• Assessment and Management of Risk in
Complex Engineering Projects
• Subtitle: Across the Project Life Cycle
Introduction
• Definition of Risk Management
o The process of identifying, assessing,
and controlling risks arising from
operational factors and making
decisions that balance risk cost with
mission benefits.
• Importance in Engineering Projects
o Ensures project success
o Minimizes potential negative impacts
o Enhances decision-making
guides decision making process .. because
Project Life Cycle Overview
you know the risk you are able to make the
decision
• Phases of Project Life Cycle
o Initiation
o Planning
o Execution
o Monitoring and Controlling
o Closure
Risk Management in the Project Life Cycle
• Integration of Risk Management
o Risk management activities should be
integrated into each phase of the project
life cycle.
o Continuous process throughout the
project [Link] Assessment
Techniques
• Qualitative Risk Assessment
o Risk identification
o Risk prioritization
o Risk matrix
• Quantitative Risk Assessment
o Probability and impact analysis
o Monte Carlo simulation
o Sensitivity analysis
Initiation Phase
• Risk Assessment in Initiation
o Identifying potential risks early
o Analyzing initial project feasibility
• Key Risks getting stakeholders on the
o Stakeholder alignment same page may be difficult
o Regulatory requirements
o Initial resource allocation
Planning Phase
• Risk Assessment in Planning
oDetailed risk identification and analysis
o Development of risk management plans
• Key Risks
o Scope creep
o Budget constraints this is what we find at
o Timeline issues
planning stage so the risks
should collerate
Execution Phase
• Risk Management in Execution
o Implementing risk response strategies
o Monitoring risk triggers
• Key Risks
o Technical challenges
o Resource management
o Quality control
Monitoring and Controlling Phase
• Risk Management in Monitoring and
Controlling
o Tracking identified risks
o Reassessing risks and their impact
o Adjusting risk management plans as
needed
• Key Risks
o Performance issues
o Change management
o Compliance with standards
Closure Phase
• Risk Management in Closure
o Ensuring all risks are addressed and
documented
o Evaluating risk management
effectiveness
• Key Risks
o Contractual obligations
o Project handover
o Lessons learned documentation
Risk Response Strategies
• Mitigation
o Reducing the likelihood or impact of
risks
• Avoidance
o Changing the project plan to eliminate
risks
• Transfer
insurance cases
o Shifting the risk to a third party
• Acceptance
o Acknowledging the risk and not taking
any action unless it occurs
Case Studies
• Case Study 1: Successful Risk Management
o Example of a complex engineering
project with effective risk management
throughout the project life cycle.
• Case Study 2: Lessons Learned from
Failures
o Example of a project that faced
significant issues due to poor risk
management practices.
Best Practices in Risk Management
• Proactive Risk Management
o Early identification and assessment
• Stakeholder Involvement
o Ensuring all stakeholders are aware of
potential risks
• Continuous Monitoring
o Regularly updating risk assessments
and management plans
Tools and Techniques
• Risk Management Software
o Examples: Primavera Risk Analysis,
Microsoft Project
• Risk Registers
o Keeping detailed records of identified
risks, their assessment, and
management strategies
• Workshops and Brainstorming Sessions
o Collaborative approaches to identify and
analyze risks
Conclusion
• Summary
o Importance of risk management in
complex engineering projects
o Integration of risk management
throughout the project life cycle
• Future Outlook
o Evolving practices and technologies in
risk management
o Increased focus on proactive and
adaptive risk management strategies
