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Utility Corporation
TABLE OF CONTENTS
Introduction ............................................................................................................1 Risk Management Approach ...................................................................................1 Risk Owners ...........................................................................................................1 Risk Identification...................................................................................................2 Risk Qualification and Prioritization .......................................................................2 Risk Monitoring......................................................................................................4 Risk Response Strategies ........................................................................................4 Risk Register ..........................................................................................................5 Contingency Management ......................................................................................5 Acceptance .............................................................................................................5
Utility Corporation
INTRODUCTION
The purpose of this Risk Management Plan is to discuss how risks are identified, evaluated, ranked, monitored, and addressed as part of this project.
RISK OWNERS
The following individuals have been identified as the risk owners for the project. This list will be updated and maintained throughout the project in order to ensure the appropriate individual with the line-of-sight to the risks are named and aware of their roles. Role Risk Plan / Register Owner Risk Plan / Register Advisor Environmental Risks Real Estate Risks Transmission Line Design Risks Materials Transmission Line Construction Project Scheduling and Controls Contractor Selection Team Member Ringo Starr Darin Hendry David Bowie Michael Phelps Calvin Klien Paul Newman Robert Redford David Hasselhoff CDT (Sir Elton John)
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Utility Corporation
RISK IDENTIFICATION
Risk identification will be done in several stages throughout the lifecycle of the project, but the following will be the most prevalent. Project Manager The project manager solicited team member and risk owner input into potential project risks and incorporated these into the project risk register. Risk registers from several other projects of similar scope were also reviewed to identify lessons learned and potential risks documented on those projects. Risk Assessment Meetings Regular risk assessment meetings have and will continue to be scheduled with key team members and stakeholders to review the risk register. The team will review all active risks and will ensure appropriate risk ranking, impact, and response strategies have been developed and owners assigned to each risk on the register. Any new risks identified during the meetings will be added to the project risk register along with the appropriate status updates to risks already being monitored. Expert Discussions The project manager will continue to meet with individual subject matter experts throughout the project lifecycle and will capture any new risks during those meetings and will assure they are added to the risk register for management.
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Utility Corporation
The following table assigns some measurable attributes to the probability and impact ratings that are used as part of the risk register (shown above).
Impact Legend: Negligible 1
Technical Performance Schedule Cost Safety Shop Repair 1 day $50,000 First Aid
Marginal 2
Field Repair 1 week $100,000 Doctor Visit
Significant 3
Field Re-Work 1 month $250,000 Recordable
Critical 4
Minor Failure 6 months $500,000 Lost Time
Catastrophic 5
Major Failure 1 year $1,000,000 Major Injury / Death
Possible 3
10% < p < 50%
Likely 4
50% < p < 75%
Certain 5
p > 75%
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Utility Corporation
RISK MONITORING
Once the risks are appropriately ranked, the highest risk items will have triggers identified by risk owners, or their designees, that will indicate a risk is about to occur. The triggers will enact the appropriate risk response strategy. Risks and their triggers will be reviewed (at a minimum) once a month during the design development process and more frequently during construction. If a risk trigger event is identified by anyone on the project team between meetings, they will contact the project manager immediately in order to begin the appropriate risk response measures.
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Utility Corporation
been ranked, the highest risk items will have detailed response plans written by the risk owners, or their designees.
RISK REGISTER
A project risk register has been developed for the project and will be the main repository for all significant project risks to be identified, ranked, and monitored. The risk register will also contain links to the appropriate risk response plans once they have been developed. The Risk Register will be maintained separately on the project SharePoint site and shall be considered part of this overall risk plan document. Upon project completion, the risk register will be copied to the lessons learned repository, and unique risks shared with other project teams.
CONTINGENCY MANAGEMENT
Estimates for both maximum exposure and expected exposure will be performed for each of the discrete risks identified in the risk register. The sum of the expected numbers for all of the discrete risks will become the value of contingency being forecasted and managed for the project. The sum of the expected exposure and the total project estimate (without contingency) will become the expected estimate for the total project. The sum of the maximum exposure numbers for all of the open discrete risk will become the maximum value of contingency. The sum of the maximum value of contingency with the total project estimate (without contingency) will become the high end estimate for the toal project. Throughout the project, the project team will closely monitor and manage project contingency. Once a project baseline is established at Gate 2 Gate Approval Board, all changes in project contingency will be tracked and managed in a contingency checkbook and updated in the project forecast in UIP. Changes in contingency may be a result of any of the following: Estimated exposure for any discrete risk item changes Contingency is utilized for the purposes of mitigating or transferring a risk Contingency is utilized as a result of issuing a Project Change Request (PCR) A discrete risk item is closed A new risk is identified Risk is reallocated from one risk to another risk
ACCEPTANCE
________________________________________ Ringo Starr Project Manager
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Date: __________________
Utility Corporation
________________________________________ Darin Hendry Risk Manager ________________________________________ Winston Churchill Project Sponsor
Date: __________________
Date: __________________
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