Risk Management is a systematic management tool to support decision making through all Stages (0 to 7) of a project. Project Managers shall identify the risks involved for their project and use the appropriate Risk Management process for the management of these risks.
Risk Management shall be aimed at project specific risk minimisation targets and shall be introduced at the earliest Stages of the project with all members of the core team involved. This is implemented through facilitated risk management workshops at key Stages of the project throughout design and construction. The output from these workshops shall be used to inform the project process and feed into other project documents such as cost plans and contingency plans.
Risk Management techniques offer a systematic approach to the identification, assessment and control of the significant risk factors affecting the progress of the project. Areas of high risk are reviewed to ensure that all reasonably practicable measures have been taken to mitigate them.
The Risk Management process is designed to ensure that as far as reasonable:
- All significant hazards are identified.
- Financial impact of the risk is understood and compared to project contingencies (if needed contingency can be increased to manage risk).
- Judgements are made as to hazard importance.
- Risk exposure is understood and reduced to acceptable levels.
- Cost effective risk control measures are implemented.
- Control measures are reviewed and managed to close out risks where possible.
The Project Manager shall decide on the appropriate Risk Management log/register schedule that shall be used.
The Project Manager may decide that an initial risk workshop is required before drafting this.
An initial risk workshop as per the Risk Management workshop agenda below, with relevant stakeholders and the project team, will be undertaken for all large works projects.
Risk Procedure
- Record of early warning meeting - NEC (Word)
- Risk register (Excel)
- Project board approval (Stages 1 to 4)
All 'red' risks shall be noted on the Project Brief, Project Initiation Document or Change Control (outside tolerances) at the appropriate Stage.
Reporting
The Project Manager shall prepare Risk Management reports to support review or risk status and treatment.
A Quantitative Risk Assessment (QRA) shall be undertaken quarterly to forecast out-turn costs.
The Project Manager shall liaise with the Cost Manager in order to provide contingency costs for inclusion in elemental cost plans and whole life costing studies.
Scheduled risk assessment shall be undertaken for time critical projects affecting occupancy for Imperial academic and research work. The analysis shall be undertaken by a Risk Specialist using critical path and probabilistic planning tools.
The Project Manager shall liaise with the Category Manager (Construction) and the Quantity Surveyor to determine the most appropriate contract strategy and terms in view of the risks identified; the severity and treatment strategy.