Indore Metro Rail Project. Risk Kick-off Meeting Package IN-03 Xx xxx 2021.
Contents. What is Risk ? Why Risk Management ? Contractual Requirement Risk Allocation / Example 5. Risk Management Process: Risk Identification Risk Assessment Risk Mitigation Risk Review, Monitoring & Reporting Risk Register.
Uncertainty, Event or Condition having negative impact on the Objective of the project Events that might happen but when, we don’t know Not the same as Issues – Risks occurred are Issues Not having a Risk Culture is the Biggest Risk.
Things do not always go as planned Understanding in advance the implications of what we are dealing with – accept few and mitigate (Plan A) the rest Decrease the Probability & Impact of events, Convert Threats into Issues Helps in prioritising critical activities – avoid surprises Cure is always costlier than prevention Helps achieve the project outcome Helps create Contingency Reserve (Plan B) Helps avoid dispute (e.g. Claims, EOT) with Contractor.
Vol. III, Clause 1.3, Key Personnel Contractor to appoint a Risk Manager as a Key Personnel, who will be experienced in identifying risks to the project and to the program as a whole through a systematic approach and developing risk mitigation strategies. Vol. III, Clause 2.4, Risk Management Contractor shall ensure that: (a) A risk management system is established, compliant with ISO 31000, implemented and maintained; (b) the performance of the risk management system is to be reported to the Contractor’s management for review and as a basis for improvement identified; © the performance of the risk management system is reported to the Engineer for review, and (d) a risk management plan shall be submitted to the Engineer for approval within 60 days of the Commencement Date..
Owner’s Risk Delay in ROW Conflict with other Civic Developments Delay in Stakeholders’ approval Delay in decision making/ approvals Changes & Delays Contractor’s poor performance Design Non-compliance Delay in Land Acquisition/ R&R H&S Risk Quality Risk Environmental Risk Third party damage Delay in Contractor’s payment.
Risk Management Process.
Brainstorming Risk Session/ Workshop Delphi Technique (risk questionnaire) Project Review Meetings Checklist analysis Stakeholders & Interface discussions Assumptions analysis Variance & Trend analysis Contractor’s Risk Register Correspondence.
. 9. Risk Assessment - Qualitative. Category Rating Description of Likelihood Probability (%) Certain 5 High certainty of occurrence. >75 Likely 4 Balance of probability will occur. >50 - 75 Possible 3 May occur shortly but a distinct probability it won't. >25 - 50 Unlikely 2 May occur but not anticipated. >5 - 25 Rare 1 Occurrence requires exceptional circumstances. Exceptionally unlikely, even in the long term future. 0 - 5.
. 10. Risk Assessment – Quantitative. 3 Risk Exposure = Probability X Impact.
. 11. Risk Mitigation. 1 Mitigation Strategy. Mitigation Strategy Avoid Having highly negative consequences Accept Low Probability & Low Impact, Risk Score >=4, No control over the Cause Mitigate High Probability &/ High Impact, Risk Score <=5 Transfer Wherever possible but have control over It.