Transcript Risk Management The Basics

RISK MANAGEMENT
THE BASICS
GOOD PROPERTY MANAGEMENT = GOOD RISK MANAGEMENT
LAPA Conference
Napier, October 2014
James Hunt, Risk Manager, Waterview Connection Project
www.mcconnelldowell.com
INTRODUCTION
1. About me…
2. Context
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Local Authority property strategies
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Project Risk Management
3. Risk Management: Basics
4. Property Risk Strategy
5. Project Risk Management
6. Application of Project Risk Management to Property
7. Conclusion
8. Questions
ABOUT ME…
East London Line
Crossrail
Network Rail
Transport for London
Heathrow Airport
Auckland Transport
Well Connected Alliance…
CONTEXT
Property Strategy
Projects
THE BASICS
A risk is…
Any event or happening that will
affect us from meeting our
objectives
KEEP IN MIND…
Risk management is simple!
It need not be complex…
Never baffle the client!
We are all doing it every day!
EXAMPLE…
Risk management is simple!
It need not be complex…
Never baffle the client!
RISK MANAGEMENT
What is the context?
We have a problem…
What are we doing about the problem?
Who is going to do it and when are they going to do it?
Did it work?
What do we need to do now?
RISK ANALYSIS
We have a problem…
How big is the problem?
How can we measure the problem?
What will the impact be on our objectives?
Where should we target our energies for best gain and
efficiency?
WHICH IS MORE IMPORTANT?
Analysis helps up to understand
our risks…
BUT…
Unless there is actual
management and action, nothing
changes!
TOOLS…
1. Risk Registers
2. Risk Matrices
3. Risk Workshops
4. Decision support
5. Quantified Risk Assessment (time and cost)
6. Risk Actions/Treatments
7. Bow tie…
8. Option selection…
9. Scenario analysis…
10. Investment models…
11. Differential inflation…
These methods can be applied to all sorts of things…
RISK REGISTERS…
1. Provide us with a consistent format in which to describe
risks and record risk management activity.
2. Help us to identify risks and ensure they are recorded.
3. Records all agreed actions and owners, and tracks progress.
4. Criteria for risk measurement and assessment, allowing us
to assess the importance of each risk.
RISK WORKSHOPS…
1. Gets everybody together for a good chin wag on the issues.
2. People will be together who may not often get to talk
properly.
3. Consensus over identified risks.
4. Some awesome actions/mitigations can be identified.
5. Facilitates solutions…Symonds Street!
DECISION SUPPORT…
1. Option selection (see later)
2. Key strategic decisions
3. Ordered record of thinking about risk pre-decision and the
residual risks after the decision. Once a strategy is chosen,
new risks emerge!
4. Key data and metrics to inform decisions (see later!)
QUANTIFIED RISK ASSESSMENT…
How much is it really going
to cost?
How long is it really going to
take?
OUTPUTS…
ORGANISATIONS
What are our property objectives?
Are we owning and managing property?
What are the advantages?
Should we own our office buildings or be tenants?
What service are we enabling?
What cultural sensitivities do we need to consider?
What other organisations do we need to work and
interface with?
PROJECTS…
Where will the greatest cost be incurred?
Who is working for who?
How can good property management help us to meet
our objectives?
- Trade offs?
- Buy now or later?
- Design input?
- Programme needs?
- Early involvement?
- Sometimes property makes up a significant part of
the budget!
IN CONCLUSION…
Property management has a very important role to play
in risk management of both other functional issues and
property issues
Context is very important (where is the major cost
incurred?)
Early involvement is key!
QUESTIONS?
THROUGH SAFE, SMART & EFFICIENT INFRASTRUCTURE
McConnell Dowell Corporation Limited
www.mcconnelldowell.com
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