RISK

TAKE A RISK OR TAKE RISKS

THE RISK PROCESS

MINIMISE BY :

IDENTIFICATION

ANALYSIS

RESPONSE

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RISK

RISK AVOIDANCE

NEW / NOVEL INNOVATION THE FIRST OFF

TECHNICAL UNCERTAINTY

THE BIGGEST LARGE SCALE UP THE UNFAMILIAR

ON RISK
No government should ever imagine that it can always adopt a safe course; rather it should regard all possible courses of action as risky. This is the way things are: whenever one tries to escape one danger one runs into another. Prudence consists in being able to assess the nature of a particular threat and in accepting the lesser evil. Machiavelli

Brief Q C T

Risk Management Model

OBJECTIVES

RBS "WHAT"

RISK LIST

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RISK

RISK IDENTIFICATION

RBS

Work Package 1

Work Package 2

Work Package 3

High

M. L

H.

Med

H.

M.

Low

New:technology/ situation/ application etc.

Similar:technology/ situation/ application etc.

Known:technology/ situation/ application etc.

RISK HIERARCHY

High Impact Low Probability

POLITICAL PHYSICAL ENVIRONMENTAL

BIDDING PLANNING COMMISSIONING Increasing Risk Perception Increasing g Ability to Control

LEGAL FINANCIAL CONTRACTUAL

DESIGN PROCUREMENT PRODUCTION / FABRICATION

Lower Impact

but

Higher Probability

PEOPLE AT WORK

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RISK

Brief Q "WHO" OBS C T

Risk Management Model

EXECUTION PLANS

OBJECTIVES
To: From: Date: Garth Ward Joe Bloggs 18th March 1994

"HOW"
With reference to you memo of the 14th March, please find enclosed lots of work to do and I hope to see it on my desk asap

J. Bloggs

Risk Memos M

RBS "WHAT"

RISK & RESPONSIBILITY MATRIX

RISK LIST

"WHO OWNS WHAT"

RISK ANALYSIS
RECOGNISE

No Action

AVOIDABLE

CONTROLABLE

Manage Monitor Plan

INSURABLE

Reduce Adjust Alter Design Out Transfer Share

All Risks Third party ECGD

High

RISK ANALYSIS
Insurance Strategy

Transfer

Severity y

Transfer T f if cost Effective

Absorb
Low Low Probability High

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High
Contingency Plan Immediate Action Reduce? Contingency Plan Transfer?

RISK PRIORITISATION PLANNING

Impact
Deal With After Others Have Been Resolved. Periodic Review. Consider Action Manage?

Low Uncertain Probability Certain

High

RISK PRIORITISATION PLANNING

Risk = (Impact X Prob.)

Low Low Effort Required High

RISK ANALYSIS
RECOGNISE

No Action

AVOIDABLE

CONTROLABLE

Manage Monitor Plan

INSURABLE

Reduce Adjust Alter Design Out Transfer Share

RESIDUAL RISK

All Risks Third party ECGD

Improve Scope Improve Bidding

CONTINGENCIES

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RISK

Brief Q "WHO" OBS C

Risk Management Model

EXECUTION PLANS

OBJECTIVES
To: From: Date: Garth Ward Joe Bloggs 18th March 1994

"HOW"
With reference to you memo of the 14th March, please find enclosed lots of work to do and I hope to see it on my desk asap

J. Bloggs

Risk Memos M

RBS "WHAT"

RISK & RESPONSIBILITY MATRIX

Risk Review Meeting

WHERE

RISK LIST

"WHO OWNS WHAT"

RISK REVIEW

RBS

Work Package 1

Work Package 2

Work Package 3

High Wk x Wk x+1 Wk x+2 X

M.

H.

Med X

H.

M.

Low X X

X X

X X

Brief Q C T

Risk Management Model

"WHO" OBS

EXECUTION PLANS

OBJECTIVES
To: From: Date: Garth Ward Joe Bloggs 18th March 1994

"HOW"
With reference to you memo of the 14th March, please find enclosed lots of work to do and I hope to see it on my desk asap

J. Bloggs

Risk Memos M

RBS "WHAT"

RISK & RESPONSIBILITY MATRIX

Risk Review Meeting

WHERE

RISK REGISTER

HOW MUCH

RISK LIST

"WHO OWNS WHAT"

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RISK

RISK RECORDING

Check List

Identified Risk List from RBS

Risk Response Memos What if scenarios scenarios

Risk Register Data Base

First (data)

feedback loop Second feed back loop (Sensitivity & Probability Analysis)

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