in dealing with the financial risk exposure. It will also involve payment of a premium and includes insurance, performance bonds, warranties etc. in this the liability of the risk is shared by the external party. There is also an opportunity when the threats arise to share it with an external party who can best handle the situation. Some of the examples are risk sharing partnerships, teams or joint ventures. But the flaw is that when both the liability and the potential benefits will have to be shared. Taking an early and effective action is one of the major ways to mitigate risks. Some of the examples include adopting less complex processes, conducting more tests and investigations and development of a prototype. There is also a requirement for the preventive response. This strategy when adopted tackled with the reasons behind the creation of the risk. Enhancing is a strategy used for modifying the chances for a positive risk. The final strategy s acceptance of the risk and refers to the risk that remains irrespective of the various actions undertaken. In short there are risks that cannot be controlled and they are generally accepted (WSDOT, 2010). This is the general way in which project risk management is tackled where variety of the risks are concerned.

Case Study- Oresund Bridge

Oresund Bridge is a combination of a bridge, an artificial Island and an underwater tunnel and connect Denmark and Swede across the Oresund Strait. the bridge is composed of the longest immersed concrete tunnel, double deck road and rail bridge in the world. it can also be sais that this bridge was designed in such a way to minimise its impact on the sensitive marine environment (Skansa, 2009).

The business concept behind the construction was to offer a better transport facility along with an equal standard of service. processes are undertaken here in the best interests of the customers for the purpose of the long term profitability. The requirements of the transport requirements are to be met by the Oresund bridge as they are all potential customers. the rail link is also part of the bridge and it is the responsibility of the operators to provide maximum efficiency for the rail operators services. The services that are being provided should be upheld and the increasing demand for transportation has to be met for the purpose of bridges profitability and development of the Oresund region (Femerndk, 2011).

Architecture and design of the bridge

the bridge is a striking spectacle from both sides. it crosses the Baltic Sea and it is made up of an artificial Island that stretches up to 4 km, a 3.5 km underwater tunnel and a bridge spanning of 7.7 km. it was also awarded IABSE (International Association for Bridge and Structural Engineering) for its planning, construction management techniques and environmental considerations (Hughes, 2010). the bridge is composed of the deck, pylons and cables.

Figure 3 Cross Section of the Deck

Source: (Hughes, 2010)

Figure 4 Cable Stayed Bridge

Source: (Hughes, 2010)

Aesthetic View of the bridge (Analysis of the infrastructure)

Aesthetics of any project is highly subjective in nature. But an objective view of the same can be taken with the help of Leonhartt Fritz’s ten rules.

• Fulfilment of function: It can be seen the the bridge has a simple structure. it is a cable stayed bridge and there are symmetrical cables at an inclination of 30 degree. this helps in making the bridge balanced and in equilibrium. There is no cross beam above and this bridge looking free and also making cables the centre of the visual aspect when they are travelling across the bridge.
• Proportions: the deck seems to be deeper than the expected cable stayed bridge. It means that the rail and the roadway will be on the same level. The deck is abominable wide in nature and this makes the pylons look far more slender in comparison to other famous bridges.
• Order: the bridge is extremely ordered when it is stared to from an elevation. There is also symmetry in the case of the cables and it makes the bridge look even more attractive.
• Refinement: it can be seen that the angles in the case of the warren truss are the same as in the case if the cable-stays. This offers a visual refinement when it is viewed from an elevation. The piers are only connected at the top and this gives a very slender look to the piers. It also gives a clear vision to the travellers in the train with the help of a bracing system and this makes that bridge appear even lighter.
• Integration with the environment: the bridge is aligned in such a way that alignment is visible against the artificial Island of Malmo against the backdrop of Baltic Sea.
• Character: the character of the bridge cannot be explained and this may probably be due to the long distance that is covered by the bridge and stretched over a huge body of water.
• Surface texture and colour: the use of colours is understated in the case of the Oresund Bridge. The grey pillars are not painted and this reduces the long term cost of maintenance. The pylons are white in colour and tend to be seen as floodlit in the night. This offers light to the drivers in the night. A sense of depth is given to the deck by painting the truss black.
• Complexity: Oresund does not have a highly complicated structure and fulfils the structural requirements. It is simple and beautiful and is without the addition of the structural design.
• Incorporation of nature: the bridge has a curved plan and incorporates the surrounding to it. The bridge thus manages to attain a curvature where the land and the sea are concerned.

Contract Strategy

Following are the principles behind the Owners Contract strategy. They were “detailed design and build, a 100 years’ service life, application of well known technology, control and documentation of quality and division of risks attributable to ground and weather conditions and obtaining permits”.

This document also served as a guide for the purpose of project management. Some of the main requirements in concern with the function, aesthetics, safety and environmental protection were also thus made available. This also specified the accountability and fulfilment of duties towards the owners. The bench marked values also set straight their conceptions about the various values in concern with the ground and the weather conditions. In short it paves way to the quality plans and project quality programme.

Risk management

From the nature of the Oresund Bridge it can be seen that there were a number of risks that were to be addressed by the risk managers for enabling completion of the bridge on time, in addition to the contractors plan. The contractors also developed an operational risk assessment of the Oresund Link. The comprehensive risk analysis that was conducted was one of a kind.

“A fully quantified risk assessment of the human safety and traffic delay risks was carried out for a comprehensive list of hazards including, fire, explosion, train collisions and derailments, road accidents, ship collisions and groundings, aircraft collisions, toxic spillages, environmental loads beyond design basis”. The risk assessment process was conducted again along with the design process and this also influenced several designs. Some of the avoidance tactics were also implemented when avoidance was possible. Some of such strategies include making the bridge pier foundations in the size to withstand a ship collision, and realignment of one if the major shipping channels for the purpose of reducing the grounds. A provision was also made for passive fire protection on the tunnel walls and ceilings (Arup, 2000).

Following are details on how some of the major risks were handled. All kinds of threats were faced while the bridge was constructed

Corrosion protection

One of the major issues that were to be solved included giving corrosion protection to the bridges steel girders. This was a highly significant issue. Some of the solution was to be found in relation to the specifications of coating technology that were both conventional and emerging. There is a requirement for the optimisation of life. The specifications will also be used for minimising the health and safety risks. Water retention was eliminated on the structure by ensuring that there will be a free run off at the node points, and highlighting the details of fabrication that might act as water trap (Arup, 2000).

Following is the coating specification that was used

Figure 5 Coating Specification to eliminate corrosion

Susceptibility to Damage

The greatest unintentional threat that comes to a structural integrity is bound to rise when a ship collides to one of its peers. The bridge is built in such a way that it will have a few advantages in case it is hit by a ship. The leaf piers with respect to the bridge are built in the way that the bridge will be serviceable in case if it loses its piers completely. This is also a scenario that is not bound to occur. The leaf pier is also stronger than the the two square piers. These pylons are also given protection with the help of artificial Islands that are built on its base. It will also slow and prevent the ships from colliding to the pier (Shrubshall, 2008).

Intentional Damage

There are also chances that the in the world were terrorism is so frequent the bridge may be targeted. The likelihood of an attack like that is smaller in the case of Denmark. However the engineers have made it in such a way that the bridge is completely indestructible (Shrubshall, 2008).

Dead Load

The bridge is constructed on Steel trusses and allows the road and the rail traffic to be divided and applicable on the upper and the lower part of the deck. But steel is lighter than concrete, where it would also be simultaneously stiffer than the post-tensioned concrete deck. The load will come from the casting of the concrete deck which is placed at the top of the girders. And the transportation is also highly assisted with the help of the services, lighting and blacktop. The train line is in the concrete trough where as main span bridge changes into steel when the trough is reached or the weight is increased above 43 tonnes per meter.

Serviceability

In 2000, after the bridge was opened it was found out that the bolts were rusting. There required removal of over 16,000 bolts and making them clean. Later the bolts were all kept clean by coating it with a gel. one of the major risks to be faced here is that The bridge was constructed in such a way that there was a lot of dehumidifiers contained in the bridge that it keeps the temperature in the air to a 60% of the relative humidity. But when there is no moisture in the air the chances are that the rusting of steel will be increased.

Environmental concerns

Environmental and sustainable development is some of the major concerns to be faced and tackled when a huge infrastructural project is on the way. This risk was managed by the regional and the national government and the environmental agencies who were involved in designing the whole project. Although on a day to day basis the project manager was responsible for overseeing the project. High level of risk and security management systems was adopted for keeping up with the requirements of the Environmental Aspects. There is a stage where there was even a fear of getting proper approvals from the government and related agencies. This risk was managed through a marathon of different strategies.

most of the sections of the bridge were prefabricated on land so that the amount of time that was spend on the bridging line was minimal and this reduced the risk of polluting and damaging the marine environment. This was especially important because of the sensitive marine environment in Oresund strait. About US$ 300 was spent on protection measures of the environment. It was only after adherence to all the environmental laws that construction was permitted. Some of special risk management efforts included (Skansa, 2009).

Concentration on minimizing the impact on the water flow

Only a minimal blocking effect was to be experienced by the Oresund strait as per the discussions of the environmental organizations including the Swedish Water Court. The bridge was to ensure that there will not be a change of more than .5 % in the case of the flow of the water, salt and oxygen content in the water. This meant that the composition of the Baltic Sea was not to be changed. For this purpose two different and independent hydrographical models was tested and the design there was areas were identified that required a compensatory dredging to retrieve the effect that was required of the bridge (Skansa, 2009).

Reducing dredging

The amount of material that has to be dredged from the seabed was around 7.5 million m3. This was used for the purpose of the creation of the artificial Islands. Dredging was done carefully so that there was a minimization of about 5%. This reduced the suspended sediment that had the capability of shading or killing the eelgrass and the mussel beds. Eelgrass played a pivotal role in the straits ecosystem. The reason was that they provided food for the birds and also reduced erosion in the sea beds. Another risk management tactic adopted was that the spillage duration was intensity was well controlled. A model known as sediment distribution model was also adopted so as to help and monitor the sediment plumes and the various effects that they have on the ecosystem (Skansa, 2009).

Monitoring of Flora and Fauna

There was a continuous monitoring of the flora and fauna throughout the time period of the construction and the information that was thus produced were used for the purpose of updating a computer model. It also helped to track the overall impact of the project. The populations of eelgrass and the mussels were constantly monitored by divers. Fish samples were also made us through sonar and the bird population was recorded from the watch towers.  Irrespective of the various risk management measures it was revealed that that the mussels and eelgrass had reduced in population which gradually increased when the work was completed. Though the numbers were affected during the duration of construction it was proved that there was no adverse affect on the diversity of the strait (Skansa, 2009).

Habitat creation

While construction was happening, accountability was also showed and risk of harming the flora and fauna were reduced by allocation the 1.3 Km2 artificial Islands to the nature reserve where there is an enhancement of natural development in the case of the flora and fauna without human interference. This risk management strategy was very successful as the Botanical Association identified about 450 plants and about 10 species of bird breed on the Island. The museum in Copenhagen has recognized and identifies various rare amphibians, butterflies, beetles and spiders in the place (Skansa, 2009).

Minimizing light disturbance

The constructions in the case of the bridge were happening in shallow water and there were higher changes for them to disturb the fish life. The risk of disturbing the marine life in this case is solved by designing the lighting of the bridge in such a way that there will not be any direct illumination in the case of the water surface. Illuminations are also minimized during the time of the bird migrations. The risk of generating air pollution on one side is reduced by implementation of the concept of shorter distance between Sweden and Denmark (Skansa, 2009).

Safety and contingency measures

There is always a risk of safety when transportation is concerned. The journey across the Oresund link is made as safe as possible in the case of Oresund Link. Some of the measures are combined with the Traffic Centre and are especially aimed at reducing the number of accidents. There are also many CCTV cameras along with the entire road. These cameras would trigger an alarm in case a vehicle is to stop on the tunnel. Speed limits are also kept for the purpose of reducing the number of accident in the tunnels and overtaking of the HGVs is prohibited. It is also made sure that in case of any work on the bridge, they are done only when the traffic intensity is low enhancing maximum comfort to the customers.

There is also a risk of the bridge becoming icy during winter. For these special warning signals are used to warn the motorists for the purpose of treating slippery surfaces on time. Weather stations are also constantly engaged for the purpose of warning reduced visibility, strong winds and slippery surfaces.

An extensive cooperation exists between the Danish and the Swedish emergency services for the purpose for controlling the accidents that occur. There is a joined contingency plan between the two of them and they arrive at an accident location at the earliest as possible. They are also responsible for handling the minor clashes in their regional territories (Femern, 2011).

Operation and maintenance

Risk management strategy that is adopted for the purpose of operation and maintenance are preventive and remedial in nature, some for the management tactics in the scenario comprises of a wide range of measured including inspections, lubrications and replacements when necessary. The traffic centre at Lernacken has the responsibility to undertake the operations in toll station and monitoring of the motorway traffic. The faculties Department has the responsibility of the service and maintenance where any technological issue is concerned in relation to railway. The railway department is responsible for the operation and maintenance of the Oresund bridges railway (Femern, 2011).

Flaws or Risks Accepted

The bridge has four lanes of traffics in two directions including the road and the rail. It is said that it is sensible to protect separate both the transportation and to protect them in the event of any kind of accidents. IT would have been better if two different lanes were kept for both of them. Wind is also one of the major factors that acts on the bridge and tends to act on two ways that are horizontally and longitudinally. The bridge starts to vibrate when there is heavy blow of wind. The bridge does not also have to power to with stand a temperature loading and tends to collapse (Shrubshall, 20008). There are chances that some of the major elements of the bridge require replacement. though the whole of the bridge should not be reconstructed, there are chances that some of the structural elements will require replacing as they are getting damaged and worn out (Hughes, 2011).

Conclusion

It can be seen that in Oresund case study the government of Sweden and Denmark has taken a life time project risk management approach. They tried to avoid some of the major risks through in the early planning stage. The rest of the risks were eliminated by taking the contingency measures. They have also taken an approach of sharing the risk between the two governments. There are also risks that they have accepted as there is no contingency plan for them or the plan implementation would be costly as constructing the bridge again. Project Risk management plays an integral role in the successful completion of any project.

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