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1
Introduction
2
Methodology in summary
3
Client's business objectives and risks
4
Client's project objectives and risks
5
Objectives of key suppliers
6
Risk register
7
Action plan for prioritised risks
8
Regular review of risk register
9
Dealing with consequences of risks
A1
Example
'Value Hierarchy'
A2
Example Project Charter/Protocol
A3
Example Risk Register

2
Guide to risk management

The methodology in summary

Click on a heading to link to the relevant section and read full details.

Identification by client of its own business objectives and risks

  • Consideration by client of its business objectives.

  • What are the business risks to the achievement of these objectives?

Identification by client of its project objectives and risks

  • Consider the need for outside assistance.

  • Starting from the client’s statement of its business objectives – how does the project further these objectives?

  • What are the project objectives?

  • What are the project risks to the achievement of these objectives?

Communication of client’s project objectives to key/supply chain

  • Expressing the client’s project objectives by way of a "value hierarchy" which prioritises the client’s main objective, secondary and tertiary objectives.

  • Give weighting to individual, secondary and tertiary objectives.

  • Consider the risks relating to the achievement of each objective.

Disclosure of objectives of key members of supply chain in becoming involved in the project

  • Selection of key members of supply chain by matching of their own objectives with those of the client.

  • Drawing up of a project protocol to express how client and supply chain will seek to work together to achieve mutual objectives.

Preparation of risk register and prioritisation of risks

  • Potential risks assessed by client and supply chain jointly

  • Concentrate on the risks that are most likely to happen with the most serious consequences

Draw up an action plan to deal with the prioritised risks

  • Which of these risks can be insured against at economic cost?

  • For remaining serious risks agree action required, person/organisation responsible and time period for action including setting a risk allowance and ‘run-down’ programme for the applicable risks.

Regular review and updating of risk register

  • Joint review (including client)

  • Review existing risks, new risks and mitigated risks

  • Re-prioritise on-going risks

  • Identify risks that are no longer relevant and include in a withdrawn risk section

  • Update risk allowance and its "run-down" in respect of the potential consequences of the occurrence of the listed risks.

  • Review actions to be taken and allocate risks to individual "Risk Owners"

 

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