6th African Rift Geothermal Conference | ARGeo-C6 Short Course 1 | Project Management for Geothermal Development
Project risk management
Carine Chatenay, Verkís
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Learning outcome
• How to develop risk management culture in the project
• Ways to implement risk management
• Risk management principles and structure
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Content
• Risk culture
• Management principles
• Roles and responsibilities
• Monitoring and review
• Risk assessment: • Process
• Assessment methods
• Risk ranking
• Tips
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk culture What is risk management
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
What is risk
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
What is risk?
Source: http://intelmsl.com/insights/intelligence-101/threat-and-risk/
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Various concepts
• Danger, hazard
• Occurence
• Probability
• Uncertainty
• Opportunity vs. threat
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
A definition of risk
Risk is the effect of uncertainty on objectives (from ISO 31000 – „Risk management – Principles and guidelines“)
Can be negative: threat
Or positive: opportunity
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Other definitions
“combination of the probability of occurrence of harm and the severity of that harm” NORSOK Z-013
“an uncertain event or condition that, if it occurs, has a positive or negative impact on project‘s objectives“ PMBok
Source:http://financetrainingcourse.com/education/2012/12/what-is-risk-the-new-risk-assessment-risk-management-training-series/
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk management process
• Identify and characterize threats
• Assess the vulnerability of critical assets to specific threats
• Determine the risk (expected likelihood and consequences of specific attacs on specific assets)
• Identify ways to reduce risk
• Prioritize risk reduction measures based on strategy
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk management culture
Why develop an effective risk management culture? • Creating and protecting of value
• Part of decision making and of all processes
• Addresses uncertainties in a systematic, structured and manner
• Examples: Maersk
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk management principles How is risk management implemented?
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk management principles
• Tailorable
• Protect everything of value
• Takes into account the internal context (organization...)
• Systematic and structured
• Part of decision making
• Transparent, dynamic, iterative, etc..
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk management process
1. Communication and consultation
2. Establish the context
3. Risk assessment
4. Risk treatment
5. Monitoring and review
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk management framework
• Define roles & responsibilities, plans, objectives, methods and implement risk management activities accordingly.
Plan
Do Check
Act
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Building capacity and competence
• At organization level, but also at project level
• Select people with skills and knowledge
• Get managements support
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Roles and responsibilities Who are the players?
• 3.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
At organization level
• Senior management responsibilities
• The role of individuals
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
In a project - Who is in charge?
• Project manager
• Risk champion (if required)
• Risk owners
• Action owners
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Communication and consultation
• Communication = key element
• Ongoing process
• Build positive attitude
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Process How is risk assessment conducted?
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk management process
2. Establishing the context
3. Risk assessment
3.1 Risk identification
3.2 Risk analysis
3.3 Risk evaluation
4. Risk treatment
1. Communication and consultation
5. Monitoring and review
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Typical fields of application
• Project risk management
• Cost and schedule risk managment
• Technical risk management
• Health, safety and environment risk management
• Procurement, ...
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Make a risk management plan
• Highly recommended from the beginning: used to define the risk management framework and outline risk activities required.
• Typical content: • Risk management methodology;
• Roles and responsibilities and relevant authority level;
• Budgeting;
• Planning;
• Risk evaluation scheme;
• Documentation and reporting requirements.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Typical activities to plan
• Project risk
• Technical risk assessment
• Risks during construction
Field of application
Project Project
risks
Project
risks
Project risks 1
Project risks2
Cost and schedule
Cost and schedule risk assessment
Cost and schedule risk assessment
Cost and schedule
risks3
Technical
Preliminary Hazard
Analysis4
Preliminary HazOp5
HazOp6
HazOp update7
Construction hazard study8
HSE
Specific HSE risk
studies
Specific HSE risk
studies
JSEA and “on the go”
assessments
Root Cause
analysis
Procurement Packages procurement
risk strategy
Contractors risk
1 Regular update if required 2 Quarterly update or upon achievement of major milestone 3 Regular update 4 Or similar, includes safe in design aspects 5 Or similar, includes safe in design aspect. Encompasses other specific risk studies, e.g. fire... 6 Or similar. Other specific risk studies. Updates in case of scope or design modifications 7 Update before POV to ensure the system is designed and installed 8 Regular update as required.
Pre-feasibility Feasibility Detail design EXECUTION
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Players & roles
• Project manager • Responsible for risk management: makes sure it is implemented • Overall owner of the risk register
• Risk study leader / risk analyst • Project manager for individual risk assessment study • Facilitates the risk assessment process
• Workshop (risk assessment) participants • Provide input and contribute to the risk assessment
• Risk owners • Responsible for ensuring that a risk is managed
• Action owners • Allocated specific tasks to manage the risk
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
1. Communication & consultation
2. Establishing the context
3. Risk assessment
3.1 Risk identification
3.2 Risk analysis
3.3 Risk evaluation
4. Risk treatment
1. Communication and consultation
5. Monitoring and review
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
1. Communication & consultation
• Communication and consultation is a key element of the risk management process
• To be used as relevant at each stage of the risk management process
• In accordance with the project communication plan or principles.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
2. Establishing the context
2. Establishing the context
3. Risk assessment
3.1 Risk identification
3.2 Risk analysis
3.3 Risk evaluation
4. Risk treatment
1. Communication and consultation
5. Monitoring and review
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Tip: initiate a risk study
• What for? • Determine exact scope of the risk study (components, limits, extent of the
study)
• Identify stakeholders
• Determine consultation and communication requirements
• Who is involved in initiation? • Project manager
• Risk facilitator or risk study leader
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
2. Establishing the context
• Understand the background of the study: • Objectives of the study;
• Identifying the internal and external environment of the study;
• Specifying the scope and objectives of the study;
• Specifying the boundaries of the study;
• Determining the criteria against which the risks are to be evaluated;
• Defining the key elements of the study.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Context
• External context: • Social, cultural, political, legal, regulatory, financial, technological, economic,
natural... • Key drivers • External stakeholders
• Internal context: • Governance, organizational structure,... • Policies, objectives • Resources: capital, time, people, technologies • Organization‘s culture...
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Context tool example: PESTLE
Project
Political factors
Environ-mental factors
Social factors
Technological factors
Economic factors
Legal factors
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
3. Risk assessment
2. Establishing the context
3. Risk assessment
3.1 Risk identification
3.2 Risk analysis
3.3 Risk evaluation
4. Risk treatment
1. Communication and consultation
5. Monitoring and review
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
3. Risk assessment
• Risk is generally associated with the following components: • A source of risk or hazard;
• An event or incident;
• A cause for the presence of the hazard or for the event to occur;
• A location where the hazard (where) or event takes place and a given moment (when);
• A consequence, outcome or impact;
• Controls to prevent the risk from happening, characterized by a given level of effectiveness or adequacy to control the risk.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
3.1. Risk identification
Risk identification consists in 1. identifying first what can happen?
2. where ?
3. and when?
It is then necessary to identify the possible causes and scenarios by asking
1. “why?”
2. and “how?” to ensure no significant causes are omitted.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
3.2. Risk analysis
• Risk analysis involves • developing understanding of the existing controls and
• determining consequences, likelihood and hence the level of risk.
• Scenarios of the most serious credible consequence are identified in order to capture all potential consequences of the risk.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Types of analysis
• Quantitative analysis
• Semi-quantitative analysis
• Quantitiavite analysis
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
3.3. Risk evaluation
• Risk evaluation is aimed at assisting the decision making process in determining the need for risk treatment and priority for treatment implementation.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
4. Risk treatment
2. Establishing the context
3. Risk assessment
3.1 Risk identification
3.2 Risk analysis
3.3 Risk evaluation
4. Risk treatment
1. Communication and consultation
5. Monitoring and review
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
4. Risk treatment
• Risk treatment consists in identifying and selecting the options for treating risks and implementing them.
• Decisions on risk treatment may be based on a cost-benefit analysis and are taken in cooperation with the Risk Study Owner.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk treatment decision
• Retain: accept the risk, do nothing about it
• Reduct: of probability and/or impact
• Avoidance: no performing the activity that implies the risk (NB: may lead to other risks)
• Transfer: pass on to another party (e.g. Insurance, contract...)
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk treatment consideration
• Avoid the risk by deciding not to start the activity that gives rise to the risk; • Seek an opportunity by deciding to start or continue with an activity likely
to create or enhance the risk; • Remove the source of a threat; • Change the nature and/or magnitude of likelihood; • Reduce the consequences of a threat; • Enhance the gain from an opportunity; • Change both likelihood and consequences of a risk; • Accept the risk and develop suitable contingency plans; • Monitor the causes of the risk and develop response plans for when it
occurs.
• 1. Process
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
The ALRAP, or ALARA, concept
Ris
k in
crea
sin
g
Intolerable region – risk cannot be justified
Tolerable only if risk reduction is impractical
or if cost is grossly disproportionate to the
benefits gained
Acceptable risk, no need for
ALARP
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Cost/benefit of risk mitigations
Source: http://www.jakeman.com.au/media/alarp-as-low-as-reasonably-practicable
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
HSE: hierarchy of control
Elimination
Substitution
Engineering controls
Administrative controls
PPE
Most effective
Least effective
Physically remove the hazard
Replace the hazard
Isolate people from the hazard
Change the way people work
Protect worker with Personal Protective Equipment
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk treatment plan – key issues
• Details to be recorded: • What is the risk treatment? if needed detailed actions? • Who is responsible for follow-up (risk owner)? • By when it is to be completed? • Monitoring if needed?
• Validation at the right level • Project manager of if needed higher level
• Ownership • Inform the risk owner; make sure communication is in place
• Follow-up plan:
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
5. Follow-up, report & monitoring
2. Establishing the context
3. Risk assessment
3.1 Risk identification
3.2 Risk analysis
3.3 Risk evaluation
4. Risk treatment
1. Communication and consultation
5. Monitoring and review
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
5. Follow-up, report & monitoring
• Why? • For transparency purposes, to demonstrate to relevant stakeholders how the
risk management process has been conducted;
• To provide evidence of a systematic approach to risk assessment;
• To provide record of risks and develop a database for the purpose of learning lessons;
• To keep track of the decision taken concerning the risks identified and provide a framework for continuing monitoring and review;
• To satisfy audit requirements;
• To share information & provide support to communication on risk.
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Monitor, review and continuous improvement
• Monitor and review
• Learn from risk events • What happened
• How and why?
• Likelihood of the event happening again
• Review of the risk treatment approach
• Communication aspects
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Recording
• Documents to be considered for record:
• Risk management plan
• Risk registers
• Risk study report
• Incident database
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk register sample – Project risks
Risk identification Risk analysis Risk treatment Monitoring
Risk # Risk title Cause Consequence Risk Risk treatment Risk owner Monitoring Due date Risk Progress Status Initial Rev.
cu
rren
t
Monitoring
plan:
milestone
and report targ
et
sessio
n
sessio
n
ID Impact of summer
vacation on the
project milestones
Project staff
summer vacation
not appropriately
taken into account
in the schedule
Delay on project
milestones up to
1 month.
IV Coordinate project
activities and planned
summer vacation to
ensure project progress
as planned. Plan for
back-up staff to reinforce
the team if required.
xxx, Project
manager
at 80%
completion
of the risk
treatment
plan
05.07.15 III Plan not
approved
Draft 1
ID
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk assessment methods What methods are available?
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Assessment technique selection
Selection based on:
• Complexity of the problem
• Information available
• Resources required: time, level of expertise,...
• Desired output (qualitative, quantitative?)
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Selection – Methods attributes
Method Risk assessment technique
Look-up methods Check-lists; preliminary hazard analysis
Supporting methods Structured interview; brainstorming; Delphi, SWIFT; human reliability analysis
Scenario analysis Root cause analysis; toxilogical risk assessment; business impact analysis; fault-tree analysis; event-tree analysis; cause/consequence analysis; cause and effect analysis;
Function analysis FMEA/FMECA; reliability; sneak analysis; HazOp; HACCP
Controls assessment LOPA (Layers of protection) analysis; bow tie analysis
Statistical analysis Markov analysis; monte-carlo analysis; bayesian analysis
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Preliminary hazard identification
Overview Identification of hazards
Use Early stage of project development or as a preliminary study for prioritizing further analysis
Inputs
Process List of hazard or generic hazardous situations is formulated Qualitative analysis sometimes used to analyze the risks
Output List of hazards Recommendations
Pros Practical when information is limited Simple approach
Cons Only preliminary, not comprehensive
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Brainstorm
Overview Free-flowing conversation aimed at identifying potential risks.
Use At any stage
Inputs Knowledgeable people, key stakeholders
Process Structured or not. May be facilitated by someone starting off discussion or prompting the group
Output e.g. List of risk
Pros Involvement of key stakeholders Quick and easy
Cons Lack of structure, highly dependent on the group dynamic
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
SWIFT
Overview Structured What If Analysis - Alternative to HazOp. Systematic study using prompts words or phrases
Use For systems, plants procedures...
Inputs Description of the system studied: split into nodes, context
Process Use of prompt list „What if...“ apllied systematically to each node of the system. Risk identified assessed and evaluated.
Output Risk register
Pros Rather simple and rapid, systematic Involvement of key players
Cons Experienced and capable facilitator needed Could become time consuming in not managed carefully May be too shallow, complex issues not revealed
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Scenario analysis
Overview Development of models on how the future may turn out
Use Policy making, planning strategies, consider existing activities
Inputs Team of people, brainstorm
Process Consider changes and various factors and develop scenarios
Output Described scenarios and range of options, how to modify the course of actions
Pros Interesting for risks considered in the long term
Cons Uncertainty, unrealistic scenarios
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Take 5 – a short job risk assessment
Take 5 – is a short and simple risk assessment to be performed by workers before they start on a task. The main issues are: 1. Mind the task:
What is it I am supposed to do, with whom, where are the dangers, where is it to be performed, do I need a permit, do I have all necessary equipment, etc.
2. Analyse and assess Is there a risk, what risk is it, how great is it, is it acceptable ? A threat to life – Dangerous – accidents possible – Under control
3. Control the risk What can be done about the risk ? Can it be removed or reduced ? What means are available for that purpose ?
4. Proceed with work in a safe way Use the means found to control the risk and work in a safe way
If the risk is unacceptable and it is neither possible to remove it nor reduce it:
Notify your foreman and do not commence with the task !
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk ranking
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
What is risk?
“effect of uncertainties on objectives” ISO 31000:2009
“combination of the probability of occurrence of harm and the severity of that harm” NORSOK Z-013
“an uncertain event or condition that, if it occurs, has a positive or negative impact on project‘s objectives“ PMBok
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk categories
• Typical categories: • Health and safety
• Environment
• Capital cost
• Schedule
• Operation (increased cost)
• Production (loss)
• Maintenance (increased cost)
• Image
• ...
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Rating
• Consequence category
• Probability / frequency
• Number of persons concerned: sometimes used for a quantitative or semi-quantitative assessment
• Control: sometimes used to assess if the controls in place address the risk adequately
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Consequence rating - example
Source: http://www.marchmenthill.com/uploads/126-QSI-6-Water-FINAL-Article-Investment-Justification-Fig-2-crop.JPG
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Probability/frequency rating example
Very Unlikely Unlikely Probable Highly Likely
Frequency Interval
(Multiple events)
Almost Impossible
<1/10 years
Possible Sometime
1/year – 1/10 years
Isolated Incidents
2/year – 1/year
Repeated Incidents
>2/year
Probability
(Single events)< 1% 1% - 10% 10% - 25% > 25%
Likelihood
Category
Probability
Frequency
D
Unlikely
E
Improbable
More than 15 times
during project
10-15 times during
project lifetime
5-10 times during
project lifetime
1-5 times during
project lifetime
Seldom
Very high
A
High
B C
Occasional
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Control rating - example
C3
C2
C1
C0Poorly controlled, risk is addressed at best but not documented or implemented, or at worst no control or
control not addressing the risk appropriately.
Adequately controlled
The control addresses the risk but it documentation and implementation could be improved
The control addresses the risk, at least partly, but it documentation and implementation could be
improved
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk ranking - example
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
Risk matrix
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
What to retain?
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
• Have a plan and follow it
• Lay eyes on the biggest threats to the project and manage them in a pro-active manner
• Opportunities should not be forgotten
• Use external, neutral facilitator if needed
• Involve all the project players in the process: risk management should work top-down and botom-up
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
References and further reading
• ISO 31000:2009 Risk management – Principles and guidelines
• ISO Guide 73:2009 Risk management - Vocabulary
• ISO 31010:2009 Risk management – Risk assessment techniques
ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016
6th African Rift Geothermal Conference | ARGeo-C6
Short Course 1 | Project Management for Geothermal Development
Organized by: United Nations University Geothermal Training Programme (UNU-GTP)
Financed by: Icelandic Ministry for Foreign Affairs – ICEIDA and Nordic Development Fund
Coordinator: Ingimar G. Haraldsson, UNU-GTP
Lecturers: Anthony Ng‘ang‘a Ngigi, Geothermal Development Company, Kenya
Carine Chatenay, Verkís Consulting Engineers, Iceland
Peketsa Mwaro Mangi, Kenya Electricity Generating Company, Kenya
Yngvi Gudmundsson, Verkís Consulting Engineers, Iceland