"Intellectuals solve problems, geniuses prevent them"
- Albert Einstein
This quote illustrates the importance of proactive Risk Response, with a goal of preventing issues from occurring.
Our project management process and standard project risk registers includes establishment of risk response plans for all identified risks. We also perform benefit-cost assessment to justify the appropriate level of spending to respond to risks
Case Review: Reducing cost overruns associated with future design changes
Problem: A firm realized that it a major source of cost overruns was reordering of material associated with procurements that were made for components prior to completion of their design. Upon design completion, specification changes were made, which required reordering of material which led to cost overruns.
Approach: We developed a risk-informed approach to guide the decision-making on procurements prior to design completion. This led to a reduction in reordering of materials and eventual cost savings.