Expertise Contracting Company

Project Title: Replacement of Concrete pipes with FRP pipes

in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 1 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

RISK MANAGEMENT PLAN

CLIENT:
Power & Water Utility Company in Jubail & Yanbu
(MARAFIQ)
JUBAIL INDUSTRIAL CITY
KINGDOM OF SAUDI ARABIA
 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 2 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

TABLE OF CONTENTS
S/N DESCRIPTION PAGE NO.

1.0 INTRODUCTION 3

1.1 Scope 3

2.0 MANAGEMENT APPROACH 4

2.1 Responsibilities 4

2.2 Risk Management Process 4

3.0 RISK IDENTIFICATION AND ASSESSEMENT 5

3.1 Risk Identification 6

3.2 Risk Categories 6

3.3 Risk Assessment and Quantification 7

3.4 Risk Likelihood 7

4.0 RISK MANAGEMENT IMPACT AND CONTROL ACTION 8

4.1 Risk Handling 8

4.2 Risk Impact Determination 9

5.0 RISK TRACKING AND DOCUMENTATION 10

5.1 Risk Register 10

5.2 Risk Documentation 10

6.0 APPENDIX-I (RISK REGISTER) 11

 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 3 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

1.0 Introduction
1.1 Scope
This document, the Risk Management Plan (RMP), describes the management processes
used on the project to plan, identify, assess, categorize, quantify, handle and report/track
risks associated with the achievement of the project requirements and goals. The RMP shall
enable Expertise Contracting Co. to be well prepared to mitigate any risks that they may
face throughout the project duration.

Expertise project team believes that the risk is an inherent in all activities of any large-scale
construction project and in order for the project to be a success, a risk management
process is needed such that risk can be continually evaluated and managed in order to
minimize the consequences of adverse events.

The ultimate goal of RMP is to increase the probability of the FRP project success by
focusing attention on problem areas early and reducing the amount of costly rework in the
future. For each and every risk, there is the potential impact of cost overruns, schedule
delays and compromises in quality and safety if the risk occurs. Hence, risk management
will be applied continuously throughout the FRP project life cycle and will evolve and adapt
to accommodate the various project phases.

A “risk” is an event that has the potential to cause an unwanted change in the project. A risk
is as follow:

• A definable event;
• With a probability of occurrence; and
• With a consequence or “impact” if it occurs.

A measure of the severity of risk is: Severity = Probability x Impact.

For risks, we have a “mitigation plan.” A mitigation plan either lowers the probability and/or
the impact to reduce the severity to an acceptable level.

Managing risk is a key element of the project management process for both the planning
and the performance phases of the FRP project. As such, this RMP develops a methodology
to identify and quantify specific risks to the project, determine their consequence and
associated probability, and develop mitigation strategies.
 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 4 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

2.0 Management Approach

2.1 Responsibilities
Expertise project management has established specific roles and responsibilities to support
project risk management processes and control over the life cycle of the project. The
specific responsibilities relating to the Expertise RMP are as follows:

• Project Manager – The Project Manager is responsibe for managing cost and
schedule contingency, consistent with the change control process and thresholds
described in the PEP. The objectives are to maintain contingency commensurate
with project risk through project completion and to ensure that the full project
scope is achieved on schedule and on budget.
• Project Safety Supervisor– The Project Safety Supervisor is assigned responsibility
for implementing the overall Risk Management Program and ensuring that it is
followed, implemented and is assigned responsibility for working with risks, quality
and the Project management team to execute the risk management process. The
Project Safety Supervisor is also the Point-Of-Contact (POC) of the project. The
Project Safety Supervisor is responsible, but not limited to, for the following:

o Eliciting risks, logging risks in the risk register.

o Performing analyses, reporting on risk exposure to Project Manager.
o Identifying abatement strategies, abatement actions and tracking their
effectiveness at reducing risk exposure.
o Reporting abatement results to the Project Manager.

2.2 Risk Management Process

Expertise project risk management process is summarized in the following steps.

Risk Management Planning – Prior to the initiation of risk management, activities in the
proposed baseline (scope, schedule, and cost) are evaluated to determine their potential for
risk. This evaluation (or risk screening) assesses all activities against a set of screening
categories typically in the areas of construction, interface control, safety, regulatory and
environmental, security, design, resources etc. Activities which are identified as project risks
will be tracked within the Expertise RMP.
 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 5 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

Risk Identification – Identify risks that may impact the successful completion of the project.
Risks are identified for the entire life cycle of the project. Risk associated with project work
scope, cost, and schedule are identified by systematically challenging the assumptions,
logic, and scope of the project and examining the identified uncertainties associated with
each stage of the project.

• Risk Assessment – Assess the risks to determine their likelihood and impact on the
project’s cost, schedule, and/or work scope. This includes a qualitative and
quantitative assessment of the consequences (impact) of the risks as well as the risks
probability of occurring.
• Risk Handling – Determine the risk-handling strategy, whether (in order of
preference) it is to eliminate, transfer, prevent, mitigate, or assume (accept the risk).
• Risk Management Impact and Control Actions – Assesses the risk impact on the
project and the effect of the risk handling strategies. Risk handling strategies will be
reflected in the project’s baseline, whereas residual risks will be reflected in the
project contingency.
• Risk Reporting and Tracking – Risk reporting and tracking is the documentation of
the risk management process.

Risk management is an iterative process in which the effectiveness of control actions is

constantly evaluated, new risks are discovered, and existing risks are reassessed. New or
revised control actions are implemented as needed. By managing risks, the process helps
minimize cost impact, schedule delays, or the impact of other issue that could impede a
project’s progress. The iterative process continues until all the risks are closed or the project
is completed.

3.0 Risk identification and Assessment

3.1 Risk Identification
Risk identification requires a methodical process to ensure that the list of identified risks is
comprehensive. In this process, the Risk Project Manager, Project Manager, Integrated
Project Team, Safety officers, and account manager are asked to identify project risks in
their area of responsibility. The risk identification process is using a graded approach, the
Risk Management process begins with the team evaluating potential risk for each technical
equipment item and subsystem that exceeds SAR 100K, is on or near the critical path, or
that poses a particular technical challenge. Common risk areas have been developed as a
tool to assist the team in identifying areas of project risk.
 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 6 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

3.2 Risk Categories

Risks to the FRP project are identified according to the following categories:

Project Management

o Configuration Processes
o Interface Management
o Procurement and Procurement Process

Design and Engineering

o Design Functional Requirements

o Design Maturity/Complexity
o Design and Equipment Complexity.
o Installation
o Interface Complications

Environment, Safety & Health (ES&H)

o Regulatory and Environmental Controls

o Safeguards and Security

Schedule

o Cost (includes currency and increase in local taxes)

o Resources (Funding and Staffing)

ES&H hazards associated with the Project are well within the range of normal Expertise
operations. The project management will apply Expertise Integrated Safety & Environmental
Management (ISEMS) System for handling all the ES&H risks entailed in the FRP Project.
However, ES&H impacts that increase the risk severity level will be included in the project’s
Risk Register.
 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 7 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

3.3 Risk Assessment and Quantification

Risk level assessment is done by determining the probability of the occurrence and cost
and schedule consequence of each risk. Consequence must consider foreseeable
cumulative impact on project scope, cost and schedule.

Below table shows the risk consequences:

FINANCIAL
LEVEL DESCRIPTION HSE REPUTATION CONSTRUCTION
IMPACT
Unsubstantiated,
Less than SAR
5 Insignificant No injuries low impact, low Little impact
1000.
profile.
SAR 1000 to First aid Substantiated, low Inconvenient
4 Minor
SAR 10,000 treatment impact delays
Significant delays
SAR 10,000 to Medical Substantiated,
3 Moderate to major
SAR 50,000 Treatment moderate impact
deliverables
Death or Non achievement
SAR 50,000 to Substantiated, high
2 Major extensive of major
SAR 150,000 impact
injuries deliverables
Multiple
deaths or Substantiated, very
More than SAR Non achievement
1 Catastrophic severe high multiple
150,000 of key objectives
permanent impact
disablements

3.4 Risk Likelihood

The following risk likelihood levels are assessed for each risk category.

LEVEL DESCRIPTION EXAMPLES FREQUENCY

Expected to occur in most
5 Expected More than once per year
circumstances
Will probably occur in most
4 Highly Likely At least once per year
circumstances
3 Likely Should occur at some time At least once in three years.
 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 8 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

2 Slight Could occur at some time At least once in ten years

May occur, only in exceptional
1 Not Likely Less than once in fifteen years.
circumstances

Level of Risk

CONSEQUENCE
LIKELIHOOD
Insignificant Minor Moderate Major Catastrophic

5 Expected Medium (5) High (10) High (15) Critical (20) Critical (25)

Medium
4 Highly likely Low (4) High (12) High (16) Critical (20)
(8)
Medium Medium
3 Likely Low (3) High (12) High (15)
(6) (9)
Medium Medium
2 Slight Low (2) Low (4) High (10)
(6) (8)

1 Not likely Low (1) Low (2) Low (3) Low (4) Medium (5)

4.0 Risk Management Impact and Control Action

4.1 Risk Handling
Risk management is the process used to identify risks and implement actions to reduce the
likelihood of a risk materializing and/or to reduce or eliminate the potential consequences
of identified project risks. Risk mitigation strategies generally fall into one of four
categories:

1. Avoid the risk. Do something to remove it. Use another supplier for example.
2. Transfer the risk. Make someone else responsible.
3. Mitigate the risk. Take actions to lessen the impact or chance of the risk occurring. If
the risk relates to availability of resources, draw up an agreement and get sign-off
for the resource to be available. Council may also at this level accept the risk with
the controls in place.
 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 9 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

4. Accept the risk. The risk might be so small the effort to do anything is not
worthwhile.

Each of these strategies are general methods used to manage identified risks.

A management strategy of risk handling is selected for each identified risks. Control actions
are specified for each identified project risk based on the management strategy selected,
unless the risk is accepted. Also specified for each identified risk is the date by which the
control action is to be completed, the responsible-action POC, probability and consequence
of the risk (pre and post handling), a cost estimate of implementing the control actions, the
status of each control action, and indication as to whether or not the risk is closed.

The management strategy and control actions selected for each identified risk are tracked
in the risk register.

4.2 Risk Impact Determination

Risk impact determination is the process of evaluating and quantifying the effect of risks on
the project. Risk impacts a project in two different ways:

• Handling strategy implementation.

If the risk is “handled” using a risk reduction or mitigation strategy, there may be a
cost and schedule impact associated with the implementation of that strategy. The
implementation cost and schedule impacts of the “handling” strategy must be
included in the baseline project cost and schedule.

• Residual risk

Even after risk-handling strategies have been implemented, there may be remaining
risk impacts (residual risks). The cost and schedule impact of residual risks must be
included in the contingency calculations.
 Expertise Contracting Company
Project Title: Replacement of Concrete pipes with FRP pipes
in Canal 1,2 & 3 Flow Meter Chambers, SWC, Jubail.
Contract Page 10 of 10
PO No.: 7200040904
Description of Document Document No. Rev. No. Date
Risk Management Plan ECC-PSD-RMP-01 0 24-01-2021

5.0 Risk Tracking and Documentation

5.1 Risk Register
The Risk Register tracks and monitors the status of all project risks including each risk driver
and consequence of each risk (pre and post-mitigation) and details on the risk control
actions. The project safety supervisor is responsible for identifying and assessing of risks.
This responsibility includes providing regular re-evaluation and updating the risk register
from time to time throughout the project phase.

Project risks and the management actions to control them are reviewed and updated
monthly by the Project Manager, Project safety supervisor and the Integrated Project Team.
New and imminent risks are added into the registry when identified. Risks are closed when
the risk is no longer credible or when the risk has been realized and no residual risk
remains.

The project safety supervisor is responsible for maintenance of the Risk registry for ensuring
that the Project team members are monitoring and reassessing risks regularly, and that the
Risk Handling Plans are being implemented in a timely and effective manner.

5.2 Risk Documentation

Each identified risk shall be documented using the Risk Register. Consequences and severity
will be described as detailed as possible to support the level of assessment. The approach
to each identified risk shall be documented.