Risk work featured in the Project Controls Professional magazine

Our work done with the Institute of Risk Management’s Risk & Complexity (R&C) Special Interest Group in publishing a set of Good Practice Guidelines (GPG) was featured at the Project Controls Professional magazine. It explain how the GPG tries to equip organisations and projects with the tools they need to thrive in complex and chaotic environments.

This is underlined by analysis from Professor Bent Flyvbjerg that ’91.5% of projects go over budget, over schedule, or both’, and highlights the need to change our approach to one that embraces complex systems thinking.

Traditional approaches to managing risk have fallen out of step with contemporary project environments where we increasingly encounter complex and chaotic. In contemporary operating environments, the increasingly interconnected nature of our organisational landscape means that we are encountering complexity more now than ever before.

We are currently only effectively managing risks which sit in the ‘clear’ and ‘complicated’ domains, leaving us exposed to those in the ‘complex’ and ‘chaotic’ domains. These are the risks, including ‘black swan’ events, which are of the highest potential magnitude.

Whilst this next exciting evolution of risk management is still in its infancy, the Institute of Risk Management’s Risk & Complexity (R&C) Special Interest Group has recently published a set of Good Practice Guidelines (GPG).

Designed to enhance traditional Enterprise Risk Management (ERM) best-practice frameworks, the GPGs advocate less focus on stochastic, isolated events and more on the connected whole.

Now is the time to change our approach, embrace complexity and release its value.

Whilst this next exciting evolution of risk management is still in its infancy, you can download the abstract of the GPG below, as well as our featured article in the Project Controls Professional (PCP) magazine.

Read the abstract below, and download the full article for an in-depth implementation guide.

Read how the GPGs advocate less focus on stochastic, isolated events and more on the connected whole. It outlines an iterative process made up of iterative phases each containing detailed guidance on technical and non-technical approaches, for example:

• Non-technical: Managing systemic risks with integrated project governance through iterative feedback loops to be able to respond quickly and appropriately to threats/opportunities
• Technical: Improving sensor networks and sense-making capabilities to auto update cost models [e.g., ML application on Reference Class Forecasting (RCF)] across 5 Maturity Levels of estimates.