RISK MANAGEMENT

Risk Management is one of the four Processes “owned” by Project Management. Whilst there are other processes covering specific requirements ( Manage Business Risk and Prepare Tender Cost Estimate), it is vital that the Project Manager applies a structured approach to Risk Management throughout the project lifecycle.

Details of how cost and schedule risks are mitigated and managed are contained in Procedure IMS/13/04/01. This defines how the Risk Register is set up, how the necessary contingencies on schedule and cost are managed and how often a formal review of the risks is held.

Whilst some of the mechanics of managing risk can be devolved to others on the project team, the Project Manager will always remain responsible and accountable for the risks.

It is important to remember that Risk Management does not stop at plant start-up or handover, as warranties/guarantees will be in place for up to several years. These remaining liabilities must be identified and managed.

Reference Documents

Risk Management Procedure

 Basic Project Risk Manag ment

Claims & Contract Disputes

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