Risk management in a construction projects between knowledge and application | waleed elbasyouni
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The document discusses project risk management in construction, emphasizing the importance of understanding risk management principles, processes, and terminology. It outlines key concepts, critical success factors, and detailed application processes for effectively managing risks, including risk identification, assessment, response, and monitoring. The emphasis is on integrating risk management into overall project management to enhance project success rates.
Risk management in a construction projects between knowledge and application | waleed elbasyouni
- 1. Risk Management in a Construction Projects Between Knowledge & Application ﻭﺍﻟﺗﻁﺑﻳﻖ ﺍﻟﻣﻌﺭﻓﺔ ﺑﻳﻥ ﺍﻟﺗﺷﻳﻳﺩ ﺑﻣﺷﺭﻭﻋﺎﺕ ﺍﻟﻣﺧﺎﻁﺭ ﺇﺩﺍﺭﺓ WALEED ELBASYOUNI Program control & Risk Management Adviser MSc Project Management (Cand), PMP®,RMP®,SFC™,SSYB™,TOT®, Strategic PMO, OPM3® Prepared By: W aleed Elbasyouni
- 2. • Programs Control & Risk Management Adviser With More Than 12 Years Professional Experience In Construction Industry Mega Projects In Egypt and Saudi Arabia. • BSc. of Architectural Engineering, Cairo‐ Egypt. • Project Management Professional (PMP®) Certified By The Project Management Institute (PMI®), USA. • Strategic Planning Diploma By Arab Center for Strategic Planning Studies (ACSPS©). • Risk Management Professional (PMI‐RMP®) Certified By (PMI®), USA. • MSc (Cand) in Projects Management in Establishing Project Management Office (PMO). • Training of Trainers (TOT®) By American Institute for Applied Education (AIAE®), USA. • Program Management, Control and Strategic Planning Instructor. • Founder & CEO of Ana Memarey Magazine, Cairo – Egypt. • Speaker volunteer involvement in Planning and Project Management Conference. • Member of the Training Board in Human Energy Academy, Malmo, Sweden. • Member of the Training Board in Management Academy, Istanbul, turkey. • Member in Project Management Institute PMI® . • Member in Saudi Council Of Engineers . • Member in Egyptian Syndicate Of Engineers . @Waleed Elbasyouni Instructor BIO WALEED ELBASYOUNI W aleed Elbasyouni
- 4. 1. The Key Concepts, Foundation, and Terminology For Project Risk Management. 2. The Critical Success Factors For Project Risk Management. 3. The project Risk Management application and implementation Processes . o Risk Preparation (Risk management Plan) o Risk Identification (Data Gathering –Create RBS – Create Risk Register) o Risk Assessment and Evaluation (Qualitative Risk analysis ‐ Setting Priorities) o Risk Response (Risk Response Strategy for threats & opportunities) o Risk Monitoring and Reporting (Audits ‐ Risk Review meeting – Risk KPIs – identification lessons learned data base) 4. Practical Case Study. 5. What is the key Benefits For Project Risk Management. Kindly Saving your Time Session Agenda W aleed Elbasyouni
- 5. ﺍﻟﻣﺧﺎﻁﺭ ﻹﺩﺍﺭﺓ ﺍﻷﺳﺎﺳﻳﺔ ﺍﻟﻣﻔﺎﻫﻳﻡ Key Concepts For Project RISK MANAGEMENT W aleed Elbasyouni
- 6. Key Concepts For Project Risk Management • What is the Project Risk Definition: It`s An Uncertain Event Or Condition That, If It Occurs, has a Positive Or a Negative Effect On a Project’s Objectives. ﻣﻌﻬﺎ ﺍﻟﺗﻌﺎﻣﻝ ﺃﻭﻟﻭﻳﺔ ﻟﺗﺭﺗﻳﺏ ﻁﺭﻳﻘﺔ ﺇﻳﺟﺎﺩ ﻣﻥ ﻻﺑﺩ ﻟﺫﻟﻙ ،ﺍﻟﺧﻁﻭﺭﻩ ﻣﻥ ﺍﻟﻘﺩﺭ ﺑﻧﻔﺱ ﺍﻟﻣﺧﺎﻁﺭ ﺟﻣﻳﻊ ﻟﻳﺳﺕ. ﺍﻟﻣﺗﻭﻗﻌﺔ ﺍﻟﻧﻘﺩﻳﺔ ﺍﻟﻘﻳﻣﺔ=ﺍﻹﺣﺗﻣﺎﻟﻳﺔX ﺍﻟﺗﺎﺛﻳﺭ Expected Monetary Value (EMV) = Probability (P) X Impact (I) W aleed Elbasyouni
- 7. Risk Classifications ﺍﻷﻋﻣﺎﻝ ﻣﺧﺎﻁﺭ ﺍﻟﺑﺣﺗﻪ ﺍﻟﻣﺧﺎﻁﺭ W aleed Elbasyouni
- 8. Key Concepts For Project Risk Management • The Objectives Of Project Risk Management: Are To Increase The Probability And / Or Impact Of Positive Risks (Opportunities) And To Decrease The Probability And / Or Impact Of Negative Risks (Threats), In Order To Optimize The Chances Of Project Success. 1 2 3 3.2 3.1 Response StrategyW aleed Elbasyouni
- 9. Key Concepts For Project Risk Management • In The Early Stages Of a Project, The Level Of Risk Exposure Is at Its Maximum But Information On The Project Risks Is at a Minimum. •ﻲ ﻓﻲ ﺍﻻﻭﻟ ﻝ ﺍﻟﻣﺭﺍﺣﺭﻭﻉ ﻟﻠﻣﺷﺎﻁﺭ ﻟﻠﻣﺧ ﺭﺽ ﺍﻟﺗﻌ ﺔ ﺩﺭﺟ ﺑﺗﻛﻭﻥﻲﺍﻋﻠﻭ ﻥﻳﻣﻛ ﺎﻣﺎﺕﺍﻟﻣﻌﻠﻭﻣﺎﻁﺍﻟﻣﺧ ﻥﻋ ﻭﻓﺭﺓﺍﻟﻣﺗﺭ ﺍﻗﻝﻳﻣﻛﻥ ﻣﺎ.W aleed Elbasyouni
- 10. Key Concepts For Project Risk Management The Difference Between Risk and Issue Risk Managed Proactively Issue Managed Reactively ﺇﺳﺗﺑﺎﻗﻳﺔ ﺑﻁﺭﻳﻘﺔ ﺗﺩﺍﺭ ﺍﻟﻣﺧﺎﻁﺭﺗﻔﺎﻋﻠﻲ ﺑﻁﺭﻳﻘﺔ ﺗﺩﺍﺭ ﺍﻟﻣﺷﺎﻛﻝ )ﻓﻌﻝ ﺭﺩﺕ( W aleed Elbasyouni
- 11. Key Concepts For Project Risk Management Risk Statement ‐ Meta Language In order for all risks to be clearly defined, a standard structure for the way in which the risk is described should be specified and applied. A typical such statement is: (Causes >> Event>> Effects) Because of >> one or more causes Risk Event>> Might occur which would lead to >> One or more Effects ﺍﻟﻣﺷﺭﻭﻉ ﺩﺍﺧﻝ ﻣﺎ ﺗﺎﺛﻳﺭ ﺣﺩﻭﺙ ﺇﻟﻲ ﺍﻟﺧﻁﺭ ﻫﺫﺍ ﺳﻳﻘﻭﺩ ﺧﻁﺭ ﻭﻗﻊ ﺍﻟﻰ ﺳﻳﻘﻭﺩ ﺭﺑﻣﺎ ﺳﺑﺏ ﻭﺟﻭﺩ ﻣﻥ ﻻﺑﺩﺍﻟﻣﺷﺭﻭﻉ ﺩﺍﺧﻝ ﻣﺎ ﺗﺎﺛﻳﺭ ﺣﺩﻭﺙ ﺇﻟﻲ ﺍﻟﺧﻁﺭ ﻫﺫﺍ ﺳﻳﻘﻭﺩ ﺧﻁﺭ ﻭﻗﻊ ﺍﻟﻰ ﺳﻳﻘﻭﺩ ﺭﺑﻣﺎ ﺳﺑﺏ ﻭﺟﻭﺩ ﻣﻥ ﻻﺑﺩ ﻣﺛﺎﻝ:- ،ﻭﻡﻧﻳ ﺔﻣﻧﻁﻘ ﻲﻓ ﻳﺎﺣﻲﺳ ﺩﻕﻓﻧ ﺎءﺇﻧﺷ ﺭﻭﻉﻣﺷ ﺩﻳﻧﺎﻟﺩﻳﻧﺎﻭﻟﻋﺟﻲﻓ ﺯ ﻰ ﺍﻟ ﺯ ﺍﻟﻌﺟ ﺫﺍ ﻫ ﻳﺅﺩﻱ ﺳ ،ﺎﻫﺭﺓ ﺍﻟﻣ ﺔ ﺍﻟﻌﻣﺎﻟﺩﻭﻝ ﺍﻟﺟ ﻰ ﻓ ﺄﺧﻳﺭ ﺗ ﺩﻭﺙ ﺣ ﺍﻟﺯﻣﻧﻲﺷﻬﺭﻳﻥ ﻣﺩﺗﻪ. ﻣﺛﺎﻝ:- ،ﻭﻡﻧﻳ ﺔﻣﻧﻁﻘ ﻲﻓ ﻳﺎﺣﻲﺳ ﻓﻧﺩﻕ ﺇﻧﺷﺎء ﻣﺷﺭﻭﻉ ﻟﺩﻳﻧﺎﻋ ﺑﺏﻭﺑﺳﻲﻓ ﺯﺟ ﺍﻟﻣﺎﻫﺭﺓ ﺍﻟﻌﻣﺎﻟﺔﻫﻧﺎﻙﻋﺟﺯ ﻳﺣﺩﺙ ﺭﺑﻣﺎﻓﻲ،ﺍﻟﻌﻣﻝﺯﺍﻟﻌﺟ ﻫﺫﺍ ﺳﻳﺅﺩﻱ ﺍﻟﻰﺍﻟﺯﻣﻧﻲ ﺍﻟﺟﺩﻭﻝ ﻓﻰ ﺗﺄﺧﻳﺭ ﺣﺩﻭﺙﺷﻬﺭﻳﻥ ﻣﺩﺗﻪ. Issue ﻣﺷﻛﻠﺔRisk ﺧﻁﺭ W aleed Elbasyouni
- 12. Key Concepts For Project Risk Management Stakeholder Risk Attitudes ﺍﻟﻣﺧﺎﻁﺭ ﻣﻊ ﺍﻟﺗﻌﺎﻣﻝ ﻓﻲ ﺍﻟﻣﺻﻠﺣﺔ ﺃﺻﺣﺎﺏ ﺇﺗﺟﺎﻫﺎﺕ Risk Seeker: Stakeholders Are Risk Seeking In Nature. Risk Averse: Stakeholders Who Does Not Take Risks Risk Neutral: Balanced Stakeholders Are Neither Risk Averse Nor Risk Seeking. W aleed Elbasyouni
- 13. Key Concepts For Project Risk Management Risk and Contract Types ﺍﻟﻣﺧﺎﻁﺭ ﺩﺭﺟﺔ ﺍﻟﺧﺩﻣﺔ ﻁﺎﻟﺑﻲ ﺍﻭ ﺍﻟﻣﺷﺗﺭﻱ ﺩﺭﺟﺔﺍﻟﻣﺧﺎﻁﺭ ﺍﻟﺧﺩﻣﺔ ﻣﻘﺩﻣﻲ ﺍﻭ ﺍﻟﺑﺎﺋﻊ W aleed Elbasyouni
- 14. ﺍﻟﻣﺧﺎﻁﺭ ﻹﺩﺍﺭﺓ ﺍﻟﺭﺋﻳﺳﻳﺔ ﺍﻟﻧﺟﺎﺡ ﻋﻭﺍﻣﻝ The Critical Success Factors For Project Risk Management W aleed Elbasyouni
- 15. The Critical Success Factors For Project Risk Management 1. Recognizing Risk Management Value ﺍﻟﻣﺧﺎﻁﺭ ﺇﺩﺍﺭﺓ ﻗﻳﻣﺔ ﻭ ﺑﻘﺩﺭ ﺍﻹﻋﺗﺭﺍﻑ All Stakeholders has awareness of the value for the Risk Management, that provides a positive potential return on investment for organization. W aleed Elbasyouni
- 16. The Critical Success Factors For Project Risk Management 2. Individual Commitment/Responsibility ﺍﻷﻓﺭﺍﺩ ﺇﻟﺗﺯﺍﻡ/ﺍﻟﻣﺳﺅﻭﻟﻳﺎﺕ ﻭﺗﺣﻣﻝ All Stakeholders in the project should be responsible about the risk; Risk management is everyone’s responsibility. W aleed Elbasyouni
- 17. The Critical Success Factors For Project Risk Management 3. Open and Honest Communication ﺍﻟﺗﻭﺍﺻﻝ ﻋﻣﻠﻳﺔ ﻓﻰ ﻭﺍﻟﻧﺯﺍﻫﺔ ﺍﻟﺷﻔﺎﻓﻳﺔ All stakeholders should be involved in the Project Risk Management process. Any actions or attitudes that hinder communication about project risk reduce the effectiveness of Project Risk Management in terms of proactive approaches and effective decision‐making. W aleed Elbasyouni
- 18. The Critical Success Factors For Project Risk Management 4. Organizational Commitment ﺍﻟﻣﺅﺳﺳﺔ ﺇﻟﺗﺯﺍﻡ Organizational commitment can only be established if risk management is aligned with the organization’s goals and values. Project Risk Management may require a higher level of managerial support than other project management disciplines because handling some of the risks will require approval of or responses from others at levels above the project manager. W aleed Elbasyouni
- 19. The Critical Success Factors For Project Risk Management 5. Risk Effort Scaled to Project ﺍﻟﻣﺷﺭﻭﻉ ﺣﺟﻡ ﻣﻊ ﻭﺗﻧﺎﺳﺑﻬﺎ ﺍﻟﻣﺧﺎﻁﺭ ﺟﻬﻭﺩ Project Risk Management activities should be consistent with the value of the project to the organization and with its level of project risk, its scale, and other organizational constraints. In particular, the cost of Project Risk Management should be appropriate to its potential value to the project and the organization. W aleed Elbasyouni
- 20. The Critical Success Factors For Project Risk Management 6. Integration with Project Management ﺍﻟﻣﺷﺭﻭﻉ ﺇﺩﺍﺭﺓ ﻣﻊ ﺍﻟﺗﻛﺎﻣﻝ Project Risk Management does not exist in a vacuum, isolated from other project management processes. Successful Project Risk Management requires the correct execution of the other project management processes. Risk Management W aleed Elbasyouni
- 21. The Project Risk Management application and implementation Processes ﺍﻟﻣﺧﺎﻁﺭ ﺇﺩﺍﺭﺓ ﻋﻣﻠﻳﺎﺕ ﻭﺗﻧﻔﻳﺫ ﺗﻁﺑﻳﻖ W aleed Elbasyouni
- 24. The Project Risk Management application and implementation Processes Risk Preparation (Create Risk management Plan) Risk Preparation 1. To defining How To conduct risk management activities throughout the project. • How do? 1. Expert Judgment 2. Stakeholder analysis use to determine the Risk appetite of project stakeholders. Risk Appetite ﺍﻟﻣﺧﺎﻁﺭﻩ ﻓﻲ ﺍﻟﺭﻏﺑﺔ ﺩﺭﺟﺔﺗ ﻳﺗﻘﺑﻠﻭﻧﻬﺎ ﺍﻟﺗﻲ ﺍﻭﺍﻟﻣﺅﺳﺳﺎﺕ ﺑﺎﻻﻓﺭﺍﺩ ﺍﻟﺧﺎﺻﺔ ﺍﻟﻳﻘﻳﻥ ﻋﺩﻡﺍﻟﻣﺧﺎﻁﺭ ﺟﺎﻩ • Why? Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring Industry ‐ Company Culture ‐ Organizational Objectives ‐ Financial Strength of the Organization‐ Competitors ﺑﺈﺧﺗﻼﻑ ﺗﺧﺗﻠﻑ)ﺍﻟﺻﻧﺎﻋﺔ ﻣﺟﺎﻝ–ﺍﻟﺷﺭﻛﺔ ﺛﻘﺎﻓﺔ–ﺍﻟﻣﺅﺳﺳﺔ ﺃﻫﺩﺍﻑ–ﻟﻠﻣﺅﺳﺳﺔ ﺍﻟﻣﺎﻟﻳﺔ ﺍﻟﻘﻭﺓ–ﺍﻟﻣﻧﺎﻓﺳﻳﻥ ﻭﻋﺩﺩ ﺣﺟﻡ( W aleed Elbasyouni
- 25. The Project Risk Management application and implementation Processes Risk Preparation (Create Risk management Plan) Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Elements and Contents of Risk Management Plan • Strategy • Methodology • Roles and responsibilities • Risk categories • Risk management funding • Frequency and timing • Stakeholder risk appetite • Risk tracking and audit • Definitions of probability • Definitions of impact by objective W aleed Elbasyouni
- 27. The Project Risk Management application and implementation Processes Risk Identification (Data Gathering –Create RBS – Create Risk Register) Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Why? 1. To identifying individual project risks as well as sources of overall project risk, and documenting their characteristics. • How do? 1. Expert Judgment 2. Data Gathering & analysis • Brainstorming • Checklists • Interviews • Root cause analysis • SWOT analysis Create RBS Risk Register W aleed Elbasyouni
- 28. The Project Risk Management application and implementation Processes Risk Identification (Data Gathering –Create RBS – Create Risk Register) Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Risk Identification Activities May Include The Following: • Project Manager • Project Team Members • Project Risk Specialist • Customers – Sponsor • Subject Matter Experts From Outside The Project Team • End Users • Other Project Managers • Any Stakeholders, And Risk Management Experts Within The Organization. ﺍﻟﻣﺧﺎﻁﺭ ﺗﺣﺩﻳﺩ ﻋﻣﻠﻳﺔ ﻓﻰ ﺍﻟﺟﻣﻳﻊ ﺇﺷﺭﺍﻙ ﻣﻥ ﻻﺑﺩ W aleed Elbasyouni
- 29. The Project Risk Management application and implementation Processes Risk Identification (Data Gathering –Create RBS – Create Risk Register) Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Risk Breakdown Structure (RBS) • Risk Register W aleed Elbasyouni
- 31. The Project Risk Management application and implementation Processes Risk Assessment and Evaluation (Qualitative Risk analysis ‐ Setting Priorities)Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Why? 1. To Prioritizing individual project risks by assessing their probability of occurrence and impact to focuses efforts on high‐priority risks. • How do? 1. Expert Judgment 2. Data analysis • Risk probability and impact assessment • Assessment of other risk parameters 3. Data representation • Probability and impact matrix W aleed Elbasyouni
- 32. The Project Risk Management application and implementation Processes Risk Assessment and Evaluation (Qualitative Risk analysis ‐ Setting Priorities)Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Risk probability and impact assessment (Probability and impact matrix) To Clarify All Risks Scoring Method Probability (P) and Impact (I) matrix Risk Score = P X I 1 % to 10 % 11 % to 35 % 36 % to 85 % Low Risks Medium Risks Risk Rank High Risks V.High 85% 8.5% 25.5% 42.5% 55.3% 72.3% 72.3% 55.3% 42.5% 25.5% 8.5% High 65% 6.5% 19.5% 32.5% 42.3% 55.3% 55.3% 42.3% 32.5% 19.5% 6.5% Medium 50% 5.0% 15.0% 25.0% 32.5% 42.5% 42.5% 32.5% 25.0% 15.0% 5.0% Low 30% 3.0% 9.0% 15.0% 19.5% 25.5% 25.5% 19.5% 15.0% 9.0% 3.0% V.Low 10% 1.0% 3.0% 5.0% 6.5% 8.5% 8.5% 6.5% 5.0% 3.0% 1.0% 10% 30% 50% 65% 85% 85% 65% 50% 30% 10% V.Low Low Medium High V.High V.High High Medium Low V.Low Probability (P) Impact ( I ) Threat Scope, Schedule, Cost, and Quality Impact ( I ) Opportunity Risk Assessment Matrix Risk Rank = P X I V.Low (10%) < Low (30%) in‐between 5,001SAR Medium (50%) in‐between 30,001SAR High (65%) in‐between 200,001SAR V.High (85%) > Description V.Low (10%) Low (30%) Medium (50%) High (65%) V.High (85%) V.Low (10%) < Low (30%) in‐between 1 week Medium (50%) in‐between 2 Weeks High (65%) in‐between 4 Weeks V.High (85%) > 6 Weeks 30,000SAR 400,001SAR 5,000SAR Cost Impact Quality Impact Schedule Impact Guide Scenario 1 week 2 Weeks 4 Weeks 6 Weeks Impact has some effect causing rework or reassessment but easily handled Impact have low/little effect and easily handled 200,000SAR 400,000SAR Almost slight impact Failure that involves significant rework, modification or reassessment Failure or setback that causes additional work and reassessment but containable Risk Score W aleed Elbasyouni
- 33. The Project Risk Management application and implementation Processes Risk Assessment and Evaluation (Qualitative Risk analysis ‐ Setting Priorities)Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring Assessment of other risk parameters ﺍﻟﻌﻭﺍﻣﻝ ﺑﻌﺽﻟﺗﻘﻳﻳﻡ ﺍﻻﺧﺭﻱﺍﻟﻣﺧﺎﻁﺭ The project team may consider other characteristics of risk (in addition to probability and impact) • Urgency ﺍﻟﺿﺭﻭﺭﺓ • Proximity ﺍﻟﺣﺩﺙ ﻗﺭﺏ • Manageability ﺍﻟﺣﺩﺙ ﺍﺩﺍﺭﺓ ﺳﻬﻭﻟﺔ • Controllability ﺍﻟﺗﺣﻛﻡ ﺳﻬﻭﻟﺔ • Detectability ﺍﻟﻣﺑﻛﺭ ﺍﻻﻛﺷﺎﻑ • Connectivity ﺍﺧﺭﻱ ﺑﻣﺧﺎﻁﺭ ﺍﻻﺭﺗﺑﺎﻁ • Strategic impact ﻋﻠﻰ ﺍﻟﺗﺎﺛﻳﺭ ﻣﺩﻱﻟﻠﻣﺅﺳﺳﺔ ﺍﻻﺳﺗﺭﺍﺗﺟﻳﺔ ﺍﻻﻫﺩﺍﻑ W aleed Elbasyouni
- 34. The Project Risk Management application and implementation Processes Risk Assessment and Evaluation (Qualitative Risk analysis ‐ Setting Priorities)Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring Risk Category Risk Breakdown Structure (RBS) Department Project ID Risk ID Risk Description Risk Type (Opp. or Thr.) Risk Probability Schedule Cost Quality Current Month Previous Month Varianc e Trigger Expected Date Actual Date of occur Expected completion Date Technical Risks 164 Scope 2 Constuction R‐01 Delay in construction of electrical rooms SEC Rooms & utilities & Service connections and connecting permenant power. 01 Threat 40.0% 20.0% 50.0% 20.0% 12.0% 40.0% ⇧ 19‐Apr‐18 Constuction R‐02 Delay in construction of electrical rooms SEC Rooms & utilities & Service connections and connecting permenant power. 02 Threat 40.0% 50.0% 50.0% 15.0% 15.3% 40.0% ⇧ 31‐Dec‐18 Schedule 26 Engineering 14 Quality 10 Cost 4 Desigen 4 Resources 62 HSE 42 Management Risks 93 Project Mana. 16 Estimation 1 Communication 42 Contract 3 Procurement 14 Suppliers/Vendors 13 Subcontractor 4 Organizational Risks 6 Supply Chain 6 Funding 0 External Risks 33 Political 1 Legality 32 Weather 0 Force Majeure 0 TimingRisk RankImpact Opportunity W aleed Elbasyouni
- 36. The Project Risk Management application and implementation Processes Risk Response (Risk Response Strategy for threats & opportunities)Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Why? • To developing options, selecting strategies actions to address the individual project risks. • How do? 1. Expert Judgment 2. Strategies for threats & opportunities Develop Contingency Plan (Plan A) 3. Select Risk Owners 4. Develop Fullback Plan (Plan B) 5. Identify Risk Trigger 6. Customize Contingency Reserve Time & Cost W aleed Elbasyouni
- 37. The Project Risk Management application and implementation Processes Risk Response (Risk Response Strategy for threats & opportunities)Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Strategies for threats & opportunities Develop Contingency Plan (Plan A) Strategies For Threats ﺍﻟﺗﻬﺩﻳﺩﺍﺕ ﻣﻊ ﺍﻟﺗﻌﺎﻣﻝ ﺇﺳﺗﺭﺍﺗﻳﺟﻳﺎﺕ )ﺍﻟﺳﻠﺑﻳﺔ ﺍﻟﻣﺧﺎﻁﺭ ﻋﻥ ﺍﻟﻧﺎﺗﺟﺔ( Strategies For Opportunities ﺍﻟﻔﺭﺹ ﻣﻊ ﺍﻟﺗﻌﺎﻣﻝ ﺇﺳﺗﺭﺍﺗﻳﺟﻳﺎﺕ )ﺍﻹﻳﺟﺎﺑﻳﺔ ﺍﻟﻣﺧﺎﻁﺭ ﻋﻥ ﺍﻟﻧﺎﺗﺟﺔ( 11• Avoid 22• Transfer 33• Mitigate 44• Accept (active or passive) 55• Escalate 11• Exploit 22• Share 33• Enhance 44• Accept (active or passive) 55• Escalate W aleed Elbasyouni
- 39. The Project Risk Management application and implementation Processes Risk Response (Risk Response Strategy for threats & opportunities)Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring Risk Owner Risk Category Risk Breakdown Structure (RBS) Department Project ID Risk ID Risk Description Risk Type (Opp. or Thr.) Risk Probability Schedule Cost Quality Current Month Previous Month Varianc e Trigger Expected Date Actual Date of occur Expected completion Date Strategy Actions Name Completion Rate Remarks Technical Risks 164 Scope 2 Constuction R‐01 Delay in construction of electrical rooms SEC Rooms & utilities & Service connections and connecting permenant power. 01 Threat 40.0% 20.0% 50.0% 20.0% 12.0% 40.0% ⇧ 19‐Apr‐18 Avoid 1‐TBC: 2.AECOM: 3.CONTRACTOR (BAWANI): 1. Contractor is instructed to assign special group/s for electrical rooms Maan Sarakbi 100% RUH063C Constuction R‐02 Delay in construction of electrical rooms SEC Rooms & utilities & Service connections and connecting permenant power. 02 Threat 40.0% 50.0% 50.0% 15.0% 15.3% 40.0% ⇧ 31‐Dec‐18 Transfer 1‐TBC: 2.AECOM: 3.CONTRACTOR (KIFAH‐G05): 1. Contractor is instructed to assign special group/s for electrical rooms Maan Sarakbi 84% RUH166S Schedule 26 Engineering 14 Quality 10 Cost 4 Desigen 4 Resources 62 HSE 42 Management Risks 93 Project Mana. 16 Estimation 1 Communication 42 Contract 3 Procurement 14 Suppliers/Vendors 13 Subcontractor 4 Organizational Risks 6 Supply Chain 6 Funding 0 External Risks 33 Political 1 Legality 32 Weather 0 Force Majeure 0 Timing Risk Response Report Data Date: 31‐Jan‐2019Depatment Name:Region Name: Riyadh (Center) Region Risk RankImpact Opportunity W aleed Elbasyouni
- 41. The Project Risk Management application and implementation Processes Risk Monitoring and Reporting (Audits ‐ Risk Review meeting – Risk KPIs – identification lessons learned data base) Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring • Why? • To monitoring the implementation of risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project. • How do? 1. Audits 2. Risk Review Meetings 3. Risk Reporting & KPIs W aleed Elbasyouni
- 42. The Project Risk Management application and implementation Processes Risk Monitoring and Reporting (Audits ‐ Risk Review meeting – Risk KPIs – identification lessons learned data base) Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring 1. Audits ﻟﻠﻣﺧﺎﻁﺭ ﺍﻹﺳﺗﺟﺎﺑﺔ ﺧﻁﻁ ﻭﺗﺄﺛﻳﺭ ﻓﺎﻋﻠﻳﺔ ﻣﺩﻱ ﻣﻥ ﺍﻟﺗﺣﻘﻖ Implemented risk responses are effective ﺑﺎﻟﻣﺷﺭﻭﻉ ﺍﻟﻔﺭﺩﻳﺔ ﺍﻟﻣﺧﺎﻁﺭ ﺩﺭﺟﺔ ﻓﻰ ﺍﻟﺗﻐﻳﻳﺭ ﻣﻌﺩﻝ Level of individual Risk has changed ﺍﻟﻣﺷﺭﻭﻉ ﺩﺍﺧﻝ ﺍﻟﻔﺭﺩﻳﺔ ﺍﻟﻣﺧﺎﻁﺭ ﻣﻥ ﺟﺩﻳﺩﺓ ﻅﻬﺭﻣﺟﻣﻭﻋﺔ ﻫﻝ New individual project risks have arisen ﺍﻟﻣﺧﺎﻁﺭ ﻋﻣﻠﻳﺎﺕ ﺇﺩﺍﺭﺓ ﺃﺳﻠﻭﺏ ﻓﺎﻋﻠﻳﺔ ﻣﺩﻱ Risk management approach is still appropriate ﻟﻺﺳﺗﺧﺩﺍ ﺻﺎﻟﺣﺔ ﻣﺎﺯﺍﻟﺕ ﺍﻟﻣﺷﺭﻭﻉ ﻭﺇﺳﺗﺭﺍﺗﻳﺟﻳﺎﺕ ﺍﻟﻣﺷﺭﻭﻉ ﻓﺭﺿﻳﺎﺕ ﻫﻝﻡ Project assumptions and strategy are still valid ﺍﻟﻣﺧﺎﻁﺭ ﺍﻧﺷﻁﺔ ﻣﻊ ﺍﻟﺗﻌﺎﻣﻝ ﻓﻰ ﺍﻟﺷﺭﻛﺔ ﻭﺇﺟﺭﺍءﺕ ﺳﻳﺎﺳﺎﺕ ﺇﺗﺑﺎﻉ ﺗﻡ ﻫﻝ Risk management policies and procedures are being followed ﺍﻟﻁﻭﺍﺭﻱ ﺍﺣﺗﻳﺎﻁﻲ ﻓﻲ ﺗﻌﺩﻳﻝ ﺍﻟﻰ ﺣﺎﺟﺔ ﻫﻧﺎﻙ ﻫﻝ)ﺍﻟﻭﻗﺕ-ﺍﻟﺗﻛﺎﻟﻳﻑ( Contingency reserves for cost or schedule require modification W aleed Elbasyouni
- 43. The Project Risk Management application and implementation Processes Risk Monitoring and Reporting (Audits ‐ Risk Review meeting – Risk KPIs – identification lessons learned data base) Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring 2. Risk Review Meetings May result: • identification of new individual project risks. • Reassessment of current risks. • the closing of risks that are outdated. • New issues that have arisen as the result of risks that have occurred. • identification of lessons learned to use in similar projects in the future. W aleed Elbasyouni
- 44. The Project Risk Management application and implementation Processes Risk Monitoring and Reporting (Audits ‐ Risk Review meeting – Risk KPIs – identification lessons learned data base) Risk Preparation Risk Identification Risk Assessment & Evaluation Risk Response Risk Monitoring 3. Risk Reporting & KPIs W aleed Elbasyouni
- 46. The Key Benefits For Project Risk Management Proactive rather than Reactive approach ﺍﻟﻔﻌﻝ ﺭﺩﺕ ﻭﺇﺟﺭﺍء ﺍﻹﻧﺗﻅﺎﺭ ﻣﻥ ﺑﺩﻻ ﺇﺳﺗﺑﺎﻗﻳﺔ ﺑﻁﺭﻳﻘﺔ ﺍﻷﺣﺩﺍﺙ ﻣﻊ ﺍﻟﺗﻌﺎﻣﻝ Prioritizes risks for Top Management to focuses efforts on high‐priority risks ﺍﻷﻋﻠﻲ ﺍﻟﺗﺎﺛﻳﺭ ﺫﺍﺕ ﺍﻟﻣﺧﺎﻁﺭ ﻋﻠﻰ ﻟﻠﺗﺭﻛﻳﺯ ﺍﻷﻭﻟﻭﻳﺎﺕ ﺣﺳﺏ ﺍﻟﻣﺧﺎﻁﺭ ﺗﺭﺗﻳﺏ ﻓﻰ ﺍﻟﻌﻠﻳﺎ ﺍﻻﺩﺍﺭﺓ ﻣﺳﺎﻋﺩﺓ The team remains focused (Forces the team to think collectively and collaboratively in mitigating risks, proactively) ﺍﻛﺛﺭ ﺍﻟﻔﺭﻳﻖ ﺟﻌﻝﻭﺍﻟﻌﻣﻝ ﺗﺭﻛﻳﺯﺍﻋﻠﻰﺍﻟﻣﺧﺎﻁﺭ ﺗﺧﻔﻳﻑ ﻓﻲ ﻭﺗﻌﺎﻭﻧﻲ ﺟﻣﺎﻋﻲ ﺑﺷﻛﻝ ﺍﻟﺗﻔﻛﻳﺭﺑﺎﺳﺗﺑﺎﻗﻳﺔ ﻭﺍﻟﻌﻣﻝ Ensures that procurement and contract terms and conditions reflect the client’s risk appetite and project objectives; by contract types selection. ﺃﻥ ﻣﻥ ﺍﻟﺗﺎﻛﺩ ﻋﻣﻠﻳﺔ ﻓﻰ ﺑﺗﺳﺎﻋﺩﻭﺃﺣﻛﺎﻡ ﺷﺭﻭﻁﺭﻏﺑﺎﺕ ﺗﻌﻛﺱ ﻭﺍﻟﻣﺷﺗﺭﻳﺎﺕ ﺍﻟﻌﻘﻭﺩﺍﻟﻌﻣﻳﻝﺍﻟﻣﺧﺎﻁﺭ؛ ﻣﻊ ﺍﻟﺗﻌﺎﻣﻝ ﻓﻲﺍﻟﻌﻘﺩ ﺃﻧﻭﺍﻉ ﺍﺧﺗﻳﺎﺭ ﻁﺭﻳﻖ ﻋﻥ. There are fewer surprises (let the team spot concerns far earlier) ﺍﻟﻣﻔﺎﺟﺂﺕ ﻣﻥ ﺍﻟﺗﻘﻠﻳﻝ-ﻣﺑﻛﺭ ﺑﺷﻛﻝ ﺗﺭﻛﻳﺯﺍ ﺍﻛﺛﺭ ﺍﻟﻔﺭﻳﻖ ﺟﻌﻝ There’s better quality data for decision making ﺍﻟﻘﺭﺍﺭﺍﺕ ﺻﻧﺎﻋﺔ ﻋﻠﻲ ﺗﺳﺎﻋﺩ ﺍﻟﺗﻲ ﺍﻟﺑﻳﺎﻧﺎﺕ ﻣﻥ ﻋﺎﻟﻳﺔ ﺩﻗﺔ ﻋﻠﻰ ﺍﻟﺣﺻﻭﻝ Communication more effective (Good risk management elevates the conversation) ﻭﻛﻔﺎءﺓ ﻓﺎﻋﻠﻳﺔ ﺍﻛﺛﺭ ﺍﻟﻔﺭﻳﻖ ﺑﻳﻥ ﺍﻟﺗﻭﺍﺻﻝ ﻋﻣﻠﻳﺔ ﺟﻌﻝ Budgets and estimates rely less on guesswork (Overall this will lead to fewer cost and time overruns) ﺍﻟﺗﺧﻣﻳﻥ ﻋﻥ ﺍﻻﻣﻛﺎﻥ ﻗﺩﺭ ﻭﺍﻟﺑﻌﺩ ﻭﺍﻟﻭﻗﺕ ﺍﻟﺗﻛﺎﻟﻳﻑ ﺗﻘﺩﻳﺭﺍﺕ ﺣﺳﺎﺏ ﻋﻣﻠﻳﺎﺕ ﻓﻲ ﺗﺣﺩﺙ ﺍﻟﺗﻲ ﺍﻟﺗﺟﺎﻭﺯﺍﺕ ﺗﻘﻠﻳﻝ ﻣﺣﺎﻭﻟﺕ W aleed Elbasyouni
- 47. If You Need any Further Comments Or Help Feel Free To Contact With Me On: @Waleed Elbasyouni Thank You ﺟﺯﻳﻼ ﺷﻛﺭﺍ.... ﺃ ﺇﻻ ﺇﻟﻪ ﻻ ْﺃﻥ ُﺩْﻬﺷﺃ َﺩﻙْﻣَﺣﻭﺑ ّﻡُﻬﱠﻠﺍﻟ ﻙَﻧﺣﺎْﺑﺳَﺭﻙِﻔْﻐﺗْﺳﺃ ﺕْﻧ ﻙْﻳﺇﻟ ُﻭﺏَﺗﺃَﻭW aleed Elbasyouni