Guidebook on Risk Analysis Tools and Management Practices to Control Transportation Project Costs (2010) / Chapter Skim
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Pages 51-59
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From page 51... ...
The risk management process is tied to cost estimating through the risk identification, risk assessment and analysis, and risk mitigation and planning when preparing the baseline cost estimate. 6.1.2 Programming Phase Risk Management Emphasis Risk management practices during the programming phase focus on comprehensive risk identification, detailed risk assessment and analysis, and risk mitigation and planning.
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From page 52... ...
Avoid beginning the process with the risk checklists or similar project analyses as the team may overlook unique project risks or include too many risks in the analysis, and this will make the process less useful. 6.2.1 Programming Phase Risk Identification Inputs The project scope generated in the programming process and the related base estimate package comprise the key inputs for risk identification.
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From page 53... ...
Programming phase risk identification tools. Tool M in or M od er at el y C om pl ex M ajo r I2.1 Red Flag Items I2.3 Risk Checklists I2.4 Assumption Analysis I2.5 Expert Interviews I2.6 Crawford Slip Method I2.7 SWOT Analysis R3.1 Risk Management Plan R3.6 Risk Workshop R3.11 Risk Breakdown Structure R3.12 Risk Register
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From page 54... ...
Ultimately however, the purpose of quantitative analysis is to not only compute numerical risk values but to provide a basis for controlling project costs through effective risk management practices. 6.3.1 Programming Phase Risk Assessment and Analysis Inputs The physical input to risk assessment and analysis is the list of risks from the identification step.
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From page 55... ...
In the Type III analysis, the tie is direct as the list of risks forms the basis for the stochastic model that drives the contingency estimate. 6.3.5 Programming Phase Risk Assessment and Analysis Tips There must be a clear understanding of risk significance and a description of what the contingency amount (included in a cost estimate)
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From page 56... ...
However, the complexity of the process is not overwhelming and the generated information is extremely valuable. 6.4 Programming Phase Risk Mitigation and Planning Risk mitigation and planning efforts at the programming phase are the foundation for risk management throughout the remainder of the project development.
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From page 57... ...
Major projects or moderately complex projects with high levels of uncertainty will benefit from having a detailed and formal Risk Management Plan (R3.1) that records all aspects of risk identification; risk assessment; risk analysis; risk planning; risk allocation; and risk information systems, documentation, and reports.
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From page 58... ...
– Ultimately seek to allocate risks to promote team alignment with customer-oriented performance goals. 6.6 Programming Phase Risk Monitoring and Control The objectives of risk monitoring and control are to 1)
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From page 59... ...
6.6.4 Programming Phase Risk Monitoring and Control Relationship to Project Complexity Only the simplest minor projects will use a Red Flag Item (I2.1) list for risk monitoring and control.
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