AnM.11: Risk Analysis

AnM.11: Risk Analysis

Relevance:
Risk analysis is used in FenRIAM in order to evaluate the major risks for the project that derive from the internal and external conditions as well as significant risks, which the project creates for people, material goods, and its ecological environment.

Description:
Risk analysis is a tool that can easily be applied to RI projects in order to assess the risks for events that might damage the project or its environment. Risks for the project can e.g. stem from limited financial and human resources, challenging objectives, natural hazards, or socio-economic conditions. Risks from the project may concern damage to the natural environment, people or goods through the use of resources, general work accidents, or the release of hazardous substances. Risks can lead to events with negative and thus undesired effects for the project or its environment that should be prevented through suitable measures. In FenRIAM a simple version is applied, which is based on the identification of major risks through expert interviews or/and an analysis of the project documents and the assignment of a risk level to each of the identified risks. The risk level ascription is based on an assessment of the likelihood for an event and the severity of its possible consequences, using a simple risk assessment matrix.

Procedure:

  • For each major risk identified during an interview ask the expert to estimate the likelihood for an event and its consequences using the risk assessment scales of the risk analysis templates.
  • For each major risk identified through document analysis estimate the likelihood for an event and its consequences based on the information that you have or ask a suitable expert to do so. Use the risk assessment scales for the estimation (see risk assessment templates).
  • Prepare a short report of the results.
  • If requested by the study, formulate recommendations for risk management and contingency planning.

Data sources:

  • Interviews with suitable experts for the risk assessment, such as security manager, environmental manager, financial manager, project coordinator, representatives of external stakeholder groups that might be affected (e.g. environmental groups, local population, external scientific and technical experts, etc.)
  • Project documents

Definitions:
None.

References:
Risk assessment scales and matrix: Risk Management Toolkit – Australian Capital Territory Insurance Authority, on http://www.treasury.act.gov.au/actia/Risk.htm.