Risk Management
With each project, there are many uncertain values that must be considered when you are in the planning stage.
Risk Management is an essential element that you must control in order to bring your project in on time and within budget.
Values such as costs, resources, dates and durations can all affect the outcomes of timelines and final budget expenditures.
So, it makes sense to analyze the risk, identify any potential threats to the project and then assign adequate resources to manage the risks. P&M provides the trained risk workshop facilitators and technical consultants in support of updating the risk registers for the Capital Construction projects.
With P&M on your team, you can proactively become aware of possible risks and receive recommendations to control those risks.
If you are a project manager and fail to adequately consider the impact of risk and uncertainty on your project, you could be losing large sums of money!
Tools Of The Trade
There are several important tools that are frequently used to quantify the risks. One such program is “Monte Carlo” simulation which provides information about the project and the likelihood that it will be completed on budget and in a certain time frame. The power of the Monte Carlo simulation is the picture of the possible outcome it will create.
With reports, charts and graphs, management can easily see the possibilities and can then allocate manpower or other resources toward minimizing the impact of the risk on the project.
Risk Register (Qualitative Risk Analysis)
We have developed a Risk Management database (see Myriad™) that facilitates complete analysis by the following steps:
Monte Carlo Simulation (Quantitative Risk Analysis)
Myriad™ integrates with a variety of Monte Carlo simulation software using Microsoft Excel®. You can add Risk Analysis to your spreadsheet models quickly and easily to evaluate probabilistic outcomes for:
- Estimated Cost
- Budgets and Projected Cost (Forecasting)
- Determining Contingencies and Management Reserves
Additionally, you will be able to determine the critical path needed for project completion and be able to identify the most critical tasks that need to be finished.
Every year, many projects get cancelled, run late, or run over budget because risk management has not been adequately addressed.
It makes sense to use P&M to help you assess risks and to provide recommendations that can help you meet your deadlines and projections.