NEW WHITEPAPER

Quantitative Risk Analysis

During these uncertain times, risk analysis processes are incredibly valuable tools for Owners to analyze potential project risks, develop mitigation strategies and achieve the desired project objectives. One of the most commonly used methods for this is the Quantitative Risk Analysis.

Process Overview

This process is typically owned by your Risk Management team, with participation by the Project Team and other business stakeholders as appropriate.

The Steps

Risk Reporting

Risk is reported by a member of your staff, project team, or an external project participant

Risk Identification

Risk is triaged and a preliminary assessment is completed, this is usually done by the core Project Team

Risk Analysis

This happens at several levels of the organization, depending on the severity or likelihood of a risk.

The review process may end with the Project Manager or may be escalated to Risk or even Executive level as appropriate.

Remember, Review Comments can be requested from non-eBuilder users, if necessary

Risk Prioritization

The Risk is ranked amongst other program risks; statistical tests such as TOPSIS, JRAP, or Monte Carlo analyses may be performed during this phase

Risk Mitigation

Stakeholders will decide on mitigation strategies which might include a workaround, transferring the risk, or accepting it. Some of which may require a risk response plan.

Risk Program Updates

The program is updated with this information along with the mitigation strategy and potential ways of handling risks in the future.

Bonus! This same process can be easily adapted to manage Job Site Hazards or OSHA risks and can be made public for Subcontractor (or even anonymous) reporting, if necessary.

Extra Bonus! Apply the same concept to make high-level decisions with valuable insight from multiple decision-makers.

Watch Accompanying e-Builder® Training

We’ve included video training to go with this whitepaper. Watch the full training video here! You’ll be tracking and reporting on risk in no time.