EngCon Project Risks

In Guidelines section - Model Guideline #18 on Risk, you mentioned "Controllable" & "Uncontrollable" Risks Can you give me examples?

Project Risks - 1

·      Project risks may be categorized in many different ways

·      For example

·         By size, by impact, by source, or by responsibility

·      We think the most useful categorization is by source

·         Because this should determine who is responsible

Project Risks - 2

·      The following lists take a simple approach

·         I.e. whether or not they appear to be the responsibility of the project team

·      They are most likely associated with large infrastructure projects of long duration

·         But they serve as examples

Normal Evolutionary Project Risks

·         Normal expected variation in estimated quantities

·         Normal variations in seasonal weather

·         Typical variations in labor performance (productivity)

·         Minor variations to Project Plan Assumptions (Scope unchanged)

·         Normal escalation

·         These should all be part of the project team's mandate to manage

Controllable Event-type Risks

Typical controllable risks (included as part of the Project Plan)

·         And hence also the responsibility of the project team

·         Variations in actual material costs, labor rates, or contract prices, from those estimated

·         Design refinements or modifications to make the system work correctly

·         Re-work and supervision not related to changes in scope

Uncontrollable Risks - 1

Typical uncontrollable risks (not included as part of the Project Plan)

·         That should be the responsibility of the project's sponsoring management

·         Changes in project concept, scope, or operating criteria

·         And for which changes must be approved

·         Changes in government policies and regulations at all levels, including environmental, social and safety

·         And which must be processed

Uncontrollable Risks - 2

·         Exceptional financial court settlements in favor of contractors or suppliers, including legal expenses

·         Financial difficulties of contractors or suppliers

·         Strikes and work stoppages

·         Labor unrest

·         Major changes in working conditions

·         Seismic event

·         Serious accidents or other catastrophes causing temporary cessation of work at site

Uncontrollable Risks - 3

·         Unavailability of Capital as scheduled

·         Unavailability of Resources as agreed earlier as part of the Project Plan

·         Material shortages

·         Unduly severe weather

·         Unforeseen delays due to priorities of other projects taking precedence

·         Unforeseen exchange rates

Unforeseen significant changes in inflation, interest rates, foreign exchange, taxation or duties