NCOE
The Risk Management Plan describes how the risk management practice is implemented on the project, roles and responsibilities, tools to be used and who is responsible for managing the process etc. The requirement is similar in principle to the objectives of the Project Execution Plan. Unfortunately a lot of projects choose to short cut this and jump straight to a risk register, without any accompanying process for the risk register.
Unfortunately a lot of projects don’t spend enough time and/or employ risk management too late in concept stages of a project, choosing rather to focus on scope definition. Scope definition and risk management are interrelated, so going light on one tips the balance.
TRANSPARENCY
PROJECT EXECUTION PLAN – CONCEPT AND DESIGN A clear Project Execution Plan (PEP) owned by the project manager shall define the strategies and plans to be implemented for running the project. A thought-through plan for executing the project, which is outlined in concept and further developed and finalised early in design stage, is central to successful project execution.
Projects with good and poor outcomes have been examined and there is a clear relationship between projects which have well defined and robust PEPs, set by and owned by the project manager, and project success. A lack of design definition or an inadequately developed Project Execution Plan and insufficient integration, has been shown to result in poor project outcomes. The project manager must confirm and take accountability that the project has achieved the appropriate level of definition ahead of sanction, including external challenge.
Risks and uncertainties, concerns and issues should not be kept secret and should be transparent to key stakeholders. To demonstrate how the project team are handling the risks on their behalf. By consistent transparency the partners can be enrolled in the decision making process, and not kept in the dark. Sharing information about risk with key stakeholders can help reduce risks on a project. The nature of the information shared shall take into account local laws and regulations, and contractual terms.
All risks should be assessed in relation to the following four areas of impact...
PROJECT RISK MANAGEMENT PLAN – RECOGNISING OPPORTUNITIES A risk is typically defined as an event (circumstance) that, should it occur, would have a material effect on project value. Managing key risks and associated uncertainty is crucial to delivering project value and success.
Upside opportunity must be addressed as aggressively as downside risk. The natural tendency is for projects to spend a lot of time in trying to reduce or eliminate downside risk. However giving the appropriate time to investigating opportunities will avoid investigations later on in the project when the question arises if there are any opportunities missed.
Remember the ‘Cost and Influence Relationship’ curve in the figure. On the outset of the project, we recommend spending the time in developing a Risk Management Plan as this is just as important as your Project Execution Plan.
• Health & Safety • Environmental • Financial • Non-financial
This will ensure risks are appropriately categorised.
IN SUMMARY
Insufficient definition and missed opportunities early in the concept and design phases can greatly influence the final outcome of your project.
Newcastle Chambers of Engineering
www.ncoe.co.uk
e = See enhanced entry online
www.windenergynetwork.co.uk
67
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148