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(RISK-845) Risk Intelligence and Measuring Excellence in Project Risk Management

Primary Author: Mr James E Arrow FRICS KBR Inc

Audience Focus: Intermediate
Application Type: Experience-Based
Venue: 2012 AACE International Annual Meeting, San Antonio, TX, USA

Abstract: At a time of economic uncertainty, the most successful and effective organizations offer the market predictability. In order to achieve predictability in project outturn, risk management is given equal importance alongside cost and schedule control. In turn, improved risk control and growing levels of risk intelligence are best facilitated by ongoing measurement.

In this paper, the measurement of risk will be discussed (in a project or construction and engineering context) to help reinforce process integrity. Methods for the effective capture and sharing of risk data will be reviewed in conjunction with critical success factors, common key risk indicators (KRIs) and other widely held risk metrics and benchmarks. In addition, the benefit of periodic risk-based project audits will be explored.

After establishing a link between risk and knowledge, the merits of a central risk management library or knowledge base for professional risk management practitioners will be considered with the goal of improving risk management implementation effectiveness at the organizational and industry level.

Note: This paper assumes that the reader has an understanding of basic risk management terms and principles. If the reader does not already possess that insight, please first read TCM Chapter 7.6.