Idprd 571813

Details of revisions
Level Details Date Initial
Project Risk Management Plan
Project Name
Contents
1 Overview 3
1.1 Project Overview 3

1.2 Project Scope 3
1.3 Project Objectives 3
1.4 Risk Management Objectives 3
2 Overview of Risk Management Process 4
2.1 Establish the Context 5

2.2 Identify Phase 5
2.3 Analyse and Evaluate Phase 6
2.4 Treat Phase 6
2.5 Review, Re-evaluate and Communicate Phase 7
3 Deliverables 8
3.1 Deliverables Checklist 8

3.2 Roles & Responsibilities* 9
4 Risk Management Procedure 11
4.1 Frequency of review 11

4.2 Flowchart of risk process on site 11
6 Appendices 12
Scoring Scheme & Probability Impact Diagram 12

Risk Breakdown Structure in ARM 12
1 Overview
1.1 Project Overview
1.2 Project Scope
1.3 Project Objectives
1.4 Risk Management Objectives
Title: Project Risk Management Plan Date Published: 12/05/2014 Page 3 of 10

ID: 571813 Version: 1
Our Way Management System - Uncontrolled Document when Printed
Leighton Contractors Pty. Limited ABN 98 000 893 667 www.leightoncontractors.com.au
2 Overview of Risk Management Process
The application of a formal ‘Risk and Opportunity Management Process’ provides a structured, logical way of
identifying, assessing and treating the risks and opportunities to the successful completion of a project This process
provides secondary benefits that allow the analysis of potential Project outcomes – thus enhancing early warning,
project certainty and the management of contingency throughout the Project Lifecycle.
The process outlined herein conforms to Leighton Contractors Risk and Opportunity Process
held in the Leighton Management System (Our Way) and Australian Standard AS/NZS ISO 31000:2009, and other
best practice guidance.
For more information on the Detailed Level Business Processes for ‘Manage Project Risk’ in Our Way see –
http://ourway.lc.local/business-excellence/enterprise-risk-management/index.htm
2.1 Establish the Context

The Project Manager is ultimately accountable for the execution of the Risk & Opportunity Management Process,
however, a Risk Champion is appointed by the Project Manager to assist with the co-ordination and facilitation of
this.
A Risk and Opportunity Strategy Workshop is held to formulate how the management of risk and opportunity will be
executed throughout the project/operation. The workshop will aim to determine:
 The roles and responsibilities of the Project Team in executing risk and opportunity
management
 The Risk Breakdown Structure (RBS) to be built within Active Risk Manager (ARM)
 Define the project's scoring scheme by reviewing the tender scoring scheme and
update where appropriate
2.2 Identify Phase

Throughout the project/operation, the Project Team and Risk & Opportunity Owners are accountable for the
continuous identification of risks and opportunities applicable to the successful delivery of their scope of works.

These risks and opportunities are reviewed by the Project Management Team on a regular basis for validity and
approved in ARM with a status of 'active'.
The project team must identify risks and opportunities against all types of risks - not solely commercial and/or SHE
risks.
At LCPL, we have categorised these types as “Enterprise Capital’ elements (which are also reflected in ARM as “risk
categories”) i.e.:
Enterprise Capital Element Description
Our people are what enable us to transform our clients’ needs to reality.
We must protect our people from risks that can affect their safety, well-
Our People
being and performance. We look to grow their abilities and provide
opportunities to develop their careers within LCPL.
Our assets relate to the physical assets such as plant and equipment. We must
Our Assets
ensure they are available and perform as required.
Our intellectual property relates the collective knowledge of how we create value
Our Intellectual Property and deliver results. We must be able to retain and protect our intellectual property
as this is a key element of our competitive advantage.
The trust and respect of our clients and partners are paramount in both delivering
Our Relationships with our Clients and
on current work and generating future opportunities. We must ensure that we are
Partners
able to deliver on our promises.
The ‘Leighton’ name and the strong positive reputation it carries must be protected
Our Reputation at all times. We must be clear and consistent in how we conduct our business so
our stakeholders and the marketplace know what to expect when engaging with us.
To be able to operate (conduct business activities) in the markets we wish to, we

Our ‘Licence to Operate’ must ensure we satisfy all relevant obligations. These extend beyond our
regulatory obligations and include our social obligations.
Our business requires capital to achieve our objectives. Accordingly we must

ensure we are able to access capital (our balance sheet) as and when required.
Our ‘Balance Sheet’
Similarly we must be able to account for our activities in an accurate and timely
manner to ensure we are able to make effective decisions.
2.3 Analyse and Evaluate Phase

Risk & Opportunity Owners must ensure risk items are assessed for Probability of Occurrence, and the possible
impacts (e.g. Cost, Time, Safety, Reputation, and Environment). Refer to the project/operation's Risk and
Opportunity Scoring Scheme revised during the Risk and Opportunity Strategy Workshop at Project Start-up.
Assessments for probability of occurrence, cost impact and time impact must be completed quantitatively. For
Safety, Reputation, and Environment impact assessments a qualitative approach is required.
2.4 Treat Phase

Treatment Plan Owners are accountable for developing high level, proactive, treatment plans in ARM for those risks
and opportunities they have been assigned.
The treatment plan details a series of actions that are assigned to resources with due by dates. All actions are aimed
at treating the risk or opportunity to which they apply, i.e. altering the probability of occurrence and/or the impacts.

2.5 Review, Re-evaluate and Communicate Phase
The Risk & Opportunity Owner is accountable for ensuring their risks and opportunities are continuously reviewed to
ensure assessments remain aligned to all current project/operation assumptions and treatment plan statuses. This is
especially important due to the analysis and reporting of the Project’s risk exposure and provisioning as part of the
LCPL month end reporting process.

3 Deliverables
3.1 Deliverables Checklist
Deliverable Description Owner Status
Details project/operation specific strategy

Develop a Project Risk for executing risk and opportunity
Management Plan management throughout the Delivery
Phase.
A risk champion is on the project

Assign a risk champion leadership team and ensures the risk
process occurs in the project
Project Risk Register established from the

Project Risk Register
Tender Risk Register and updated for the
established in ARM
project.
Project Risk Register Project Risk Register verified and updated

reviewed in ARM as required.
Once the tender risk register has been

SMS Contingency
updated, the new contingency would be
reflective of ARM
recommended based on the level of risk
Impact Analysis Report
now associated with the works
Schedule E reflective of Part 1 of Schedule E (ARM risks) now

updated project risk reflects the new risk profile opposed to the
register original tender risks and opportunities.
Risks and opportunities Hold workshops, on a quarterly or

identified and recorded milestone basis to ensure validity of the
in ARM risk register
Ensure Risks and opportunities identified

are up to date and continually assessed to
Risks and opportunities
ensure they are fully understood to
assessed and recorded
determine levels of contingency required
in ARM
for the successful delivery of LCPL
projects and operations.
Have a process to ensure that high level,

Risk and opportunity
proactive, treatment plans in ARM are up
treatment plans and
to date and reviewed with special focus on
actions detailed and
the series of individual action lists are
recorded in ARM
progressed.
Summary of the key risk

and opportunity
Have a section of the Project Monthly
information and
Report for Risk & Opportunity
applicable reports for
Management.
inclusion in the Project
Monthly Report

3.2 Roles & Responsibilities*
Operations Manager Review of Schedule E and its validity, active participation in risk workshops.
Project Manager/Director Responsible for the successful delivery of project risk management for their
respective projects.
Project Leadership Team Responsibility for implementation and approval of risks and opportunities for their
area of the works.
Ensure that key risks are discussed and treatment plans are agreed at
management meetings.
Commercial Manager
Contract Administrators/
Quantity Surveyors
Safety Manager
Environment Manager
Project Controls/Planning
Manager
Construction Manager
Area Managers
Engineers
Superintendant
Mine Manager
Tech Services Manager
Maintenance Manager
Plant Manager
Risk Champion The person responsible for ensuring the risk process is implemented, ARM is
reflective of the current status and key project decisions are considering risk.
All Employees, contractors and All employees have a role in the management of risks within the project. By being
subcontractors risk aware and being alert to the requirements of managing risks, all employees
assist through the identification of risks and/or breaches, and making
recommendations for change and improvement.
*Delete/amend as appropriate

4 Risk Management Procedure
4.1 Frequency of review

Insert here, for example;
Focus Area Lead Frequency ARM Report used Outputs utilised
4.2 Flowchart of risk process on site

Insert here
5

6 Appendices
Scoring Scheme & Probability Impact Diagram
Risk Breakdown Structure in ARM


Idprd 571813

Uploaded by

Copyright:

Available Formats

Idprd 571813

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Idprd 571813

Uploaded by

Copyright:

Available Formats

Details of revisions

Level Details Date Initial

Project Risk Management Plan

1.1 Project Overview 3

2 Overview of Risk Management Process 4

2.1 Establish the Context 5

3.1 Deliverables Checklist 8

4 Risk Management Procedure 11

4.1 Frequency of review 11

Scoring Scheme & Probability Impact Diagram 12

1.1 Project Overview

1.2 Project Scope

1.3 Project Objectives

1.4 Risk Management Objectives

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 3 of 10

2.1 Establish the Context

2.2 Identify Phase

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 4 of 10

To be able to operate (conduct business activities) in the markets we wish to, we

Our business requires capital to achieve our objectives. Accordingly we must

2.3 Analyse and Evaluate Phase

2.4 Treat Phase

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 5 of 10

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 6 of 10

3.1 Deliverables Checklist

Deliverable Description Owner Status

Details project/operation specific strategy

A risk champion is on the project

Project Risk Register established from the

Project Risk Register Project Risk Register verified and updated

Once the tender risk register has been

Schedule E reflective of Part 1 of Schedule E (ARM risks) now

Risks and opportunities Hold workshops, on a quarterly or

Ensure Risks and opportunities identified

Have a process to ensure that high level,

Summary of the key risk

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 7 of 10

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 8 of 10

4.1 Frequency of review

4.2 Flowchart of risk process on site

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 9 of 10

Scoring Scheme & Probability Impact Diagram

Risk Breakdown Structure in ARM

Title: Project Risk Management Plan Date Published: 12/05/2014 Page 10 of 10

You might also like