Risk Analysis: What Does It Really Mean For My Project?

CIM MEMO 2011
Abstract Risk analysis is a term or concept that that has many different meanings to many different people. Often projects include some form of qualitative risk planning, brainstorming or mitigation but few do true quantitative risk analysis at the budgeting phase. Many experts concur that if you don’t do some sort of quantitative analysis, you’re not really doing risk analysis at all and in a lot of cases you may even be wasting your time.

Using knowledge and training from the PMI, AACE and Palisade combined with solid experience as a project manager and senior engineer in the heavy industrial sector, Jason has developed a new approach which is being adopted by industrial companies and organizations such as the Canadian Department of National Defence and Areva Resources Canada. The process is used for doing project risk analysis for quantifying uncertainty on capital construction budgets. What is unique about the approach is a dual S-Curve concept used for quantifying Contingency separate from Risk Reserve on the project. The analysis also yields Schedule Contingency and can incorporate Escalation Analysis and Cash Flow modelling.

The presentation will cover an overview of the process which includes concepts like Calibration Training and Risk Register Brainstorming as well as how this can integrate into a comprehensive Risk Management Plan.

For more information visit www.engcomp.ca.
Keywords: Risk analysis, Project management, Risk Reserve, Schedule Contingency, Risk management, Cash flow, Contingency
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