Total Risk Management Asset Care & Integrity

Project risk management

is a systematic approach to limiting the consequence of project failure or overruns in time or cost, by identifying the risks to successful completion of the project, assessing the potential impact of these risks on the project, and instigating actions that will protect against or prevent the most serious impacts.

A systematic approach to risk identification is vital to the success of any project risk assessment. The hazards may arise from a number of different types of event. For example:

Technical:	communications, new processes, complex technology
Economic:	inflation, interest rates, taxation, foreign exchange rates
Environmental:	flood, drought, storm damage, subsidence, earthquake
Accidental:	fire, operator error, vehicle damage, structural failure
Internal:	unavailability of resources (staff, facilities, cash flow), strikes, delays in supporting projects, design or planning faults
External:	changes in regulations, legal action, competitor actions, supplier actions, loss in transit