Executive Summary
The main goal of this very document is to offer an efficient management framework that will be able to guarantee that all risks and uncertainties are managed at the high level, and the infrastructure of Sharjah City in the UAE will benefit from the improved approach. Considering the fact that risk management is a complex and long-term project, the introduction of a risk management plan to guarantee the improved results of the whole venture might be considered the first step to its improved functioning and outstanding final outcomes. However, a well-thought-out and comprehensive approach is needed. The document will contribute to the achievement of this very goal by assessing the most important features of Sharjah City and its infrastructure to determine its strengths and weaknesses and be able to suggest a change strategy aimed at the mitigation of the negative impact of some aspect. Additionally, the paper will outline the effect risk mitigation strategies might have on the functioning of this entity and how the exploration of these very strategies will be deployed to minimize the chances of the appearance of a certain risk factor. Altogether, the given document could be considered an attempt to create a framework for the enhancement of Sharjah Citys infrastructure functioning.
Introduction
The blistering rise of the Gulf region results in the appearance of giant cities characterized by the complex infrastructure. The fact is that the tendency towards the increased number of visitors and residents introduces the necessity of the outstanding performance of every object of infrastructure to guarantee that the basic needs of the majority of people will be satisfied (“Sharjah picks four key pillars of growth in 2017,” 2017). In this regard, risk management strategies become an integral part of the functioning of any great object with the developed infrastructure as the purpose of this sort of analysis is to guarantee that all possible risks are identified and managed to eliminate any threat that might appear in case one or another aspect remains unnoticed. For this reason, the main objectives of the given paper are to identify, assess, and analyze all possible risks related to Sharjah Infrastructure. The complexity of the task and sophistication of relations between different objects of infrastructure precondition the usage of various risk assessment tools and increased level of attention given to an array of factors.
Reason
The choice of the topic and object for the investigation is not accidental. The fact is that at the moment the Gulf region is one of the most fast-growing areas in the world characterized by the high pace of the development of financial, tourist, industrial, and other sectors (“Sharjah’s population crosses 1.4m,” 2015). The increased level of attention given to the region also means that a set of factors should be considered when trying to attract the attention of sponsors and investors. At the same time, the high pace of the evolution of the region attracts numerous people who might also become significant contributors to the empowerment of the area. In this regard, the developed infrastructure characterized by the enhanced cooperation between every object is key to the successful exploration of the land and its further development. A risk management plan will obviously help to accomplish this task and guarantee its better comprehending.
Description
At the moment, Sharjah is one of the greatest cities in the UAE where about 1billion people live (“Sharjah’s population crosses 1.4m,” 2015). It is the capital of the emirate of Sharjah and plays a crucial role in the functioning of the whole state. The city is a center for culture, industry, tourism, and other important sectors. The significance of Sharjah could also be proved by the fact that it provides 7,4% of the GDP to the budget of the UAE (Saadi, 2017). The city is inhabited mostly by Muslims who precondition the behavioral patterns accepted in Sharjah. The sale of alcohol is prohibited, and this fact attracts thousands of tourists from Islamic states who want to explore its unique culture (Saadi, 2017). Additionally, very often it is taken as a cultural capital of the UAE. The combination of all these facts preconditions the high level of interest to the city and thousands of people visit it every day. In this regard, the efficient functioning of the objects of its infrastructure is the key to further evolution.
Services
Understanding the unique importance of the well-thought-out approach, the government tries to create an outstanding infrastructure characterized by the usage of innovations and unusual methods which might help people to feel better and satisfy their basic needs. At the moment, Sharjah has a well-developed transport infrastructure. Thus, like any giant city, this one also suffers from traffic congestion especially during rush hours on the roads leading to the most popular directions like to the Emirate of Dubai. However, there is a Sharjah Public Transport Corporation which is responsible for the policies introduced to solve this very problem and guarantee that the situation will be improved. It is obviously a long term project which will take several years.
People in Sharjah are also able to use International Airports services which is the third-largest in the Middle East (“Sharjah Public Works green-lights $175m of infrastructure projects,” 2017). Low-cost carriers and full-service ones are available to citizens. There are also numerous taxi cars, buses, and other kinds of transport guaranteeing improved transport infrastructure. As for the other objects, there are numerous educational establishments that give knowledge students (“List of 25 best schools in Sharjah,” 2017). Furthermore, Sharjah is characterized by numerous medical centers that use innovative technologies and try to engage foreign specialists in sharing experiences and becoming more efficient (“The report: Sharjah 2017,” 2017). Yet, the utilization of garbage, housing, and other important objects of infrastructure could also be described as rather efficient. However, it is also obvious, that there is still much to be improved.
Comprehensive Analysis
Conducting the comprehensive analysis of the most important objects of infrastructure, their functioning, and main showings, we could state that the attempts to introduce the gradual improvement of this very object on the regular basis are present at the moment. The government of the emirate recognizes the fact that there are still several problems in the given sphere. Traffic congestion and occasional problems with access to the most important infrastructure objects like hospitals, schools, or medical units deteriorate the quality of life in the city. For this reason, the analysis of the most crucial aspects of infrastructure is needed for the creation of an efficient risk management plan which to guarantee the further evolution of the city. At the moment, there is a set of problems which should be solved.
Revenues
Thus, continuing the analysis of Sharjah infrastructure and the impact it has on the main showings peculiar to the whole emirate, we could state that infrastructure spending accounts for 30% of the emirates budget for 2017 (Annuar, 2017). In 2017, it amounts to $5,9 billion which is the greatest sum in history (“Sharjah approves $6 billion infrastructure budget for 2017,” 2017). The increase in infrastructure spending could be measured by 7%. The given facts show that infrastructure remains the main priority for the government (Bhatia, 2017). Moreover, the given tendency is peculiar to the whole state, as in the UAE 4% of the whole budget is devoted to the infrastructure (see Picture 2).
At the same time, considering the importance of the economic development of the state and the positive impact developed infrastructure has on the paces of its rise, the funds invested in this very sector could also help the whole state to evolve (“Sharjah FDI to exceed AED 1 billion by end of 2017,” 2017). Additionally, the sphere of infrastructure also brings significant revenues to the budget and GDP of the UAE as thousands of people use the above-mentioned services every day (see Picture 1). That is why it is crucial to guarantee its further rise.
Performance Indicators
The current efficiency of the above-mentioned sector could be described as comparatively high. According to the latest statistics, the majority of residents living in Sharjah are satisfied with the services provided to them (“Infrastructure gets 30pc of Sharjah budget,” n.d). However, there are also several problems peculiar to the given sphere. Rush hours could be considered a great issue as they result in traffic collapse and make some tasks more complex (“Phase II of Heart of Sharjah project on schedule,” 2017). Additionally, citizens of the UAE might suffer from the lack of services available to them. For this reason, there are still many areas that could benefit from the application of the main points of the strategic risk management plan. The investigation of the major aspects of the infrastructure functioning might provide the basis for significant improvement and discussion. For this reason, we could state that the current performance indicators are crucial for the creation of an efficient risk management plan and significant improvement of its efficiency.
Risk Assessment
Therefore, considering the unique importance of the efficient functioning of different objects of infrastructure and their improved cooperation, the investigation of the main problems that might appear in the course of their functioning is crucial for the further evolution of the city. That is why risk assessment and the creation of the appropriate mitigation strategy become important tasks that should be accomplished to guarantee the further evolution of Sharjahs infrastructure and its increased ability to shelter people and provide them with the most necessary services and conditions. Additionally, risk assessment also becomes an integral part of the management strategy aimed at the improvement of the financial performance and acquisition of additional revenues. If to consider Sharjah infrastructure as an important business project which should bring benefits, reorganization of relations that exist between the most important objects should be taken as the basis for the rapid rise of the torrent of visitors who will contribute to the development of the whole city. That is why risk assessment becomes crucial.
Identification
As stated above, the government perfectly recognizes the unique importance of infrastructure and the role it plays in the evolution of a city. For this reason, the tendency towards the constant increase in the amount of money devoted to its development could be admitted. These funds are spent to align the continuous process of improvement and implementation of innovations. However, there are still several risks that might appear. First, being a complex project, Sharjah infrastructure presupposes the existence of a great number of high-level risks (“Sharjah gears up for faster door-to-door services,” 2017). That is why one of the most difficult tasks is to assure that the most important threat is found. As for the given project, traffic jams and their consequences might be considered the most nagging problem that should obviously be solved to guarantee improved outcomes. Additionally, the given risk factor also contributes to the appearance of new ones. In case traffic problems appear, people might be not able to reach hospitals in case of emergency. It is another significant problem and weakness of Sharjahs infrastructure.
Analysis
Having identified the main risk, it is crucial to analyze it to determine the way it might impact the results of the project. In case the risk is disregarded, project outcomes will obviously be reduced, and the quality of the suggested services will suffer (Eid & Asutay, 2017). For this reason, the determination of the chance for the appearance of this kind of threat is evident. Considering the latest statistics, we state that everyday congestion appears in rush hours when people move to work, study, and other places related to their kind of activity (Annuar, 2017). For this reason, the likelihood of the risk is very high. The seriousness might vary. In case congestion results only in the waste of time, it could be considered low. However, if a person has to reach a hospital immediately, traffic congestion might result in the significant deterioration of the state of his/her health and even death. That is why it should be taken as a serious problem that should be solved.
Risk Mitigation
Resting on the nature of the issue, the following risk mitigation strategies could be suggested. To reduce the chance that a traffic jam will appear, it is crucial to develop the public transit system. The fact is that the improved quality of life of people results in the appearance of numerous vehicles that complicate the movement. Additionally, human factor creates the basis for numerous clashes and traffic accidents. For this reason, the introduction of a public transit system might help to solve the problem. However, it should be efficient enough to handle a great torrent of passengers. For this reason, the bus-only lane should be created. Moreover, a specific kind of vehicle should be used. They have to be fast, safe, and commodious. The headway should be no more than 3 minutes. The most crucial and important directions should be covered. Only under these conditions, a certain improvement of the current situation could be observed.
Risk Monitoring
To assure that the above-mentioned measures meet the requirements that exist in the given environment and determine their efficiency, risk monitoring strategies are needed. In case these preventive measures turn out to be successful enough, further exploration and usage could be recommended. However, if data does not prove the improvement of the situation, a new approach should be suggested. Besides, to monitor the efficiency of the bus-only lane the statistics related to the traffic jams should be processed. The decrease of their number might evidence the promising character of the suggested measure. Additionally, peoples feedback related to the new approach could be collected using the survey placed on the website. The usage of these monitoring techniques might help to trace the evolution of the problem and improve the risk management process.
Roles and Responsibilities
Therefore, to guarantee the improved outcomes of the risk assessment and management processes, a deep understanding of the main responsibilities and roles is crucial. Besides, the creation of a Risk Management plan is a complex task which suggests several challenges. Considering the character of the issue under the investigation, we could state that the representatives of the municipal government should be provided with the main task to control the process and assure that the main tasks will be accomplished to attain success. Additionally, they obviously have access to funds and an improved understanding of the mechanisms that should be used to support the development and implementation of this very risk management plan.
Team
There should be a Project manager who bears the whole responsibility for the creation and evolution of the plan. He/she will become the main person who monitors every stage of the process and assures that the most important demands for the quality, costs, terms, etc. are met. He/she should also distribute responsibilities resting on the strengths and weaknesses of a team. Therefore, there should also be The Steering Committee that approves the most complex decisions and consults in case any problem appears. The efficient collaboration of all members of the team is key to the final success of the process and improved outcomes.
Plan
The creation of a final plan is a complex process that demands the improved comprehending of the issue and deep analysis of all aspects. The plan should incorporate such elements as costs, terms, risk likelihood, risk character, its impact, and possible mitigation processes. For this reason, the data collected in the process of examination of problems with infrastructure creates the basis for the creation of an efficient and innovative plan of actions that will obviously help to improve the situation and help people to reach certain places faster. The main points of the plan will also cover the perspective for further action which is needed to continue the improvement of the situation.
Discussion
Nevertheless, one should realize the fact the suggested course of action is not the only possible way to alter the situation and attain a significant enhancement of the situation. Besides, there could be other perspectives on the problem and solutions to it. One could vote for the limitation of the number of vehicles permitted to move during rush hours. Additionally, there is also the approach that presupposes the creation of the underground that would be able to unclog the streets and help people to move across the city. However, the given method could be considered the cheapest one and efficient as there are several examples demonstrating that the usage of the same scheme in other states contributed to the improvement of the situation (Weber, Staub-Bisang, & Wilhelm-Alfen, 2016)
Conclusion
At the moment, traffic problems might be considered one of the greatest risks that might slow down the pace of the evolution of this very project and guarantee that the tendency towards its rise will be preserved. The introduction of the bus-only lanes might help to improve the current state of the issue and guarantee the probability of the appearance of this risk will decrease.
References
Annuar, N. (2017). Sharjah announces 2017 budget, increases infrastructure spending. Web.
Bhatia, N. (2017).Infrastructure worth 30% of Sharjah’s 2017 budget. Web.
Eid, W., & Asutay, M. (2017). Mapping the risks and risk management practices in Islamic banking. London: Wiley.
Hassan, W. (2015). UAE economic outlook. Web.
Infrastructure gets 30pc of Sharjah budget. (n.d.). Web.
List of 25 best schools in Sharjah(2017). Web.
Phase II of Heart of Sharjah project on schedule. (2017). Web.
Saadi, D. (2017). Sharjah 2017 budget boosts spending on infrastructure.The National. Web.
Sharjah approves $6 billion infrastructure budget for 2017. (2017). Web.
Sharjah FDI to exceed AED 1 billion by end of 2017. (2017). Web.
Sharjah gears up for faster door-to-door services. (2017). Web.
Sharjah picks four key pillars of growth in 2017. (2017). Web.
Sharjah’s population crosses 1.4m, with more than 175,000 Emiratis and 1.2 million expatriates. (2015). Web.
Sharjah Public Works green-lights $175m of infrastructure projects. (2017). Web.
The report: Sharjah 2017. (2017). Web.
Weber, B., Staub-Bisang, M., & Wilhelm-Alfen, H. (2016). Infrastructure as an asset class: investment strategy, sustainability, project finance and PPP. London: Wiley.