Project Risk Management – Tunnel and Underground
Proactive risk management is the most effective approach to successful project execution. Comprehensive programs are flexible and scalable and include program development, oversight, and implementation; risk register development; qualitative risk analysis; mitigation measure tracking and verification; probabilistic, quantitative analyses of cost and schedule impacts; and budget and schedule contingency analysis.
We begin by organizing and facilitating a stakeholders’ workshop to establish clear lines of communication and collaboratively develop the risk management plan. We conduct others periodically during the project’s life cycle. Schnabel works with you and will scale our approach to meet the unique needs of your project.
First, we brainstorm to capture all of the project risks and organize activities into project life-cycle sections, called the Risk Breakdown Structure. Second, the risks are qualitatively rated by evaluating and combining each risk’s relative likelihood of occurrence and severity of consequence. Third, we use the risk ratings as a prioritization tool to develop and assign mitigation actions. Fourth, we repeat this process at various project milestones as necessary.
This process helps create a risk register – a living document that records risks, risk ratings, mitigation actions, etc. We use it to quantify the cost or schedule impact of each risk by assigning a probability of occurrence and a range of cost or schedule consequences. Results from simulations that randomly select risks and their associated consequences are compiled into a cumulative distribution curve, displaying confidence intervals of risk exposure in terms of cost or finish date, making it a powerful decision-making tool.
Photo: Courtesy of DC Water