Option #2: Gas injection project in Oman

Complex or simple, every project has a certain amount of risk in it. In order to manage the projects successfully, it is important to know those risks and be able to deal with them effectively.

Some of the project risks include human resources risks, technological risks, economic risks, and political risks. Human resources risks can include strikes, dishonesty by workers, ineffective leadership or management (Edwards et al., 2018). Technological risks can include software and server problems, outdated operating systems, and many more. Political risks, on the other hand, comprises of changes in government policy or political environment, changes in tariffs, and other related regulations. Economic risks may include currency changes and an increase in interest rate. Human resources risks and technological risks are internal risks. Political risks and economic risks are external risks.

The risks that the management should give the highest priority and the one that will have the most potential impact on the project are human resources risks. Trikes, for instance, can lead to project stoppage. Economic and political risks may have a moderate influence on the project. An overall economic downturn or changes in the political environment might result in a sudden increase in total project cost. The risks that should be given the least priority are technological risks. Software and server problems, for instance, can lead to equipment downtime which can increase financial costs.

The management can reduce human-resource risks by improving personnel management. Investing in research and development will help to reduce technological risks (Ashuri et al., 2018). The management can also diversify to reduce political and economic risks.

Risk Breakdown Structure

References

Ashuri, B., Moradi, A., Baek, M., Kingsley, G., An, H. Y., Zhang, L., & Bahrami, S. (2018). Risk Mitigation Strategies to Enhance the Delivery of Highway Projects (No. FHWA-GA-18-1640). Georgia. Dept. of Transpiration. Office of Performance-Based Management and Research.

Edwards, P. J., Serra, P. V., & Edwards, M. (2019). Managing Project Risks. Wiley-Blackwell.