Risk Analysis of the Hydroelectric Development and Irrigation Scheme Projects Hydroelectricity refers to electricity harnessed through hydropower. “Hydropower uses the energy of moving water to produce electricity. Also known as hydroelectric power, it's been used to generate electricity for over 100 years and currently provides about 10 percent of the country's electricity.” (FERC, 2010) Irrigation is the artificial watering of land. It allows countries or regions who normally do not get enough rainfall to still successfully grow crops. The similarity between the two case studies is that both revolve around water, using technology to harness its powers for good use. The difference is the scope of the project. The irrigation project is a much smaller undertaking than that of the hydroelectric development.
When analyzing risks for the hydroelectric development project, common considerations were the forefront and force majeure was lumped in as global risk. According to the text (Cooper, Grey, Raymond, & Walker, page 266, 2005) , “abnormal or catastrophic sources of risks having the effect of force majeure were outside the scope of this cost analysis; they were treated as project conditions in the sense that the analysis and outcomes were conditional on them not arising.” Cost estimates were the basis for the analysis. In contrast, the irrigation project included potential sources of risks in their work breakdown structure (WBS). The irrigation project did a better job of identifying risks because they were not limited to just the cost estimate as basis. Unknown risks can be a major expense and can make or break a project; they should be thought out and planned for.
Quantifying risks is an important part of risk management. It allows the owners (and the PM) of a project to understand and decide on what level of risk they are...