The Study On Risk Management Of CBRC's Shenzhen Metro Vehicle Project

Risk management plays key roles in the whole procedure of project management and a important component field of project management. As project management involves all the functions of the company, as well as some stakeholders, such as sub-supplier, customer and other organizations, therefore vehicle project management is a very complicated process, in which there exist many risks. The occurrence of these risks will impact the project, more or less, and some risks will bring the project into failure. So, it is necessary to manage and control these risks comprehensively. Through good risk management, it can assure risks may be avoided during the execution of project or to minimize the impact of occurrence of risk on the project, thus it can ensure the benefit of the project and also ensure the accomplishment of the goal of the project.This paper makes an introduction and analysis of the risk management of Shenzhen project, and expatiates the status, Mainly analyze, assess the risk of Shenzhen project and come up with the risk management strategy and implementation actions.This paper first introduce the Background of the theme and mainly introduces the Shenzhen Metro Line 1 Vehicle Project, CBRC and her mother companies to make the readers to have a general understanding of the background information of the project,then introduces the basic theory of the risk management and the concepts of risk, project risk management etc, as well as the category of risk and main process of risk management. With these introduction there exists a strong theory basic of the risk management. In this chapter, the significance of selection of the theme is addressed as well.Then, this paper introduces the present status of the project risk management in CBRC including the project management process, project team and project management procedure and the project risk management system and responsibilities of risk management team. Further to that, it analyze the existing problems in the project risk management on Shenzhen Metro Line 1 Vehicle Project, they are, lack of scientific assessment system, insufficient power of project manager and lack of risk sense of the staff, incomplete risk management organization and analyze the causes accordingly.Following that, it expounds the process of identification of risks of Shenzhen Metro Line 1 Vehicle Project. First of all, it analyze the major risk are risks caused by partners/suppliers, external risks and internal management risks by the means of risk funnel. However, general speaking, the risk level of this complete project is relatively low. Then by the means of checklist and brainstorming, we analyze the two risks of this project, they are: risk of localization, risk of delay delivery of the documentation, risk of exchange rate, risk of penalty on delay delivery, risk of vehicle commissioning, risk of policy, risk of damage to vehicle during transportation, risk of vehicle reliability, risk of delay delivery of body shell, risk of design change and improvement, risk of supply of parts and components and risk of the delivery time of import parts.Then, it make assessment of the identified risks by the method of AHP as well as in line with the principle of being scientific, systemic, comparable, practical, independent and target oriented, the assessment is made to five factors: society, economy, cooperation, management and product. According to the assessment, all the identified risks ranks, in term of severity, as follows: risk of design change and improvement, risk of supply of parts and components, risk of vehicle commissioning, risk of the delivery time of import parts, risk of delay delivery of body shell, risk of localization, risk of policy, risk of exchange rate, risk of penalty on delay delivery, risk of vehicle reliability, risk of damage to vehicle during transportation, and. risk of delay delivery of the documentation.In chapter 5, it expounds the choices of risk management strategy and the implement action. After risk identification, analysis and assessment, it enters into the actual risk management process, including choice of risk management strategy and measures of strategy implementation, namely risk response progress. Generally speaking there are 4 levels of response action, 1.avoidance, 2 shift, 3 mitigation and 4 acceptance. Specific risk management strategies and implementation measures are put forth regarding the risks identified and analyzed. The possibility to completely avoid or shift all these key risks is very little, actions have to be taken to less the possibility of risk's occurrence and minimize the negative impact of the risks. Focus shall be put on the supplier management, improve the internal management and encouragement and punishment system, to improve the contract management. To ensure the risk management strategy is implemented, actions shall be taken. Firstly, it is necessary to obtain the support from top management on project risk management. Secondly, an excellent project risk management team should be built. Thirdly, the project risk management team should implement effective risk management actions to monitor and control the risks. In this way, the management of Shenzhen Metro Line 1 vehicle project is becoming better and better.This paper analyses the risk features, management process of vehicle project, expatiates the detailed method of risk identification and risk assessment. However, due to the limitation of the space and knowledge and time period, there are some areas to be improved, such as, the theory and method of risk management, close integration of risk management with other area of project management, including the areas of project cost management, project communication management, project purchase management, project quality management, etc. The people responsible for the risk management should have a good knowledge of these areas. Furthermore, the management strategy of the identified risks shall be improved.Risk management is an key part of project management. Excellent project management lies in the excellent risk management to minimize the risk loss. This paper can help CBRC to improve its vehicle project implementation and execution, especially to ensure the success of all involved activities and tasks and further to ensure the optimization of the project performance via efficient risk management..