Our approach to Risk Management recognizes Risk as real and present, and while not always avoidable, it is always manageable. We also believe that there are costs associated with risk that may or not be clearly evident. Cost elements include the visible costs of protection and mitigation and/or the costs of impacts when risk events do occur, and the hidden costs of inflated estimates and contingencies, exclusion of qualified performance partners, and inclusion of inappropriate performance partners.
We involve all project stakeholders via interactive participation to:
- Identify the Risks and Threats to the Projects success.
- Determine the Likelihood of Occurrence for each Risk.
- Assess the Severity of Impact for each occurrence of a Risk event.
- Develop a Management Strategy for each Risk.
- Monitor the execution of selected Management Strategies.
Risk Management strategies include the choices to Accept, Transfer, Mitigate, or Avoid. Each option has an associated cost or required process. We assist in recommending the most appropriate strategies consistent with optimizing costs and effort. We place an emphasis upon identifying opportunities for reducing the overall Cost of Risk through partnering and risk-sharing actions.
As projects evolve over time and through execution phases, the nature and number of risks also change. Our process includes reevaluation of the project and its risks at timely and appropriate project intervals.