Risk Management Planning

Transcription

1 Risk Management Planning Chris Oswald- Moderator Mindy Price- Direct Effect Solutions Trisha Sqrow Indianapolis International Airport Authority

2 Session Objectives Presentation on ACRP Report 116: Guidebook for Successfully Assessing and Managing Risks for Airport Capital and Maintenance Projects Learn how to develop a risk management plan for your project and implement it effectively

3 ACRP Report 116 Project Team: Program Management Consultants Nashville Airport Authority Staff Hill International Construction Experts Perspectives: Enterprise Program Implementation Adult Learning and Instructional Design Airport Maintenance Project Management Airport Capital Program Management Construction Contract Management

4 Research Objective Development of a Guidebook to assist airports in proactively assessing and managing risks associated with capital and maintenance projects to ensure project scope, schedule and budget are met. Guidebook will contain the following attributes: Scalability by project type and complexity Organization of material to allow flexibility to reader Immediate applicability of information Ability to tailor contents to current environment

5 Type of Risk Management Generic Project Risk Management Business Risk Management Safety Risk Management Technical Risk Management Security Risk Management Project Risk Management Definition Description any uncertainty that, if it occurs, would affect one or more objectives. any uncertainty that, if it occurs, would affect one or more project objectives. Any uncertainty that if it occurs, would affect one or more business objectives Any uncertainty that if it occurs, would affect one or more safety objectives Any uncertainty that if it occurs, would affect one or more technical objectives Any uncertainty that if it occurs, would affect one or more security objectives Sample Objectives Time, cost, performance, quality, scope, client satisfaction Profitability, Market share, competitiveness Internal Rate of Return, reputation, repeat work, share price Low accident rate, minimal lost days, reduced insurance premiums, regulatory compliance Performance, functionality, reliability, maintainability Information security, physical security, asses security, personnel security

6 Identify Current State Airports with an existing person in a Risk Management Role Airports with established Risk Management Processes in Capital Projects: Maintenance Projects:

7 Definition of Project Type Capital / Maintenance Thresholds Departments Scope Schedule Budget

8 Project Types Airside Landside Terminal Projects occurring on the airfield, apron, taxiways, runways, tug roads, hangars and landscaping Projects occurring outside the security perimeter fence. Includes public roadways, parking areas, garages, landscaping Projects occurring in secure and nonsecure areas of the terminal

9 Project Management Scope Schedule Budget

10 Project Risk Framework

11 Research Conclusions Gap in existing role, use of contractors and consultants with own methods Lack of common risk management practices and language between departments and airports Need simple and scalable tools Small, internal projects need project risk management most

12 Guidebook Highlights

13 Guidebook Structure Part I Overview of risk management process Part II Step-by-step process Best practices Case Studies Part III Tool box Part IV Implementation Plan

14 IND Construction Risk Management IND was part of the 1 st and 3 rd SMS pilot studies. 3rd pilot study ( ), developed SMS manual and conducted four risk assessments during study. Regularly perform risk assessments for airfield projects.

15 IND Risk Assessments Meeting with all project stakeholders. IAA Staff Designers FAA (ATCT, ADO) Affected business partners (airlines, other tenants) Generally takes about four hours. If multiple construction projects in same area, we may combine and do one large SRA, looking at macro and micro issues.

16 Process Designer provides overview of project Brainstorm potential hazards and opportunities Analyze hazards/risks Assign likelihood, severity, & risk level Utilize Risk Matrix to determine levels High risks must be mitigated in some way Determine mitigation plan and who is responsible Determine if there is residual risk Utilize risk register throughout project

17 Likelihood Definitions Likelihood: Frequently Probable Occurs once every month or 5,600 commercial operations or 336,000 enplanements Occurs once every year or 68,000 commercial operations or 4,000,000 enplanements Remote Occurs once every 5 years or 340,000 commercial operations or 20,000,000 enplanements Extremely Remote Extremely Improbable Occurs once every 10 years or 680,000 commercial operations or 40,000,000 enplanements Occurs once every 20 years or over 1,360,000 commercial operations or 80,000,000 enplanements

18 Severity Definitions Severity: People Assets Environmental Reputation Catastrophic Hazardous Major Minor No Safety Effect Loss of an aircraft/or over $1,000,000 dollars A spill or release that is not contained and An event or a series of events resulting in Fatality+ in damage/or loss of results in long term the community NOT critical system(s) for an damage to the using IND for an extended period of time. environment and fines to the airport. extended period of time. Damage to an aircraft An event or a series taking it out of service of events resulting in Severe Injury, for an extended period A reportable spill or the community requiring of time/or damage in release that requires lessoning the use of hospitalization excess of $500,000/or mitigation. IND causing negative. disruption of critical (annual) financial or services for extended operational impacts. period of time. Damage to an aircraft An event or a series Minor Injury that is repairable/or of events resulting in A reportable spill or requiring damage to equipment the community release that is medical or facility that is lessoning the use of contained. treatment. reparable within a short IND for a short period period of time. of time. Minor damage to an An event or a series Minor injury aircraft, equipment, or A spill or release that of events resulting in not requiring facility not requiring it does not require a the community medical to be taken out of report. questioning the treatment. service. reliability of IND. No injury No Damage No Impact No Impact

19 Risk Matrix No Safety Effect Severity Minor Major Hazardous Catastrophic Frequently L5 M13 H20 H22 H25 Probable L4 M12 M15 H21 H24 Remote L3 L8 M14 M17 H23 Likelihood Extremely Remote L2 L7 L10 M16 M19 Extremely Improbable L1 L6 L9 L11 M18 Low Medium High No Action Required Monitor, Determine if Risk can be Mitigated to a Low Risk Must be Mitigated to a Medium Risk

20 Notes on Definitions and Risk Matrix Definitions developed during SMS implementation. Pay attention to gut feeling. Occasionally, there might be a result on the matrix that just doesn t make sense. Be flexible and adjust accordingly. Numbers on the Matrix: Helps breakdown Low, Medium, and High categories to determine which items are higher risk.

21 Risk Register # Hazard Consequences Severity Likelihood Result (RAC) 1 Frequently changing haul route 2 Frequent changes in aircraft movement areas 3 Contractors on T/W when Runway is open (phases 4b,6, & 3) a) Contractor incursion b) Delay in project c) Accident or incident with aircraft and contractor equipment Mechanics taxiing aircraft to IMC increase likelihood of: a) Aircraft delays b) Aircraft incursion (into construction area) c) Aircraft accident a) Runway incursion b) Taxiway incursion c) Tenant impacts (access) b) IAA Xing A T/W on tug road = delays or accident c) Navaid impacts Minor No safety effect Hazardous a)minor b)minor c)haz. a)minor b)minor c)minor b)minor c)minor Remote Probable Remote a)remote b)remote c)ex. Remote Ex. Remote Remote Probable a)l8 b)l4 c)m17 a)l8 b)l8 c)m16 L7 L8 M12 Mitigation a) Establish a designated path for contractors haul route b) IAA and FAA ATCT to coordinate phase changes prior to project schedule a) IAA and FAA ATCT to coordinate phase changes prior to project schedule a) Adjust phases 6a, 4, & 3 to consolidate A T/W work and expedite the time that A T/W is closed in the area north and around V T/W Residual Risk No Change No Change No Change Comments See Mitigation Plan See Mitigation Plan See Mitigation Plan

22 Mitigation Plan Haz. # Mitigation Person(s) Responsible 1. Changing haul routes frequently 4. Contactor work on Tug Rd. next to USPS, with possible project overlap 5. Contractor on T/W only, working next to open R/W 23R. a) Establish a designated path for contractors haul route a) Explore phasing economies of scale with USPS project a) Re-phase phases 6a, 4, & 3 to consolidate A T/W work and expedite the time that A T/W is closed in the area north and around V T/W a) CHA engineering to update plans and specifications to be reviewed and accepted by IAA Engineering a) CHA engineering to review and update plans and specifications to be reviewed and accepted by IAA Engineering staff a) CHA engineering to review and update plans and specifications to be reviewed and accepted by IAA Engineering staff Proposed Completion Date a) March 17 th, 2014 a) March 3 rd, 2014 for plan development a) March 3 rd, 2014 for plan development

23 Incorporating SRAs Perform SRAs at 60% plan review. Allows for enough info to assess, but gives time to make changes. Look for hazards and opportunities. Include SRA report into bid documents. Review SRA report during construction meetings. Update as needed, including adding items.

24 Lessons Learned Benefits of all stakeholders: Identify greater number of hazards and opportunities Ensure all voices are heard and all lines of business covered. Buy-in from business partners. Learn of hazards and opportunities early on, mitigating problems during construction.

25 Examples: Lessons Learned Apron Inlet Project Work with airlines and contractors to mitigate congestion during early morning push. Contractors will do a daily update of where they will work the next day so that airlines can adjust RONs. Runway rehab project Adjusted phasing to ensure that could taxi to ramp. Reliever airport runway rehab Mitigations and phasing to close airport for least amount of time.

26 Conclusion Great buy-in from upper management and construction managers. FAA and other business partners seem to appreciate the process. IAA has seen benefits from taking time at the beginning. Working to incorporate risk assessments in other areas of our business, whether non-airfield construction projects, or in the realm of enterprise risk management.

27 Questions?