• Risk Assessment Program

     

    Risk Assessments (RAs) have been performed as part of NCDOT day-to-day business for years; however, the NCDOT Value Management Office is striving to formalize internal procedures to incorporate the RA process, when applicable, into the existing VE Program or to conduct an RA as a stand-alone process. RAs can be done on projects, programs, new legislature requirements, etc. In a recent Rapid Renewal Risk Management Training Workshop prepared for the Strategic Highway Research Program, Golder Associates noted that:

      “Risk Management is the formal, structured and imperative process of anticipating and planning for potential problems (“risks”), as well as opportunities (“negative risks”), before they occur, to better understand and control project outcomes (e.g., cost and schedule). It also needs to be adequately accurate and defensible, as well as flexible and efficient, and compatible with the State Highway Agency. The process is applicable to all kinds of projects (including programs or projects).”
       
        
      Risk Management Process

      The PMBOK ® Defines the risk management process as

      “The systematic process of identifying, analyzing, and responding to project risk”

      Continuous monitoring of risks increases the chances of avoidance and decrease impacts to schedule, budget, scope and quality. The Project Manager is responsible for ensuring communication is occurring between the project team members and any appropriate stakeholders. Open and honest communication is essential for managing and resolving risks.

      Process Steps

      1. Develop a Risk Management Plan
      2. Identify risks
      3. Analyze the probability and impact of risks
      4. Develop risk response strategies
      5. Implementation Plan for risk responses
      6. Continuously monitor and control the risks throughout the life of the project

       

      If you have any questions or other inquiries regarding the Risk Assessment Program, please contact: valuemanagementunit@ncdot.gov  
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