Defining Project Risk

  What is Risk?

•  The act of accepting responsibility for the performance of an element of the project

  Typical Risks associated with a large capital improvement project

•  Securing Permits in Development Phase

•  Construction and Operating Costs exceed budget

•  Schedule delays (reduced revenue, service loss, credibility)

•  Project Completion (facility start-up, )

•  Design (facility efficacy in performance)

•  Regulatory Compliance in Operations Phase

•  Appropriate maintenance (not deferred)

•  Legal Disputes ( contractors, vendors, operators, etc.)

  Risk should be allocated to those parties most ready, willing, and able to efficiently and cost effectively manage those activities and/or responsibilities.