Identification

Initially RISK IDENTIFICATION should be a comprehensive, non-selective, non-judgemental process.

The previous section explained how to prepare a scope document for the business or project you are interested in. The subject of the scope document is your risk subject (for example this could be a business area or a project). At the beginning of the risk management process try to identify as many risks to the value and success of the risk subject as possible. This does not mean that you intend to actively manage all of these risks – the intention initially is to try to list all the possible risks so that you can determine which ones are relevant and will therefore need to be carefully managed.

A worker abseils down the 180ft high drilling derrick on the Jack Ryan drill ship, which worked in block 31, Angola. (photo courtesy of BP p.l.c.)

For initial risk identification try to include all potential risks associated with your project. (Photo courtesy of BP p.l.c.)

Therefore, during the initial risk identification process, try not to be too judgemental or selective, simply include as many risks as you can. Here it is useful to make use of the Value TRAI (Targets, Resources, Activities and Interactions) approach introduced in the scoping section (the link to the scope section is here). To help you consider as many risks as possible I have included check-lists for each of the four categories. You can download these checklists in PDF format by simply clicking on the links below:

TARGETS Link: 150823 Targets from Value TRAI Based Risk Management Copyright 2015 Chris Duggleby

RESOURCES Link: 150823 Resources from Value TRAI Based Risk Management Copyright 2015 Chris Duggleby

ACTIVITIES Link: 150823 Activities from Value TRAI Based Risk Management Copyright 2015 Chris Duggleby

INTERACTIONS Link: 150823 Interactions from Value TRAI Based Risk Management Copyright 2015 Chris Duggleby

Mai Liao Complex Taiwan where the Formosa BP Chemicals JV was situated (photo courtesy of Formosa Group)

INTERACTIONS As BP’s Far East Business Development Manager I had to consider complex interactions when preparing new JVs. To address these risks I negotiated very detailed agreements between partners prior to incorporation of ventures like the one situated in the middle of this complex (Photo of Mai Liao in Taiwan courtesy of Formosa Group)

You can use these check lists to help you identify as many risks as possible in the four categories. I usually find it useful to do this with a team of people who are involved with the business area concerned: This is simply a brainstorming session or as I sometimes call it a DOSER (Don’t Oppose – Suggest Every Risk) session. This same team can also help in the next stage of the process which is risk quantification. To move on to this use the link here.

Coal storage and power station at Mai Liao Complex Taiwan (photo courtesy of Formosa Group)

RESOURCES (A) Building an offshore Joint Venture surrounded by swamps requires careful consideration about where the power will come from. For the FBPCC JV in Taiwan I agreed power supplies from the local power station within the Mai Liao Complex which also had considerable coal storage facilities to minimise disruptions (photo courtesy of Formosa Group)

Deep water port at the Mai Liao Complex Taiwan (photo courtesy of Formosa Group)

RESOURCES (B) In order to build and run the FBPCC JV on its man-made island (surrounded by swamps) it was essential to have direct pipelines linked to the complex’s own deep water port to enable key raw materials to be shipped in (photo courtesy of Formosa Group)

©2015 ChrisDuggleby.com

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