AWWA ACE61636

In order to analyze risks associated with a project, the risks must be first properlyidentified. In other words, you need to think through all of the possible scenarios beforethe project proceeds so that the best course of action can be taken.One way to embark on risk management is to create a matrix with the issues andpossibilities. The paper provides a list of areas of risk to consider. Risk balancing is key as it identifies the party most able to control and manage aparticular risk, thereby providing an overall reduction in the risk of the project. For eachof the outlined risks, you must allocate who in the process will be responsible for it. Thiscan be the Owner, the contractor or both the Owner and the contractor. This is a crucialstep in the process because it acts as a clear way to identify which party bears the risk.The market and how risks are viewed is constantly changing, what was acceptablein the marketplace prior to 9/11 and the ENRON situation completely changedfollowing these occurrences. It is important to outline concisely each project's perceivedrisk so that the "overall risk picture" can be put into place. This type of methodical matrixat the front-end of a project will act as a guide throughout the procurement process thatshould be routinely checked and revised as needed or dynamics in the project change. This paper discusses severalwater projects and identifies some of the pivotal risks and solutions that were ultimatelyput into place. Includes table.

Product Details

Edition:

Vol. - No.

Published:

06/17/2005

Number of Pages:

9

File Size:

1 file , 610 KB