You are on page 1of 21

GROUP 6: SIMEON AREOYE &

THUVARAGESAN THARMALINGAM
CONTENT

• Definition

• Risk Management Overview

• Risk Management process/methods

• Case Studies

• Conclusion

 WHAT IS RISK?
RISK NEVER SLEEPS
RISK MANAGEMENT

• Identify Risks
• Communicate Risks
• Note Threats and Opportunities
• Prioritise Risks
• Risk Allocation
• Risk Register
• Risk Analysis
• Implement Risk Responses
• Track Risks



IDENTIFY RISKS

• First step

• Two main sources (People and Paper)

• Experts

• Brainstorm

ASSESS/COMMUNICATE RISKS

• Project Failure

• Information is not shared



• Team meeting

• Risk Officer

• Log book

THREATS & OPPORTUNITIES

• Negative connotation – Bad Guys



• Positive risks

• Beneficial to the project

• Project dynamics

• Time Management

PRIORITISE RISKS

• Risks cannot be treated equally



• Impact and Probability

• Main focus serious risks

• Also pay attention to minor
risks

• Risk matrix
MATRIX

IMPACT 5 Catastrophic
4 8 12 6
Over £2.5m

4 Major
1 2 1
£1.0 – 2.5m

3 Moderate
2 3 6
£0.5 –1.0m

2 Minor
3 2 2
£0.25 – 0.5

1 Insignificant
2
Less than
£0.25m

Very Low Low Medium High Very High

0 – 15% 16 – 30% 31 – 60% 61 – 85% 86 – 99%

1 2 3 4 5

PROBABILITY
RISK REGISTER

• Greater probability of achieving of


objectives

• Quick and effective method


• A powerful tool for internal auditors


• Helps organisations to manage


down their risk

• Enhancing communications

    R ISK DE SCRIPT ION QUALITATIVE Programme MI TIGATI ON

Activity Risk Category RISK RISK Prob . Impact Rank Impact Rank Action Plan Prob % Action Plan
CAUSE / BASIS EFFECT / CONS 1 - 5 Owner .
EQUENCES 1 - 5

Wire Fencing, Health & Safety Safety of Injuries, 2 5 10 4 8 Applying HSE 70% Risk Manager
alignment, workers. claims, regulation, notice
cleaning of the project boards, PPE, health
site delays. and safety meetings

Excavation, Construction Surrounding Addition 4 3 12 4 16 boreholes 60% Site Engineer


Embankment areas and cost and investigation,
condition of delay of the previous site data
soil project

Concreting (Gross operational Delivery and condition of 4 2 8 5 20 close supervision 70% Site Engineer
beton) pumping of concrete and before and during
concrete concrete not the concreting,
setting vibration properly,
properly well organize
delivery schedule

Placement of Steel Health and safety safety of injuries, 3 3 9 5 15 Use qualified 40% Site Engineer
reinforcement workers in claims and skilled workers, Use
welding and delays protective
cutting the equipment
steel
Waiting for Quality Collapse of Extra cost 3 3 9 4 12 Monitor the 40% Site supervisor
stabilization of the structure of condition of the
concrete repairing, concrete
Removal of Health and safety Safety of the injuries, 3 2 6 2 6 notice boards, PPE, 50% Risk Manager
Columns' workers claims health and safety
Formworks, awareness
Placement of
Formworks for
first floor's slab

Excavation for the Construction Damage of the Extra cost 4 2 8 4 16 specific drawings 60% Project Manager
pool, Development structure and of and well-organized
of permanent foundation of repairing, construction plan
fencing the building delays

Woodworks and Health and safety suspended injuries 2 4 8 4 8 use protective 80% Risk Manager
Painting micro equipment and
particulars, notice boards
air pollution
ANALYSE RISK

• Avoidance (eliminate,
withdraw from or not
become involved)

• Reduction (optimize -
mitigate)

• Sharing (transfer –
 outsource or insure)

• Retention (accept and


budget)
IMPLEMENT RISK RESPONSES

• Risk Management
Plan

• Implementation

• Review and Evaluation
of plan

CASES (Video – Tacoma
Narrows bridge)
WHAT WENT WRONG?
MILLENNIUM DOME (what went wrong?)

• wrong management structure



• Failure to attract the forecast 12
million visitors.

• confused priorities, the lack of a


clear plan for the contents

• weak financial controls


• £30m closure cost not anticipated


KEY PRINCIPLES

Risk management should:


• create value
• be an integral part of organizational processes
• be part of decision making
• explicitly address uncertainty
• be systematic and structured
• be based on the best available information
• be tailored
• take into account human factors
• be transparent and inclusive
• be dynamic, iterative and responsive to
change
• be capable of continual improvement and
enhancement

QUOTES

you are leaping a ravine, the moment of take-off is a bad time to be considering alternative
ohn Clease, British actor, author (b. 1939)

“Men never plan to be failures; they simply fail to plan to be succe


William A. Ward, British diplomat (b. 1928)
REFERENCES

• BBC REPORT - Dome boss pinpoints failures


http://news.bbc.co.uk/1/hi/uk/1449701.stm Saturday, 21 July, 2001,
07:47 GMT 08:47 UK

• National Audit Office – The Millennium Dome - Publication date: 09


November 2000, HC: 936 1999-2000,ISBN: 010557015X

THANK YOU