Risk Analysis and The Risk Workshop
Risk analysis should be performed as part of the risk management process for each project. The data of which would be based on risk discussion workshops to identify potential issues and risks ahead of time before these were to pose cost and/ or schedule negative impacts (see the article on Cost contingency for a discussion of the estimation of cost impacts).
The risk workshops should be chaired by a large group ideally between 6 to 10 individuals from the various departmental functions (e.g. project manager, construction manager, site superintendent, and representatives from operations, procurement, controls, etc.) so as to cover every risk element from different perspectives.
The outcome of the risk analysis would be the creation or review of the risk register to identify and quantify risk elements to the project and their potential impact.
Given that risk management is a continuous and iterative process, the risk workshop members would regroup on at regular intervals and project milestones to review the risk register mitigation plans, make changes to it as appropriate and following those changes re-run the risk model. By constantly monitoring risks these can be successfully mitigated resulting in a cost and schedule savings with a positive impact on the project.
Read more about this topic: Risk Analysis (engineering)
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