RISK MANAGMENT FOR DIFFERENT CASES Case Study Example | Topics and Well Written Essays - 1000 words

RISK MANAGMENT FOR DIFFERENT CASES - Case Study Example Discussion Distinctive feature with Dubai’s palm islands is that unlike the development and construction of such other islands in the world where metal as well as concrete are applied, this island’s construction wholly adopts natural materials (Butler, 2005). This therefore represented the main challenge while designing the artificial island and collaborative efforts by ‘’construction contractors and engineering scientists’ were involved for the exercise. Major risk was however the way to sustain the sand island after reclamation taking into consideration the exposure to tides as well as waves and rising sea level as influenced by global warming (â€Å"Palm Islands, Dubai - Compression of the Soil† 2013). Nevertheless, the construction of a crescent water-break structure has the capacity of protecting the island from the adverse effects of such waves and tidal rises. Precaution is however taken by the scientists who constructed the breakwater crescent because the destruction of the crescent has a direct implication of destruction of the island. This therefore presents the main challenge. Among other lessons learnt from this construction is that the islands are artificial and made of natural materials without such materials as concrete and metal. Besides, the island’s construction suffered time constraint and was scheduled to last only three years, a challenge that the contractors were to succeed in. the construction of the crescent faced a major challenge of poor water circulation which they sought to address through two openings through which tidal water would replenish the fronds water supply and control stagnation. Another challenge is that the sand used is loose and uncompacted which presents the main threat to the welfare of the island. Liquefaction is therefore seen to have a high potential of occurring in the event that an earthquake occurs, which would have adverse outcomes to the islands (‘MESSINA p roject’, 2005). The precautions in this construction process were inevitable as the design was intended to support over a million people upon completion (‘Island life’, nd). Erosion along the beach posed another major problem with the palm island where unlike with natural beaches, the artificial beach would fail to replenish sand washed always by water, as would be a natural course with the natural beaches (Choomchaiyo, 2009). The analysis of this project presents some basic risks, which pose a threat to the successful completion of the project as designed. Financial resources were paramount with the project requiring continued adjustment longitudinal researches. The controversy around the matching of the financial as well as resultant social benefits from the project and the costs incurred poses a major challenge to determine. Besides, misrepresentations and miscalculations while planning for the project has adverse effects in costs incurred by the public over t he project. Other risks associated with the project are costs risks (such as maintenance, construction as well as operation of the island), demand risks (forecasting revenue returns to be earned), future financial market performance as well as political risks. Moreover, such a mega project has the capacity of fragmenting social as well as physical coherence in the island (Darmaki, 2008). The palm project