Evaluation Of A Project On Risk Management - amazonia.fiocruz.br

Infrastructure construction projects are complex with a very long life-cycle, a complex organizational plan, a complex resource management, technical complexities, contractual complexities and macro-environmental factors. The complexity of an infrastructure project leads to the existence of interdependent risks, which are hard to anticipate and control. As the investment is major for these types of projects, the risks and opportunities are critical to the project success or failure, the risk factors need to be identified and analyzed before any decision-making process. While upfront planning is important, not all events and scenarios can be foreseen as Evaluation Of A Project On Risk Management project can take several years to complete and may involve many companies and stakeholders.

In this planning stage of the project, a robust risk analysis method is indispensable for identifying and analyzing the major risk and opportunity factors. In this paper, a formalized multi-criteria decision-making process is developed based on a strategic risk analysis in a complex environment: 1 in a very early stage and at a strategic level, 2 before the contracting phase in order to develop a risk allocation plan and negotiate it with the project owner.

Risk is defined, according to ISOas the effect of uncertainty on the objectives to be achieved [ 1 ]. The last decades have been marked by notable developments in terms of infrastructure construction projects but also by unfulfilled objectives which challenge the construction industry. Strong gaps are identified in https://amazonia.fiocruz.br/scdp/blog/story-in-italian/change-in-russia-following-the-1917-revolution.php of organization and general management at the project level, in particular relating to the interfaces between the project actors whose specific objectives may be different or even contradict.

This results in a persistent difficulty for controlling risks with the increase of the number of stakeholders. These difficulties are further heightened for complex and strategic projects. A complex and strategic project is a project that requires during its life cycle, an organization and a specific approach to manage the project, risk and opportunities [ 2 ]. Whether a project is classified as complex and strategic depends on several criteria. These criteria may relate to the organization or company which manages the project such as the level of fit with the general strategy, the main objectives of the organization, its culture and financial state.

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Other criteria relate to the nature of the project such as the commercial environment, the financial plan, the brand image, Rik organizational plan, and the technical features. External criteria are the environmental factors such Evaluation Of A Project On Risk Management politic factors, legal factors, social factors, international aspects when the project is abroad. External factors occur outside the organization but can lead to internal changes and are, for the most part, beyond the control of the organization [ 3 ]. Infrastructure construction projects belong to this type of strategic and complex projects as they focus on the development and maintenance of services, facilities, and systems. Infrastructure projects have a long life-cycle including the maintenance-exploitation phase. Moreover, infrastructure projects must manage complex organizational aspects, complex resource management, and complex technical and financial aspects.

Such projects can be also affected easily by the environmental factors, for instance the macro-economic conditions or the politic factors of the country. These types of projects are major investment projects and can be funded by private companies, publicly, or combined as a public-private partnership a collaboration of government entities and private sector companies.

Because of all these aspects, the risk and opportunities to the project are critical and need to be identified and analyzed before any decision-making process takes place. The report recommends a set of good practices with include the shared analysis of the risk of both the client and the potential contractors [ 4 Manayement. In addition, the contractual framework of infrastructure projects can be very complex; it leads to redefining the role of the project MManagement, their responsibilities and missions.

Risk management is essential in order to identify and assess the risk and opportunity Eva,uation throughout the project life cycle. Especially for the private contractor, identification of the risk and opportunity events is crucial in the early phase of the project. In this phase, the candidate contractor needs to make a strategic decision for making an offer to the tender for the project or to pull out.

This decision will lead to the initial risk assessment, then offer submission with a detailed risk analysis to be able to negotiate the contract terms with the client, and to define the risk allocation plan when contract awarded [ 56 ]. The risk analysis in Evaluatlon early phase enriches the decision-making process. The risk analysis provides rational arguments which help to avoid or mitigate the probability or impacts of negative risk events and to increase the probability and impacts of positive events which are called opportunities [ 7 ].

However, literature review shows a gap in terms of risk identification and assessment methods concerning the early phase of a complex infrastructure project [ this web page ]. The project risk identification and assessment methods in the literature consider the risk factors in a static way.

Therefore, these methods have some limitations in term of adaptability and even applicability to Rksk early phase. The difficulty is that, in the early phase of a complex project, the identification of risk events can Evaluation Of A Project On Risk Management limited because of a scarce level of information about the project and uncertainties.]