How do you monitor and update the risk profile of a FEED project as it progresses and changes occur?

1 Identify the risks

The first step in risk management is to identify the potential risks that could impact your FEED project. You can use various methods, such as brainstorming, checklists, interviews, surveys, historical data, or expert opinions, to generate a list of risks. You should also consider the internal and external factors that could influence your project, such as technical, environmental, legal, regulatory, social, or political issues. You should document each risk with a clear description, category, source, and impact level.

2 Analyze the risks

The next step is to analyze the risks and prioritize them according to their probability and severity. You can use qualitative or quantitative methods, or a combination of both, to assess the likelihood and consequences of each risk. Qualitative methods involve rating the risks using scales, matrices, or diagrams, based on subjective judgments or predefined criteria. Quantitative methods involve calculating the numerical values of the risks using statistical, analytical, or simulation techniques. You should also identify the triggers, dependencies, and assumptions associated with each risk.

3 Plan the responses

The third step is to plan the responses for each risk, based on their priority and impact. You can choose from four main strategies: avoid, reduce, transfer, or accept. Avoiding means eliminating the risk or its source. Reducing means mitigating the risk or its effects. Transferring means shifting the risk or its responsibility to a third party. Accepting means acknowledging the risk and preparing for its occurrence. You should also define the roles, responsibilities, resources, and actions required for each response.

4 Implement the responses

The fourth step is to implement the responses according to the plan. You should communicate the risk information to all the stakeholders and assign the tasks to the responsible parties. You should also monitor the progress and performance of the responses and report any issues or deviations. You should also document the results and outcomes of the responses and update the risk register accordingly.

5 Monitor and update the risks

The final step is to monitor and update the risks throughout the FEED project. You should review the risk profile regularly and check for any changes in the project scope, schedule, cost, quality, or performance. You should also identify any new or emerging risks and analyze them accordingly. You should also evaluate the effectiveness and efficiency of the responses and make any adjustments or improvements as needed. You should also capture and share the lessons learned and best practices from the risk management process.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?