Local enterprise project management (EPM) solution provider, UMT Project and Portfolio Management Services South Africa (UMT Consulting SA), has announced that there is an early adoption of a risk management framework on mining project life cycles. The company developed integrated risk management methodologies (IRM) to implement risk management in these specific industries.
Risk Management is a technique that identifies, assesses, plans for and controls risks. However on mining and engineering projects the risk management framework needs to play a more prominent role earlier in the life cycle.
The following lifecycle represents how some companies in the mining and engineering industries are implanting their risk management strategy:
* Pre-Feasibility – Limited focus is spend on a risk management framework
* Feasibility – Inadequate focus spend on a risk management framework
* Pre-Detailed Design – Still inadequate focus spend on a risk management framework
* Detailed Design – Creation of risk management frameworks in silos
* Procurement – Creating an integration risk management framework using bottom-up approach
* Construction – Implementation risk management frameworks due to complexity on a tactical level
* Commissioning – Perform risk analysis, risk assessment and risk reporting with limited strategic value.
“We understand risk management encompasses the identification and assessment of threats, definition of probabilities and impacts, and the preparation and implementation of risk avoidance and contingency plans,” says UMT Consulting CEO Pieter Meyer.
“Our methodology ensures we implement controls, responsibilities and monitoring mechanisms to ensure effectiveness. To realise the benefits of risk management earlier in the lifecycle, we suggest that risk management be implemented in a project management controls environment which would assist with project management control reporting and budget metrics.”
From pre-initiation to commissioning, UMT Consulting’s IRM will assist clients to minimise project risks by conducting:
* Risk assessments e.g. procurement: scheduling delays, logistics, foreign exchange rates for imported goods etc.
* Analyse the assessed risks in terms of the impact and likelihood on the project
* Establishing controls and treatment plans to manage the identified risk
* Monitor and reporting on the status of these risks.
Misconceptions of risk management, especially in the mining and engineering industries, are that it polices and sometime hinders the fluid established processes. However, risk management’s pure function is to reduce the risk exposure of the projects within the organisation and as a consequence, improves the overall health of any project.