Risk Management Services

Our team of specialists provide comprehensive risk management services to identify, manage and mitigate project risk, and model the cost implications of remaining risks and uncertainties at each stage of the project life cycle. This process achieves the best possible balance between cost, time and quality to analyse and manage risk whilst delivering the best outcome. Linking risks to value creation provides our clients with the surety they need.

Risk management requires discipline

Our approach to Risk Management is structured and disciplined, aligning strategy, processes, people, technology and knowledge to identify, assess and manage the uncertainties and potential risk events that businesses face as they create value.

Our risk management services involve ENC actively seeking to identify strategic, operational, commercial, compliance, information risks and more across works or an individual project.

Key Activities in Risk Management

Risk can be defined as “the probability of an unwanted outcome happening”. Risk assessment should be viewed in the overall context of risk management and seen as one of the three key activities – risk analysis, risk assessment and risk mitigation – which facilitate the taking of decisions and actions to control risk appropriately.

Risk analysis

Risk analysis is the process of identifying all the potential issues that can go wrong with an activity and then estimating the probability of each happening. It should form part of any significant contract management process and is a fundamental part of determining your contract strategy. The process can range from a simple listing of risks on an informal, intuitive basis to a formal process involving set procedures and working with other professional disciplines in brainstorming and technically and financially evaluating potential risks.

A more formal process may involve the establishment of a risk register for each tenderer and, following contract award, the transfer of the register of the successful tenderer to the contract management team for use in risk assessment.

In addressing the fundamentally important issue of risk in contract management, ENC Consulting adopts a continuous “what if” mentality throughout the assessment and review process. Risk management requires a professional who possesses knowledge of techniques, an analytical mind set, objectivity and a knowledge and thorough understanding of their organisation’s business and the market. It is advisable to seek to mitigate and remove risk whenever possible before contract award.

Vision

Risk assessment

Risk assessment is the process of assessing the likely impact of a risk on the organisation. Highly predictable risks may have low impact and it is possibly not worth taking action to control or avoid such risks. Conversely, low probability risks may have a significant impact demanding action to be taken to avoid or mitigate the risk. Other issues for consideration in risk assessment:

    • Costs of identifying, controlling or avoiding the risk
    • Your need for insurance for risk not readily managed or avoided
    • Your need for “sensitivity analysis” on risks of an unknown level or magnitude
    • Having assessed the risks and identified those requiring action, responsibility for managing and mitigating them should be allocated. This allocation should be dependent on the assessment of the likelihood and consequence of the risk.

Risk mitigation

Risk mitigation is the process of taking steps to reduce adverse impacts. Four types of risk mitigation strategies include:

    1. Risk Acceptance does not reduce any impact however is still considered a strategy. This is a common option when the cost of other risk management options such as avoidance or limitation outweigh the cost of the risk itself.
    1. Risk Avoidance is the avoidance of any exposure to the risk whatsoever. It is usually the most expensive of the risk mitigation options.
    1. Risk Limitation is the most common risk management strategy as it limits business exposure by taking some action. This strategy employs an amount of risk acceptance along with a some risk avoidance.
    1. Risk Transference involves handing risk off to an accepting third party. This can be beneficial for a business if the transferred risk is not a core competency of that business.

About ENC Consulting

ENC Consulting Group is a business consultancy based in Perth, Western Australia providing commercial, project management and business advisory services both locally and nationally. Our knowledge and first-hand experience in managing a wide range of issues in mining, oil and gas, construction and energy settings provides clients with expert advice in project management, risk management, contract management, negotiations and change management.

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