Irish Standard

I.S. EN 62198:2014

Managing risk in projects - Application

guidelines
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© CENELEC 2014 No copying without NSAI permission except as permitted by copyright law.
 I.S. EN 62198:2014

Incorporating amendments/corrigenda/National Annexes issued since publication:

The National Standards Authority of Ireland (NSAI) produces the following categories of formal documents:
I.S. xxx: Irish Standard — national specification based on the consensus of an expert panel and subject to public consultation.

S.R. xxx: Standard Recommendation — recommendation based on the consensus of an expert panel and subject to public consultation.
SWiFT xxx: A rapidly developed recommendatory document based on the consensus of the participants of an NSAI workshop.
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NOTE: The date of any NSAI previous adoption may not match the date of its original CEN/CENELEC
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This document is based on: Published:

EN 62198:2014 2014-02-28

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and comes into effect on: 03.100.01

2014-03-11

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 I.S. EN 62198:2014

EUROPEAN STANDARD EN 62198

NORME EUROPÉENNE
EUROPÄISCHE NORM February 2014

ICS 03.100.01

English version

Managing risk in projects -

Application guidelines
(IEC 62198:2013)
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Gestion des risques liés à un projet - Risikomanagement für Projekte -

Lignes directrices pour l'application Anwendungsleitfaden
(CEI 62198:2013) (IEC 62198:2013)

This European Standard was approved by CENELEC on 2014-01-01. CENELEC members are bound to comply
with the CEN/CENELEC Internal Regulations which stipulate the conditions for giving this European Standard
the status of a national standard without any alteration.

Up-to-date lists and bibliographical references concerning such national standards may be obtained on
application to the CEN-CENELEC Management Centre or to any CENELEC member.

This European Standard exists in three official versions (English, French, German). A version in any other
language made by translation under the responsibility of a CENELEC member into its own language and notified
to the CEN-CENELEC Management Centre has the same status as the official versions.

CENELEC members are the national electrotechnical committees of Austria, Belgium, Bulgaria, Croatia, Cyprus,
the Czech Republic, Denmark, Estonia, Finland, Former Yugoslav Republic of Macedonia, France, Germany,
Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and the United Kingdom.

CENELEC
European Committee for Electrotechnical Standardization
Comité Européen de Normalisation Electrotechnique
Europäisches Komitee für Elektrotechnische Normung

CEN-CENELEC Management Centre: Avenue Marnix 17, B - 1000 Brussels

© 2014 CENELEC - All rights of exploitation in any form and by any means reserved worldwide for CENELEC members.

Ref. No. EN 62198:2014 E

 I.S. EN 62198:2014
EN 62198:2014 -2-

Foreword

The text of document 56/1529/FDIS, future edition 2 of IEC 62198, prepared by IEC/TC 56
"Dependability" was submitted to the IEC-CENELEC parallel vote and approved by CENELEC as
EN 62198:2014.

The following dates are fixed:

• latest date by which the document has to be (dop) 2014-10-01

implemented at national level by
publication of an identical national
standard or by endorsement
• latest date by which the national (dow) 2017-01-01
standards conflicting with the
document have to be withdrawn
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Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. CENELEC [and/or CEN] shall not be held responsible for identifying any or all such
patent rights.

Endorsement notice
The text of the International Standard IEC 62198:2013 was approved by CENELEC as a European
Standard without any modification.

In the official version, for Bibliography, the following notes have to be added for the standards indicated:

IEC 60812 NOTE Harmonized as EN 60812.

IEC/ISO 31010 NOTE Harmonized as EN 31010.
 I.S. EN 62198:2014
-3- EN 62198:2014

Annex ZA
(normative)

Normative references to international publications

with their corresponding European publications
The following documents, in whole or in part, are normatively referenced in this document and are
indispensable for its application. For dated references, only the edition cited applies. For undated
references, the latest edition of the referenced document (including any amendments) applies.

NOTE When an international publication has been modified by common modifications, indicated by (mod), the relevant EN/HD
applies.

Publication Year Title EN/HD Year

ISO 31000 - Risk management - Principles and - -

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guidelines
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This page is intentionally left blank

 I.S. EN 62198:2014

IEC 62198
®
Edition 2.0 2013-11

INTERNATIONAL
STANDARD
NORME
INTERNATIONALE
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colour
inside

Managing risk in projects – Application guidelines

Gestion des risques liés à un projet – Lignes directrices pour l'application

IEC 62198:2013
 I.S. EN 62198:2014

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 I.S. EN 62198:2014

IEC 62198
®
Edition 2.0 2013-11

INTERNATIONAL
STANDARD
NORME
INTERNATIONALE
This is a free 15 page sample. Access the full version online.

colour
inside

Managing risk in projects – Application guidelines

Gestion des risques liés à un projet – Lignes directrices pour l'application

INTERNATIONAL
ELECTROTECHNICAL
COMMISSION

COMMISSION
ELECTROTECHNIQUE
INTERNATIONALE PRICE CODE
CODE PRIX X
ICS 03.100.01 ISBN 978-2-8322-1192-2

Warning! Make sure that you obtained this publication from an authorized distributor.
Attention! Veuillez vous assurer que vous avez obtenu cette publication via un distributeur agréé.

® Registered trademark of the International Electrotechnical Commission

Marque déposée de la Commission Electrotechnique Internationale
 I.S. EN 62198:2014

–2– 62198 © IEC:2013

CONTENTS
FOREWORD ........................................................................................................................... 4
INTRODUCTION ..................................................................................................................... 6
1 Scope .............................................................................................................................. 7
2 Normative references ...................................................................................................... 7
3 Terms and definitions ...................................................................................................... 7
4 Managing risks in projects ............................................................................................... 9
5 Principles ...................................................................................................................... 11
6 Project risk management framework .............................................................................. 12
6.1 General ............................................................................................................ 12
6.2 Mandate and commitment ................................................................................ 13
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6.3 Design of the framework for managing project risk ........................................... 14

6.3.1 Understanding the project and its context ....................................... 14
6.3.2 Establishing the project risk management policy ............................. 14
6.3.3 Accountability ................................................................................. 15
6.3.4 Integration into project management processes .............................. 16
6.3.5 Resources ...................................................................................... 16
6.3.6 Establishing internal project communication and reporting
mechanisms ................................................................................... 16
6.3.7 Establishing external project communication and reporting
mechanisms ................................................................................... 17
6.4 Implementing project risk management ............................................................ 17
6.4.1 Implementing the framework for managing project risk .................... 17
6.4.2 Implementing the project risk management process ........................ 17
6.5 Monitoring and review of the project risk management framework .................... 17
6.6 Continual improvement of the project risk management framework .................. 18
7 Project risk management process .................................................................................. 18
7.1 General ............................................................................................................ 18
7.2 Communication and consultation ...................................................................... 19
7.3 Establishing the context ................................................................................... 20
7.3.1 General .......................................................................................... 20
7.3.2 Establishing the external context .................................................... 20
7.3.3 Establishing the internal context ..................................................... 21
7.3.4 Establishing the context of the project risk management
process ........................................................................................... 21
7.3.5 Defining risk criteria ........................................................................ 22
7.3.6 Key elements .................................................................................. 22
7.4 Risk assessment .............................................................................................. 23
7.4.1 General .......................................................................................... 23
7.4.2 Risk identification ........................................................................... 23
7.4.3 Risk analysis .................................................................................. 24
7.4.4 Risk evaluation ............................................................................... 25
7.5 Risk treatment ................................................................................................. 25
7.5.1 General .......................................................................................... 25
7.5.2 Selection of risk treatment options .................................................. 25
7.5.3 Risk treatment plans ....................................................................... 26
7.6 Monitoring and review ...................................................................................... 26
7.7 Recording and reporting the project risk management process ......................... 27
 I.S. EN 62198:2014

62198 © IEC:2013 –3–

7.7.1 Reporting ........................................................................................ 27

7.7.2 The project risk management plan .................................................. 28
7.7.3 Documentation ............................................................................... 28
7.7.4 The project risk register .................................................................. 28
Annex A (informative) Examples .......................................................................................... 30
A.1 General ............................................................................................................ 30
A.2 Project risk management process .................................................................... 30
A.2.1 Stakeholder analysis (see 7.2) ........................................................ 30
A.2.2 External and internal context (see 7.3.4) ........................................ 31
A.2.3 Risk management context (see 7.3.4) ............................................. 33
A.2.4 Risk management context for a power enhancement project ........... 33
A.2.5 Risk criteria (see 7.3.5)................................................................... 34
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A.2.6 Key elements (see 7.3.6) ................................................................ 34

A.2.7 Risk analysis (see 7.4.3) ................................................................. 36
A.2.8 Risk evaluation (see 7.4.4) ............................................................. 40
A.2.9 Risk treatment (see 7.5) ................................................................. 40
A.2.10 Risk register (see 7.4.2 and 7.7.4) .................................................. 41
Bibliography .......................................................................................................................... 42

Figure 1 – Principal stakeholders in a project ........................................................................ 11

Figure 2 – Relationship between the components of the framework for managing risk,
adapted from ISO 31000 ....................................................................................................... 13
Figure 3 – Project risk management process, adapted from ISO 31000 ................................. 19
Figure A.1 – Risk management scope for an open pit mine project ....................................... 34
Figure A.2 – Distribution of costs using simulation ................................................................ 40

Table 1 – Typical phases in a project .................................................................................... 10

Table A.1 – Stakeholders for a government project ............................................................... 30
Table A.2 – Stakeholders and objectives for a ship upgrade ................................................. 31
Table A.3 – Stakeholders and communication needs for a civil engineering project ............... 31
Table A.4 – External context for an energy project ................................................................ 32
Table A.5 – Internal context for a private sector infrastructure project ................................... 33
Table A.6 – Criteria for a high-technology project ................................................................. 34
Table A.7 – Key elements for a communications system project............................................ 35
Table A.8 – Key elements and workshop planning guide for a defence project ...................... 36
Table A.9 – Key elements for establishing a new health service organization ........................ 36
Table A.10 – Example consequence scale ............................................................................ 37
Table A.11 – Example likelihood scale .................................................................................. 38
Table A.12 – Example of a matrix for determining the level of risk ........................................ 38
Table A.13 – Example of priorities for attention ..................................................................... 40
Table A.14 – Example of a treatment options worksheet ....................................................... 41
Table A.15 – Simple risk register structure ............................................................................ 41
 I.S. EN 62198:2014

–4– 62198 © IEC:2013

INTERNATIONAL ELECTROTECHNICAL COMMISSION

____________

MANAGING RISK IN PROJECTS –

APPLICATION GUIDELINES

FOREWORD
1) The International Electrotechnical Commission (IEC) is a worldwide organization for standardization comprising
all national electrotechnical committees (IEC National Committees). The object of IEC is to promote
international co-operation on all questions concerning standardization in the electrical and electronic fields. To
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9) Attention is drawn to the possibility that some of the elements of this IEC Publication may be the subject of
patent rights. IEC shall not be held responsible for identifying any or all such patent rights.

International Standard IEC 62198 has been prepared by IEC technical committee 56:
Dependability.

This second edition cancels and replaces the first edition, published in 2001, and constitutes
a technical revision.

This edition includes the following significant technical changes with respect to the previous
edition:

a) major restructure and rewrite of the first version;

b) now aligned with ISO 31000, Risk management – Principles and guidelines.
 I.S. EN 62198:2014

62198 © IEC:2013 –5–

The text of this standard is based on the following documents:

FDIS Report on voting

56/1529/FDIS 56/1539/RVD

Full information on the voting for the approval of this standard can be found in the report on
voting indicated in the above table.

This publication has been drafted in accordance with the ISO/IEC Directives, Part 2.

The committee has decided that the contents of this publication will remain unchanged until
the stability date indicated on the IEC web site under "[Link] in the data
related to the specific publication. At this date, the publication will be
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• reconfirmed,
• withdrawn,
• replaced by a revised edition, or
• amended.

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 I.S. EN 62198:2014

–6– 62198 © IEC:2013

INTRODUCTION

Every project involves uncertainty and risk. Project risks can be related to the objectives of
the project itself or to the objectives of the assets, products or services the project creates.
This International Standard provides guidelines for managing risks in a project in a systematic
and consistent way.

Risk management includes the coordinated activities to direct and control an organization with
regard to risk. ISO 31000, Risk management – Principles and guidelines, describes the
principles for effective risk management, the framework that provides the foundations and
organizational arrangements for designing, implementing, monitoring, reviewing and
continually improving risk management throughout an organization and a process for
managing risk that can be applied to all types of risk in any organization. This standard shows
how those general principles and guidelines apply to managing uncertainty in projects.
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This standard is relevant to individuals and organizations concerned with any or all phases in
the life cycle of projects. It can also be applied to sub-projects and to sets of inter-related
projects and programmes.

The application of this standard needs to be tailored to each specific project. Therefore, it is
considered inappropriate to impose a certification system for risk management practitioners.

The guidance provided in this standard is not intended to override existing industry-specific
standards, although the guidance can be helpful in such instances.
 I.S. EN 62198:2014

62198 © IEC:2013 –7–

MANAGING RISK IN PROJECTS –

APPLICATION GUIDELINES

1 Scope

This International Standard provides principles and generic guidelines on managing risk and
uncertainty in projects. In particular it describes a systematic approach to managing risk in
projects based on ISO 31000, Risk management – Principles and guidelines.

Guidance is provided on the principles for managing risk in projects, the framework and
organizational requirements for implementing risk management and the process for
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conducting effective risk management.

This standard is not intended for the purpose of certification.

2 Normative references

The following documents, in whole or in part, are normatively referenced in this document and
are indispensable for its application. For dated references, only the edition cited applies. For
undated references, the latest edition of the referenced document (including any
amendments) applies.

ISO 31000, Risk management – Principles and guidelines

3 Terms and definitions

For the purpose of this document, the following terms or definitions apply.

3.1
project
unique process consisting of a set of coordinated and controlled activities, with start and
finish dates, undertaken to achieve an objective conforming to specific requirements,
including the constraints of time, cost and resources

Note 1 to entry: An individual project may form part of a larger project structure.

Note 2 to entry: In some projects the objectives are updated and the product characteristics defined progressively
as the project proceeds.

Note 3 to entry: The project’s product is generally defined in the project scope. It may be one or several units of
product and may be tangible or intangible.

Note 4 to entry: The project’s organization is normally temporary and established for the lifetime of the project.

Note 5 to entry: The complexity of the interactions among project activities is not necessarily related to the
project size.

[SOURCE: ISO 10006:2003, 3.5] [1] 1

3.2
project management
planning, organizing, monitoring, controlling and reporting of all aspects of a project and the
motivation of all those involved in it to achieve the project objectives
___________
1 References in square brackets refer to the Bibliography.
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