Project Risk Management, PRM

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Project Risk Management, PRM

Systematic and proactive management of project risks greatly improves your chances of achieving the objectives of a project. Purchasing, implementation of new systems, re-organizing, procurement and development projects often require complex decision making with respect to a number of factors with varying degrees of impact.

Usually there is a choice between many alternative decision options. In our work process, we start with identifying and quantifying the risks for the project. This may e.g. lead to identifying that some alternative actions are found to be more costly than they seem at a first glance. Identification of risks as early as possible in the project is an important success factor. Then preventive measures are developed for the most critical risks. Only from this point a fair comparison of all the alternative options can be made, with subsequent action planning and follow-up.

Inspecta’s risk management process has been developed in close cooperation with clients since the mid 1990s. Our process is focused on providing project teams with an efficient working methodology that develops during the project and provides a useful tool for project management. The phases of the process consist of:

Start

  • Clear definition of the project objectives, goals and milestones
  • Project specific adaption of the work process
  • Initial training

Identification

  • Identification of risks, using different methodologies

Analysis

  • Evaluation of probability and consequences for the identified risks
  • Ranking of risks
  • Qualitative analyses if needed

Action plan

  • Identification of actions and measures
  • Evaluation of efficiency and usefulness of actions and measures
  • Selection of the necessary steps, assignment of responsibilities

Follow-up

  • Monitoring of risks and measures

Making risk management an integral part of the project throughout its continuation offers not only opportunities to effectively minimize risk but also helps identify initially hidden positive untapped opportunities.

Benefits

  • Provides at an early stage a thorough analysis and understanding of potential risks which may exist in a project
  • Helps you to choose the right action options at decision points during the project
  • Elimination and minimization of project risks
  • Identification of hidden opportunities
  • Risk reduction provides savings in time and costs and increases the ability to achieve cost and time objectives.

Related services

  • Risk Based inspection, RBI
  • Condition and Life-Time Assessment
  • Failure Analysis