Project Risk Management
One of the key uncertainties related to a subsea deepwater development is the capacity to deliver equipment reliably on time so that the project is on schedule and the time to first oil or gas production is not delayed. The number of interfaces, equipment suppliers, and subcontractors involved, however, can make this process complex and difficult to manage. Project risk management can provide an excellent tool for systematically managing these challenges. Project risk management is a systematic approach for analyzing and managing threats and opportunities associated with a specific project and can, thereby, increase the likelihood of attaining the project’s objectives in terms of cost, schedule, and operational availability. The use of a project risk management process will also enhance the understanding of major risk drivers and howthese affect project objectives. Through this insight, decision makers can develop suitable risk strategies and action plans to manage and mitigate potential project threats and exploit potential project opportunities. Project risk management in field development projects has the following set of goals:
- Identify, assess, and control risks that threaten the achievement of the defined project objectives, such as schedule, cost targets, and performance.
These risk management activities should support the day-to-day management of the project as well as contribute to efficient decision making at important decision points.
- Develop and implement a framework, processes, and procedures that ensure the initiation and execution of risk management activities throughout the project.
- Adapt the framework, processes, and procedures so that the interaction with other project processes flows in a seamless and logical manner.
The project risk management process should be assisted by a set of tools that supports these processes and also allows a graphical representation of the project schedule and risks that potentially could affect these plans.
Risk reduction processes are focused on the generation of alternatives, cost effectiveness, and management involvement in the decision-making process. Use of these processes is designed to reduce the risks associated with significant hazards that deserve attention. In safety analysis, safety-based design/operation decisions are expected to be made at the earliest stages in order to reduce unexpected costs and time delays. A risk reduction measure that is cost effective at the early design stage may not be as lowas reasonably practicable at a later stage. Health, safety, and environmental (HSE) aim to ensure that risk reduction measures are identified and in place as early as possible when the cost of making any necessary changes is low. Traditionally, when making safety-based design/operation decisions, the cost of a risk reduction measure is compared with the benefit due to the reduced risks. If the benefit is larger than the cost, then it is cost effective; otherwise it is not. This kind of cost/benefit analysis based on simple comparisons has been widely used in safety analysis.
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