Calls for greater involvement during whole project
Large infrastructure projects suffer from significant under-management of risk in practically all stages of the value chain and throughout the life-cycle of a project, according to McKinsey & Company.
In particular, the consultancy says poor risk assessment and risk allocation early on in the concept and design phase lead to higher materialised risks and private- financing shortages later on.
The results of the StrategicRISK survey echo this sentiment. Risk managers said they were least involved during the planning/ design phase of infrastructure projects.
Gammon Construction risk and opportunities manager Eamonn Patrick Marley says that optimistic planning and assumptions need to be challenged. Risk managers have a role here, but the opportunity is limited. “There is more involvement at the tender stage, but I think again it is limited,” he adds.
“Risk managers/management should be involved from the earliest stage as possible and have a continuous integrated role. This would be consistent with, say the risk CDM (Construction Design and Management) processes in the UK.”
Lendlease group head of risk and insurance Kevin Bates says “risk management is whole of project in my mind”.
He adds: “The risk professionals need to be involved before the project even becomes a project, and maintain involvement right through to carrying out a lessons learnt at the close of a project.”