Risk Management For Smaller Companies and Projects – TRM Advantage. Risk management is a critical tool that helps companies and projects to see and address potential issues before they occur. It uses a structured approach to identify and examine a potential issue from the perspective of how likely they are to occur (likelihood), how big the problem will be if it does occur (consequence). This information is then used to undertake appropriately scaled actions to minimize the chance it will occur and the damage if it does occur. The bigger the potential problem, the more emphasis placed on avoiding it and/or minimizing its impact if it does occur. Large companies rely on risk management to provide the framework to analyze a risk and take steps to make it less likely to occur and minimize damage if it does occur.
They face so many risks that it is critical they analyze them and focus on the ones with the potential to cause them the biggest issues. SMS can easily implement risk management. The Essential Link Between Risk Management and Quality Management – TRM Advantage. Risk management and quality management are critical parts of successful organizations (companies and projects). Each one supports the other and together they reduce company losses and streamline how the organization does business. With a new app that is available, TRM Advantage, risk management efficiency is significantly improved. Risk management is all about identifying potential issues (risks), forecasting how likely they are to occur or reoccur, evaluating the potential consequences if they do occur, and taking appropriate steps to reduce their likelihood of occurring and the consequences if they do. Appropriate steps range from ‘do nothing’ for risks that are organizationally acceptable to planning/implementing actions that are taken to reduce the overall risk.
Actions that reduce likelihood are designed to make the risk less likely to occur while actions that reduce consequence are intended to minimize problems if the risk does occur. The Importance Of Pre-Activity Risk Management Reviews – TRM Advantage. Pre-activity risk reviews are a critical part of difficult, complex, or hazardous activities. They are performed by the supervisory team in the activity planning stages and their intent is to identify activity-related issues that could occur before, during, or after the work. There is tremendous value in this, particularly if the activity is one that where new equipment, personnel, or locations are involved.
Note that pre-activity risk reviews are not the same as field level safety reviews undertaken by workers before they start a task. The pre-activity risk review is easily done and typically takes slightly more than an hour (time requirements vary with activity complexity). The risks are evaluated in terms of likelihood and consequence, with consequence being assessed from four different perspectives: Health, Safety, and Environment (HSE), Cost, Quality, and Corporate.
The analysis is performed for each of the three activity phases involved – before, during, and after. Schedule Risk In Projects, Turnarounds, and Business – TRM Advantage. Schedule is a major risk in any project, turnaround, or business endeavor. Schedule overruns and missed deadlines can have very large impacts on all measures of success. Customer satisfaction, schedule overrun, lost production, and earned value (in projects) are a few of the measures that can be impacted when things are late. How to quantify schedule risk in projects, turnarounds, or business operations is a legitimate question that often comes up. It is not uncommon for project managers and companies to want a distinct risk consequence category for schedule risk. This is not something I recommend. There is a quantifiable value associated with any delay on the critical path of a project or business activity. Other reasons for not having a schedule risk category include confusing overlap between cost and schedule risk and general clutter.
To summarize – there is no legitimate schedule risk that cannot be quantified as a cost or falls within one of the other risk categories. Risk Management For Smaller Companies and Projects – TRM Advantage. The Essential Link Between Risk Management and Quality Management – TRM Advantage. The Importance Of Pre-Activity Risk Management Reviews – TRM Advantage. Schedule Risk In Projects, Turnarounds, and Business – TRM Advantage. Risk Management For Smaller Companies and Projects – TRM Advantage.
Risk management is a critical tool that helps companies and projects to see and address potential issues before they occur. It uses a structured approach to identify and examine a potential issue from the perspective of how likely they are to occur (likelihood), how big the problem will be if it does occur (consequence). This information is then used to undertake appropriately scaled actions to minimize the chance it will occur and the damage if it does occur. The bigger the potential problem, the more emphasis placed on avoiding it and/or minimizing its impact if it does occur.
Large companies rely on risk management to provide the framework to analyze a risk and take steps to make it less likely to occur and minimize damage if it does occur. They face so many risks that it is critical they analyze them and focus on the ones with the potential to cause them the biggest issues. SMS can easily implement risk management. The Essential Link Between Risk Management and Quality Management – TRM Advantage. The Importance Of Pre-Activity Risk Management Reviews – TRM Advantage.
Schedule Risk In Projects, Turnarounds, and Business – TRM Advantage. The Importance Of Pre-Activity Risk Management Reviews – TRM Advantage.