Project risk management
Risk means, “An uncertain event or condition that, if it occurs, has a positive or negative affect on a project objective”. Your project’s success depends on thorough planning that includes possibilities for your project budget and schedule.
The benefits of project risk management
Our risk management provides you with innovative solution, you designed to significantly improve your profit.
- Determine your contingency and budget requirements at any time
- Accurately assess your cash draw-down requirements
- Minimise production costs
- Instigate reduced insurance costs
Types of risk management
- Technical Risks:
Inadequate site investigation
Change in scope
Insufficient resource availability
- Construction Risks:
Too high quality standard
- Physical Risks:
Damage to structure
Damage to equipment
Equipment and material fire and theft
- Organisational Risks
Attitudes of participants
Inexperienced work force
- Financial Risks
Increased material cost
Low market demand
Exchange rate fluctuation
- Socio-political Risks
Changes in laws and regulations
Pollution and safety rules
Law and order
War and civil disorder
Requirement for permits and their approval
- Environmental Risks
Risk Response Planning
Transferring risk involves finding some other party who is willing to accept responsibility for its management, and who will bear the liability of the risk should it occur. Transferring risk can be an effective way to deal with financial risk exposure. The aim is to ensure that the risk is owned and managed by the party best able to deal with it effectively.
Risk mitigation reduces the probability and or impact of an adverse risk event to an acceptable threshold. Taking early action to reduce the probability and/or impact of a risk is often more effective than attempting to repair the damage after the risk has passed.
Eliminate the uncertainty associated with a particular upside risk.
Transferring threats and sharing opportunities are similar in that a third party is used, those to whom the threats are transferred take on the liability and those to whom opportunities are allocated should also be allowed to share in the potential benefits
This response aims to alter the “size” of the positive risk. Seeking to facilitate or strengthen the cause of the opportunity, and proactively targeting and reinforcing its trigger conditions.
Ultimately it is not possible to eliminate all threats or take advantage of all opportunities – we can document them and at least provide awareness that these exist and have been identified, some term this „passive acceptance.