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(RISK-3055) Holistic Risk Management

Level: Basic
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA

Abstract: When evaluating risks, risk managers often focus on only two types of impacts, cost and schedule. Cost and schedule are the primary focus of quantitative risk analysis, as those are the metrics used to determine contingency and project confidence. However, other types of impacts, while acknowledged, are often dismissed when evaluating risks. This results in risk registers that minimizes or ignores key risks to the project, including those related to impacts on overall project performance. Performance impacts could include impacts to the project’s quality, scope, aesthetics, operations & maintenance, environment, and health & safety. If these metrics are not considered, then the risk register and the risk analysis would not represent the entire range of risks to the project. As such, a risk that could result in a critical performance impact to the project could be minimized or excluded from the risk register and analysis.