Risk Management In Project Management Data From The Check-in Element

Question: Describe about the Risk Management in Project Management for Data from the Check-in Element? Answer: Introduction and Background Research Risk management is the process of prioritization, assessment and the identification of risks followed by practical as well as a coordinated application of the resources. The process of risk management is implemented to minimize, control and monitor the impact and the probability of unfortunate events or to maximize the opportunity realization (McNeil, Frey and Embrechts 2015). This study would focus on the discussion that is related to the difficulties experienced at the time of the expansion of Abu Dhabi Airport. Therefore, the study would shed light on the discussion of the risk considerations that should be taken into consideration while managing as well as constructing a complex and an ambitious international project by concentrating more on the points of Risk Management. The background of the research is relating to the Abu Dhabi International Airport expansion. It has owned five airports in the UAE, and this airport is one of the fastest-growing airport hubs all over the globe. Now, it is serving from 56 countries, in 97 destinations. 20 million passengers, in 2014 have passed through the airport that is an increase of twenty percent on 2013 (Abudhabiairport.ae 2016.). Therefore, Abu Dhabi International Airport has decided to consider an ambitious strategy to expand the airport for meeting the surging demand. Thus, the airport authority has taken a decision of constructing "Midfield Terminal Building" (MTB) to make an appropriate expansion. This building with 700000 m2 area would incorporate the largest baggage-handling system around the globe, catering and cargo facilities, utilities and other infrastructures about the expansion. On the other hand, the MTB would also become the passenger's primary gateway as well as Etihad Airway's home (Abudhabiai rport.ae 2016). Analysis and Synthesis Critical Analysis of Difficulties faced during to Abu Dhabi Airport Expansion Any business expansion cannot be implemented without facing any risks or challenges. In the case of the expansion of Abu Dhabi International Airport (Breysse et al. 2013), several risks are also there, and these risks can become obstacles in the way to their success. According to Wilke, Majumdar and Ochieng (2014), airports have the highly complicated structure, as well as the construction and the expansion of the airports, require an aimed, proactive and focused approach towards the delivery of their projects. The Abu Dhabi International Airport has considered an ambitious strategy of the expansion for meeting the surging demands of the airport. The major expansion project of the Abu Dhabi International Airport is the construction of the "Midfield Terminal Building" (MTB). MTB would serve several services incorporating the biggest baggage handling system in the world, with catering and cargo facilities, utilities and other important infrastructure (Fewings 2013). Hence, in this scenario, one of the biggest challenges or risks of this vast project is the complexity associated with the construction of the project. For example, the difficulties that Abu Dhabi Airport Authority has faced, are risks associated with the project controls, project-level scheduling, contract administration and commercial management as well as consultancy and modeling of ongoing building information on the gateway process development (Squalli 2014). The Abu Dhabi Airport Expansion is not just a scheme of constructi on of the Midfield Terminal Building, but it is the delivery of system interaction (Kaabi 2014). This systems interaction delivery with a central space sits within a single building which can even capture three football pitches with full size. Therefore, with the size of the building, it can easily be understood that some constraints are also large. The reason is the amount of constraints or risks associated with the project are always directly proportional to the size of the project (Rauda Al Saadiand 2013). Hence, in this scenario, such an undertaking of the project of the expansion of Abu Dhabi International Airport needs a huge amount of interfaces as well as resource to implement the entire construction of Midfield Terminal Building. According to Asif (2016), the insufficient amount of resources or in other words, the shortfall of resources and interfaces is a very crucial problem for any construction project. In the case of this expansion project, this kind of risk has also created a huge impact on the implementation of the construction of Midfield Construction building (Haimes 2015). On the other hand, the construction of Midfield Terminal Building faces some very critical risks or challenges. For example, such risks are involved in the taxes for the construction, failure to meet the cost and quality targets and meeting deadlines (Artto and Kahkonen 2013). In spite of being one of the fastest-growing airport hubs worldwide, Abu Dhabi International Airport has faced these difficulties or constraints while implementing this project. According to Al-Dhaheri and Kang (2015), the reason for this difficulty is that the construction of any huge project is an undeniably risky project, as well as the risks associated with the project, are often become very difficult to avoid. A very important fact is associated with these risks is that all the challenges or difficulties faced in a project are correlated and connected with each other (Wilke, Majumdar and Ochieng 2014). Some of the risks have a great dependency on each other. For an instance, the occurrence of delay always results in the increase in costs. On the other hand, according to Al-Dhaheri (2015), the injury to workers is one of the most common risks for any construction project. Hence, this kind of risk has also arised in this expansion project. The teams of construction projects like this expansion of Abu Dhabi International Airport are made up of diverse multicultural individuals. Therefore, without a proper plan to manage these issues, it has resulted in a critical difficulty or challenge towards the execution of this project. In this current scenario, Abu Dhabi International Airport expansion has also faced such difficulties while constructing Midfield Terminal Building (Kelly, Male and Graham 2014). The combination of all the difficulties or risks into a coherent whole meant giving concise as well as clear information for supporting the decisions of investment taken from Abu Dhabi International Airport, helping the airport authority for progressing with enough confidence and also assuring that both of the risks and costs were proactively managed and recognized as well. Discussion on Risk Consideration After identifying risks associated with certain construction, it is required to recognize or to consider the key risks those would create the most significant impact on the project. Hence, in this construction project of Abu Dhabi International Airport expansion, certain risks should be taken into consideration (Roumboutsos and Pantelias 2015). These risks would be considered while managing as well as constructing a complex and an ambitious international construction project about the expansion of Abu Dhabi International Airport (Wilke, Majumdar and Ochieng 2014). Therefore, Abu Dhabi Airport authority must consider a set of factors of risks to determine whether to take on the project and how to schedule and price the construction once they have involved in it (Fewings 2013). There are various kinds of risks are associated with a particular project. These risks can be categorized into five segments. However, the risks those have been mentioned and critically analyzed in the previous section can be categorized into those five categorized. Political Risks These kinds of risks are mainly faced by the governments, corporations and investors. This kind of risk can also be managed and understood with the reasoned investment and foresight (Asif 2016). For instance, it may result in the politically motivated risks among the risk management team of the project. Another political constraint associated with the project is to keep the framework, the requirements of governance bodies and templates easy for understanding (Haimes 2015). Financial risks This kind of risk is comprised of several kinds of risks associated with financing, incorporating financial transactions that incorporate the loans of a particular company in risk of default. Poor schedule performance and cost of this international construction of Midfield Terminal Building often result in more financial risks or difficulties for this project (Kelly, Male and Graham 2014). Social Risk The social risks are associated with the difficulties faced by the stakeholders to the business practices of a particular company due to perceived or real impacts of business on a wide range of risks in relation to the human welfare (Roumboutsos and Pantelias 2015). In the case of this Abu Dhabi Airport expansion, a significant social challenge or risks that the airport authority has to face during the expansion has included a disparate range of stakeholders in the project at various levels to understand the risk management (Al-Dhaheri 2015). Technological Risks These kinds of risks threaten processes and assets pivotal to any business and can also prevent the compliance with impact profitability, regulations and also damage the regulation of that organization in the marketplace (Artto and Kahkonen 2013). As an example, the technical risks of this project are associated with the management of risk data across the program through more than 30 Excel sheets and the effort of risk management that was being siloed inefficiently at the project level (Rauda Al Saadiand 2013). Contractual Risks This kind of risk is associated with the probability of loss arising from the reneging of buyers on the contract, as opposed to the inability of buyers for paying. As an example, a limited amount of research that has been carried out for addressing these exceptional issues and most efforts for evaluating and assessing the risks those generated along with the international construction are failed and fragmented for providing adequate assistance towards the project management department (Kaabi 2014). This kind of challenge involves a low maturity level of entire risk with limited information about risk for supporting the process of decision making and the reporting of risk management (Al-Dhaheri and Kang 2015). Conclusions and Recommendation Recommendation To mitigate the risks associated with the expansion project of Abu Dhabi International Airport, the risk management teams have identified the requirement for identifying and mitigating the risks in the project at the most suitable level. They have also fixed the initial brief for the team of managers who deal with the risk mitigation. The team of the clients of Abu Dhabi International Airport overcame the issues of insufficient risk management in several ways. Therefore, the risk management team of clients has designed the plan of risk management for "Abu Dhabi Airport" for ensuring a very consistent as well as a relevant approach towards the risk management of the project. However, to analyze the need for a full-fledged growth in the expansion sector, The recommended phase can be enlisted below as primary and secondary recommendations done before and after the project management to avoid risk. Primary recommendations Phasing expansion- To avoid the elongated period of phasing involving risk, the phasing should be extended to a time that gives more flexibility in the planning process to monitor the changes done politically and economically for optimum scenarios. Systematic measurement- The establishment of key performance indicators that may be beneficial for risk management at the service level whether it is accompanied risk from the employees, stakeholders or environment. Encourage distribution traffic on off-peaks hours- the pricing is done to avoid risk to the expansion factor as well as the company should be recommended with pricing like peak pricing, incentive program, penalties and slot actions. Secondary Recommendations The adoptable structure of terminal The Abu Dhabhi airport expansion known by Midfield Terminal Building should keep in mind the growth of demand and the capacity to build. However, this can be possible by making an additional modular section in the airport that does not replicate the terminals but provides modifications. Employee management- The risk management team of the project of Midfield Terminal Building construction also has to remember that the risk data with a higher quality result in meaningful and significant outcomes to both increases the buy-in of senior management and support the decision-making process for contributing to the process of risk management. Furthermore, a more efficient process of reporting has conveyed that the clear risk management understanding towards the various organization layers. Therefore, the risk management team should create more awareness regarding managing risks throughout including the contractor, the design team, the construction management agency and the client team. Meanwhile, the risk management team has changed the risk management implementation from silo-based information as well as the disparate spreadsheets to a centralized enterprise database of risk management. To mitigate the risks of creating gateway process, Abu Dhabi Airport Authority has to support the collaborative working development. It would ensure that the project is ready for proceeding towards the next level by controlling each gateway for improving the visibility of cost, scope and time targets with the entire stakeholder's approval. In such a way, MTB's continuous success would largely come from an effective gateway process as well as a combination of proactive management technique of risks. However, future research can be based on more in-depth analysis according to passenger's expectations and their services regarding service level. Hence, the insight of passenger's expectations can also lead to planning areas with additional capacity for expansion that decreases the risk involves in those areas. Conclusion This entire study has mainly aimed at the risk management process in the context of the expansion of Abu Dhabi International Airport. However, the overall study has successfully implemented the critical analysis of the risks associated with the project of MTB construction. Most importantly, the study has identified the most important risks associated with the program such as the complexity of the project and the gateway process. However, to sustain the success and the popularity of Abu Dhabi International Airport, the risk management team has to implement all the possible recommendations those would result in a huge improvement of the project. Reference List Abudhabiairport.ae. 2016. [online] ABUDHABI AIRPORT. Available at: https://www.abudhabiairport.ae/english/ [Accessed 7 Mar. 2016]. 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