large projects risks

7/29/2019 Large Projects Risks

1/12

Managing risk in large construction

projects

David W Boss

Senior Vice PresidentMarsh Construction, Power and Utilities Practice - London

22nd March 2007


2/12

n Risk Matrix and Risk Analysis

n Lessons learnt from other large projects

n Construction issues from a risk perspective

n Security people and physical

n Questions

Agenda


3/12

Risk Matrix and Risk Analysis

What is a Risk Matrix ? a working document

constantly needs to be referred to

n Why is Risk Analysis necessary ?

Strategic Risk Assessment

Critical Path Analysis

n Severity of risk matrix example

n Evaluate and quantify risk transfer decisions


4/12

Severity of Risk matrix example

Low risk - monitored at supervisory levelL

Moderate risk - appropriately monitored by middle managementM

High risk - requires attention of Managing Director / CEO and General ManagersH

Extreme risk - should be brought to the attention of Directors and continuously monitoredE

EEEHH

5 Almost

certain

EEHHM4 Likely

EEHML3 Possible

EHMLL2 Unlikely

HHMLL1 Rare

CatastrophicMajorModerateMinorInsignificantLikelihood

Consequence


5/12

Lessons learnt from other large projects

n Ignore the Risk Matrix and Risk Analysis at your peril

n Wembley stadium

n Heathrow T5

n Brainstorm bizarre Risk Matrix items which may betotally uninsurable

n Contingency planning

n How to deal with the media


6/12

Construction issues from a riskperspective

n Obvious risks Fire, storm, flood, aircraft

Terrorism

Fitness for purpose

Pollution

n Less obvious risks

Unforeseen ground conditions

Additional Increased Costs of Working

Availability of alternative venues

n Major challenges facing mega projects

n Examples from previous Olympic Games


7/12

Construction issues from a riskperspective major challenges

n Rising commodity prices e.g. steeln Competition for resources and/or site access/egress (e.g.

London)

2012 Olympic Games

Thames Gateway Bridge

Possible Millennium Dome conversion Stratford City

Crossrail

n Labour shortages and/or disputes

n Cost and/or time overruns

n Equipment/technology failure/unfitness for purpose

n Appetite of capital providers for type of project/financingstructure


8/12

Construction issues from a riskperspective previous Olympic Games

n Athens Floor at fencing venue

Lifts in athletes village

n Atlanta

Ceiling collapse

Light tower collapse

Waste disposal

Camera positions in main stadium


9/12

Construction issues from a riskperspective previous Olympic Games

n Sydney Temporary grandstand in swimming venue

Air conditioning in athletes village

n Salt Lake

Temporary tent ventilation

n Turin

Main stadium power

Ski venue generator power Ice venue air conditioning


10/12

Security people and physical

n People Contractor screening

Fraud detection and prevention

Cost abuse

n Physical

Security design

Site security

Terrorist exposure Blast assessment and structural evaluation


11/12

Questions


12/12

Disclaimer

The information contained in this presentation provides only a general

overview of subjects covered, is not intended to be taken as advice

regarding any individual situation and should not be relied upon as such.

Insureds should consult their insurance and legal advisors regarding

specific coverage issues.

Copyright 2007 Marsh Ltd All rights reserved

large projects risks

Documents