80

Chapter 8

8.3 Risks at the Venture and Project Execution Levels

As discussed previously the Venture Manager is responsible for the selection of the right project with the Project Manager being responsible for executing it right. That being the case.theywill share the glory or the shame resulting from the outcome and must support each other throughout its duration. BOTH THE VENTURE MANAGER AND THE PROJECT MANAGER MUST PARTICIPATE ACTIVELY, AND LEAD THE PROJECT TEAM. IN ALL THE RISK ASSESSMENT AND ANALYSIS ACTIVITIES. Risks at the Venture level arethose thatcouldthreaten success ofthe project and are mostly of financial nature: thecommercial

- Capital cost.
- Financial performance - rate of returdnet present value/etc.

- Operating costs - raw materials/labor/utilities. - Marketing - sales volume/market growtldcompetitiodproductprice. - Safety, health, and environmental (SHE) considerations.
- Permits - constructiodoperating. - Technological performance, yieldproduct quality, etc.
0

The risks at the project execution level are those that could have a negative impact on the specific project objective of quality,cost, and schedule:
-

Capital cost. Schedule.

- Changes - scope/design/execution. - Vendors performance -

quality/schedule.

Contractors performance - engineering/construction. Labor productivity/unrest. Weather.

- Process design soundness.

-

Field safety/security. /traffic/access to work aredevacuation alarms, etc.

- Interface with existing facilities - scheduled shutdowns/welding permits