example risk management plan

5/28/2018 Example Risk Management Plan

1/8

Utility Corporation Example Risk Management Plan

RISK MANAGEMENT PLANALPHA TO OMEGA LINE

TRANSMISSION LINE PROJECT

UTILITY CORPORATION

ST.LOUIS,MO 63103

APRIL 10,2013


2/8

Utility Corporation Example Risk Management PlanTABLE OF CONTENTS

Introduction ............................................................................................................1

Risk Management Approach ...................................................................................1

Risk Owners ...........................................................................................................1Risk Identification...................................................................................................2

Risk Qualification and Prioritization .......................................................................2

Risk Monitoring ......................................................................................................4

Risk Response Strategies ........................................................................................4

Risk Register ..........................................................................................................5

Contingency Management ......................................................................................5

Acceptance .............................................................................................................5


3/8


Page 1of 6

INTRODUCTION

The purpose of this Risk Management Plan is to discuss how risks are identified, evaluated,

ranked, monitored, and addressed as part of this project.

RISK MANAGEMENT APPROACH

The project team will undertake a methodical approach to risk management that will include the

creation and maintenance of a risk register. Risk reviews will be incorporated into the routine

project meetings as an agenda item to address risks with an approaching due date (two weeks)

and into the construction meetings once they have begun to provide a more frequent review of

the items that could affect project success.

Owners will be identified and assigned to all risks where they will have the responsibility to

develop triggers to monitor the risk and response plans appropriate for each item identified.

Each risk owner may, at their discretion, assign someone to develop the response plans and

monitor the triggers, but the owners will maintain the responsibility to monitor and report the

status of all risk items back to the project team.

At project completion, during the closing process, the project manager and team will assess the

risk management process and will identify any improvements that can be made for future

projects. Proposed improvements, as well as the final risk register, will be captured as part of the

lessons learned knowledge base.

RISK OWNERS

The following individuals have been identified as the risk owners for the project. This list will be

updated and maintained throughout the project in order to ensure the appropriate individual with

the line-of-sight to the risks are named and aware of their roles.

Role Team Member

Risk Plan / Register Owner Ringo Starr

Risk Plan / Register Advisor Darin Hendry

Environmental Risks David Bowie

Real Estate Risks Michael Phelps

Transmission Line Design Risks Calvin Klien

Materials Paul Newman

Transmission Line Construction Robert Redford

Project Scheduling and Controls David Hasselhoff

Contractor Selection CDT (Sir Elton John)


4/8


Page 2of 6

RISK IDENTIFICATION

Risk identification will be done in several stages throughout the lifecycle of the project, but the

following will be the most prevalent.

Project ManagerThe project manager solicited team member and risk owner input into potential project

risks and incorporated these into the project risk register. Risk registers from several

other projects of similar scope were also reviewed to identify lessons learned and

potential risks documented on those projects.

Risk Assessment MeetingsRegular risk assessment meetings have and will continue to be scheduled with key team

members and stakeholders to review the risk register. The team will review all active

risks and will ensure appropriate risk ranking, impact, and response strategies have been

developed and owners assigned to each risk on the register. Any new risks identified

during the meetings will be added to the project risk register along with the appropriate

status updates to risks already being monitored.

Expert Discussions

The project manager will continue to meet with individual subject matter experts

throughout the project lifecycle and will capture any new risks during those meetings and

will assure they are added to the risk register for management.

RISK QUALIFICATION AND PRIORITIZATION

In order to determine the severity of the risks identified by the team, a probability and impact

factor will be assigned to each risk. This process will allow the team to prioritize risks based

upon the effect they may have on the project. A probability-impact matrix will be used tofacilitate the team in moving each risk to the appropriate ranking on the risk register. Impacts

will be assigned to several potential project areas including; Technical Performance, Schedule,

Cost, and Safety.


5/8


Page 3of 6

The following table assigns some measurable attributes to the probability and impact ratings that

are used as part of the risk register (shown above).

Impact Legend:

Negligible Marginal Significant Critical Catastrophic

1 2 3 4 5

Technical Performance Shop Repair Field Repair Field Re-Work Minor Failure Major Failure

Schedule 1 day 1 week 1 month 6 months 1 year

Cost $50,000 $100,000 $250,000 $500,000 $1,000,000

SafetyFirst Aid Doctor Visit Recordable Lost Time Major Injury / Death

Probability Legend (p=probability of occurrence):

Rare Unlikely Possible Likely Certain

1 2 3 4 5

Probability p < 5% 5% < p < 10% 10% < p < 50% 50% < p < 75% p > 75%

Legend:Impact Probability1 - Negligible 1 - Rare2 - Marginal 2 - Unlikely

3 - Significant 3 - Possible4 - Critical 4 - Likely5 - Catastrophic 5 - Certain


6/8


Page 4of 6

RISK MONITORING

Once the risks are appropriately ranked, the highest risk items will have triggers identified by

risk owners, or their designees, that will indicate a risk is about to occur. The triggers will enact

the appropriate risk response strategy. Risks and their triggers will be reviewed (at a minimum)

once a month during the design development process and more frequently during construction. If

a risk trigger event is identified by anyone on the project team between meetings, they will

contact the project manager immediately in order to begin the appropriate risk response

measures.

RISK RESPONSE STRATEGIES

Risk response strategies will include the following:

Avoidance

A risk should be avoided if reasonable. Safety, Quality, Cost, and Schedule impacts will

need to be evaluated to determine whether the cost of avoidance (in dollars or time) will

support such a decision.

AcceptanceThe project team may agree to accept some risks and take no further action with them.

These would include risks where there is no way to predict or avoid when the risks might

occur or what impact they would have to the project. These may also include risks with

an impact small enough (in relation to Safety, Quality, Cost, or Schedule) such that other

responses would not be justified.

Mitigation

If a risk is unavoidable, then reasonable efforts should be taken to minimize the impact to

the project where warranted. Evaluation of the impact to Safety, Quality, Cost, andSchedule will drive what type of mitigation efforts would be warranted for each risk.

TransferenceWhen an outside party is better prepared to manage a risk, a risk may be transferred to

that party. The use of lump-sum contracts can be an effective method of risk transference

as long as the scope of work is well developed and appropriate and adequate contract

language is in place to protect Ameren and to treat the contractors or vendors fairly.

Bonding and/or punitive language can also help to transfer the cost of risks, but often

come with a base cost impact to the contract as it is implemented and should be evaluated

closely before being included.

ResponseIf all attempts to avoid, mitigate, or transfer risks have failed (excluding risks the project

team chooses to accept), a risk response plan will be developed to outline how the project

team should react when the risk occurs.

All risks will be evaluated against Safety, Quality, Cost, Schedule, and Technical performance in

order to determine which response strategy outlined above is appropriate. Once the risks have


7/8


Page 5of 6

been ranked, the highest risk items will have detailed response plans written by the risk owners,

or their designees.

RISK REGISTER

A project risk register has been developed for the project and will be the main repository for all

significant project risks to be identified, ranked, and monitored. The risk register will also

contain links to the appropriate risk response plans once they have been developed.

The Risk Register will be maintained separately on the project SharePoint site and shall be

considered part of this overall risk plan document. Upon project completion, the risk register will

be copied to the lessons learned repository, and unique risks shared with other project teams.

CONTINGENCY MANAGEMENT

Estimates for both maximum exposure and expected exposure will be performed for each of the

discrete risks identified in the risk register. The sum of the expected numbers for all of the

discrete risks will become the value of contingency being forecasted and managed for theproject. The sum of the expected exposure and the total project estimate (without contingency)

will become the expected estimate for the total project. The sum of the maximum exposure

numbers for all of the open discrete risk will become the maximum value of contingency. The

sum of the maximum value of contingency with the total project estimate (without contingency)

will become the high end estimate for the toal project.

Throughout the project, the project team will closely monitor and manage project contingency.

Once a project baseline is established at Gate 2 Gate Approval Board, all changes in project

contingency will be tracked and managed in a contingency checkbook and updated in the project

forecast in UIP. Changes in contingency may be a result of any of the following:

Estimated exposure for any discrete risk item changes Contingency is utilized for the purposes of mitigating or transferring a risk

Contingency is utilized as a result of issuing a Project Change Request (PCR)

A discrete risk item is closed

A new risk is identified

Risk is reallocated from one risk to another risk

ACCEPTANCE

________________________________________ Date: __________________

Ringo Starr

Project Manager


8/8


Page 6of 6

________________________________________ Date: __________________

Darin Hendry

Risk Manager

________________________________________ Date: __________________Winston Churchill

Project Sponsor

example risk management plan

Documents