Project Risk Management Plan

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Project Risk Management Plan

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Risk Management Process Plan

Revision No: 0

QA/QC Manager
1 Issued for Approval /Construction Project Manager Clint
Manager

QA/QC Manager
2 Issued for Approval /Construction Project Manager Clint
Manager

QA/QC Manager
3 Issued for Approval /Construction Project Manager Clint
Manager

Reviewed by
Signature/date
Rev. Date Revision reason Prepared by Reviewed by

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Contents

1.0 INTRODUCTION.................................................................................................................................4

2.0 PROJECT DESCRIPTION..................................................................................................................4

3.0 RISK MANAGEMENT PLAN OBJECTIVES AND SCOPE ...............................................................4

4.0 TERMS AND DEFINITIONS ...............................................................................................................4

5.0 KEY PROJECT MANAGEMENT INTERFACES ...............................................................................4

6.0 REFERENCES....................................................................................................................................4

7.0 ROLES AND RESPONSIBILITIES ....................................................................................................4

7.1 Project Manager ..................................................................................................................................5

7.2 Risk Manager ......................................................................................................................................5

7.3 Project Team .......................................................................................................................................5

7.4 Risk Owner ..........................................................................................................................................5

7.5 Risk Action Owners .............................................................................................................................5

8.0 PROCESS ...........................................................................................................................................6

8.1 Overview of the Process .....................................................................................................................6

8.2 Governance Arrangements ................................................................ Error! Bookmark not defined.

9.0 PROJECT RISK ASSESSMENT METHODOLOGY ................................................................................9

9.1 Risk Likelihood Categories .............................................................................................................. 12

9.2 Project Risk Tolerance Criteria ........................................................................................................ 13

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NTRODUCTION
Any project have some risks, some of them are known un known “contingency reserves “and the others un
known un known “Management reserves “and the contractor do a plan to treat with this risks.

1.0 PROJECT DESCRIPTION

The completion of Riyadh strategic Plan C-12.

2.0 RISK MANAGEMENT PLAN OBJECTIVES AND SCOPE

The purpose of the risk management plan is to:
• Define roles, responsibilities and levels of authority for risk management.
• Define the project risk management processes,
• define the project risk management reporting, escalation and governance arrangements that will
be employed on the project
• Define how risk management processes integrate and fit with the other project management
processes.
• Define the project risk assessment methodology and the associated risk tolerance criteria that will
be employed on the project.

3.0 TERMS AND DEFINITIONS

See Risk_Plan_Attachments / Attachment no. 2

4.0 KEY PROJECT MANAGEMENT INTERFACES

The project risk management activities that will be undertaken to comply with the project risk
management procedure, and in accordance with this project risk management plan, will be informed
by the Project Execution Plan.
Outputs from execution of the project risk management plan will feed into the Project Controls
processes for the Trend Program process and the Critical Items Action Reporting process.

5.0 REFERENCES
Key references cited in this plan are as follows:

NWC-Project Management Manual-Section13- PMM-013-RIS-000_v2

6.0 ROLES AND RESPONSIBILITIES

In this section the key roles associated with managing and executing the risk management plan will
be identified and the responsibilities of each key role described.
A named individual MUST be provided for the Project Manager role before the project risk
management plan can be issued.
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As the project risk management plan is developed, then other roles may have names allocated to
them but this will be at the direction of the Project Manager. Over the whole project life cycle then
named individuals against specific roles will change. A register of these named individuals shall
be maintained at the direction of the Project Manager which will capture the historical record of all
changes in key roles.
[See Risk_Plan_Attachments / Attachment no.1 include the fuller descriptions (Brief summaries of
these specific responsibilities are provided here)

6.1 Project Manager

• To provide overall direction for the project, including project risk management activities
• To support all internal and external interface and resource requirements.

6.2 HSE Manager

• To support the Project Manager by managing the project risk management process
• To engage with all internal and external stakeholders and facilitate all communication requirements
• To manage the interfaces with all other relevant project management processes
• To maintain the project risk register and facilitate all data collation in support of this.
6.3 Project Team

• To participate in and contribute to the execution of the project risk management process throughout
the complete project life cycle
• To provide expert input on the allocation of Risk Owners for all identified project risks
• To provide guidance and expert input on any decisions about risk management intervention
options.

6.4 Risk Owner

• These are nominated by the project team against individual risks, and approved by the Project
Manager
• Responsible for the management of any risks allocated to them – and are answerable to the Project
Manager
• Provide suggestions to the project team on the risk management interventions that could be
employed to help manage specific risks.

6.5 Risk Action Owners

• These are nominated by the Risk Owner

• Responsible for the implementation and execution of agreed risk management interventions - and
are answerable to the Risk Owner
• Responsible for monitoring and reporting effectiveness of the risk management interventions that
they are responsible for.

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7.0 PROCESS
The project risk management process that will be followed is fully described in the NWC-Project
Management Manual-Section13 PMM-013-RIS-000_v2. Brief summaries of these processes are
provided here. All project risks will be recorded in the project risk register in accordance with the
Requirements described in the project risk management procedure.
[See Risk_Plan_Attachments as follows:
Attachment no.3: Guide to Hierarchical Sources of Risk
Attachment no.4: Tools, Techniques and Templates for Project Risk Management
Attachment no.5: A template risk register has been developed for this purpose and an example of
this is presented in Risk_Plan_Attachments ].

7.1 Overview of the Process

2009 Project Management Institute. Practice Standard for Project Risk Management

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The steps outlined previously form the Project Risk Management process as follows:

• Plan Risk Management: Defines the scope and objectives of the Project Risk Management
process, and ensures that the risk process is fully integrated into wider project management.

• Identify Risks: Identifies as many knowable risks as practicable.

• Perform Qualitative Risk Analysis: Evaluates key characteristics of individual risks enabling them
to be prioritized for further action.

• Perform Quantitative Risk Analysis: Evaluates the combined effect of risks on the overall project
outcome.

• Plan Risk Responses: Determines appropriate response strategies and actions for each individual risk
and for overall project risk, and integrates them into a consolidated project management plan.

• Monitor and Control Risks: Implements agreed-upon actions, reviews changes in project risk
exposure, identifies additional risk management actions as required, and assesses the effectiveness of
the Project Risk Management process.

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8.1 Governance Arrangements
The project risk management activities that are managed and overseen by the Risk Manager will be
undertaken according to a predetermined management cycle that will be agreed and approved by the
Project Manager.
These are recorded here:

[The following Activity [edit tabIe as appropriate]

table provides an
example of this
cycle but the
actual timings will
be specified for
each project.]Prior
to:

1st and 16th of the • Risk owners review their risks for update and action using reports and metrics provided
Month by the Risk Manager

• Risk manager, Risk Owners and other risk stakeholder’s update risks in the project
risk register, and evaluated risk response pIans as required by risk review
2nd to 17th of each requirements
Month
• From stakeholders discussions, consideration is given to the potential for new risks for
consideration by the project management team at the monthly risk meeting, or sooner if
a high-IeveI risk is foreseen
12rd and 27th of each • The risk register is frozen at for report deveIopment and for a copy to be archived
Month

• The Risk Manager issues reports and metrics to the Project Manager, project team (or
14th and 29th of each project risk review group), Risk Owners, and other stakehoIders (e.g. the customer)
Month
• Risk manager ensures data archivaI requirements are compIied with

15th and 30th of each • The bi-weekIy project risk review meeting is heId with the project team (or project risk
Month review group)

• Project team (or project risk review group) undertake a fuII review of the project risk
register
QuarterIy
• Review of overaII effectiveness of project risk management pIan and associated activities
with the project management team

• Project risk identification workshop with the project team (or project risk review group)
and other risk stakehoIders
Semi-AnnuaIIy
• HeaIth check of project risk management process, either as part of Stage . the project
team (or project risk review group), or independentIy initiated

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8.0 PROJECT RISK ASSESSMENT METHODOLOGY

Project risks will have their impacts and likelihoods (probability) assessed or rated according to
the scheme described below. Project risks will then be mapped onto the project risk matrix
according to the combination of impact and likelihood. Priorities for risk management interventions
will be determined according to the method and tolerance criteria described in Section 9.3.
[Cost and Time will be edited on a bespoke basis and to match project scale. The other dimensions
should not be changed.]

8.1 Project Risk Impact Rating Scheme:

Impact A B C D E
Category Very Low Low Medium High Very High

Project Project Specific Project Specific Project Specific Project Specific

Specific
e.g. 1-4% of e.g. 4-7% of e.g. 7-10% of e.g. > 10% of
Cost e.g. < 1% of
budget budget budget budget
budget

Project Project Specific Project Specific Project Specific Project Specific

Specific
e.g. 1-5% of e.g. 5-10% of e.g. 10-20% of e.g. > 20% of
Time e.g. < 1% of
project schedule project schedule project schedule project schedule
project schedule

Recordable,
First aid or slight Lost time Single fatality or
medical
injury/illness injury/illness or permanent
Safety treatment, Multiple fatalities.
with no permanent disability of 3 or
restricted work,
treatment. disability. more persons.
temporary effect.

Systemic Systemic
defective work defective work
Defective work
produced & produced & not
not identified
identified prior to identified until
until operational
operational operational
Defects in work testing. Single
Defective work testing. Multiple testing. Multiple
identified. Minor corrective
identified. corrective corrective actions
corrective action actions spanning
Corrective action actions required required
contained within multiple weeks.
spanning over many days. spanning
operational role Significant
multiple shifts Moderate months.
Quality in that shift. impact. Risk of
required. Minor schedule impact Catastrophic
Insignificant lost time incident
schedule and or knock on impact, risk of
impact, fully in operational
cost impact. effect on employee fatality
contained. Minor testing. Multiple
Schedule delaying in operational
productivity weeks delay to
recoverable. subsequent work testing, Multiple
impact. schedule and up
activity by a months impact
to $1M cost
number of days on schedule &
impact to
& up to $50k cost multi-$M cost
business.
impact to impact to
business. business.

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Impact A B C D E
Category Very Low Low Medium High Very High

Moderate to
Negligible short- significant impact Significant Catastrophic
Insignificant term impact, confined on site, impact on or off impact, long-term
Environmental impact. fully confined on site, regulatory site, or potential liability, or
contained. no regulatory exceedance, or enforcement irreversible
exceedance. any off-site action. damage.
impact.

Community/NGO
legal action.
Persistent Significant
complaints from concerns
Little or no Significant
community and expressed by key
complaint(s) to Minor complaint(s) from
national international
site and/or complaint(s) abutters, local
stakeholder stakeholder
regulator from from abutters, stakeholder
Community groups or groups or from
abutters, local local stakeholder groups or local
national more than one
stakeholder groups or local government.
government. national
groups or local government. Isolated, small-
Large-scale government.
government. scale protest.
protests. Threat Sustained large-
of legal action. scale protests
with injury or
damages.

Sustained Influential
negative national or
regional or international
Regional
national media negative media
negative media
coverage. coverage.
coverage.
No negative Local negative Significant Significant impact
Disruptive impact
media coverage. media coverage. and/or sustained on project
on current
Reputation No disruptions Some limits on
operations. Issue
impact on delivery for
in current current project months.
creates
operations. operations. progress/current Customer
complications
operations. publicly states
with customer
Issue creates dissatisfaction
relationship.
significant with EPMO.
customer Significant legal
conflict. action.

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Impact A B C D E
Category Very Low Low Medium High Very High

A threat exists
against the asset A threat exists
A threat exists A threat exists
or a person. A against the asset
A threat exists against the asset against the asset
willful criminal or persons. A
against the or a person. A or persons. A
act or condition willful criminal
asset or a willful criminal willful criminal act
resulting in a act or condition
person. A willful act or condition or condition
Category II resulting in one
criminal act or resulting in one resulting in one
impact. Normal or more
Security condition or more or more Category
management Category IV
resulting in a Category III V impacts.
action required. impacts.
Category I impacts. External Multiple external
Low level of External
impact. Normal emergency emergency
external emergency
management service services
emergency service
action required. assistance may assistance is
service assistance is
be required. required.
assistance may required.
be required.

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8.2 Risk Likelihood Categories

Project Risk Likelihood (Probability) Rating Scheme

A B C D E
Category
Rare Unlikely Possible Likely Almost Certain

Risk is unlikely to
Risk has recently
Risk has an occur on this Risk is highly
Risk occurs often occurred on a
occurrence of project with likely to occur on
Likelihood within the similar project
less than 1% in current this project,
industry or within the
the relevant processes and potentially
Company. industry or
industry. procedures in multiple times.
Company.
place.

Probability < 10% 11% to 30% 31% to 50% 51% to 70% > 71%

(Note - only likelihood OR probability will be used, never both at the same time.)

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8.3 Project Risk Tolerance Criteria
The following example of the risk matrix represents what should be included in the risk
management plan, which should be specific to each project, including an explanation of risk matrix
categories (red, amber, yellow, green) and the score mechanism.

9.3.1 Threats:

Note – these impact scales are illustrative only. Each project should define its own impact scales
to
reflect the overall budget and schedule for project delivery.

Level of Risk Exposure

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9.3.2 Opportunities:

Note – these impact scales are illustrative only. Each project should define its own impact scales to
reflect the overall budget and schedule for project delivery.

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