Safety System Policies And Procedures

FIGURE 17-16. Tolerance for risk.

If an organization goes overboard in its investment in risk management, the results can be devastating, as shown in Figure 17-18. Overinvestment in risk management could lead to financial disaster if the project's risk events do not call for substantial measures or expenses. However, underinvestment in risk management for a project with numerous and complex risk events could lead to heavy losses and damages, possibly leading to project failure. Some sort of parity position is needed.

Determining the proper amount of risk control measures is not easy. This can be seen from Figure 17-19, which illustrates the impact on the schedule constraint. If too few risk

FIGURE 17-17. Risk handling measures.
FIGURE 17-18. Investment in risk management.

handling measures are in place, or if there simply is no risk handling plan, the result may be an elongated schedule due to ineffective risk handling measures. If excessive risk handling measures are in place, such as too many filters and gates, the schedule can likewise be elongated because the workers are spending too much time on contingency planning. The same can be said for a risk management process with excessive risk reporting, documentation, and risk management meetings (i.e., too many gates). This results in very slow progress. A proper balance is needed.

Event of Risk Handling Strategy-►

FIGURE 17-19. Risk handling versus schedule length.

Event of Risk Handling Strategy-►

FIGURE 17-19. Risk handling versus schedule length.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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