Risk Analysis of the MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur) Project


Doctoral Thesis / Dissertation, 2019

66 Pages, Grade: 60%


Excerpt

Table of Contents

ABSTRACT

ACKNOWLEDGEMENT

LIST OF ABBREVIATIONS

1. INTRODUCTION
1.1. Background and History
1.1.1. Aviation in Nagpur
1.1.2. About SEZ- MIHAN
1.2. Problem Statement
1.3. Research Questions
1.4. Research Objectives
1.4.1. General Objective
1.4.2. Specific Objectives
1.5. Research Motivation

2. LITERATURE REVIEW
2.1. Review of Relevant Literature:
2.2. Key definitions

3. RESEARCH METHODOLOGY
3.1. Research Philosophy
3.1.1. Positivism
3.1.2. Pragmatism
3.1.3. Interpretivism
3.2. Research Approach
3.2.1. Deductive Approach
3.2.2. Abductive Approach
3.2.3. Inductive Approach
3.3. Research Methods
3.3.1. Quantitative method.
3.3.2. Qualitative method
3.4. Research Design
3.4.1. Ethnography
3.4.2. Phenomenology
3.4.3. Grounded Theory
3.4.4. Narrative
3.4.5. Case Study
3.5. Data Collection
3.5.1. Expert Interviews
3.5.2. Questions

4. RESULTS AND DISCUSSION
4.1. Engineering Department Risks
4.2. Planning Department Risks
4.3. Marketing Department Risks
4.4. Airport Department Risks
4.5. Department-wise Risk Management Review
4.5.1. Engineering Department
4.5.2. Planning Department
4.5.3. Marketing Department
4.5.4. Airport Department.
4.6. Expansion of the MIHAN Project

5. CONCLUSION AND RECOMMENDATIONS
5.1. Conclusion
5.2. Recommendations
5.2.1. For the MIHAN project
5.2.2. For future SEZ - airport combined projects
5.2.3. For Further Research on Risk Management.
5.3. Limitations

6. LIST OF REFERENCES

7. APPENDIX - QUESTIONS AND RESPONDENT ANSWERS
7.1. Planning Department
7.2. Engineering Department
7.3. Marketing Department
7.4. Airport Department

List of Figures

Figure 1: Map of MIHAN Project (Abhinav 2019)

Figure 2: Inherent risk rating and severity matrix

Figure 3: Residual risk rating matrix

Figure 4: Description of a general Deductive approach

Figure 5: Kolb's Cycle to explain Inductive approach

Figure 6: Residual risk mapping for the Engineering department

Figure 7: Residual risk mapping for the Planning department

Figure 8: Residual risk mapping for Marketing department

Figure 9: Residual risk mapping for Airport department

Figure 10: Bird's eye view of the MIHAN project (Google Earth 2019)

Figure 11: Location of the proposed second runway (Google Earth 2019)

Figure 12: SEZ MIHAN Area division and mapping for airport expansion (Google Earth 2019)

List of Tables

Table 1: Likelihood rating

Table 2: Control rating

Table 3: Impact rating

Table 4: Risk severity indication

Table 5: Residual risk rating guide

Table 6 :Response to expansion possibilities

Abstract

This project aimed to study the application of risk assessment by conducting a risk assessment exercise for the various departments controlling the MIHAN project. The project is an ambitious vehicle of the Government of Maharashtra, India, located in Nagpur, located in the geographical centre of India. It consists of a unique combination of a free trade zone located adjacent to the Dr. Babasaheb Ambedkar International Airport. This research reviewed four key departments of the parent company for relevant risks. The research approach used was inductive and the methodology was qualitative. Personal interviews were conducted with the process owners of the departments with the questionnaire style being open and unstructured. This research was significant and unique because no risk assessment exercises were conducted for the project prior to this study. From the analysis of key risks and their departmental controls, findings related to the overall approach to risk management of the departments are presented and suggestions are provided on improvement for all departments. A detailed airport expansion approach is also presented.

Acknowledgement

A dissertation of this scale would not have been completed without some subject experts, well-wishers, aviation enthusiasts, friends and family.

To begin with, I would like to thank my mentor, Dr Sevda Ahmadian, for the clarity, efficiency and timely guidance on the finer points of writing a dissertation.

Secondly, Mr. Atul R Thakare and Mr. Silverious Rapheal of MADC who helped me connect with their colleagues at MIHAN for a seamless interview and knowledge sharing experience. I am thankful to Mr. Bankar, Mr. Pravin, Mr. Dharkar and Mr. Upshayan who are the heads of the planning, engineering, marketing and airport departments respectively, for providing me with detailed answers to all questions asked for this research.

I am grateful to Mr. Maharshi Shelat, Senior Consultant, Deloitte and Touche (M.E.) for providing his expertise on risk management essentials throughout this research.

I would also like to appreciate the efforts of my friends, Abbas and Anurupa, for their ever-lasting support throughout this research.

Finally, my parents, who supported me in every decision I took to fulfil the requirements of this dissertation. To them, I would be ever grateful.

List of Abbreviations

Abbildung in dieser Leseprobe nicht enthalten

Currency Conversion used: 1 $ = Rs.70

1. Introduction

Risk assessment, in layman terms, is the examination of a workplace, its hazards and those situations which may lead to negative impacts related to finance, human resource, compliance, processes and reputation.

Risk assessment is not only useful in understanding the shortcomings of the operation of the company as a whole, but effective risk management studies have led to companies performing to their true potential by improving the overall decision-making capabilities by studying, analysing and controlling these risks. Risk assessment is a live exercise which needs to be conducted periodically at all stages of a project as the risk particulars keep evolving and need to be updated. “Some risks, that are thought to be unknown, are not unknown. With some foresight and critical thought, some risks that atfirst glance may seem unforeseen, can, in fact, be foreseen. Armed with the right set of tools, procedures, knowledge and insight, light can be shed on variables that lead to risk, allowing us to manage them” (Disparte, 2018).

This particular quote by Daniel Wagner (Writer and CEO, Country Risk Solutions) sums up the importance of risk assessment and its management, particularly the finer points of any event classified as a ‘risk’.

Airports play a huge role in the economic development of a country. Their operations and management structures are closely guarded against outside threats or disturbances as any event leading to the stalling of airport operations may lead to catastrophic impacts observed over long periods. Risk assessment is hence vital for any airport. Additionally, the practice of effective risk management enables the airport to control and minimize inherent risks, while also providing a program to identify assess and control newer risks in the future.

Another important aspect of this particular project is the presence of a Special Economic Zone (SEZ). An SEZ is a designated area for which the country’s business and trade laws are different. Majority SEZs across the world are set up to increase trade, economy, employment and attracting investments. Attractive financial policies authorized in these regions encourage increased foreign and local investment thereby benefitting the entire city wherein the SEZ is located. Prominent examples of successful SEZs include the Dubai Airport Free Zone Area (DAFZA), Jebel Ali Free Zone Area (JAFZA) in Dubai, China-Singapore Suzhou Industrial Park (CSSIP) and the Shenzhen SEZ in China.

1.1. Background and History

Discussed in the following section is a brief history, the details of the airport project in question and information about the key stakeholders are provided.

1.1.1. Aviation in Nagpur

While considering the broad Indian aviation scenario after the year 2000, the passengers travelling through Nagpur consisted of businessmen, politicians and government officials. These were the only 3 classes who preferred to travel by air. Earlier the regional airlines only had these sections as their targeted customer base, which resulted in many limitations for the airline in terms of sustainability and financial stability. It was only after the launch of Air Deccan, in 2003, (India’s first low-cost airline) the common population started travelling by air. People were usually hesitant to travel by air as their mindset was not accustomed to it and air travel generally was considered a taboo. Air Deccan introducing low fares compared to other means of travel can be considered as a turning point for the aviation sector to have picked up in the Nagpur region. The current boom seen in the regional aviation sector is a result of such practices by Air Deccan which first enabled people to opt for air travel over other means. Observing this trend, the government decided to set up an SEZ attached to the airport in Nagpur.

1.1.2. About SEZ-MIHAN

MIHAN is an airport project for Dr. Babasaheb Ambedkar International Airport (NAG), Nagpur. It is the biggest economic development project currently underway in India in terms of investments. On a broader level, the MIHAN project, considered by the government as a Special Purpose Vehicle (SPV), consists of two parts, namely:

1. An International airport to act as a cargo hub.
2. An SEZ covering a total area of 40.25 km2 on the southern end of Nagpur.

Among the 203 functional SEZ areas in India (SEZ India 2019), MIHAN is the only SEZ attached to an airport. Hence, many companies set up in this SEZ are aviation oriented. Some examples of companies having started production include DRAL (Dassault Reliance Aviation Ltd.), Patanjali Ayurved and Air India (Maintenance Repair and Overhaul division).

The below criteria are to be followed for companies to set up an operation in SEZ MIHAN:

1. The minimum net worth of the applicant should be $35 Million. (Times News Network 2006)
2. Minimum project investment should be $140 Million. (TNN 2006).
3. Minimum of 15% of the business should be export-oriented.
4. To set up a production unit, the companies require the approval of the Ministry of Commerce.

During the initial feasibility analysis at the pre-planning stage, it was suggested that the airport should be expanded. The broad aim was to build a basic industrial zone along with its supplementary infrastructure for the sole purpose of developing the region. It was thought that this would also increase passenger volume at the airport. The fact that Nagpur lies in the very centre of the country played a huge role in this region being selected as the ideal place to consolidate an international cargo hub.

Major Stakeholders

The major stakeholders of this project are MIHAN India Limited, Maharashtra Airport Development Company (MADC) and the Government of Maharashtra State.

MIHAN India Limited is a joint venture between MADC and the Airports Authority of India (AAI), a statutory body operating under the Ministry of Civil Aviation, Government of India. It was formed for the sole purpose of operating the NAG airport.

For SEZ MIHAN , while originally being controlled and governed by a division of the Government of Maharashtra State, a new company, MADC, was formed to oversee the project's development (SEZ areas only). Apart from the MIHAN SEZ, MADC is also involved in control and management of 9 other airports in Maharashtra.

1.1.2.2. MADC Corporate Structure

The primary departments which make up the MADC, at MIHAN include the planning, engineering and marketing departments, while the airport department is under MIHAN India Limited.

The Engineering Department. at MADC is responsible for governing, monitoring and authorizing engineering works at the SEZ area. Considering MADC as the client, the PMC (Project Management Consultant) company and the EPC (Engineering, Procurement and Construction) contractors report to this department. The primary role of the Planning Department is the allotment of land. The allotment is done through a controlled tendering process or direct allotment, which is only permitted in the SEZ area. The planning team has to follow the guidelines, rules and regulations mentioned under the state-owned MRTP Act (Monopolistic and Restrictive Trade Practice). This act was sanctioned to ensure that the concentration of economic power in the overall economic system does not rest with a limited number of entities (advocatekhoj.com 2019).

The Marketing Department at MADC is responsible for the SEZ land sales and the overall marketing activities required for the MIHAN project. The Airport Department, in addition to the regular operational and monitoring duties at the airport, is also responsible for estimating and planning infrastructural requirements for the airport.

The different zones in the above map of MIHAN are:

1. Red border: Area under the governance of the MIHAN
2. Light Brown: Airport and allied activity zone
3. Yellow: Mixed Use zone (also referred to as the Non-SEZ zone) which includes schools, residential complexes, hotels and other supporting facilities.
4. Purple: SEZ area
5. Dark Brown: Defence and allied activity zone
6. Light Blue: Water Body
7. Light Red: Public utility zone

The MIHAN project is, essentially planned as an ecosystem where all areas and to an extent, its operations are inter-connected and inter-dependent.

1.2. Problem Statement

As per the initial discussions held with the process owners of all the main departments, it was observed that there was no risk assessment exercise conducted for either of them. As discussed in the previous section about the importance of risk management for a company, it was vital for MADC to have such an exercise being conducted for their most ambitious project, MIHAN. As per all the limitations analysed, the four departments were an ideal place to start this exercise with, the foundation of which, would enable the other divisions to set up their risk assessment framework.

1.3. Research Questions

This study aims to conduct a risk assessment of the MIHAN project, hence the below questions have been derived to achieve this aim.

1. What are the high severity risks currently faced by the different departments of MADC for the MIHAN project?
2. What controls have been set up by MADC to minimize these risks?
3. What kind of expansion strategies have the MADC considered for this project?

1.4. Research Objectives

1.4.1. General Objective

The general objective of the study is to conduct a risk assessment exercise for the various departments under MADC for the MIHAN project.

1.4.2. Specific Objectives

After careful review of the MIHAN scenario, the below objectives are to be achieved:

1. To perform a comprehensive risk assessment exercise of the currently under-construction cargo terminal phase of the MIHAN project in Nagpur, India.
2. To provide an independent Risk Register for each of the four departments covering standard risk assessment essentials.
3. To investigate the high severity risks in detail and provide detailed analyses on these.
4. To provide adequate controls to all the risks identified regardless of severity.
5. To study the airport expansion approach undertaken by the parent company MADC and provide independent analysis on the future expansion possibilities.

1.5. Research Motivation

MIHAN, in its initial years, was always talked about as the most ambitious project of the Government of India, which would be the ultimate solution to many other external challenges particularly relevant to the Central Indian regions such as the Naxal problem, unemployment and poverty. While still in its early stages, the abundance of land availability in the region also gives way for interesting future possibilities concerning expansion and modern solutions being implemented in the region. As mentioned above, the fact that MIHAN is the only SEZ in the country attached to an airport was a unique prospect which would attract any aviation enthusiast interested in studying about the much-discussed concept of aerotropolis, for which MIHAN, essentially, is a foundation. Conducting a risk assessment for a project as significant as this would be mutually beneficial to all stakeholders as it will enable them to understand the project shortcomings with the help of risk analysis in all four departments and the provided controls would enable efficient management of these risks.

In the following sections, a literature review is conducted for the relevant risks concerning the MADC departments reviewed to study their characteristics with respect to different entities and situations. In the next chapter, the research methodology is discussed which involves a detailed overview of the research philosophy, approach, method used and its design. The section concludes with a discussion on data collection. The third chapter comprises of results and discussion. In this section, the risks are analysed with respect to their severity, impact to the respective departments and the control mechanisms which would help in minimizing their impact. Detailed analysis of the expansion possibilities of the project is also provided in this section. The fourth chapter provides a conclusion to the study while also discussing a few recommendations beneficial for the entire project.

2. Literature Review

In this section, a literature review has been conducted based on the objectives to identify similarities and differences in research previously done for topics related to these objectives. This is to refine the approach and methods of analysis used for this project. For the fulfilment of the objectives, the two relevant streams for literature review, i.e. theoretical and methodological are considered. The theoretical stream is concerned with the findings and the constructs inherited from the review whereas the methodological stream considers the methods of inquiry, measures and the means of recording data. In the second section, key definitions are provided for major concepts discussed in this study.

2.1. Review of Relevant Literature:

Objective 1: To perform a. comprehensive risk assessment exercise of the currently under­construction cargo terminal phase of the MIHAN project, in Nagpur, India..

Aven (2016) aims to present advancements in risk assessment methods as seen over a period of 40 years, focusing on the fundamental aspects of risk assessment such as theories, frameworks and concepts. As claimed in the article, the recent developments in the risk assessment and management practices and techniques have influential applications, hence the author endeavours study these in detail. The author acknowledges that their research covered a broad scope and stated their difficulty in selecting a few aspects from the many contributions made to the field over the past 15 years. The author has reviewed considerable literature on risk assessment, conceptualization, uncertainties, principles and strategies from publications ranging from the years 1981 to 2007.

The overall methodology adopted by this research was qualitative, however, only secondary data was reviewed. A justification for the same was not provided.

The author concluded that majority risk assessment and management is perspective based as the scientific foundation on which these are based is not strong. Therefore, a strong scientific platform is needed to unify the risk essentials like severity, probability and vulnerability so that perspective­based outlook is minimized and limited only for use during special cases.

However, the research was based purely on secondary data. Usage of primary data to drive findings was seen to be lacking.

This article was useful in understanding the overall background and the importance of risk assessment. The author provided adequate examples to explain the importance and gave a brief idea of the usage of risk assessment aspects.

Dafikpaku (2011) aims to explain the strategic implications of Enterprise Risk Management (ERM). The key literature review referred by the author included the basic aspects of ERM such as constituents of ERM framework and standards of risk management (ISO 31000, British Standard and RIMS Risk Maturity Model). A case study approach is selected where two companies are analysed; Infosys and Rolls-Royce Corp. The author analysed key ERM aspects of these companies such as management philosophy, risk appetite, oversight by the Board of Directors, integrity, authority centre and the organizational structure for various types of risks such as operational risks, financial risks, human resources risks, legal risks, product development risks and marketing risks. The risks within these companies were compared and it was observed that the risks are being perceived differently. This because, in the firms’ internal environment, risk appetite and the objectives differed. This is attributed to the difference in their overall business operations and the influential factors of their market environment. The impact of the risks for these two firms was also found to be different due to the difference in the firms’ vulnerabilities. With these differences, however, the primary linkage established between the companies was that both had risk culture, risk intelligence and practiced risk management. The author concludes by establishing that ERM is linked to strategic implications, which is purely based on the firms’ response to events. These events could be either risks or opportunities. The evident difference in this research seems to be the type of risks analysed for the companies differed. The risk categories selected for analysis were different for the 2 companies. Studying companies with similar profiles would have eliminated this difference which would have enabled the author to have a uniform foundation for the research, which may have led to new findings concerning risk perception. This article was beneficial in understanding the ERM framework in detail. This framework has been a useful reference in formulating the risk guide for this research.

Objective 2: To provide an independent Risk Register for each of the four departments covering standard risk assessment essentials.

Uzuläns (2016) aims to analyse risk registers to establish co-relations between the theoretical and practical project risk management. For this research, 30 risk registers were studied, which were available for public reference. The article has been compiled after a thorough review of the project risk management theory with the help of various relevant publications. As per the reviewed literature, the primary task while developing the risk registers was to defining expectations from the risk register, identifying current practices related to usage and then conducting an analysis of characteristics and capabilities of the register. This particular methodology is essential in developing necessary register columns (likelihood, impact, risk severity, etc.) which are the basis of an effective risk register. The author created 2 theoretical risk registers, which could be used as a reference while studying the selected 30 samples which were based on real-time projects. The columns of these risk registers were based on the definitions of the risk found in ‘’Aid Delivery Methods. Volume I. Project Cycle Management Guidelines ‘’ and ‘’Caltrans Project Risk Management Handbook, Threats and Opportunities, Second Edition, Revision 0 ‘’. The column names for the risk register particulars were noted and compared to the columns found in the 30 registers. It was found that these column headings were not standard among the various registers reviewed and analogous techniques had to be used to compare them with the theoretical ones. While extensive research was conducted for this article, the author failed to establish the exact consequences of using notional and defined risk register particulars. This article was useful in understanding the extent of clarity required while dealing with risk registers. The risk register particulars used should be based on standard definitions.

Burcar Dunovic, Radujkovic and Vukomanovic (2013) aim to present a risk register development methodology especially for Croatia based construction projects. The basic literature reviewed by the authors was for the purpose of establishing key risk management definitions which formed a basis for their research. The literature referred has identified the risk registers as a starting point for analyses and plans. The article states that two methodologies clearly place risk registers as the primary tool in the risk management domain. The Construction Industry Research and Information Association (CIRIA) methodology has a ten-step procedure for risk assessment where the risk registers are considered as an outcome. As per the ATOM methodology, the risk register is considered as a live document, valid throughout the lifecycle of the project playing a controlling as well as a monitoring role with respect to risk detection, analysis and evolution. The authors have clearly explained the methodology developed in three distinct steps. The first step was concerned with defining risk register expectations and current practice. The second step involved considerable literature review to understand the meaning of concepts which usually constituted a risk register. The third step was noted to be the classification of risks for addition to the risk registers to fulfil the aim of systematic risk management. The key outcome of this article has been the availability of a clear and easy-to-comprehend methodology based on proper scientific definitions. The authors have provided a base from which framework for preparing a risk register can be developed, specific to the characteristics of the case in hand, without compromising on the key definitions and concepts of risk management. The risk data structure presented by the authors in the article was the benchmark used to compute the risk guide and the risk analysis conducted in the later sections.

Objective 3: To investigate the high severity risks in detail and provide detailed analyses on these.

The particular article by L. Moretti et al. (2018) involves a comprehensive risk assessment of a specific scenario; runway veer-off accident. This scenario is considered at a busy Italian airport (name withheld by authors for security reasons). The authors considered ICAO (International Civil Aviation Organization) standards, guidelines from the Italian Civil Aviation Authority (ENAC) and global accident data from the National Transportation Safety Board (NTSB). The primary data used for this research was provided by the airport management. The authors used the technique of probabilistic risk analysis for the characterization of events. This type of risk analysis is predominantly used for analysing complicated engineering entities such as aircraft. In this analysis, complex probability equations are used to estimate the probability distribution of veer-off, which are generally not airport specific. Certain airport-specific factors like air traffic and wind are also considered by the authors for analysis. Using the probability curves, equations of which contain a variable ‘x’ (to denote the distance from the runway) are used to prepare a table in which the veer- off probability with respect to ‘x’ is extrapolated. Finally, these results are then mapped on a schematic of the runway to portray the veer-off risk zones. The resulting schematic of this research was helpful in estimating the risk tolerance for the marked zones. The research also marked that the equations used required a lot of considerations of external factors which could not be replicated or generalised for all airports. The authors acknowledged and stressed the importance of the risk assessment methodology used to conduct this study. This article was essential in examining the veer-off conditions at the airport, the analysis for which, was dependent on a lot of airport-specific factors such as soil, weather, conditions, geotechnical characteristics and operational conditions. This is a fine example of an in-depth risk analysis of a high severity risk.

This particular article was analysed for this objective to gauge the extent of risk analysis that can be conducted for a particular scenario. However, the kind of detailed analysis conducted is outside the scope of this dissertation. It is of importance, however, to provide a cautionary review of high severity risks, so that studies like these are encouraged.

Objective 4: To provide adequate controls to all the risks identified regardless of severity.

Srinivas (2019) intents to develop a risk management framework, especially for a construction entity limiting the scope to airport construction projects. Also, mitigation of risks as a means to manage cost over-runs is one of the primary aims of this research. Infrastructural projects-related key risk variables were studied as a part of the literature review. The author acknowledges that the risk management process has three key parts; risk analysis, risk evaluation and control. The research approach selected is the inductive approach. The author has used the qualitative methodology, evident by the fact that secondary data has been used to review key risk management definitions and selecting variables, while the primary data has been collected in the form of personal interviews with key personnel involved in the project. A research questionnaire was designed after identifying 48 risk variables (such as risks related to inflation, economic disaster, labour productivity, change management, etc.) through literature review. These were grouped into 9 different factors such as Force Majeure risks, financial and economic risks, sub-contractor related risks, contractual and legal risks, etc. For risk profiling, the author has used software which performs the Monte Carlo simulation, in which realistic project results can be obtained after inserting randomly generated data. This is done by the iteration method of evaluating the variables entered, in which the upper limit of the number of iterations is often as high as 1000. The results of this evaluation are presented in percentages. A cost overrun template was prepared using visual basic software and linked to the simulation to produce the desired results. After setting the required limits, the related high severity risks are analysed. A unique aspect of this article has been that key findings are being presented in terms of mitigation measures for the risk factors. The risks affecting cost over-runs are only evident from these mitigation measures provided. Therefore, the fact that the article has focused on the mitigation measures for these risks has highlighted the importance of this particular aspect of risk assessment and management. The results obtained were only valid for the case analysed and were hence, data-dependent.

The presentation of results in this article highlighted the importance of risk control. It is widely accepted that the first step for mitigation of any risk is the assessment of the controls in place. Risks can be effectively mitigated by strengthening the controls and this particular aspect is the key takeaway from this article for the current project.

Objective 5: To study the airport expansion approach undertaken by the parent company MADC (Maharashtra Airport Development Company) and provide independent analysis on the future expansion possibilities.

Ale and Piers (2000) aim to describe the evolution of risk quantification methodology by studying an aviation accident which occurred in 1992, leading to loss of life and property. This research studies the risks to the inhabitants around the airport area concerning safety, the effects of the proposed expansion of the airport and the resulting environmental concerns. Two types of risks, individual and societal have been calculated in this article.

The authors have used quantitative methods and secondary data sources to calculate third party risk around airports. These include the probability of an aircraft-related accident in the airport area, the local probability of an accident occurring in the airport (concerning the runways as these areas have the highest probability rating for accidents), and the consequences related model. In the consequence model, the author has analysed aspects such as accident area dimensions, the severity of accident effects (as a function of aircraft and impact parameters). It was found that third party risks around an airport were significant. As observed by the authors, new housing developments and increasing population around an airport are common which leads to the land-use problems. This development is feasible to risk quantification and the decision­making process is aided. It was found that the measures set by the previous policymakers have not been properly defined, thereby not being implemented by the departments responsible for airport expansion and environmental control. It was additionally added that the risk models used needed to be updated keeping in pace with the political changes and population increments. While the authors were able to answer the question they originally started with, having quantified the risks to an extent, they were unable to provide a value addition or a decisive conclusion regarding capacity management of Schiphol airport. The question of expansion was still pending and was not solved by this study. This research provided a vital background on elements to be considered while planning an airport expansion endeavour. Third-party risks are usually not carefully considered, and a complacent attitude is adopted, unless guided by compliance, but the case study selected by the authors to analyse the risks was significant enough for third party risks to be evaluated seriously.

The primary aim of May and Hill (2006) is to analyse the issues faced by the privatisation and expansion endeavours conducted at the Canberra International airport. These issues are mostly related to aircraft noise, government policies and land use planning. The authors have used both primary and secondary modes of information. Communities have been interviewed for their opinions on the topic which constituted the primary data. While various other sources of secondary information being collected are evident as letters, emails and governmental policies have been reviewed. The authors have used the inductive approach to this research which is evident from their selection of interviewees and the overall report drawing on key qualitative analysis of both primary and secondary information. The article examined influencing factors in minute detail. Regarding noise pollution, the authors acknowledged that noise levels have become tough to control which has affected the quality of life of the communities residing near the airport. The residents have also expressed their displeasure and protest in expanding a highly subsidized airport. The communities have argued that improving the improper rail network should be the primary focus of the authorities. The presence of a variety of stakeholders for this project has complicated the decision-making process. Land use planning for a region where most flights have their approach vectors is facing challenges as this area lies in the designated noise abatement done. Land developers refute this policy because the proposed development lies between the acceptable noise contours. Hence expansion is also opposed by the land developers. The final problem discussed by the authors is that of institutional paralysis, which involves the lack of responsibility by the government with respect to citizens’ concerns.

One of the major solutions provided by the authors included an effort to create knowledge groups or think-tanks made up of aviation experts. These would be required to correspond with the communities in formulating a solution to the common issues related to the airport faced by them. While this case study discussed the ramifications of the expansion of the airport in great detail, this article was observed to be leaning more towards the argument of the communities residing near the airport. A similar interview undertaking with government officials and airport management would have helped eliminate this minimal bias. This article was useful in analysing the common issues affecting the communities living near the airport have to deal with, especially the details concerning policies covering noise pollution and land-use along with their interdependencies.

The above review, simply put, can be summarised as the intellectual tradition on which this research is based. The risk assessment conducted in this research closely relates to ERM and as mentioned, the ERM framework has been adopted for the risk assessment of the different departments at MADC. All risk assessment particulars used for this study have been listed and defined in the succeeding section. It was noted that almost all risk assessment examples studied above were case-specific, featuring a lot of unique aspects which were noted and adopted in this research. Therefore, it can be summarised that this study is a combination of all the reviewed articles and the results presented would be in a similar frame as the ones seen in these articles.

2.2. Key definitions

Presented below are a few definitions of some key concepts discussed throughout this study.

Risk Assessment Risk assessment is the process of identifying hazards, analysing and evaluating the risks related to these hazards and determining ways to eliminate these hazards or control these risks when the hazards are permanent (Canada 2017).

Enterprise Risk Mangement Enterprise risk management or ERM is the management of risks related to key business aspects such as finance, strategy, operations and compliance which may have a significant impact on profitability, effectiveness and reputation of businesses (Dafikpaku 2011).

Risk Register A risk register is a comprehensive document which consists of all risks affecting a project, (along with their likelihood, severity, impact and control) which is maintained and updated throughout the project life cycle.

The below definitions are presented which are used in the risk rating guide used for risk analysis. This guide has been prepared using the standards and guidelines mentioned in the Internal Audit Manual of the Abu Dhabi Accountability Authority (ADAA 2010).

Likelihood Likelihood of risk is an analysis of the frequency of risk occurrence. The 3 factors generally associated with determining the likelihood of the risk are the complexity of the process, susceptibility or vulnerability of the function to the risk and the history of occurrence of the risk. The below table gives the likelihood rating of the risks:

Abbildung in dieser Leseprobe nicht enthalten

Table 1: Likelihood rating

Control Controls are all procedures or practices existing in a company which have provided reasonable assurance of the risks.

Abbildung in dieser Leseprobe nicht enthalten

Table 2: Control rating

[...]

Excerpt out of 66 pages

Details

Title
Risk Analysis of the MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur) Project
College
Coventry University  (Emirates Aviation University)
Course
MBA in Aviation Management
Grade
60%
Author
Year
2019
Pages
66
Catalog Number
V948566
ISBN (eBook)
9783346329325
ISBN (Book)
9783346329332
Language
English
Notes
I was awarded a Merit grade for this dissertation. This assignment was graded by 2 examiners from the Emirates Aviaiton University and Coventry University.
Tags
MBA, Dissertation, Aviation Management, Management, Airport, Risk Analysis, Project, Airport Expansion, Risk Assessment, Enterprise Risk Management, Risk Consulting, ERM
Quote paper
Vedhas Sabnis (Author), 2019, Risk Analysis of the MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur) Project, Munich, GRIN Verlag, https://www.grin.com/document/948566

Comments

  • No comments yet.
Read the ebook
Title: Risk Analysis of the MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur) Project



Upload papers

Your term paper / thesis:

- Publication as eBook and book
- High royalties for the sales
- Completely free - with ISBN
- It only takes five minutes
- Every paper finds readers

Publish now - it's free