Project Risk Management Plan

Project Name

Details of revisions
Level Details Date Initial
Contents

1 Overview 3

1.1 Project Overview 3

1.2 Project Scope 3
1.3 Project Objectives 3
1.4 Risk Management Objectives 3

2 Overview of Risk Management Process 4

2.1 Establish the Context 4

2.2 Identify Phase 5
2.3 Analyse and Evaluate Phase 6
2.4 Treat Phase 6
2.5 Review, Re-evaluate and Communicate Phase 6

3 Deliverables 7

3.1 Deliverables Checklist 7

3.2 Roles & Responsibilities* 8

4 Risk Management Procedure 10

4.1 Frequency of review 10

4.2 Flowchart of risk process on site 10

6 Appendices 11

Scoring Scheme & Probability Impact Diagram 11

Risk Breakdown Structure in ARM 11
1 Overview

1.1 Project Overview

1.2 Project Scope

1.3 Project Objectives

1.4 Risk Management Objectives

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 3 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
2 Overview of Risk Management Process
The application of a formal Risk and Opportunity Management Process provides a
structured, logical way of identifying, assessing and treating the risks and opportunities to the
successful completion of a project This process provides secondary benefits that allow the
analysis of potential Project outcomes thus enhancing early warning, project certainty and
the management of contingency throughout the Project Lifecycle.

The process outlined herein conforms to Leighton Contractors Risk and Opportunity Process
held in the Leighton Management System (Our Way) and Australian Standard AS/NZS ISO
31000:2009, and other best practice guidance.
For more information on the Detailed Level Business Processes for Manage Project Risk in
Our Way see http://ourway.lc.local/business-excellence/enterprise-risk-
management/index.htm

2.1 Establish the Context

The Project Manager is ultimately accountable for the execution of the Risk & Opportunity
Management Process, however, a Risk Champion is appointed by the Project Manager to
assist with the co-ordination and facilitation of this.

A Risk and Opportunity Strategy Workshop is held to formulate how the management of risk
and opportunity will be executed throughout the project/operation. The workshop will aim to
determine:
The roles and responsibilities of the Project Team in executing risk and opportunity
management
The Risk Breakdown Structure (RBS) to be built within Active Risk Manager (ARM)
Define the project's scoring scheme by reviewing the tender scoring scheme and
update where appropriate

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 4 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
2.2 Identify Phase
Throughout the project/operation, the Project Team and Risk & Opportunity Owners are
accountable for the continuous identification of risks and opportunities applicable to the
successful delivery of their scope of works.

These risks and opportunities are reviewed by the Project Management Team on a regular
basis for validity and approved in ARM with a status of 'active'.

The project team must identify risks and opportunities against all types of risks - not solely
commercial and/or SHE risks.
At LCPL, we have categorised these types as Enterprise Capital elements (which are also
reflected in ARM as risk categories) i.e.:

Enterprise Capital Element Description

Our people are what enable us to transform our clients

needs to reality. We must protect our people from risks that
Our People can affect their safety, well-being and performance. We look
to grow their abilities and provide opportunities to develop
their careers within LCPL.

Our assets relate to the physical assets such as plant and

Our Assets equipment. We must ensure they are available and perform
as required.

Our intellectual property relates the collective knowledge of

how we create value and deliver results. We must be able
Our Intellectual Property
to retain and protect our intellectual property as this is a key
element of our competitive advantage.

The trust and respect of our clients and partners are

Our Relationships with our paramount in both delivering on current work and
Clients and Partners generating future opportunities. We must ensure that we are
able to deliver on our promises.

The Leighton name and the strong positive reputation it

carries must be protected at all times. We must be clear and
Our Reputation consistent in how we conduct our business so our
stakeholders and the marketplace know what to expect
when engaging with us.

To be able to operate (conduct business activities) in the

markets we wish to, we must ensure we satisfy all relevant
Our Licence to Operate
obligations. These extend beyond our regulatory obligations
and include our social obligations.

Our business requires capital to achieve our objectives.

Accordingly we must ensure we are able to access capital
Our Balance Sheet (our balance sheet) as and when required.

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 5 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
 Similarly we must be able to account for our activities in an
accurate and timely manner to ensure we are able to make
effective decisions.

2.3 Analyse and Evaluate Phase

Risk & Opportunity Owners must ensure risk items are assessed for Probability of
Occurrence, and the possible impacts (e.g. Cost, Time, Safety, Reputation, and
Environment). Refer to the project/operation's Risk and Opportunity Scoring Scheme revised
during the Risk and Opportunity Strategy Workshop at Project Start-up.

Assessments for probability of occurrence, cost impact and time impact must be completed
quantitatively. For Safety, Reputation, and Environment impact assessments a qualitative
approach is required.

2.4 Treat Phase

Treatment Plan Owners are accountable for developing high level, proactive, treatment plans
in ARM for those risks and opportunities they have been assigned.

The treatment plan details a series of actions that are assigned to resources with due by
dates. All actions are aimed at treating the risk or opportunity to which they apply, i.e. altering
the probability of occurrence and/or the impacts.

2.5 Review, Re-evaluate and Communicate Phase

The Risk & Opportunity Owner is accountable for ensuring their risks and opportunities are
continuously reviewed to ensure assessments remain aligned to all current project/operation
assumptions and treatment plan statuses. This is especially important due to the analysis and
reporting of the Projects risk exposure and provisioning as part of the LCPL month end
reporting process.

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 6 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
3 Deliverables

3.1 Deliverables Checklist

Deliverable Description Owner Status

Details project/operation specific

Develop a Project
strategy for executing risk and
Risk Management
opportunity management
Plan
throughout the Delivery Phase.

A risk champion is on the project

Assign a risk
leadership team and ensures the
champion
risk process occurs in the project

Project Risk Project Risk Register established

Register from the Tender Risk Register
established in ARM and updated for the project.

Project Risk
Project Risk Register verified and
Register reviewed
updated as required.
in ARM

Once the tender risk register has

SMS Contingency been updated, the new
reflective of ARM contingency would be
Impact Analysis recommended based on the level
Report of risk now associated with the
works

Schedule E Part 1 of Schedule E (ARM risks)

reflective of now reflects the new risk profile
updated project opposed to the original tender
risk register risks and opportunities.

Risks and
Hold workshops, on a quarterly or
opportunities
milestone basis to ensure validity
identified and
of the risk register
recorded in ARM

Ensure Risks and opportunities

identified are up to date and
Risks and continually assessed to ensure
opportunities they are fully understood to
assessed and determine levels of contingency
recorded in ARM required for the successful
delivery of LCPL projects and
operations.

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 7 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
Risk and Have a process to ensure that
opportunity high level, proactive, treatment
treatment plans plans in ARM are up to date and
and actions reviewed with special focus on the
detailed and series of individual action lists are
recorded in ARM progressed.

Summary of the
key risk and
opportunity
Have a section of the Project
information and
Monthly Report for Risk &
applicable reports
Opportunity Management.
for inclusion in the
Project Monthly
Report

3.2 Roles & Responsibilities*

Operations Manager Review of Schedule E and its validity, active participation in risk
workshops.

Project Manager/Director Responsible for the successful delivery of project risk

management for their respective projects.

Project Leadership Team Responsibility for implementation and approval of risks and
opportunities for their area of the works.

Ensure that key risks are discussed and treatment plans are
agreed at management meetings.

Commercial Manager

Contract Administrators/
Quantity Surveyors

Safety Manager

Environment Manager

Project Controls/Planning
Manager

Construction Manager

Area Managers

Engineers

Superintendant
Mine Manager
Tech Services Manager
Maintenance Manager
Plant Manager

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 8 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
Risk Champion The person responsible for ensuring the risk process is
implemented, ARM is reflective of the current status and key
project decisions are considering risk.
All Employees, All employees have a role in the management of risks within the
contractors and project. By being risk aware and being alert to the requirements
subcontractors of managing risks, all employees assist through the identification
of risks and/or breaches, and making recommendations for
change and improvement.
*Delete/amend as appropriate

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 9 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
4 Risk Management Procedure

4.1 Frequency of review

Insert here, for example;

Focus Area Lead Frequency ARM Report used Outputs utilised

4.2 Flowchart of risk process on site

Insert here

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 10 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
6 Appendices

Scoring Scheme & Probability Impact Diagram

Risk Breakdown Structure in ARM

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 11 of 11

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au