By

Bob Prieto
Senior Vice President
Fluor

Rick Rye
Fluor

Risk is inherent to major capital construction programs. 

The initial paper in this series defined a ten step process to guide consideration of program risks. Collectively, these interrelated processes contribute to successful strategic risk management. 

These ten steps encompassed:

• Plan for Risk
• Make Realistic Assumptions    
• Utilize Outside Expertise
• Understand Risk Elements and Their Impacts
• Assess and Analyze Risks
• Develop Mitigation and Contingency Plans
• Synthesize the Risks 
• Integrate Risk Management
• Establish Clear Metrics
• Manage Risk Continuously

This paper focuses on the third of these steps.

Utilize Outside Expertise
Effective identification and prioritization of risks can be achieved through interviews, brainstorming sessions, workshops and joint risk review meetings. There are many different agendas apparent when all the groups come together. In order to ensure group focus and discipline, the risk work sessions should be under the guidance of a professional program manager that has skill sets in organizational planning and strategy.     

During the planning and early development phase, the full spectrum of requisite specialists should participate in the information gathering process by identifying the risks that are particular to the program.  At this early stage of program development, when scopes of work, cost estimates and schedules are preliminary at best, no other resource can provide the kind of specific knowledge of key program issues. Not only will their participation be invaluable to the total program team, these specialists and experts can incorporate findings from risk assessments into their designs, work plans and processes and management systems helping to mitigate potential risk impacts at it's grass roots. 

Although risk sessions and workshops are held at the planning and early program execution phase, additional risks are continually identified. As the program development progresses it is beneficial that key specialists continue to participate in the risk process.

 Gathering risk information from key experienced people and reviewing relevant past project risk experiences can be invaluable.  These information-gathering sessions should take place during or at the end of each major phase of the program and respective project milestone schedules.   The continuing risk reviews and evaluation will help increase the confidence that the program budget and overall program objectives will be ultimately achieved.