Project Controls Expo 18th Nov 2014 - "Practical Applications of a Risk Manag...Project Controls Expo
As construction projects continue to increase in size and complexity, so does the inherent risk that organizations must take on to win work. As a result of globalization in the capital construction industry, organizations are faced with the challenge of executing projects under tighter budgets and highly compressed schedules. This has led to thinner profit margins and the increased need for competitive cost positioning. This presentation seeks to demonstrate the value of a robust risk management framework at all levels of an organization. This includes:
• Risk management for identifying corporate strategy and market opportunities
• Using risk assessment to establish corporate risk reserves
• Refining the estimate process at the bid stage by using risk analysis to eliminate the “compounding contingency” effect
• Analyzing and quantifying ongoing project risk exposure
• How to involve your client in the risk management process
The importance of properly describing risks
Presented by Peter Simon
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Project Controls Expo 18th Nov 2014 - "Practical Applications of a Risk Manag...Project Controls Expo
As construction projects continue to increase in size and complexity, so does the inherent risk that organizations must take on to win work. As a result of globalization in the capital construction industry, organizations are faced with the challenge of executing projects under tighter budgets and highly compressed schedules. This has led to thinner profit margins and the increased need for competitive cost positioning. This presentation seeks to demonstrate the value of a robust risk management framework at all levels of an organization. This includes:
• Risk management for identifying corporate strategy and market opportunities
• Using risk assessment to establish corporate risk reserves
• Refining the estimate process at the bid stage by using risk analysis to eliminate the “compounding contingency” effect
• Analyzing and quantifying ongoing project risk exposure
• How to involve your client in the risk management process
The importance of properly describing risks
Presented by Peter Simon
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Building business continuity through risk management
Presented by Kimberley Hart
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Risk Identification Process PowerPoint Presentation SlidesSlideTeam
Showcase planned methods of hazard analysis with our content ready Risk Identification Process PowerPoint Presentation Slides. The hazard awareness process PowerPoint complete deck has forty-five PPT slides like risk management introduction, types of risks, risk categories, stakeholder’s management and engagement, risk appetite and tolerance, procedure, risk management plan, risk identification, risk register, risk assessment, risk analysis, risk response plan, risk response matrix, risk control matrix, risk items tracking, tools and practices, risk impact & profitability analysis, risk mitigations strategies, plans, qualitative and quantitative risk analysis, etc. All PowerPoint templates of risk assessment steps presentation are fully editable, edit them as per your specific project needs. The same risk management presentation deck can also be used to portray topics such as risk analysis, risk appetite, business continuity, risk-based auditing, hazard analysis, risk analysis, risk assessment and so on. Download this professionally designed risk management plan presentation deck to mitigate the risk. Our Risk Identification Process PowerPoint Presentation Slides are magnetic in nature. They will draw the right people to your cause.
Risks have a significant impact on a construction
project’s performance in terms of cost, time and quality. As
the size and complexity of the projects have increased, an
ability to manage risks throughout the construction process
has become a central element preventing unwanted
consequences. How risks are shared between the project
actors is to a large extent governed by the procurement
option and the content of the related contract documents.
Therefore, selecting an appropriate project procurement
option is a key issue for project actors.
The overall aim of this research is to increase the
understanding of risk management in the different
procurement options: design-bid-build contracts, designbuild contracts and collaborative form of partnering. Deeper
understanding is expected to contribute to a more effective
risk management and, therefore, a better project output and
better value for both clients and contractors. The study
involves nine construction projects recently performed in
Sweden and comprises a questionnaire survey and a series of
interviews with clients, contractors and consultants involved
in these construction projects.
The findings of this work show a lack of an iterative
approach to risk management, which is a weakness in current
procurement practices. This aspect must be addressed if the
risk management process is to serve projects and, thus, their
clients. The absence of systematic risk management is
especially noted in the programme phase, where it arguably
has the greatest potential impact. The production phase is
where most interest and activity are to be found. As a matter
of practice, the communication of risks between the actors
simply does not work to the extent that it must if projects are
to be delivered with certainty, irrespective of the form of
procurement.
A clear connection between the procurement option
and risk management in construction projects has been
found. Traditional design-bid-build contracts do not create
opportunities for open discussion of project risks and joint
risk management. A number of drivers of and obstacles to
effective risk management have been explored in the study.
Every actor’s involvement in dialogue, effective
communication and information exchange, open attitudes
and trustful relationship are the factors that support open
discussion of project risks and, therefore, contribute to
successful risk management.
Based on the findings, a number of recommendations
facilitating more effective risk management have been
developed for the industry practitioners.
Profitability is a measurement basis for decision making.
Project classification for new investments
Profitability measures.Return on investment . Return on average investment . Payout Period . Payout period with interest .
Net present worth index .Limitations of IRR method.
This was a presentation given by Lisa Shi, head of risk management at E C Harris Hong Kong, at the Royal Hong Kong Yacht club as one of the APM HK branch's monthly CPD events. Lisa gave her presentation to some 30 local members and guests.
Project Management Communication Tools – A guide to Risk Management!PECB
Project and Risk Managers often struggle with performing risk management on their projects. In this value packed webinar, Bill Dow will guide you through his tricks and best practices of managing risks on your projects.
Main points covered:
• Major risk events
• Purpose of Risk Management
• Steps to effective Risk Management
• Risk Management methods
Presenter:
Bill Dow, PMP, is a recognized expert in Project Management by the Project Management Institute (PMI) for specifically developing and managing Project Management Offices (PMOs.) His extensive experience with Project Management and PMOs have enabled him to co-author several comprehensive books available through Amazon.com. Bill has taught at the college level for more than 20 years in Washington State, British Columbia and Ontario, Canada, and has worked at Microsoft for more than 12 years.
Link to YouTube video: https://youtu.be/u6UcZJD-MAw
Risk analysis for project decision-making
Presented by Keith Gray
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Risk Assessments Best Practice and Practical Approaches WebinarAviva Spectrum™
Risk assessments are the primary component when planning, executing and delivering value in an internal audit. They are the building blocks of your internal audit activities and operational audit program. Sonia Luna CPA, CIA, CEO of Aviva Spectrum and Monica Raffety, CIA
Senior Manager, Financial Controls at Kaiser Permanente will help you to:
Understand risk assessment tools available
Learn how and when to apply risk assessment techniques
Leverage different forms of quantitative and qualitative analysis techniques
Learn when to deviate from risk assessment templates with a memo or scoring
Understand what external auditors, management and the Board need to know when executing a risk assessment.
Understand how risk assessment impact the internal audit activities, from walkthroughs to testing
Where do risks (threats and opportunities) arise from?
Presented by Lynn Stalker
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Risk Management Presentation to Doyle Property Clubmarcpreston
Effective risk management for Contractors , Specialist trades, Property Developers and Homeowners.
Spending 80% of the effort to avoid problem arising rather than 80% effort sorting them after the event.
Building business continuity through risk management
Presented by Kimberley Hart
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Risk Identification Process PowerPoint Presentation SlidesSlideTeam
Showcase planned methods of hazard analysis with our content ready Risk Identification Process PowerPoint Presentation Slides. The hazard awareness process PowerPoint complete deck has forty-five PPT slides like risk management introduction, types of risks, risk categories, stakeholder’s management and engagement, risk appetite and tolerance, procedure, risk management plan, risk identification, risk register, risk assessment, risk analysis, risk response plan, risk response matrix, risk control matrix, risk items tracking, tools and practices, risk impact & profitability analysis, risk mitigations strategies, plans, qualitative and quantitative risk analysis, etc. All PowerPoint templates of risk assessment steps presentation are fully editable, edit them as per your specific project needs. The same risk management presentation deck can also be used to portray topics such as risk analysis, risk appetite, business continuity, risk-based auditing, hazard analysis, risk analysis, risk assessment and so on. Download this professionally designed risk management plan presentation deck to mitigate the risk. Our Risk Identification Process PowerPoint Presentation Slides are magnetic in nature. They will draw the right people to your cause.
Risks have a significant impact on a construction
project’s performance in terms of cost, time and quality. As
the size and complexity of the projects have increased, an
ability to manage risks throughout the construction process
has become a central element preventing unwanted
consequences. How risks are shared between the project
actors is to a large extent governed by the procurement
option and the content of the related contract documents.
Therefore, selecting an appropriate project procurement
option is a key issue for project actors.
The overall aim of this research is to increase the
understanding of risk management in the different
procurement options: design-bid-build contracts, designbuild contracts and collaborative form of partnering. Deeper
understanding is expected to contribute to a more effective
risk management and, therefore, a better project output and
better value for both clients and contractors. The study
involves nine construction projects recently performed in
Sweden and comprises a questionnaire survey and a series of
interviews with clients, contractors and consultants involved
in these construction projects.
The findings of this work show a lack of an iterative
approach to risk management, which is a weakness in current
procurement practices. This aspect must be addressed if the
risk management process is to serve projects and, thus, their
clients. The absence of systematic risk management is
especially noted in the programme phase, where it arguably
has the greatest potential impact. The production phase is
where most interest and activity are to be found. As a matter
of practice, the communication of risks between the actors
simply does not work to the extent that it must if projects are
to be delivered with certainty, irrespective of the form of
procurement.
A clear connection between the procurement option
and risk management in construction projects has been
found. Traditional design-bid-build contracts do not create
opportunities for open discussion of project risks and joint
risk management. A number of drivers of and obstacles to
effective risk management have been explored in the study.
Every actor’s involvement in dialogue, effective
communication and information exchange, open attitudes
and trustful relationship are the factors that support open
discussion of project risks and, therefore, contribute to
successful risk management.
Based on the findings, a number of recommendations
facilitating more effective risk management have been
developed for the industry practitioners.
Profitability is a measurement basis for decision making.
Project classification for new investments
Profitability measures.Return on investment . Return on average investment . Payout Period . Payout period with interest .
Net present worth index .Limitations of IRR method.
This was a presentation given by Lisa Shi, head of risk management at E C Harris Hong Kong, at the Royal Hong Kong Yacht club as one of the APM HK branch's monthly CPD events. Lisa gave her presentation to some 30 local members and guests.
Project Management Communication Tools – A guide to Risk Management!PECB
Project and Risk Managers often struggle with performing risk management on their projects. In this value packed webinar, Bill Dow will guide you through his tricks and best practices of managing risks on your projects.
Main points covered:
• Major risk events
• Purpose of Risk Management
• Steps to effective Risk Management
• Risk Management methods
Presenter:
Bill Dow, PMP, is a recognized expert in Project Management by the Project Management Institute (PMI) for specifically developing and managing Project Management Offices (PMOs.) His extensive experience with Project Management and PMOs have enabled him to co-author several comprehensive books available through Amazon.com. Bill has taught at the college level for more than 20 years in Washington State, British Columbia and Ontario, Canada, and has worked at Microsoft for more than 12 years.
Link to YouTube video: https://youtu.be/u6UcZJD-MAw
Risk analysis for project decision-making
Presented by Keith Gray
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Risk Assessments Best Practice and Practical Approaches WebinarAviva Spectrum™
Risk assessments are the primary component when planning, executing and delivering value in an internal audit. They are the building blocks of your internal audit activities and operational audit program. Sonia Luna CPA, CIA, CEO of Aviva Spectrum and Monica Raffety, CIA
Senior Manager, Financial Controls at Kaiser Permanente will help you to:
Understand risk assessment tools available
Learn how and when to apply risk assessment techniques
Leverage different forms of quantitative and qualitative analysis techniques
Learn when to deviate from risk assessment templates with a memo or scoring
Understand what external auditors, management and the Board need to know when executing a risk assessment.
Understand how risk assessment impact the internal audit activities, from walkthroughs to testing
Where do risks (threats and opportunities) arise from?
Presented by Lynn Stalker
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Risk Management Presentation to Doyle Property Clubmarcpreston
Effective risk management for Contractors , Specialist trades, Property Developers and Homeowners.
Spending 80% of the effort to avoid problem arising rather than 80% effort sorting them after the event.
Demonstrated a 300%+ return on investment (ROI) when an innovative combination of these components was used to treat patients that were high consumers of medical resources.
OSHA HCS Fact or Fiction Game, 29 CFR 1910MSDSonline
The Hazard Communication Standard (HazCom) remains among the most frequently cited OSHA violations and is the governing standard for material safety data sheets (MSDSs). With regulatory enforcement now being a bigger priority for OSHA, it’s more important than ever to be compliant. In this presentation, you’ll learn the facts about MSDS compliance and the benefits that electronic MSDS management technology provides as it relates to employee safety, time- and cost-savings and reducing the risk/liability associated with meeting stringent compliance standards.
Incident Investigation Safety Training 2015KyleMurry
What is Incident Investigation?
An event that results in or has the potential to result in injury of persons or damage to property or environment
Common categories of incidents:
Lost time / recordable injuries
First aids
Near misses
Unsafe acts or conditions
ISO9001, ISO14001 & OHSAS 18001 for the construction industryrichardporter
Introduction to ISO9001, ISO14001 & OHSAS18001 for construction companies in tier 2 & 3 of the Hinkley Point supply chain. Emphasis on business benefits
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This training explains the recent changes to the OSHA Hazard Communication Standard, including compliance with the Global Harmonization System of hazard identification, container labeling, and Safety Data Sheets.
A whitepaper by Kevin Schmidt on calculating ROI for physical security services. Read this to help your department present accurately on the ROI for the investment, vs being seen simply as a cost center.
Capital Adequacy Stress Tests: Pre-Provision Net Revenue and Scenario DesignCRISIL Limited
CRISIL Global Research & Analytics (GR&A) conducted a web-conference on March 26, 2014 on Capital Adequacy Stress Testing. The web-conference, attended by risk and stress testing practitioners from around the world, focused on why banks need risk models with greater integration across projections. It threw light on how Pre-Provision Net Revenue (PPNR) modelling specifically has assumed critical importance since the original stress tests by the US Federal Reserve following the 2008 economic crisis.
An investigation of capital budgeting techniques on performance: a survey of...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
During the coldest months, Italy transforms into a winter wonderland, providing visitors with a very unique experience. From the Settimana Bianca ski event to the lively Carnevale celebrations, Italy's winter festivities provide something for everyone. Enjoy hot cocoa, eat hearty comfort foods, and buy during winter deals. Explore the country's rich cultural past by participating in Settimana Bianca, and Carnevale, sipping hot chocolate, shopping during winter deals, and indulging in winter comfort foods. Visit our website https://timeforsicily.com/ for more information.
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This page by FlynGoo can become your ultimate guide to connecting with a live person at American Airlines. Have you ever felt lost in the automated maze of customer service menus? FlynGoo is here to rescue you from endless phone trees and automated responses. With just a click or a call to a specific number, we ensure you get the human touch you deserve. No more frustration, no more waiting on hold - we simplify the process, making your travel experience smoother and more enjoyable.
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3. THE PARADIGM
“Safety people have their hearts in the right
place but seldom understand true business
objectives”
• Safety has the high moral ground
No one can publicly disagree with what we represent
• But Safety people are seldom seen as true business partners
Our requests are compared with competing business objectives
We’re never seen as balancing Safety objectives with business
reality
• We seldom make a credible business case
3
5. METRICS USED BY CFO’s
Metric
Internal Rate of Return
Net Present Value
Payback Period
Discounted Payback Period
Account Rate of Return
Profitability Index
% Time Used
75.6%
74.9%
56.7%
29.5%
30.3%
11.9%
Source: Graham, John R. and Harvey R. Campbell, “The Theory and Practice of
Corporate Finance: Evidence from the Field”, Journal of Financial Economics 2001
5
6. FINANCIAL METRICS
The financial metrics are built around the
concept of the:
$ Time Value of Money $
That is, a dollar today is worth more than a
dollar tomorrow.
6
7. INFLATION AND DISCOUNTING
An investment can be viewed in two ways
—its future value or its present value.
Inflation
Present
Value
Discounting
Future
Value
7
8. U.S. JHSIT PROCESS MODEL
Initiate Top Level Safety Intervention Actions
(e.g. promoting IHST, SMS, Infrastructure changes)
Review JHSAT
Recommendations
& Assign Number
Group
Recommendations
By Common
Theme
IHST Approval
JHSAT Overall
Effectiveness
Value (OE)
Prepare
Preliminary
Safety
Enhancement
Plan
Assign JHSIT
Average
Feasibility
Value
IHST Approval
Prioritize
Recommendations
(OE x F)
Prepare Detailed
Safety
Implementation
Plan
Execute and
Monitor Progress
Of Safety
Implementation
Plan
8
9. Technical Feasibility: The ability of the project to take advantage of the current state of technology in
pursuing further development.
3 - Off-the-shelf technology, no development required
2 - Some development required, not currently in public use
1 - Major technology development effort required
Financial Feasibility:
Should consider the total cost of the implementation, including the
planning process. Financial feasibility also involves the capability of the participating organizations (FAA,
Manufacturers, and Airlines and Operators) to provide the appropriate funding needed to implement the
project.
3 - Relatively low cost to implement
2 - Relatively medium cost to implement
1 - Relatively high cost to implement
Operational Feasibility: Involves the “practicality” of the project within the context of the operating
environment, including NAS, ground operations, maintenance, inspection, etc. Considers which
organizations within the aviation system are impacted.
3 - Minimal change to entities within the operating environment
2 - Modest change to operating environment
1 - Major change to operating environment
Schedule Feasibility: Can the project to contribute to achieving the goal in a selected timeframe? Must
consider implementation schedule by project.
3 - Less than 2 years to full implementation
2 - Full implementation in 2-5 years
1 - Longer than 5 years to full implementation
Regulatory Feasibility: Should be evaluated against current rules and certification
process. Could be a deterrent due to a long approval process.
3 - No policy change
2 - Guidance change only (orders, handbooks, policy)
1 - Rule change
9
10. MANAGEMENT SYSTEM = SAFETY SYSTEM
Financial Management System
Safety Management System
Finance Plan
Safety Plan
Targets & Objectives
Targets & Objectives
Budget
Budget
Accountabilities
Accountabilities
Levels of Authority
Line Management
Authorities
Procedures
Procedures
Checks and Balances
Monitoring/Line Checks
Audit
Plan
Accountants
Audit Plan
Safety
Committee
Audits
Balance
Sheets
Audits
Safety
Achievement
10
11. ROI – WHAT IS SAFETY’s PAYBACK?
Net Present Value
ROI =
ROI =
Present Value of Project Cost
Present Value of Project Benefit – Present Value of Project Cost
Present Value of Project Cost
11
12. ROHSEI
One Way To Change The Paradigm.
Return on Health,
Safety and
Environmental
Investment
(ROHSEI)
12
13. GENESIS OF ROHSEI
In 1995 a taskforce of fifteen Fortune 500 companies
sponsored the development of a process and supporting
tool set to answer important questions such as:
What safety investments should we make?
How do we know we are doing the “right things” in the
“right way”
To which projects should we allocate our resources?
Which EHS investments create the greatest value to the
organization?
How do we demonstrate the value of our investment
decisions?
How do we demonstrate our value and justify our
existence?
13
14. BRIDGING FINANCE & SAFETY
BUSINESS TALK
SAFETY TALK
Finance/Operations
Safety/Industrial Hygiene
Earnings/EPS
Accident rates
ROI
Property loss
Payback
Insurance premiums
PVRR
Fines and citations
Internal Rate of Return
No. of people trained
Production rates
Exposure Assessments
Earnings/employee
Net Present Value
Cost Benefit
ROHSEI
Bridges
the Gap
Near misses
Behavioral Observations
Audit findings
14
15. WHAT ROHESI DOES
ROHSEI offers a standardized approach to
evaluating health, safety and environmental
investments.
15
16. WHAT DOES A SAFETY GUY KNOW
ABOUT FINANCE? – ROHSEI!
Return on Investment (ROI): This is calculated by dividing the net present value by the present
value of the project costs. The net present value is calculated by subtracting the present value of
project costs from the present value of project benefits. The model calculates ROI based on
costs, benefits, and the discount rate that are entered by the user.
( B − C ) ( 1 + n) i
i
i
i
(1 + r )
i =1
ROI =
=
i
t
C ( 1 + n)
i
i
i =1 (1 + r )
t
∑
∑
B ( 1 + n) i t C ( 1 + n) i
i
− i
i
i
i =1 (1 + r ) i =1 (1 + r )
i
t
Ci ( 1 + n)
i
i =1 (1 + r )
t
∑
∑
∑
16
17. THE CHALLENGING QUESTIONS
What investments should we make?
Should we make the investment this year or next?
How do we compare an operational investment decision to a
health and safety investment decision?
To which projects should we allocate our human resources?
17
Safety is the high moral ground, but we need to make a ‘business case’ for investing in safety.
Safety managers speak in their own language, normally centered on safety risk management terms
But the financial managers speak a different language.
To be successful, safety managers must present their proposals for safety investments in financial terms.
The worth of a dollar today is different than the worth of a dollar in the future.
An investment can be viewed in two ways – its future value or its present value.
The JHSIT process includes evaluating the “value” of the recommended intervention.
The JHSIT process includes evaluating the feasibility of implementing the intervention. One of the 5 feasibility factors evaluated is the “FINANCIAL” feasibility.
The management tools used to manage safety are the same as the elements used to manage the business.
To be successful, safety managers must be able to show the financial benefits of proposed safety investments! There has to be a financial return on the investment if you want the financial community to support it!
ROHSEI is a proven financial software tool used by safety managers to calculate the financial return on safety investments.
