Risks are identified as uncertainties. There are two types of risks: Threats and Opportunities. Threats are potential obstacles that may have a negative impact and Opportunites are possibilities that may have a positive effect. Risk Management is a proactive process designed to minimize potential obstacles and maximize the ability to capitalize on opportunities.
Identifying Risks have been performed as part of NCDOT day-to-day business for years; however, the NCDOT Value Management Office is striving to provide a more formalized internal procedure to incorporate the Risk Management process in a more consistent way throughout all NCDOT activities and projects.
The Risk Assessment Worksheet (RAW) is recommended for use on all NCDOT projects and was developed as part of the Integrated Project Delivery effort. The RAW is a tool that assists in continuous monitoring of risks which 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.Even though the RAW was developed for use on project development, it can also be utilized by anyone within the Department as a tool to help develop a risk management plan.
Risk Management Process:
1. Identify Risks
2. Assess the potential impact and probability
3. Develop a response strategy on how to proactively address risk
4. Develop a management plan and continuously monitor risk
When applicaple, Risk management will be incorporated into existing Value Engineering Studies and Constructability Reviews, however a separate Risk Assessment study can also be provided. Risk Assessments can be done on projects, programs, new legislature requirements, etc.
If you have any questions or other inquiries regarding the Risk Assessment Program, please contact: firstname.lastname@example.org