Project Risk & Opportunity

It is important to remember that any enterprise involves an element of risk. In a project environment, the emphasis is mainly on the identification and management of risks but the chance to make the most of an opportunity should not be overlooked. As the project progresses towards completion, the scope for making significant changes reduces. One way to identify and lock in opportunities is to perform a value engineering workshop at an early stage of the project.

Typical project risks include:

  • Reservoir uncertainty;

  • Permitting;

  • Land acquisition;

  • Right of way;

  • Late delivery of materials;

  • Failure of new technology to perform as required;

  • Lack of definition of quality levels;

  • Inadequate or erroneous survey data.

EPEn personnel are multi-disciplinary and have very diverse backgrounds, giving great depth and breadth to our risk assessment capability. In addition to facilitating risk management workshops, other specialist risk assessments include:

It is clearly recognised that business objectives, cash flow and payback targets and company HSE goals may be primary drivers of a project schedule. Meeting these objectives may require that projects are sanctioned before all front end work is complete, or project phases may run in parallel.

Such ‘fast tracking’ of projects will invariably introduce additional risks being carried forward into the project.

Our risk management process will ensure that these risks, along with their consequences, are understood and managed to mitigate later impact on the successful outcome of the project.

Risk management consists of the following main steps:

  • Identify risk;

  • Assess the risk (using a three stage approach);

  • Identify and assign mitigation actions;

  • Monitor mitigation actions;

  • Re-assess risks regularly.

EPEn always recommends that a risk register is created as early as possible during the conceptual engineering so that mitigating actions can be carried out in good time. We routinely begin with a facilitated risk workshop; the most effective means of collecting risks “in bulk”.

We use proprietary software, EPRisk to collect the data during the workshop and to generate the risk register.

It must be understood that the above process is essentially a semi-quantitative process that may not cover all of the risks in sufficient detail. Therefore one of the mitigation actions may be to perform a quantitative risk analysis (QRA) or a cost benefit analysis before a final decision can be made.

Case Study Example:

ADCO Bab Integrated Facilities Project FEED - Project Risk Assessment