Escolar Documentos
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OF POWER STATIONS
6th MAY
RISK MANAGEMENT PLAN
KIM YEN THAI - 11826955
EXECUTIVE SUMMARY
The report shows the risk management strategy for the decentralised control of
power stations. It covers major relevant ongoing projects about the reliable
energy system. The study is analysed according to the AS/NZS ISO 31000: 2009
standard.
In initial, a project brief has demonstrated the definition of the innovation energy
technology with its benefits to the environment, economic, and society.
Moreover, the project scope and its objectives and risk management framework
are analysed.
Later, the report establishes the external and internal context of the
organisation. In addition, the context of risk management process and risk
criteria are clarified together. Each responsibility is studied to relevant
stakeholders.
After that, a risk treatment plan are presented with a number of options to
decide effective ones. FMEA tool is essential in summary potential failures pros
and cons, and also, the adjustment after-action plans are taken place.
Finally, the stage of monitoring and review presents under control risk plans by
organising periodic activities with relevant parties responsibilities.
I. INTRODUCTION
I.1. Project definition
Decentralised energy system can be defined as an energy evolution which
constructs the electricity system adjacent local consumptions. The system
integrates power stations including more than one energy producing genres; for
example, wind turbines, heat cogeneration plants or solar panels, that provides
environmental wastage and slashing CO2 emissions.
As compared with centralised electricity system used fossil fuel burning with
extremely associated CO2 emissions, decentralised energy brings the beneficial
environment. In particular, the proposed system supports the renewable energy,
utilising efficient energy input during transmission. Besides environmental
advantages, it also offers an economical effectiveness, the reliable supply
benefits, and social assets.
The ability of capital and operating costs increase during the project time.
The schedule for the project, such as start-up delay time, installation time
of the energy management system or speed up the process to alternative
from old energy to clean one.
The project quality, in particular, the adaptation for customer
requirements as well as the power stations, such as onshore wind
turbines, district heating grids by solar thermal technology, biomass
cogeneration plants and photovoltaic technologies.
The safety and environmental regulations which affect the project process
Internal External
Stakeholders Stakeholders
Investors Customers
Board members Shareholders
Employees Suppliers
Local residents
Works Council
NGOs
Providers of capital
Environmental
organisations
materials
Local residents - Energy emissions
- Safety regulations
Works Council - Appropriate alignment
Providers of capital - Return of investment
- Large scale strategy of project
- Profit stability and growth
Environmental - Innovation in sustainable energy
- Biodiversity
organisations/NGOs
- CO2 emissions compensation
- Legislation (biomass)
High power, high interest group who makes the greatest efforts during the
project taking place. They are fully engagement and high responsibilities.
In particular, they ensure information exchange correctly and meticulously
to others by holding regular meetings, or formal communications.
High power, less interest part normally has face-to-face meeting. It is
essential because of relationship maintenance between stakeholders. In
addition, formal financial performance reports are keep updating the
project status.
Low power, high interest people frequently communicate by social media
and email. The information will be adequate and on time every couple of
days.
Low power, less interest region includes the least communication, meeting
will take place if something relates to specific project.
Next, the Board has to present a strategic plan for sustainable energy to move
from centralised power system to decentralised control power, which requires
speeding up the process. The new control system transforms into energy
distribution grids in both local and national scale. For example, biomass or biogas
by heat productions cogeneration plants will be assembled as national network.
Besides operating the project, one of board department has to take care of
business part. Together with sustainable energy mission, they should meet
customers expectations regarding local and international development (figure
5). Furthermore, the board of management also put attention on employee
development.
Finally, employee works on particular related to their experts. They commit with
the project aim by working effectively and flexibly in team. They will obtain
alignment and motivation from managers to contribute better to project strategy.
Last but not least, during their work, they must follow Work Health and Safe
regulation.
On the other hand, councils have an indispensable role in the project who take
part in controlling transform the awareness of residents in using the reliable
power systems. Moreover, the new local buildings are obliged to integrate
decentralised energy technology.
Lastly, capital providers are important investors who survive the project if the
unbundling issue happens. They play the main role in financial performance, in
particular, stabilising and growing the profit, or more serious, returning on
investments or risk of investment. Besides that, they also contribute to the
innovation of system to offer a large-scale strategy.
Likelihood
Certain M H H E E
5 5 10 15 20 20
Likely M M H H E
4 4 8 12 16 20
Possibl L M M H H
e 3 6 9 12 15
3
Unlikel L M M M H
y 2 4 6 8 10
2
Rare L L L M M
1 1 2 3 4 5
Insignific Minor Moderat Major Catastrop Consequenc
ant 2 e 4 hic es
1 3 5
Table 5 describes briefly the rating of likelihood, consequences and risk level.
Element Description
Likelihood
Rare 1 The minimum ability of event occurs
Unlikely 2 The event might happen but limited times
Possible 3 The possibility of occurrence
Likely 4 The event potentially occurs
Certain 5 The event definitely happens
Consequences
Insignificant 1 Imperceptible impact
Minor 2 Less effort to solve
Moderate 3 Pay attention to tackle the outcome
Major 4 Critical cons, the project needs a short recovery interval
Following investigating all relevant possible risks, using a powerful tool is FMEA
in preliminary control these risks. The obtained probability and consequence of
single risk from risk matrix are recorded together with overall risk rating.
Afterward, the offered actions for regard risk analysis take into account reducing
such overall rating when these actions have been taken. That is one of the
strengths of this tool. The entire of representation of the project using FMEA can
be found in Appendix C.
V. Risk treatment
AS/ NZS ISO 31000: 2009 mentions different options in treating risks:
Those treatments are not always appropriate for all kinds of risks in the form of
practical ability or low-cost condition. The figure 7 below presents a full
treatment process to estimate relevant treatment and also provide residual
chosen risks.
construction phrase due to the unsteady risk status. Hence, the management
ought to keep track of periodic monitoring plan for risk occurrence.
Activities Frequency
Checklists Every shift
Inspection Daily
Risk register Weekly
Meetings Fortnight/ Instant if high risk
happens
Risk management Daily
process
Risk management plan Annual
Internal audits Monthly
External audits Twice a year
Who Responsibilities
All individuals - Report observed risks whenever realise
- Obey conduct and regulations to avoid/ reduce
risk events
- A part in monitoring strategy
The Board of - Always aware every member from risks
- Provide effective training in managing and
Management
treating risks
- Keep update and inform risk date
- Priorities treatment for emergent risk
Investors - Provide the greatest opportunities for risk
treatment regarding resource allocation
- Provide the greatest health and safety
environment for all members.
REFERENCE
APPENDICES
Appendix A: Risk Identification Checklist
Checklist
Project:
Date:
Location
# Questions Yes/N Action (if
o No)
1 Are staff trained for evacuation plan?
2 Do staff follow safety induction at workplace?
3 Are staff wearing Personal Protective Equipment?
4 Did supervisor pay off last order to suppliers?
5 Have manager receive agreement from onshore
resident before taking place project?
6 Are the security system improved maximising?
7 Are the construction and operation waste managed in
appropriate way?
8 Are the project work kept updating?
9 Have engineer tested every sub system in unit scale?
Risk register
Project:
Location:
# Risk Possible events Root of cause Consequences Rating Risk
Likeliho Consequence
level
od s
1 Government Limit profit if energy Energy Low carbon price 3 2 6
policy transition take into account transition Energy price drop
2 Remedy Court enforcement Renewable Capital intensive 3 1 3
energy takes development
long time
3 Authorities Lack of future law if Tariffs regulation Effect on 3 4 12
unbundling occurs mitigation plan
4 Low carbon Negative effect on CO2 emission Negative impact 3 2 6
price electricity price compensation on electricity
price
5 Lower energy Steady income of Focus on Income drop 4 3 12
prices electricity production sustainable
assets electricity assets
6 Interest Funds and debt 2 2 4
7 Currency Rate fluctuation Economic Petty cash 4 2 8
growth
8 Credit Credit rating method From agency Run negative 3 3 9
change adjustment
time
2 Transformation Change in regulations 2 2 4
0
2 Security Cyber security / ICT in System Loss of money 3 4 12
1 financial damage malfunction
Lack of security
2 Defects Interrupt of energy supply Lack of Insufficient 4 4 16
2 electricity grids energy usage
2 Reliability Failure systems Careless in Loss of 2 4 8
3 management investment and
customers
SEV
OCC
DET
RPN
SEV
OCC
DET
RPN
on
Reducti
m Failure Failure Causes Controls
Modes Effects
es training induction
17 Acceptance Disagreemen 6 Present 5 Public 2 60 Media PR 6 5 1 30 50
t from misinformati relationships
council or on
NGOs
19 Supply chain Delay in raw 4 Payment 4 Pay on time 3 48 Financial 4 4 2 32 67
material inappropriat officer
supply e time
21 Security Cyber 6 System 5 Improve 5 15 IT technicians 6 5 2 60 40
security / ICT malfunction security 0
in financial Lack of system
damage security
Severity Ranking 1 2 3 4 5 6 7 8 9 10
Level None Very Minor Very low Low Moderat High Very Extreme Very
minor e high extreme
Occurren Ranking 1 2 3 4 5 6 7 8 9 10
Level Remote Remote Low (I) Low (II) Low (III) Moderat Moderat High (I) High (II) Very
ce
(I) (II) e (I) e (II) high
Detectabi Ranking 1 2 3 4 5 6 7 8 9 10
Level Almost Very High Moderat Moderat Low Very low Remote Very Uncertai
lity
certain high ely high e remote n