P4.8: Risk Identification & Management

Risk is defined as this uncertainty of outcome, whether positive in terms of ‘opportunity’ or negative in terms of ‘threat’. Risk has to be assessed in respect of the combination of the probability of something happening, and the impact which may arise if it actually does. Risk management includes identifying and assessing risks, tailoring activities to minimise exposure or mitigate against them. It is also a good way to prioritise tasks.

Risks of adverse consequences are inherent in all activity, and it will be important to recognise these at the outset of the process. Risk management will be needed to ensure that relevant risks are understood and prioritised as part of normal management practices. Information on risk must be organised in a way that is useful for management purposes and enables decisions to be taken based on the knowledge of risk probability versus the potential scale of impact. Risks can only be assessed and prioritised in relation to stated objectives, and thus should be considered against the outcomes of the following Stage in the Guide process.

The recognition and management of risk is the responsibility of everyone involved in the delivery of large development projects, and should be co-ordinated by the Development Team Steering Group. Whilst individual stakeholders will have a responsibility to identify, evaluate and manage strategic and operational risks specific to their activities, they must bring these to attention when they may potentially affect the ability to achieve a successful outcome of the project as a whole. Risks need to be evaluated and embraced in a controlled manner and the uncertainties involved in risks need to be evaluated and minimised.

There are a number of key influences and risks to the delivery of large development projects divided into ‘Macro’ risks, which relate to general development issues, and ‘Micro’ risks, which are largely site-specific. A key role of the Steering & Working Groups will therefore be to:

• Establish key risks to achieving a successful outcome and assess probability and impact;
• Keep aware of new risks as these arise and change over time and ensure that all partners are fully aware of how they may influence project outcomes; and
• Guide working practices to minimise exposure to risk and mitigate against impacts as and when these may arise.