Risk ManagementMore Like This

World Risk Day Shatters the Project Myth

According to A.T. Kearney, 63 percent of projects are over budget and 74 percent are not meeting schedules. World Risk Day 2013, the second annual global forum on May 14, 2013, brought together industry thought leaders and peers to discuss the latest risk and project management ideas and best practices to understand why projects aren’t meeting schedule and budget. More than 3,200 people registered for the free World Risk Day Virtual Summit, which featured webinars from risk and project thought leaders from around the world. The webinars may be viewed at http://www.worldriskday.com.

Highlights included:

  • “Being proactive (about risk) is really important – it gives us space to think and to manage,” said David Hillson of Risk Doctor and Partners in “New Concepts in Understanding and Managing Risk in Projects.”
  • “ISO 31000 isn’t about compliance–it’s about driving business performance and best practices,” said Alex Dali, president G31000 during his presentation on “ISO 31000: A Risk Management Standard for Decision Makers.”
  • “You need an integrated, comprehensive and lean Risk Management process – ideally supported by a single tool,” said Christoph Schwager, CRO, EADS, in “Developing a Holistic Approach to Risk Management.”
  • “Collaboration is not just a nice to have–it’s fundamental to the success of the Crossrail project. Risk Management can be a win-win activity for clients and contractors alike,” said Rob Halstead, head of risk management for Crossrail in “Strategies for Successful Collaborative Risk Management with Contractors and the Supply Chain.” The Crossrail project is Europe’s largest infrastructure project, with 21km of twin bore tunnels under Central London, eight new London Underground and 28 existing surface stations upgrades.
  • “I believe the rules have fundamentally changed. Cost and schedule are no longer the greatest risks for many projects and programs–they are simply becoming manifestations of higher order risks,” said Drew Slaton, project manager of Bechtel in “High Risk Projects–A Global Perspective.”

Additional webinars presented included:

  • “Using Risk Modeling, Analysis, and Assessment to Inform Homeland Security Policy and Strategy,” by Assistant Secretary Alan D. Cohn of the U.S. Department of Homeland Security
  • “What Lessons Can Be Learned From The World’s Top 100 Infrastructure Projects,” by Norman Anderson, president of CG/LA Infrastructure
  • “What Makes a Great Risk Manager and How Innovation Projects Influence Risk Management Success?” by Michael Lopez, senior associate of Booz Allen Hamilton
  • “Major Project Risk Management: Aligning Contractor, Owner, and Oversight Agencies,” by Dan D’Angelo, deputy chief engineer of the New York State Department of Transportation.
  • “Shattering the Project Myth–Managing Cost and Schedule Alone Doesn’t = Project Success,” by Chris Bell, CMO of Active Risk.

Top 10 Takeaways of World Risk Day

  1. Project success is not delivered by just a focus on cost and schedule alone.
  2. There is a difference between the riskiness of a project and the sum of risks on the project.
  3. Risk and opportunity are two sides of the same coin–and should be handled together.
  4. Risk management should be about improving business performance–not compliance-driven.
  5. Risk management needs to be simple, valuable and personal.
  6. It’s a win-win for owners and contractors to collaborate.
  7. Spreadsheets are NOT the solution for risk management.
  8. There needs to be a renewed debate about the relationship between the public and private sector to create the right environment for successful major infrastructure projects.
  9. Effective risk management can help to make more informed decisions on which projects to undertake–which improves delivery, budgets, and margins.
  10. Risk management is not a quarterly process–it’s an everyday activity.