Understanding how risks change during project execution is critical for meeting project objectives. This is particularly important for large projects and/or projects deigned with limited site condition data. However, very few contractors have in-place validated procedures to evaluate residual risks and methods to update project exposure. Typically, after risk register is developed, risk factors are assigned to project team members who become responsible for updating their likelihood and impacts. This simplified approach has a number of shortcomings that can result in significant cost and schedule overruns, rework, and increased exposure to unsafe conditions.
No expertise. Team members are assumed to be experts. With few exceptions, project engineers are not specialists. In fact, there are hired to be generalist and apply their expertise across the portfolio of projects. As a result, they typically have only surface knowledge of the issue at head; a design, constructability, or logistics problem/situation that can lead to schedule delays, cost overruns, poor quality, or increased exposure to hazardous conditions.
No validation. Team members do not validate their assessments. Risk monitoring is just one of the many functions they have to perform during project execution. Typically, a project engineer would assess the changes in conditions and proceeds forward without validating new estimates of the likelihood and the potential impact of the risk factor.
RIskopedia OWL Continuous Project Risk Assessment System is a real-time knowledge management system that utilizes subject matter experts at offsite locations to interpret project data and validate estimates in risk register. As new data becomes available, it is interpreted by the experienced engineers to provide an updated assessment of the risk factor in terms of its likelihood and/or impact. Note that OWL utilizes experts, not mathematical models. The expert pool could come from within the company, or could be developed from trusted external specialists. Effectively OWL acts as an online risk workshop during construction where project team members can get external un-biased assessment of the risks. This is provided a fraction of the cost of having regular risk workshop meetings at the project location, or hiring specialist consultants..