Standard Risk Management Model for Infrastructure Projects

This paper outlines a risk management method that is based on the use of a standard risk management model and is adapted to the specific nature of infrastructure projects. The standard model can be used to identify and quantify unexpected events in planning and executing a project. The use of a risk map will also be illustrated. A risk map can serve to classify the identified and quantified risk events, depending on the expected loss, to critical risks that call for a more in-depth treatment, and non-critical risks that are normally not monitored, while no measures are foreseen in advance. A risk map is used to determine what the anticipated effects of the measures to mitigate the critical risks will be, and how the anticipated measures enable the transition from a critical risk to a non-critical risk. In this article, the suggested risk management is illustrated using the example of the erection of a reservoir for a hydroelectric power plant. The use of the proposed tools for the identification, assessment, prioritisation, and management of risks proved highly successful. With the use of the proposed risk model, the critical risk events were lowered under the acceptable level of the expected losses