Improvement on Risk Management Provides Many Returns

Papers

A North American petrochemical company had run a major scheduled turnaround with some gaps in their risk management processes.

 

The Client

A North American petrochemical company, headquartered in Eastern Canada

 

The Challenge

The management of risk was managed but needed to be leveraged with a more robust process along with a new mindset on how to mitigate and monitor risk. There was not enough rigor on certain stages within the turnaround to prevent additional work being added in. Causing an impact to scope and cost of the final turnaround project.

 

It was recognized through a review that there was a need to improve the process of late-work entry into the turnaround project. The client engaged Helios Consulting to determine methods that could be introduced to provide a clearer more robust structure to managing not only risk but utilizing a risk-based approach to evaluating late scope work.

 

 

The Approach

Helios Consulting has always considered a risk-based approach to managing projects as a key factor to project success. Through assessment and guided workshops, Helios helped guide the client through a self-realization process on ways to leverage their risk management processes. This process enabled them to apply more thought and evaluation on the risks that where threats to the turnaround project. Ultimately resulting in a much more structured “Late Scope” evaluation as well as a more detailed “Risk Register and Risk Monitoring” process. Though the Helios approach, there was a major transition from the general understanding of risk to form a mindset within the turnaround about risk.

 

 

The Result

The turnaround team now has what they explain as a “Night and Day” difference in how their risk is now being managed. There has also been a significant reduction in added scope to the turnaround project as a result of assessing both the risk of doing and not doing additional scope work along with the more detailed process developed to analyze late scope. Through all of this there has been a prevention to some potentially very costly realized risk. As well as putting all participating members in the turnaround all on the same level with regards to evaluating and managing risk.