The Dabhol Power Project



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The Dabhol Power Project

Ans-1

When Enron's Dabhol Power planning their Project to achieve the targets for their cost, quality or schedule, it is necessary to determine the risks for the successful accomplishment of the project. As risk the name of any situation which never happened with planed or preplanned but can be possible to make the strategies for the diversion of such risk for instance of accomplishment of the project, management assigned the particular jobs to the staff which was established for the project, work does not ends here there are the chances of the risk that employee or the staff may leave the job unexpectedly. There is one important structure can be used to recognize or maintain the system for avoiding risks by breaking down the risk into the structure, well known term is risk breakdown structure. For the project of Enron's Dabhol Power RBS will prove enormously valuable to enhanced grasp once a project requires receiving the especial examination or when the risk might happen. The RBS would help in the risk manager and project manager for the better recognition returning risks and attentiveness of risk which could lead the issues that can be affected the position of project (Srivastava, 2011). For planning the risk management Dabhol Power needs the Risk Breakdown Structure. This RBS could be similar with WBS. During the risk management planning it may change. The risk management breakdown for the Dabhol Power may as mentioned in this paper. First is organizational including prioritization, dependencies and Budget, Human rights risks, environmental risk, economical risk (mitigating economical risk, currency risk, political risk), political risk (affects by Indian economy, political risk avoiding), legal risk (PPA, memorandum of understanding, enron and corruption), and technological risks.

Ans-2

The most critical risk which Dabhol Power should focus in RBS

Political risk

It is one of the major risk for Dabhol Power project, determination of political risk not only for the corporation, government bodies and investors as well. This political risk must be managed and understood with reasoned investment and foresight. Political risk also refers to the difficulties b/w the government and business through which the business decisions may get affected; it might possible that change in political situations which could be the reason for the change of the value and objectives of the business in terms economics or other changes as well (Girish et.al, 1995)

Legal risk

Legal risk can be as that the other party unable to enter into the contract. One of the most important condition of risk is when regulatory risk relates to the legal risk such as the issue in the transaction or conflicts within the policies of regulator and most critical possibility can be as the legislation may not be as same as the time of legal risk estimated or established. Legal risk is the part of law which is closely fixed to the legal causation in negligence. This provides the limits for negligence or prevent from harm sources ...