This case study outlines how a property development company analysed uncertainty as an input to a Board decision. It discusses practical ways to simplify the structure of property development models to include uncertainty estimates in a reasonable way, to overcome problems associated with the inherent complexity of many of them. It also notes the importance of setting workshop agendas to make it easy for senior executives to participate.
Read moreThis short case study describes a simple, straightforward analysis of uncertainty in the proposed schedules for a port expansion submitted by bidders tendering for the work. It goes on to explain how the quantitative analysis contributed to the bid evaluation process.
Read moreAlkylation increases the high-octane outputs of an oil refinery to enhance the value of gasoline products. Alkylation reactions are catalysed by strong acids, hydrofluoric acid (HF) in this case. The dual hazards of flammable hydrocarbons and HF mean ensuring safety is more challenging in HF Alkylation units than in a refinery in general. We used Failure Modes, Effects and Criticality Analysis (FMECA) to help a refinery identify hazardous failure modes in its HF alkylation unit and agree priorities for attention.
Read moreThe purpose of risk management is to create and protect value by helping us achieve better business outcomes. It should be part of our day-to-day activities. When it is integrated closely into the way we manage our business, it helps us be more effective and efficient, make better decisions, capture opportunities and avoid unpleasant surprises. This short tutorial describes how we can embed risk management at the executive level, to lead its wider adoption in our operations.
Read moreSound governance is a critical component of reliable project success. As complexity is becoming an increasingly prominent feature of project selection and implementation, it is useful to pay attention to the interaction between governance and complexity in projects. This paper offers insights into methods for dealing with governance in complex projects. This is not a primer on complexity or strategies for dealing with it in general; rather it points readers towards interesting concepts and areas so they can develop their own ideas.
Read moreThis case study concerns a sewerage upgrade project in its pre-feasibility phase. It outlines a simple qualitative risk assessment for the project, the development of treatment actions, and an initial evaluation of commercial and pricing options. The case draws lessons about the value of risk management for procurement, and some of the pitfalls of residual risk calculations.
Read moreThis case study describes a review of climate-related risks with an international pharmaceutical company that had sophisticated frameworks for governance, risk management and corporate social responsibility (CSG). It outlines how the approach was adjusted to take account of the focus on medium- and long-term effects of climate change and climate policy, the sophistication of the client team, previous risk assessments, and the need to generate an understanding of climate-related uncertainties to support strategic decisions.
Read moreBroadleaf was engaged to facilitate a workshop to examine the risks related to the reliability of power supply to a mine. The mine generated its own power that supplied its facility as well as surrounding communities. A planned mine expansion meant that the power supply to the plant needed to be upgraded and its reliability improved. This case discusses the importance of tailoring the criteria for risk assessment, using several forms of analysis to set priorities, and the need for a broad perspective.
Read moreThis case study outlines a risk assessment and treatment options for enhancing the reliability of an opening bridge on a commuter road, augmented by aspects of failure modes and effects analysis (FMEA). The case discusses the importance of site familiarisation, setting workshop agendas carefully, adapting the risk management process to enhance its effectiveness, using a flexible approach to setting priorities for management attention, and the value of templates for efficiency, effectiveness and due diligence.
Read moreMonitoring is an important process in most organisations. It is critical for the effectiveness of risk management and control assurance. Risk owners monitor the business environment and indicators associated with the causes of risks to help ensure their perspectives of and assumptions about the risks for which they are responsible remain valid. Control owners, and assurance providers at Line 2 and Line 3 of the three lines of assurance, monitor indicators of control effectiveness, particularly for critical controls.
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