Issue link: https://read.uberflip.com/i/1488707
Kahua | www.kahua.com 02 Governance, People, and Technology = Risk Management A tall order, to align governance, people, and technology. Imagine, though, if you did. Managing your capital program risk would not feel like a game of whack-a-mole — not knowing when or where the next mole—or risk—will pop up to derail your program! "Risks" will come from just about anywhere, derailing some of the best-planned programs, resulting in time, money, and in some cases, irreparable consequences. To anticipate, plan, and effectively manage risks, you need to be aware of where they come from, and have a PMIS platform that will drive your governance and compliance in managing each risk and empower people to plan, act and react, if necessary. But Managing Risk Need Not Be a Defensive Strategy Mitigating risk comes down to knowing the potential risks and then tracking each in a single platform. The goal would be when a possible "risk" poses a threat, people have the insight to detect it, and are empowered to follow a protocol based on pre-defined governance and controls. In addition, when managed in a single platform, owners can understand the impact immediately. FIGURE 1: Which statements best describes your organizations project reporting? 0% 10% 20% 30% 40% 50% Total (n=200) Push one button: real-time, full PMIS, capable of project and portfolio dashboard reporting Integrated systems: multiple integrated tools, systems capable of project and portfolio reporting Separated Systems: separate systems requiring manual reconciliation and updates Spreadsheets: spreadsheets and other manual documents or programs Percentages might not add up to 100% due to rounding. Source: Make it, or Break it, 2017 Global Construction Survey, KPMG International Capital program risks are categorized as follows: Financial: material cost, inflation, estimation errors, unmanaged cash flow Environmental: weather, access to the site, natural disasters, pollution Socioeconomic: changes in laws and regulations, increases in taxes Construction: design changes, labor productivity, and disputes Risk Assessment Risk Mitigation 2 1 3 4 Risk Resolution Risk Status Risk Mitigation Steps