Well-executed risk management processes can help our client avoid problems that could impact cost, schedule, and technical performance. Projects can be completed earlier and at less cost when problems are discovered and addressed at an early stage. Large construction projects often carry more risk than estimated during the early phases of implementation. New risks arise as project evolves, resulting from decision-making, design changes, technical challenges, construction site conditions, and other unforeseen factors. Hence, without the ability to identify, prioritize, and manage these risks, a project’s performance can be seriously compromised. Hence, at Zen Consulting we perform five steps process to implement Risk Management.
- Identify and Define Risks: Risk and Opportunities are identified, and categorized
- Assess Risk Probabilities and Severity of Impact: Risks are discussed, defined, and prioritized based on their impact and probability of occurrence
- Analyze Risk Exposure: High impact risks are quantified in terms of cost and schedule. Further, Monte Carlo Analysis may be performed to determine the risk allowance and contingency reserve
- Manage Risks: Develop risk mitigation plan (Mitigate, Transfer, Reduce, Accept, Contingency Reserve) including assigning ownership, and risk mitigation strategy
- Monitor/Review/Update Risk and Mitigation Plans and Risk Management Performance