Risk Management Plan For ATA East Timor Solar Project

Importance of Risk Management for International Projects

Risk management comprises both integrative and systematic mechanisms which work to make sure that a project is successfully implemented. Accordingly, project managers, as well as administrators, require to have knowledge and skills to ascertain, analyse and answer back to the risk factors related to the lifecycle of the project. Therefore, the risk management procedure entails establishing a solution to probable risks that a project is likely to experience (Cooper et al., 2014). The ATA East Timor solar project is a key project which is of advantage to the nation’s residents at large. Thus, with regard to the significance of the project, it is imperious to advance a risk administration plan by considering development within each project phase so that to achieve effective implementation. The key point of consideration under the ATA East Timor project shall be the involvement of stakeholders and management the project undertaking. Also, the evaluation involves an effective evaluation of risk features on the projects performance and execution.

The process of involving and managing stakeholders is a core part of any risk management strategy (Begg, 2018, p.385). Regarding the ATA East Timor Solar project, it will include some stakeholders who will play various roles towards the implementation of the project. Moreover, as a result of the variant responsibilities towards the project, these shareholders can speed up or slow down the project execution. The wide-ranging project shareholders will discuss how various project phases shall be carried out. Before the kicking off of the project, it is important to integrate a variation manager because of the cultural temperament of ATA East Timor. Therefore, the solar project looks forward to benefiting the inhabitants of the region. Thus it is vivacious to communicate any changes which are likely to impact the way of life of the inhabitants of the place (Larson, and Gray, 2015). Indeed, including a transformation manager at the start of the project will make sure there is corporation from the inhabitants of the place to its accomplishment. Additionally, it is significant to be conversant with the main stakeholders as well as that have minimal interests in the project.

In this case of East Timor Solar project, the key shareholders are Google Company, the government, Alternative Technology Association (ATA) and the inhabitants of East Timor. Nonetheless, the shareholders can take on minor roles which include small-scale solar projects in the region and the local authority. So that to make sure that the project kick-off runs smoothly, it is crucial to make sure there is regular communication among the shareholder’s web (Edelenbos et al., 2017, p.47). Consequently, constant communications throughout the different project phases will help to ensure that stakeholders are able to operate on the same page to successfully attain the project goals. Ultimately, such promotions are likely to attract larger shareholder groups which will advance interest in the circulation of power to residents of East Timor. Approximately, over 30% of the region inhabitants are not supplied with power. Therefore, this will demand more stakeholders to join in the effort to ensure complete energy needs of the inhabitants.

Stakeholder Involvement in Risk Management

The East Timor Solar project experiences various risks under its different stages which have to be addressed before execution. Certainly, addressing the probable risks aspects depends on the understanding risk level in the project. To be in the position to realise the way in which to perform a risk management process, it is important to be aware of the impacts of every phase in the project lifecycle (Hopkin, 2018). The initial stage under the risk management progression is to classify and analyse the possible threats comparative to the project (Kerzner, and Kerzner, 2017). According to the provided evidence on the progression of the project, a number of the likely risk aspects which could obstruct the schedule of the project include historical disposition, cultural and language barrier.

Moreover, another impact found is the involvement of the service provider within the project. As a result, the project manager should ensure the contracted party is in a position to execute responsibility as well as transparency while operating with ATA. Additionally a key risk is related to the period of the certifying and the time that shall be taken by the Australian connecting experts staying in East Timor. Hence, risk documentation targets to evaluate features which are likely to impede the scheduling of the project from the time of kicking off to completion. The risk matrix illustrated below has incorporated the risk features according to the impact they can cause to the plan. 

Table 1: Risk Matrix

Impact

• High – Risks which have more potential to massively impact the project performance plan, and costs
• Medium – Risk which has a slight influence on performance, cost and project schedule
• Low – Risk which has minimal effect on project schedule, cost, and performance.

Probability

• High – Over 75% chances of happening 
• Medium – range between 25% and 74% chance of happening 
• Low – Less than 25% chance of happening

When handling the risk factors, the project manager should do away with the causative elements. During this phase, it is significant to create the probability of destruction of the installation. It is at this point the project should understand the firm that it should provide the solar panel resources required for fixing and the associated expenses (Epstein, 2018). Also, it is during this phase that the project should involve key stakeholders particularly government organisations. The project is supposed to be verified regarding security provisions. The follow-up step will be how to mitigate moderate risks factors. Regarding transparency and accountability, ATA should come with terms and conditions between it and the contractor. ATA shall then have to accept low-risk factors such as inconveniences related to the language barrier, installation, and climate. So, the project has to include all these mechanisms to face low risks with fewer effects.

During the execution stage, ATA will keep track of the management contribution possibility to safeguard the connection process and provide security to the project workforces in East Timor. Similarly, this stage shall involve contacting organisations and institutions which could be involved in securing the license required for completion of the project (Hillson, 2017). Therefore, ATA will be required to send its personnel to the region to interact with the local community residents with the assistance of a translator.

During the project progressing, the project management and administrators should put in place the mechanisms to monitor the project’s progress. East Timor has different terrains which could interfere with proper installation. Thus, during this phase, the management shall be required to develop those parts of the region to recall the project for rescheduling the setting up on a later date (Shrivastava, and Rathod, 2017). Additionally, it is imperative to be conversant with the appreciation level from the inhabitants of the place with completed installations. Therefore, through the recalls, ATA shall have to involve enhanced strategies to communicate to its stakeholders the order on how to accomplish the installations in regions which ragged terrains.

Begg, C., 2018. Power, responsibility, and justice: a review of local stakeholder participation in European flood risk management. Local Environment, 23(4), pp.383-397.

Cooper, D., Bosnich, P., Grey, S., Purdy, G., Raymond, G., Walker, P., & Wood, M. (2014). Project Risk Management Guidelines: Managing Risk with ISO 31000 and IEC 62198. Wiley Global Education.

Edelenbos, J., Van Buuren, A., Roth, D. and Winnubst, M., 2017. Stakeholder initiatives in flood risk management: exploring the role and impact of bottom-up initiatives in three ‘Room for the River’projects in the Netherlands. Journal of environmental planning and management, 60(1), pp.47-66.

Hillson, D., 2017. Managing risk in projects. Routledge.

Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Larson, E.W. and Gray, C.F., 2015. A Guide to the Project Management Body of Knowledge: PMBOK (®) Guide. Project Management Institute.

Shrivastava, S.V. and Rathod, U., 2017. A risk management framework for distributed agile projects. Information and software technology, 85, pp.1-15.

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