R2A Webinar: Project Governance & SFAIRP



Published
A question R2A Due Diligence Engineers is frequently asked: Why do project show stoppers still occur after a Monte Carlo analysis has been completed for a project?

Monte Carlo simulations have become de rigour for project risk assessments. Many believe that Monte Carlo analysis is a panacea as it provides sound insight into the most likely project outcomes. Whilst this is not wrong it misses the low-probability, high-consequence outcomes, i.e the project show stoppers.

In order to demonstrate project due diligence and ensure project governance, R2A complete all project risk reviews in a due diligence context.

This means an absence of project show stoppers and that for all other concerns that all reasonably practicable precautions are in place to protect against credible threats to the project critical success outcomes. That is, credible critical issues are eliminated so far as is reasonably practicable (SFAIRP) or if they can’t be eliminated, reduced SFAIRP.

This is a routine process for R2A. We have done it for projects ranging from $10m to $2.5 billion including Class E Tram and X’trapolis train procurements as well as Eastlink and the Marina Coastal Expressway (Singapore). To date, no project to which this process has been applied has gone over time or budget.

In this webinar recording, R2A Co-Directors Richard Robinson & Gaye Francis explores how they apply the SFAIRP principle from OHS/WHS to large projects to ensure project governance.
Category
Management
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