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Thursday, 08 March 2007 04:04

Risk Management - the Other Dimension

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The issue of risks on projects is considered a critical issue for the successful completion. Often, delays, cost overruns and claims are attributed to the absence or inadequacy of a risk management exercise. In a large and complex project, a risk management exercise was run. In the process of evaluating the risks, a new dimension was proposed in order to ensure adequacy of the exercise. The exercise originally followed the well documented steps of risk management. This included:

 

  • a review of the project parameters and stakeholders,
  • identification of risks,
  • quantification in terms of probability and impact,
  • categorization of risks,
  • construction of a risk matrix
  • and proposing risk response strategy.

 

Because of the complexity and size of the project, which is the reconstruction of a major causeway with two marine bridges and a 3-level interchange, and in consideration of the importance and influence of the some stakeholders, the new dimension was introduced. There was general agreement that the issues arising from the risk management exercise cannot be handled by the Site Management. It was agreed that there would a requirement for a higher level intervention. The risks identified were therefore categorized in accordance with the stakeholder and an intervention level was proposed. It resulted in some of the risks being directly handled by the HE Minister, others were given Assistant Undersecretary and so on. 

 

The idea proved successful because the Project Team knew that some risks would take much longer to sort out than the project can accommodate, thus leading to definite delays. The lesson we learn form this exercise is that as a Project Manager, one should always think of innovative means of solving problems. A risk management exercise as shown in text books may not suffice to address issues in all cases. These are guidelines which apply in many situations, but improvement to the process can lead to positive results. Please make me happy with some of your comments

Read 5254 times Last modified on Thursday, 10 December 2009 22:14
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