Following is a table of risk register categories (including sample risks within each category), as they relate to a capital project from the planning through to the procurement, construction and operations/maintenance phases. Each project will require its own risk register, as every project is different, and depending on the delivery models being assessed, certain risks may be managed / mitigated differently. The key resources required to identify and cost the risks in each category are also included. The cost base for each risk refers to the costs that are at risk (i.e. the costs that would be impacted if the risk materialized).
Risk Register Category | Sample Risks | Cost Base | Resources Required to Identify Risk and Determine Value |
Policy & Strategy | • Risk of delay in procurement process • Risk of procurement process failing | Total contract value (excluding financing) | Sponsoring business unit, representatives from finance & supply, integrated risk management ("IRM"), legal |
Design | • Risk that technology proves inadequate to meet project requirements • Risk that design is insufficient to deliver services at required levels | Design + construction | Sponsoring business unit, representatives from IRM, technical/design advisor |
Site Information | • Risk that geotechnical and/or environmental information provided to bidders is incomplete • Risk of unforeseen geotechnical and/or environmental conditions | Design + construction | Sponsoring business unit, representatives from IRM, technical advisor |
Procurement | • Risk that lack of interested bidders results in smaller number of bids • Risk that RFP documentation is incomplete • Risk of resource capacity within City to undertake/oversee procurement • Risk that City projects compete for bidders | Design + construction | Sponsoring business unit, representatives from finance & supply, IRM, legal, P3 and technical advisors |
Construction | • Risk of construction delays • Risk of cost overruns • Risk of latent defects • Risk of City-initiated change orders | Design + construction | Sponsoring business unit, representatives from IRM, legal, P3 and technical advisors |
Permits & Approvals | • Risk of not receiving building permits, environmental approvals | Design + construction | Sponsoring business unit, representatives from IRM, legal, technical advisor |
Commissioning | • Risk of late delivery | Design + construction | Sponsoring business unit, representatives from IRM, P3 and technical advisors |
Life-cycle and Residual (Maintenance) | • Risk of asset being run down • Risk of higher-than-expected maintenance costs | Maintenance | Sponsoring business unit, representatives from IRM, finance & supply, P3 and technical advisors |
Operations | ■ Risk of not meeting performance specifications ■ Risk of higher-than-expected operating costs ■ Labour supply risk ■ Risk of professional/legal liability | Operating | Sponsoring business unit, representatives from IRM, finance & supply, legal, P3 and technical advisors |
Political | ■ Risk of public resistance to private sector involvement in infrastructure/service delivery | Total contract value | Sponsoring business unit, representatives from IRM, finance & supply, legal, P3 and technical advisors |
Reputation | ■ Risk of P3 failing | Total contract value | Sponsoring business unit, representatives from IRM, finance & supply, legal, P3 and technical advisors |