Risk Management

BCE risk management identifies and performs analyses of risks, and follows that by acting to minimize the chances of negative events and maximize the probability of success. Risk management should be an integral part of any project, recognizing that not everything will go as planned. It is of such a critical character that several standards have recently been written, such as ISO 31000 and the Project Management Institute's Practice Standard for Project Risk Management.

BCE risk management is a complex undertaking and needs to be tailored to each specific application. In an industrial setting, the following is generally applicable:

Planning
Determine the risk management plan, to include the various activities, methodology, budget and schedule.
Risk Identification
Using the risk management plan, determine which risks could affect the project. Risks can be classified as either business risks, involving both gains and losses or insurable risks, involving only losses.
Risk Analysis
Risks are rated for the likelihood that such events will occur, how they would affect the project objectives, and impact cost, schedule or quality. Moderate-to-high risks are analyzed further to create a quantified list of the probability of occurrence and consequences of each risk.
Response Planning
Develop a risk response plan and contingency plans for the risks on the quantified list.
Monitoring and Control
Develop plans for corrective action, etc.