Guidebook on Risk Analysis Tools and Management Practices to Control Transportation Project Costs (2010) / Chapter Skim
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Pages 60-69
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From page 60... ...
Ideally, this engineer's estimate will be an amount equal to the baseline estimate. 7.1.2 Design Phase Risk Management Emphasis Design phase risk management practices focus on monitoring and controlling risks and their associated cost contingency.
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From page 61... ...
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. 7.2.1 Design Phase Risk Identification Inputs The project scope (generated during the programming phase)
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From page 62... ...
Design 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 Workshops R3.11 Risk Breakdown Structure R3.12 Risk Register
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From page 63... ...
Conduct a risk identification exercise whenever new information is discovered during the design process or whenever there is a significant change to the project scope. 7.3 Design Phase Risk Assessment and Analysis The level of effort needed for thorough risk assessment and analysis varies in the design phase, with the purpose of the risk analysis.
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From page 64... ...
7.3.4 Design Phase Risk Assessment and Analysis Relationship to Project Complexity Risk assessment and analysis are directly tied to project complexity. This can best be seen in the tie between risk analysis and contingency calculation.
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From page 65... ...
7.4 Design Phase Risk Mitigation and Planning Risk mitigation and planning efforts are active and continuous throughout the Design Phase. The objectives of risk mitigation and planning are to explore risk response strategies for the high-risk items identified in the qualitative risk assessment or quantitative risk analysis.
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From page 66... ...
Design phase risk mitigation and planning tools. Tool M in or M od er at el y C om pl ex M ajo r I2.1 Red Flag Items R3.1 Risk Management Plan R3.5 Estimate Ranges – Monte Carlo Analysis R3.6 Risk Workshop R3.11 Risk Breakdown Structure R3.12 Risk Register R3.13 Risk Management Information System
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From page 67... ...
7.5 Design Phase Risk Allocation The goal of risk allocation is to minimize the total cost of risk on a project and not necessarily the costs to each party separately. Risk allocation begins in the programming phase with the project delivery decision and contract packaging decisions.
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From page 68... ...
At the end of the design phase, detailed risk allocation decisions regarding the individual contract provisions will be made. 7.5.4 Design Phase Risk Allocation Relationship to Project Complexity Minor projects tend toward the use of traditional risk allocation strategies.
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From page 69... ...
7.6.4 Design 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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