Cătălin IACOVICIAn I AES

ObjectiveThe objective of Project Risk

Management is to provide methods and software to analyze, capitalize and estimate risks to improve the competitive value during the bidding phase of projects

Innovative featuresEarly life – cycle decisionsTo take risk as the most powerful driver

integrating all other preoccupationsKnowledge sharingProject risk management builds a corporate

memory as a fundamental reference to provide internal and external information for bid process

Standardisation

Project statusRisk management is ambitious, innovative,

interestingCollect users needs and building different

types and cultures of biding process integrated in one bidding model

External risk it is faced in a similar way as internal risk

Prototypes development

Project risk management ouvertureThe bid process is representative for any

project process where a decision is central: why not extend the risk management to the whole project?

Project risk management means to cover the needs of bid engineers to top management

MethodThe risk management focuses on the bid

processThe method allows the building of technical

solutionsTo choose between several technical

solutions, the method supports cost estimation and risk evaluation

DefinitionsRisk: Opportunity vs. Hazard, Internal vs.

External riskRisk description process: Cause, known by its

probability; Risk, known by risk exposure

DefinitionsOpportunity is the cumulative effect of the

chances of uncertain occurences, which will affect project objectives positively. Opportunities are considered in risk management as positive risks

Hazard: A condition associated with the design, operation or environment of a system that has the potential for harmful consequences

Risk evaluation methodIdentificationAssessmentRanking prioritisationMitigation actionsiteration

Process

Technical memoryThe repository of the overall company

expertise/knowledge contains all technical and organizational information that is required for bidding.

The aim is to improve the ability of companies to prepare reengineering of their entities and processes as soon as or even before a bid is successful.

This goal is achieved by : a database of recurring entities and processes or of entities that can be reused, if necessary with adjustments, by bid managers.

The repository can be used by all actors involved in the bid processes.

The impact of a co-operative repository is to facilitate and improve the capitalization and exchange of knowledge.

Decision support system

ConclusionsFor Company Continuous Improvement

during the project and on the short term :during bid process

Inserts risk management in the RFP phase:Supports a risks management plan early at the

beginning of the contractConducts a documentation on the risks

associated with the projectsOrganizes the risks experience/knowledge

return from the bid phase start

supports decisions : Bid / No bid & Make or Buy

Support to bid construction (rapid evaluation from experience return)

Technical solution choice support : evaluation and comparison through risk assessment in parallel of external elements

better experience feedback from previous bidsgood decision probability improvementCo-operative work during bid processhigh level of visibility and integration for top

management (Company position)

Conclusions