There is consistent "talk" on the part of stakeholders about risk management and its potential benefits, and yet typically there is little real action. Most organizations, both owners and contractors, today use high-level statements that suggest they are cognizant of the principles of risk management and thus employ them widely. These are often grandiose statements, but offer few practical applications to actually manage risk. Pegasus-Global has 30 years of real, practical experience in analyzing, designing, and implementing processes for organizations that work, and are tried and true. Pegasus-Global does not have "off-the shelf" solutions that can be applied to any organization. Our approach is that every organization or project faces unique risks that must be managed appropriately. We have custom tools and programs that are unique to organization-wide needs or to specific project circumstances. Pegasus-Global has successfully designed and implemented risk management programs and applications internationally, which offers our clients unprecedented global experience that can be brought to bear for a client's unique requirements.
Our risk management systems approach therefore is distinctly different from others, whether they are purely "software based" solutions (we use most of the commercially available systems and integrate their use as appropriate) or unstructured "consulting type" solutions. It is founded on project management principles and grounded in commonly used project processes rather than confined and defined by the parameters of a software provider. Having reviewed and consulted on several dozens of risk management systems used by large consortiums, global contractors, and global project owners, it is Pegasus-Global's view that each project is a unique set of risks and unique objectives. Risk identification is critical to making an effective and efficient risk management system, but systems by themselves are insufficient. This step in the process is often lost with focusing mostly on how risks are quantified and evaluated within statistical parameters. Statistical tools have a role in a risk process, but Pegasus-Global's experience is that focusing too much on driving sophisticated outputs often leads to missing key risks until they turn into large problems.
Pegasus-Global, working with your project execution team, can prepare a full project execution risk profile of the project. That assessment will identify the risks and opportunities inherent in the project; evaluate those risks against an action matrix; establish avoidance and/or mitigation plans to address those risks; assist the project execution team in establishing "trip wire" warnings for each of the high probability/high damage risks; and assist the execution team in establishing the project risk monitoring program.
The risk profile of every project changes during execution. New risks and opportunities are realized, old risks and opportunities are retired, and the criticality of risks change given the progress curve through the project. Pegasus-Global can become a participating member of the project execution team by monitoring the implementation of the risk management program and by conducting periodic audits of the project against the project risk register. By monitoring the risk management program, Pegasus-Global can help the project execution team maintain the execution risk register, keeping it current to the progress and conditions of the job. Periodic audits of the project against the project risk management program assure that the project execution team is taking maximum advantage of the entire program, including the risk register. Pegasus-Global prepares detailed reports and recommendations intended to assist the project execution team to fully and effectively utilize the risk management program. The report also highlights those execution risks that are most critical at the particular time of the audit and provides recommendations for addressing the risk in question.