5. TO BE COVERED TODAY…..
• Reasons for failure in Major Infrastructure Projects
• The What and the How of Risk Management and Change Control
• The Golden Circle (for Risk)
• Why?
6. Analysis undertaken by EY in
2015 shows that
approximately US$682B is
wasted on underperforming
projects across the globe
annually.
FIRST, LET’S TALK ABOUT
REASONS FOR FAILURE
7. 2015 REPORT
• Failure to adapt and tailor approach to the project type and complexity.
• Treating project symptoms rather than root causes
• Missing residual, predictive and discrete risks - skewing the project risk picture
• Assuming that major projects are run the same as smaller projects
AVOIDING THESE CAUSES OF FAILURE IS THE KEY TO UNLOCKING THE
VALUE OF YOUR PROGRAM INVESTMENTS.
Source: EY: Predicting Project Risks improves Success - 2015
10. UNDERSTAND WHAT IT IS: THE DEFINITION
Risk definition: The effect of uncertainty on objectives
An EFFECT is a deviation from the expected – positive or negative
Risk has two types:
1. Inherent (Uncertainty, Planned)
2. Contingent (Risk Event, Unplanned)
11. RISK VS CHANGE
RISK might happen = Consequence/s X Likelihood/s
CHANGE has happened = only Consequence/s
12. UNDERSTAND HOW IT HAPPENS: THE PROCESS
ISO 31000 : 2009, Risk Management – Principles and guidelines
15. UNDERSTAND WHAT IT IS: THE DEFINITION
• The definition of change: to make or become different from expected.
• Two types of change; Product change and Project change
• Potential impacts need to be considered when evaluating a change request;
Scope, Schedule, Cost, Quality, Process and Deliverable/s, Risk
Source: AECEI
26. MY OBSERVATIONS
1. Too much time spent in quantitative analysis…not
enough management
2. We need to spend more time investing in understanding
in behavioural techniques within the project team
3. Working together to improve project outcomes will deliver
a better response to business cases
4. The risk management process doesn’t start and end with
a list, it’s cyclical and the learnings need to roll through to
the subsequent projects and provide real benefit
SOURCE: HENRY FORD
27. THE FINAL ASSERTION
Risk Management has become a
process, more than an intrinsic
philosophy…because people
understand what they do and
how they do it – they just don’t
understand WHY they do it
