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Risks which materialise can sometimes prevent a project from providing good value for money. Managing risks is therefore more important than ever nowadays, when scarce financial resources need to be applied in the most effective ways.
Value for money is all a question of the balance between the value of the net benefits flowing from the project once it is operational and the value of the resources employed on its design and construction. To maintain a good balance, the project must be thought through properly from the very outset.
A group of actuaries and civil engineers which I lead has recently been focussing on the key issues which senior people responsible for developing major infrastructure projects should think deeply about before a project is authorised to go ahead. These issues include the need to clarify the project's purpose and to understand its context. Decisions must be made on the methods of analysis and appraisal to be used. Alternative projects must be explored before settling on the one to be taken forward, and risks must be fully considered.
RAMP is our long-established method of risk analysis and management, which has been used by London's Crossrail project. The talk will explain how RAMP works and why it can help to increase the likelihood of success. Particular topics discussed will include: reducing uncertainty, studying future scenarios and not just risk events, and ensuring that planned actions for risk mitigation are cost-effective.
Light refreshments will be served before the lecture, which will start at 6.00pm
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