In managing risk, consider creating two important documents.
Both well-suited to a tabular system, these are:
• the risk register
and the risk treatment schedule.
The risk register should include the process of analysis
and mitigation, with the tabular identification of risks
by project phase and risk type. In a summary tabulation the
columns state external risks, design risks, organizational
and management risks, and risk during construction and start-up.
Horizontal rows would list the various risk types in each
category. For example in the external risk column categories
such as public approvals, permits, financial conditions,
and site and climatic issues might be listed.
Each of the headings in each of the columns would have its
own back-up sheet detailing with description of the risk,
consequences and probability, adequacy of existing control
measures, priority and costing.
The mitigation plan, or risk treatment schedule, is devised
in a similar manner, again using a separate fact sheet
for each identified risk group. It would again state the
risk, the priority rating from above, the possible treatment
options, a preferred option, risk rating after treatment,
costs, timetable for implementation and method of monitoring.
This approach then presents a risk summary and a detailed
analysis and mitigation plan for each risk group. The summary
and the individual back-up sheets will be living documents;
they are updated as more and new information becomes available.
The sponsor of a development is thus aware of the costs
of risk management and the necessary approaches. These costs
are additional to the estimated cost of the facility, and
they represent an invaluable piece of information when deciding
on project contingencies.
The engineer is often in the best position to manage the
preparation and up-dating of these risk profiles. A clear
understanding of the process and methodology will help explain
the value of the approach to all project participants.