Risk Management Handbookby H Global

49002 Managing Project - Group HSamuel Suarez Mark McCann

Ankit Taneja Nazmul Alam

LaurenceHsu Tony Huang

Farid Mojahedi Eddie Yeung

This Presentation:

– The Purpose of Risk Management Handbook– Policy requirements– Risk management approach– Risk identification techniques

IntroductionRISK

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Risk Management HandbookRISK

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HANDBOOKOverview

What is Risk Management?

A systematic approach to the management of events that:

—Might occur and —Would have an effect on the project’s

objectives

Risks can be either positive or negative

The purpose of the Risk Management Handbook

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Why Risk Management?RISK

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Risk Management Plan requires to project:

– Valued over AUD 50,000– that is sensitive in terms of economics,

environment and politics.– that is complex and requires large resource

commitment.

When does Risk Management Requires

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Procedures (AS 4360:2004):1 – Establish the context2 – Identify the risks3 – Analyse the risks4 – Evaluate the risks5 – Treat the risks6 – Monitor and report7 – Communicate and consult

Risk Management ApproachRISK

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What needs to be consider:

—Define scope and objectives—Stakeholder identification—Identify criteria—Define key elements

Establish the ContextRISK

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Tools and Techniques for Risk Identification

– Documentation Review– Brainstorming– Checklist Analysis– Assumptions Analysis– Root Cause Analysis

Risk IdentificationRISK

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Risk Analysis Techniques

Risk AnalysisRISK

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Technique Effort AccuracyExpected Value

RankLow High

Risk Categorisation Low Low

3 point estimation Low Medium

Decision Trees Low High

Risk Matrix Low Low

Pareto Analysis Low Low

Risk Analysis Techniques

Risk AnalysisRISK

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Technique Effort AccuracyWBS Breakdown

analysisMedium Low

Critical Path analysis Medium Low

Pert Analysis High Medium

Risk System High Medium

Monte Carlo simulation

High High

Type of Responses:

—Mitigation—Acceptance—Avoidance—Transference

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Risk monitoring is to establish to see if:

– Assumptions are still valid– Risk has changed from its prior state– Proper risk management policies and procedures

are followed– Contingency reserves of cost and schedule should

be modified in line with the risks of the project

Risk MonitoringRISK

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Tools and Techniques

– Risk reassessment– Risk audits– Variance and trend analysis– Technical performance and measurement– Reserve analysis– Status meeting

Risk MonitoringRISK

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Why Reporting is important?

Reporting in Risk Management provides a quick reference for project managers as the risk exposure, which can help managers guide the allocation of resources to treat those risks.

Risk ReportingRISK

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The purposes of Practical ExampleThese examples include:

Luxor TechnologiesSHELL’s Sydney Harbour Oil SpillChernobyl Disaster

How to use these examples

Practical ExampleRISK

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Benefits of this handbook includes:

—Fewer surprises—Improved planning, performance and

effectiveness—Improved estimates and cost control—Better stakeholder relationships—Better safety and environmental outcomes

ConclusionRISK

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• Summary on today presentation

QuestionsRISK

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The End RISK

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