Guide for the Process of Managing Risk on Rapid Renewal Projects (2012) / Chapter Skim
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Pages 29-39
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From page 29... ...
27 INTRODUCTION As described in Chapter 2, the first step in the risk management process is to describe the base project to facilitate the rest of the process. Objectives The primary objective of structuring a project for risk management is to adequately define the base project, relative to which risks can be identified, assessed, and eventually managed.
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28 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS schedule, and other performance estimates with the project scope and strategy, considering the key project conditions and assumptions. Another objective is to complete this step in the overall risk management process efficiently, producing accurate and defensible results that are compatible with the other steps of the process (which in turn is compatible with the project management approach)
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From page 31... ...
29 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS for in a formalized and structured manner in later steps of the risk management process. The risk management process will be used to replace these traditional estimate items with a more individually defined set of risks and a conscious policy decision on the appropriate level of confidence (reliability)
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From page 32... ...
30 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS project scope, planned delivery strategy, key conditions and assumptions, and base project performance (cost, schedule, disruption and longevity) , which are described individually below in more detail.
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From page 33... ...
31 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS the major project activities and their sequence and precedence requirements. As discussed later, the project schedule can subsequently be determined from this flowchart by assessing activity durations, lags, and external milestone dates.
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From page 34... ...
32 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Base Project Performance Base project performance includes the base project schedule, cost, disruption, and longevity. All bias, conservatisms, and explicit contingencies should be removed from the base performance measures; these will be added in the later risk assessment and risk analysis, as discussed in Chapters 5 through 7.
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33 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS longevity. The base disruption for each activity in turn must be adequately assessed.
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From page 36... ...
34 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS As for cost, schedule, and disruption, if one of the simple standard flowcharts (Figure 3.2) is used, then the cost and disruption for each postconstruction flowchart activity can be estimated (as described above)
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From page 37... ...
35 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS As for cost, schedule, disruption, and longevity, if one of the simple standard flowcharts (Figure 3.2) is used, then trade-offs for schedule, disruption, and longevity can be specified and readily analyzed because the base combined performance analysis has been programmed in Microsoft Excel (see Appendix C)
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From page 38... ...
36 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS analysis, however, more detail might be appropriate, including (a) a custom project flowchart with an explicit allocation of the various cost items and risks to those more detailed project activities; and (b)
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From page 39... ...
37 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS were allocated to those flowchart activities. This simplified flowchart serves as the basis for subsequent risk identification and assessment, and then proactive individual risk reduction identification and evaluation.
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