Abstract Manager

Capital projects are an exercise in managing uncertainty, and megaprojects will challenge any organization’s processes. Linear projects are highly vulnerable to all forms of risk, particularly with the incorporation of below- or above-grade components such as tunnels and bridges. Risk management is universally acknowledged as vital in this environment, but finding the appropriate balance between information vacuum and information overload is a non-trivial problem. A common end point is enormous, stagnant risk registers filled with one-off issues with varying levels of detail and frequent redundancy. Nobody on the team has the full picture, risk is not used effectively in decision-making, and most risk-related effort is spent on polishing the register, rather than on management strategies. 

This presentation describes an industry-leading approach to defining a driver-based risk hierarchy and using it to streamline all aspects of risk management, with reference to many lessons learned through previous experience on billion-dollar transit and highway programs across Canada. Strong hierarchical organization of the risk breakdown structure, aligned around risk drivers rather than locations or phases, has been a very effective tool for these transportation megaprojects. This methodology reduces mental load for the team, facilitates strategic management, eases reporting at all levels across projects and programs, flexibly accommodates enhanced detail where needed, and provides structure for the use of differential risk techniques in decision making.