Risk management professionals today have sophisticated analytical tools at their fingertips to provide a detailed view of the risks faced by a project. Yet despite this, many projects continue to finish late, over budget, below expectations or any combination of these deficiencies.
In this Q&A, we’ll be exploring two scenarios that risk managers commonly face with the help of Fernando Hernandez, a senior risk consultant with over 30 years of experience.
Many of you might have seen this image recently when it went viral on social media, and reactions might have included laughter or a shaking of heads. If you work with risk, it might have crossed your mind that you would never be involved in anything like this.
Owner and director of Redstone Risk Ltd, Will Foulds, introduces his new report which shows that certain risk management practices lead to higher project profits.
A recent study in the International Journal of Engineering Business Management (Vol 11, 1-16), found that the level of a business’ Project Risk Management Maturity (PRMM) has a significant impact on its profit performance.
The success of Cost and Schedule Risk Analysis (CSRA) begins and ends with the very first stage of the process; the collation of data inputs. Quite simply, the quality of the data - covering cost, schedule, uncertainties and risks – that project teams put in, will determine the quality of the risk insights they get out. By taking the time to get this initial stage right, project teams can make better-informed decisions and improve project outcomes.
Ezinwanyi Kesieme is Associate Risk Manager (Head of Quantitative Modelling) at multinational engineering firm, AECOM. Below she explores why AECOM has adopted the “Risk Driver Method” and “Sensitivity Analysis”. She explains how these modern and powerful risk analysis methods help AECOM to complete projects faster and with lower total project cost.
The majority of project teams conduct cost and schedule risk analysis (CSRA) for one simple reason – more realistic information = better business decisions.
Revealing the likely impact of individual risks on a project’s cost and time to complete, CSRA is a valuable tool in every project team’s toolbox. It ultimately enables organisations to turn their project risk data into meaningful messages that inform project teams, guide their decision-making and engage them in a way that many traditional project management techniques simply cannot.
Risk and resilience expert, Alexander Larsen, explains why getting the most out of Cost and Schedule Risk Analysis (CSRA), can be an immensely rewarding experience.
Donna Festorazzi is Head of Programme Risk Management at Stantec and an internationally experienced risk management professional, with a multidisciplinary background. She believes that risk management insights should empower project teams to optimise delivery performance, rather than purely facilitate project-approval processes.