Our risk management framework is designed to ensure that all significant risks, opportunities and uncertainties are identified and assessed in terms of their potential impact on key objectives, analysed quantitatively against the financial model or capital cost estimate, then managed and mitigated within a planned and structured framework. The key to this is establishing an effective regime.
Risk Management Process Model
There are a number of steps to establishing an effective Risk Management Regime that are summarised below:
- Initiate structured ‘Risk Identification Workshops’ for key areas of the project
- Develop an overall consolidated project level ‘Risk Register’ and achieve team ownership
- Prioritise all risks identified using risk assessment
- Quantify the combined cost and schedule impacts of all significant risks to the key project objectives by ‘Quantitative Risk Analysis’
- Develop the overall risk management strategy, procedure, and risk management plan to mitigate the risks. This includes:
o Prevention – stop the threat or problem occurring
o Reduction – actions reduce likelihood of risk developing
o Transfer – pass risk to third party (e.g. Insurance policy)
o Contingency – plan actions to come into place if risk occurs
o Acceptance – accept possibility of risk occurring
- Raise the cultural awareness of Risk Management within the project team
- Establish an embedded reporting regime that rolls-up all significant risks to Main Board level and records risk performance
- Maintain a continuous process of risk / consequence / opportunity identification throughout the life of the project
