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40 CHAPTER 4 Guidebook Framework 4.1 Introduction Note that Chapter 7 combines the preliminary design and final design phases described in Chapter 2. These phases were This chapter describes the Guidebook framework used to combined to minimize redundancy and also due to the fact present information contained in Chapters 5, 6, and 7. Each that the risk management approach does not vary substan- chapter covers a different phase of the project development tially from the preliminary to final design phases. Figure 4.2 process--planning, programming, and design (both pre- illustrates how the risk management process focus changes liminary and final design). Each of these phases has its own throughout the phases. In the planning phase, the process fo- unique challenges related to achieving the objectives of the cuses on risk identification with some initial assessment and five project risk management steps. Risk management ap- planning activities. In the programming phase, when the proaches vary depending on the phase of project develop- baseline estimate is often set, the process focuses on contin- ment and on a project's complexity. These approaches vary ued identification, analysis and detailed planning. The risk because different tools and management practices are re- management process is completely implemented in the de- quired when implementing the risk management process sign phase. The subtle differences in risk management be- within a project context. Although there is overlap and tween the preliminary and final design phases are explained redundancy in the information presented, the overlap and in Chapter 7. These changes in the risk management process redundancy is necessary to effectively implement risk across the phases are discussed in Chapters 5, 6, and 7. These management in the context of project complexity and the changes also are summarized in Table 3.2. phase within which the project finds itself. The structure Within each chapter, the application of each step of the risk and format of Chapters 5, 6, and 7 is the same; however, management process is explained. It is the premise of this the content varies depending on the project phase, the proj- Guidebook that all projects, regardless of project size and proj- ect information and data available, and the purpose of ect complexity, require some form of risk management plan- risk management and cost control as applied during that ning. The framework of risk management remains the same, phase. but the tools and level of effort vary with the project complex- ity. Each risk management step is described for each level of project complexity with the following structure: 4.2 Guidebook Structure and Layout Chapters 5, 6, and 7 focus on the application of the funda- Inputs--the information required for the risk manage- mental concepts presented in Chapters 1, 2, and 3. These ment step; chapters provide guidance to risk management implementa- Tools--a mapping of appropriate tools that are included tion during each phase. The goal of this structure is to help in the Appendix A; planners, designers, estimators, and project managers quickly Outputs--the information that will be produced from the locate the tools they need to implement risk management. risk management step; The structure follows a hierarchical layout of project devel- Complexity--relationship to project complexity; and opment phase, risk management step, and project complex- Tips--advice for implementing the risk management step ity as shown in Figure 4.1. and the use of risk management tools.

OCR for page 40
41 Chapter 5 Guide to the Planning Phase Chapter 6 Guide to the Programming Phase Chapter 7 Guide to the Design Phase Monitor Identify and Control Risk Management Assess/ Allocate Process Analyze Mitigate Level of Complexity and Plan Minor Moderately Complex Major Appendix A Figure 4.1. Guidebook structure. Chapter 5 Guide to the Planning Phase Monitor Identify and Control Chapter 6 Guide to the Risk Programming Phase Management Assess/ Allocate Process Monitor Analyze and Identify Chapter 7 Guide to the Control Design Phase Mitigate Risk and Plan Management Monitor Identify Assess/ and Allocate Process Analyze Control Risk Mitigate Management and Plan Assess/ Allocate Process Analyze Mitigate and Plan Figure 4.2. Risk management focus within the project development phases.