Professional Documents
Culture Documents
Risk planning involves the thoughtful development, implementation, and monitoring of appropriate risk response strategies.
Risk Charters - The risk charter provides project managers with a list of
significant risks and includes information about the cost and schedule impacts of these risks. It also supports the contingency resolution process by tracking changes in the magnitude of potential cost and schedule risk impacts as the project progresses through the development process and the risks are resolved.
Risk Strategies
The Caltrans handbook emphasizes on the strategy which is best for each risk and then designing specific actions to implement that strategy.
The strategies and actions in the handbook include the following: Avoidance-The team changes the project plan to eliminate the risk or to protect the
project objectives from its impact. The team might achieve this by changing scope, adding time, or adding resources.
Transference-The team transfers the financial impact of risk by contracting out some
aspect of the work.
Mitigation-To
reduce the probability or consequences of a risk event to an acceptable threshold. It can be done via many different means that are specific to the project.
Acceptance-The project manager decides to accept certain risks. They do not change
the project plan to deal with a risk or identify any response strategy other than agreeing to address the risk if it occurs.
Risk Mitigation & Planning Objectives of Risk Mitigation and Planning The objectives of risk mitigation and planning are to explore risk response strategies for the high risk items. The process identifies and assigns parties to take responsibility for each risk response. It ensures that each risk requiring a response has an owner. The owner of the risk could be an agency planner, engineer, or construction manager, depending on the point in project development, or it could be a private sector contractor or partner, depending on the contracting method and risk allocation.
# Expected Cost of Loss & Loss Control Cost [ R & D] # The cost of Loss Financing/Cost of internal risk reduction & The expected
cost of Indirect Loss
YES
Avoid / Eliminate
DISCOUNTINUE OPERATION
Identify Exposure to Possible Loss YES Estimate Maximum Possible Loss / Probability of Loss YES Transfer Risk
YES NO CSURMA Projects Self SelfInsurance Pool Contractual Transfer Transfer Refused Risk Remains Too High
NO
Is Maximum Possible Loss (MPL) Severe? YES Analyze Factors Affecting Size of Possible Loss
Assume Calculated Severe Risk Does Any Severe Possible Loss Remain? YES YES Assume Risk Assume Low Risk Exposure
PROCEED
RISK FINANCING - Self Insure the first Rs MMMM.PP of a loss (deductible) and buy insurance (Contractual Transfer) for any losses beyond that amount.
Ensure our results and standards are producing a learning and working environment consistent with the goals and objectives of the University.
US 555-SH 111 Interchange- Risk Mitigation The QDOT project team examined all of the risks for the project that would have a high impact if they were realized. The team also focused on those risks with a high probability of occurrence. This information was valuable for the team's understanding of the critical issues and helped them determine where they should expend their design effort. The team created a risk charter based on the initial risk identification and the detailed risk assessment and analysis. A number of the risks from this charter are illustrated below to show how the team proceeded with risk mitigation and planning.
Mitigation
The team will conduct further soils exploration and consider alternative pier designs. The team will attempt to design around areas where right-of-way may be an issue.
Project team lead Soil exploration complete Initial pier design complete Right-of-way lead Alignment complete
Landowners unwilling Avoidance to sell at US 555-SH 111 junction Assessment-high Local communities pose Mitigation objections. Assessment-medium
The team will conduct an aggressive public information campaign and inform the public about the safety and efficiency benefits of the project.
Acceptance
The team will attempt to Region executive Monthly design the project with agency management staff and accept a longer design schedule.