Kul UPPAL en Directors and Executives, Engineers and Technicians, Recursos Humanos Senior Cost Engineering Consultant to Oil & Gas Industry • Conquest Consulting 21/9/2016 · 3 min de lectura · 1,2K

Risk Management

Risk Management

In general risk management  process helps identify all items that can impact a project for both cost and schedule. Before embarking on a risk management process, let us establish some key risk-related definitions. AACE International has defined project risks, as unknown events. These events can be positive (opportunities or upside) or negative (threats or downside). Past project experience shows that most of the time is spent handling negative project risks, or "threats," rather than positive project risks, or "opportunities." Special risk session should be initiated to capture all opportunities within the project scope of work. Here are risk related definitions from AACE International recommended practice RP 10S-90:

Risk: An uncertain future event that, if it occurs, will affect project objectives either positively (upside) or negatively (downside); resulting in outcome of uncertainty

Issue: Actual problem that can affect objectives if not managed (potential for loss)

Uncertainty: An unknown event due to inherent lack of knowledge or ambiguity (i.e., weather, subsurface, etc.)

Threat: An unfavorable condition or situation that can lead to a risk (i.e., issue, uncertainty, etc.)

Opportunity: Potential for gain (favorable condition or situation, good idea, or response)

Impact (Severity, Risk Exposure): Effect of the risk, if it occurs, on project objectives

Probability: Likelihood of occurrence of risk, measured in percentage

The basic attributes of risk management (planning, organizing, directing and controlling) process are identical in all aspects of all four attributes of project management process. The four attributes of project management are - Plan, Organize, Direct, and Control. These management concepts, allow any company, to handle the tactical, planned and set decisions. In addition, these functions are adequate to enable the company with a controlled plan over the preventative measures to maintain the project within established cost and schedule.


In our day-to-day affairs, we are constantly exposed to risks, yet we are managing our lives with some degree of success, by unknowingly taking risk into account with our daily chores. On any project through all phases of work, the question of managing risk comes down to acting responsibly on behalf of all stakeholders, owners, contractors or any other affected parties. However, risk management process would increase the project budget for handling risks. This cost should be balanced against the expected values of the risks to be assessed. The risk process relies heavily on the judgments and experience of the person or the project team that will handle the process. It also depends on the historical database established by the company from previous projects. Taking all appropriate steps to get the process going, is probably one of the most critical decisions a company can make to address all types of risk. Overall, the processes identified in the project management body of knowledge (PMBOK) wi