Are risks being effectively managed?
In this time of fiscal constraint and managerial prudence, large capital and infrastructure projects are receiving increasing scrutiny from corporate boards, lenders and investors.
In this climate, there are many important things you must consider:
- Are your project risks being transferred to or shared with the entity best suited to manage and mitigate their effects?
- Does your organisation have the right risk management governance, processes, and systems in place?
- Is the right information on progress milestones, budget and risk being reported continually to senior management? Is there an appropriate amount of executive oversight?
- How does this project affect the overall risk exposure across the company? What strategies are available for eliminating any unwanted risk concentrations?
- Are arrangements in place not just to monitor progress but for stakeholders to take action when needed?
- Are you equipped to navigate the global macroeconomic and country risks in the portfolio?
Infrastructure projects are complicated, often taking longer and costing more than expected. Given the growing scale of projects and the cost of capital, getting things right and managing risk is critical to delivering value.