Risk Management Handbook by H Global Managing Project - Group H Samuel SuarezMark McCann Ankit TanejaNazmul Alam LaurenceHsuTony Huang Farid MojahediEddie Yeung

 This Presentation: – The Purpose of Risk Management Handbook – Policy requirements – Risk management approach – Risk identification techniques Introduction R ISK M ANAGEMENT H ANDBOOK

6 1 Risk Management Handbook R ISK M ANAGEMENT H ANDBOOK

Overview

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 R ISK M ANAGEMENT H ANDBOOK

Why Risk Management? R ISK M ANAGEMENT H ANDBOOK

 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 R ISK M ANAGEMENT H ANDBOOK

 Procedures (AS 4360:2004): 1 – Establish the context 2 – Identify the risks 3 – Analyse the risks 4 – Evaluate the risks 5 – Treat the risks 6 – Monitor and report 7 – Communicate and consult Risk Management Approach R ISK M ANAGEMENT H ANDBOOK

Risk Management Approach R ISK M ANAGEMENT H ANDBOOK

 What needs to be consider: —Define scope and objectives —Stakeholder identification —Identify criteria —Define key elements Establish the Context R ISK M ANAGEMENT H ANDBOOK

 Tools and Techniques for Risk Identification – Documentation Review – Brainstorming – Checklist Analysis – Assumptions Analysis – Root Cause Analysis Risk Identification R ISK M ANAGEMENT H ANDBOOK

 Risk Analysis Techniques Risk Analysis R ISK M ANAGEMENT H ANDBOOK TechniqueEffortAccuracy Expected Value Rank LowHigh Risk Categorisation Low 3 point estimation LowMedium Decision Trees LowHigh Risk Matrix Low Pareto Analysis Low

 Risk Analysis Techniques Risk Analysis R ISK M ANAGEMENT H ANDBOOK TechniqueEffortAccuracy WBS Breakdown analysis MediumLow Critical Path analysisMediumLow Pert AnalysisHighMedium Risk SystemHighMedium Monte Carlo simulation High

 Type of Responses: —Mitigation —Acceptance —Avoidance —Transference Risk Response R ISK M ANAGEMENT H ANDBOOK

 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 Monitoring R ISK M ANAGEMENT H ANDBOOK

 Tools and Techniques – Risk reassessment – Risk audits – Variance and trend analysis – Technical performance and measurement – Reserve analysis – Status meeting Risk Monitoring R ISK M ANAGEMENT H ANDBOOK

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 Reporting R ISK M ANAGEMENT H ANDBOOK

 The purposes of Practical Example  These examples include:  Luxor Technologies  SHELL’s Sydney Harbour Oil Spill  Chernobyl Disaster  How to use these examples Practical Example R ISK M ANAGEMENT H ANDBOOK

 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 Conclusion R ISK M ANAGEMENT H ANDBOOK

Summary on today presentation Questions R ISK M ANAGEMENT H ANDBOOK

The End R ISK M ANAGEMENT H ANDBOOK