Best practice in risk analysis


To ensure that Sponsoring Agencies undertake robust risk analysis practices, the Project Team should:

  • Clearly define the context and scope of the risk assessment
  • Ensure that the analyses of risks and opportunities in the Risk Register are mutually exclusive and there is no double counting
  • Undertake sense checks against known benchmarks from previous best practice projects
  • Critically assess and comprehensively document assumptions, exclusions, qualifications and any limitations
  • Recognise the potential for bias in identifying and analysing risks and ensure that the project is not adversely affected
  • Undertake a detailed and stochastic risk analysis where possible
  • Undertake further investigations that may reduce the level of uncertainties
  • Implement the risk analysis process in a robust and defensible way and ensure that project planning is sufficient
  • Ensure residual, unavoidable risks and mitigated risks are documented in the Risk Register for continual monitoring
  • Clearly identify and consider interdependencies between risks and opportunities
  • Understand any correlation that may exist between risks and opportunities
  • Regularly update the Risk Register throughout the Infrastructure Investment Lifecycle and document a clear log of Risk Register updates.

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