Author(s)

O. T. GUDMESTAD

Abstract

This paper discusses the needs for risk analysis in industrial enterprises. Several major points of concern are raised. The first topic is risk communication and the inclusion of feedback from involved parties. This also includes openness from top management concerning ‘bad news’ and its effect on project work. The second topic is the importance of thorough risk analytical work including hazard identification, risk analysis, risk evaluation and subsequent management of risk-reducing measures. This paper suggests that risk analysis is an important tool for project management, highlighting the importance of paying early attention to issues arising in a project before they further escalate to more serious events. This paper brings up important topics of risk management and offers scenarios of how different elements can affect project management. We question whether industry, and especially the oil and gas industry, is moving in the right direction of conducting proper risk management and whether the risk analytical work is turning into a ‘numbers game’ and a pro forma activity. This paper focuses on the integration of risk management and project management, thereby risk analysis can be a powerful tool for project management, helping it to succeed in transferring the company into a high reliability organization.

Keywords

Human and organizational factors in risk analysis, issue management, integration of risk analysis and project management, risk analysis of project construction phases, role of the risk analyst.