Risk assessment is a major issue in the asset management regime. In order to strike a balance between performance and value, a project manager must be concerned with establishing:
- What needs to be done?
- What resources are required?
- How long will it take.
When these parameters are known they have the means to establish a price and a project plan. The items, that jeopardise the accuracy of our valuation and the outcome of our plan, are risks.
To a great extent, the level to which people understand and manage thiose risks will be a major factor in successfully executing the work. A procedure, which helps a project adopt a systematic and dsiciplined approach to the understanding and management of risk, must therefore be of great value and benifit to a business.
Risk assessment tools are not new to the industry. Within companies, these tools range from spread sheets that do little more than record the basic risk details, to a more elaborate softyware packages based around a complex numerical calculations such as Monte Carlo simulation. The best system to use is debatable and ultimately may come down to personal choice or project funding. It would seem logical, however, that the system has the ability to assess four key elements:
risk-elimin8 is a risk management tool, which is based on the process outlined in the flow chart below