Understanding the entire risk picture is key to project outcome and these insights can dictate the difference between project success and failure. Starting in the early stages, when the ability to influence outcomes is at its peak, certainly pays off. Starting late, for example when something unforeseen occurs, may prove costly and in some cases, the point of no return may have been passed.
While working on risks, it is key to keep in mind that it has both an upside and a downside. The greater the downside potential, the greater the upside – if it has been identified, understood, and acted upon in due time.
We provide different risk management services including:
- Qualitative Risk Assessment
- Quantitative Risk Assessment
- Upside vs Downside Risk
- Workshop Facilitation
- Cost/ Schedule Risk
- HSEQ Risk
Experience has shown that the key reasons why projects may fail to perform include the following 3 main groups:
Bad project development and planning
- Failing business case
- Unknown risks in the selected solution
- Insufficient specifications
- Poor contracts / execution strategies
- Unrealistic budget and schedule targets
- Lack of systematic follow-up
- Inadequate buy-in from owners/stakeholders
- Risk taking is in the very nature of any business
- Bad luck or bad management?
- Known versus unknown risks
- Seemingly those being well prepared also seems to be having better luck
In asset-heavy industries, the risk picture is highly influenced by how assets are designed, built, maintained, and operated. In addition, the external environmental conditions in which they operate in is a factor to be accounted for.
Risk inherently has both a downside and an upside, and by proactively managing the entire risk picture, downsides can be avoided, and upsides may be exploited – in a proactive way with fewer surprises and uncertainties.