Risk-based Management in the World of Threats and Opportunities: A Project Controls Perspective

The book provides new and additional knowledge to project management practitioners (beginners to experts), risk management specialists, project controls people, estimators, cost managers, planners and schedulers, students of undergraduate courses in Risk Management, and the next man on the block.

The sectional contents offer practical and common sense approach to identifying/managing risks. It is a must have for company managers, directors, supervisors, aspiring industry professionals, and even those students fresh from high school.

The material is especially design to start with the foundational principles of risk gradually bringing the reader to deeper topics using a conversational style with simple terminologies.

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What is risk-based management (RBM) to you? Do you have a good understanding of risk and the concept surrounding it? How is risk-based management applied? Are you aware that you are into risk-based management with every breath you take? Do you know that risk can be both an opportunity and a threat? Do you want to know more?

RBM is serious approach and a philosophy that considers risks while managing any endeavor (project or task) throughout its lifecycle.

If you fully understand risk, you will surely understand risk-based management. Think whatever endeavor you’re into. Did you select the best option? If you are not sure how to go about your pet project, then risk-based management will help you.

Management by objectives is coupled with a healthy focus on risk management by increasing the probability of success, enhancing opportunities, and/or preventing/mitigating threats.

In order to appreciate this management approach requires in-depth understanding of risk itself. This is what the book “Risk-based Management in the World of Threats and Opportunities: A Project Controls Perspective” is about.

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We attribute the high failure rate of projects to a combination of factors, namely a lack of support from business leadership, incompetent project managers, and a firms’ unwillingness to treat a project as they would a start-up business.

If you think this is all there is it to it, then you are in for a surprise. There are more where they came from. I have seen many of these things while in different roles after decades long of exposure across industries.

Of course, it is very clear that a project cancelled before it is fully completed is a failure. The degree of failure depends on how much stakeholder money and other resources have already been used and wasted.

We must also consider the cascade effects of such failure to any company’s bottom line. Crossing the bottom line can result to layoffs, across the board budget cuts, low dividend returns for stockholders, loss of reputation, and decreased stock price to name a few.

Risk-based management describes the available choices and options considered against their associated risks. Actions become possible when we are sure that we adequately comprehend the risks before us.

Looking at how other types of management work makes the risk-based concept ideal, since it is a simple perspective that can easily integrate other concepts.

Decisions evolve from a situation where one has to make a choice. The option can be to do or not to do something. It can also be to select one option from a range of options.

The most important objectives drive final decision. It is constrained by any, or combination of social, technical, business, safety, and environmental factors. Successful decision-making requires an understanding of each of these factors and objectives (RiskTec, 2013).

There are professionals who have difficulty accepting the term “risk-based.” It simply means that risk should be the main contemplation, while keeping an eye to achieving business objectives. It is therefore a foundational concern in the pursuit of a goal.

Pursuing a goal naturally results in risk management. This is how we end up with risk management. Under this paradigm, the concern revolves around the decisions we need to make, i.e. whether to avoid or mitigate in the case of a threat, and whether to enhance or exploit in the case of an opportunity.

Risk is not only a factor or featured element of management; it is the central concept at play. It should be the focus of management, second only (if not equal) to the main objectives.

An excellent risk manager will see clearly that the objectives and end deliverables are part of the risk. They are the grand consequences of the positive risks (opportunities) identified, and the very reason why the project was initiated. Risk-based management is as important as the objectives.

Failing to mitigate the risk means failure to meet the objectives. When that happens, the risk is on equal footing and of the same importance as the objectives.

I trust that you will find this book helpful as you proceed addressing the challenges of your own risk universe.

The book “Risk-based Management in the World of Threats and Opportunities: A project Controls Perspective” was officially published by Amazon in Kindle Edition (e-book) and paperback in 2015.

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The paperback edition is also now available in Indigo/Chapters Book Store.

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Highlighted summary contents of the book:

1) The concept of risk and the practicality of risk-based management

2) Detailed instruction on risk quantification using the OPRA tool

3) The risk management processes and knowledge areas

4) How to prepare a good quality schedule and sound execution plan

5) Tips on schedule risk modeling

6) Planning and scheduling heuristics

7) Here is the list of chapters:

Chapter 1 -Risk Concepts and Philosophies

Chapter 2-Risk-based Management

Chapter 3-Risk-based Planning and Scheduling

Chapter 4-How to Prepare for Schedule Quantitative Risk Analysis

Chapter 5-Schedule Quantitative Risk Analysis

Chapter 6-Importing Schedule to OPRA

Chapter 7-RBM and Natural Disasters

Chapter 8-Managing Cultural Diversity

Chapter 9-Project Integration

Chapter 10-Key Risk Indicator (KRI)

Chapter 11-P50 Risk-based Baseline Schedule

Chapter 12-Mega-projects Schedule Integration

Chapter 13-Risk Assessments and Treatments

Chapter 14-Root Cause Analysis (RCA)

Chapter 15-Road to Operational Excellence

Chapter 16-Keys to Organizational Success

Chapter 17-Risk-based Management Wisdom

 

Information about the author

https://www.amazon.com/author/rufrancfrago

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RUFRAN C. FRAGO, P.Eng, PMP®, CCP, PMI-RMP®

Rev: 24-Apr-2017

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About rcfrago

Rufran C. Frago is a practicing Professional Engineer (APEGA), a PMP (PMI), a CCP (AACE) and a RMP (PMI). He has published more than 100 articles. He is the author of the book Risk-based Management in the World of Threats and Opportunities: A Project Controls Perspective He studied at Batangas State University and University of Batangas graduating with a Diploma in Petroleum Refinery Maintenance Technician (1979), Bachelor of Science in Mechanical Engineering (1984), and Bachelor of Science in Management Engineering in 1987 respectively. He was in his senior year taking up Bachelor of Science in Electrical Engineering, needing only one semester to complete, when he took a break to concentrate on married life. Rufran has never stopped academic learning after getting his degrees in the University. He continues his education by taking up some MBA courses under the University of the Philippines-PBMIT Consortium (1987-1988). He completed Computer Technician Program at International Correspondence School, Pennsylvania, USA in 1994, Applied Project Management Certificate program at Southern Alberta Institute of Technology in 2009, and Professional Management Certificate program specializing in Construction Management in 2014. He is now completing the Professional Management Certificate program specializing in Risk Management. He was a recipient of the Gerry Roxas Leadership Award (1976) and the American Field Service (AFS) Scholarship in 1976-77, studying in America for a year. Upon his return in 1977, California-Texas Philippines (Caltex Philippines Inc.), one of Asia’s biggest oil and gas refineries at the time, awards him with a two-year national college scholarship, specializing in Petroleum Refinery Maintenance. He went on extensive training in various maintenance disciplines for the next two years. Caltex hired him upon his graduation in 1979. He has spent more than 38 years of his life working in the Oil & Gas, Petrochemicals, Oleo-chemicals, Sugar Refining/Manufacturing, Consultancy, High School and University Education industries in Asia, Middle East, Canada, and North Africa). Rufran has worked with Caltex, Uniman, Unichem (now Cocochem), ARAMCO-KSA, Central Azucarera de Tarlac, Arabian Gulf Oil Company-Libya, Batangas State University, St. Bridget’s College, JG Summit Petrochemicals, Halliburton-Kellogg, Brown and Root, and OPTI Canada. He works with Suncor Energy Inc at present. He has wide range of expertise that includes problem solving, project management, training and mentoring, programs and projects planning and scheduling, cost management, risk-based management, construction management, project review and auditing, estimating, engineering and design, fabrication and module management, maintenance, operation, material selection, warehousing, EH&S and reliability engineering (predictive and preventive maintenance). He wants to share his knowledge and leave behind some form of legacy to all specially his wife, children and grandchildren, Eva and Mia.
This entry was posted in Analysis, Baseline Management, Black Swans, Book, Business, Causes and effects, Construction Management, Data Assessment, E-Touch Up, E-Touch Up Products, Opportunities, Opportunity, Project Management, Publication, Risk Relativity, Risk Universe, Risk-based Management, rufran frago, Rufran's Blogs, Schedule Baseline, Threats and tagged , , , , , , , , , , , , . Bookmark the permalink.

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