Level: Basic
TCM Section(s):
7.6. Risk Management
Venue: 2023 AACE International Conference & Expo
Abstract: Many organizations have implemented formal risk management practices at either the individual project level or as a part of management of an overall capital program.However, often those organizations are not seeing the anticipated benefit from implementing those practices.They continue to have projects fail by going significantly over budget, experiencing pronounced delays, or suffering major disputes between parties.Having reviewed a large number of projects in these programs over the past twenty years, the author has identified many lessons learned that have impacted the value an organization receives from implementing risk management.The lessons learned cover all facets of a risk management program, including risk management planning, identification, qualitative and quantitative assessments, response, and monitoring.The issues include mistakes in implementation, tool utilization, poor understanding, lack of collaboration, and lack of commitment.The author has witnessed issues in each of these areas that reduce the effectiveness of the risk management program.By highlighting these issues and how to address them, other organizations can benefit from these lessons learned and maximize the value of a strong risk management program.
TCM Section(s):
7.6. Risk Management
Venue: 2023 AACE International Conference & Expo
Abstract: Many organizations have implemented formal risk management practices at either the individual project level or as a part of management of an overall capital program.However, often those organizations are not seeing the anticipated benefit from implementing those practices.They continue to have projects fail by going significantly over budget, experiencing pronounced delays, or suffering major disputes between parties.Having reviewed a large number of projects in these programs over the past twenty years, the author has identified many lessons learned that have impacted the value an organization receives from implementing risk management.The lessons learned cover all facets of a risk management program, including risk management planning, identification, qualitative and quantitative assessments, response, and monitoring.The issues include mistakes in implementation, tool utilization, poor understanding, lack of collaboration, and lack of commitment.The author has witnessed issues in each of these areas that reduce the effectiveness of the risk management program.By highlighting these issues and how to address them, other organizations can benefit from these lessons learned and maximize the value of a strong risk management program.