RISK CATEGORIES TEMPLATE

GENERAL GENERAL GENERAL

DESCRIPTION RISK ELEMENT DESCRIPTION RISK ELEMENT DESCRIPTION RISK ELEMENT

1- MARKET / COMMERCIAL 2- LOCATION 3- ECONOMICS / FINANCIAL

Product market / customer offtake Political / country Insolvency
Cost estimates (Bad estimates, time and
Feedstock / reserve HSE issues
cost)
Price Trends Logistics / accessibility Project Availability of foreign exchange
Product life cycle / obsolescence Infrastructure / utilities / amenities economics Interest rate / cost of borrowing
Local available resources (construction assumptions
Competing product equipment, professional, labor, and financing Currency fluctuation
contractors) structure
render the
Market Introduction of alternative product Human rights project non Financing package
volatility leads Location viable
Market volatility specific risks Site conditions / congestion & accessibility Prices of feedstock / product / materials
to value (infeasible)
destruction Pricing regulation conditions of Local laws / culture Economic / financial assumptions
Product sanctioning project Shipment failure / delay Variable cost
constituents
Embargos and political events delay or halt Natural perils / Force Majeure Change in tax law
Competitive pressure project Site topography 6- HSE
Business interruption development Soil condition Health
Boycott and execution Ergonomics Illness
Counterparty credit worthiness NGO interference Disease
Change of important tariff Project site selection Drug Abuse
Change in tax laws Climate / weather Toxic / carcinogenic exposure
4- PARTNER / VENTURE Local government approval requirements Tobacco at plant site
Local government sentiment on material /
Role and responsibility Safety
equipment sourcing
Reputation Place of equipment manufacture Equipment failure
Partner's data Neighboring territories Human error
Financial strength 5- TECHNOLOGY / TECHNICAL Death
Hazard to
Project execution capability Nature of project people, Personal injury
Partner's Marketing network Technical data property and Property damage
actions or Code of conduct / values Technology performance environment Substance abuse
state of affairs Liquidation Technical definition scope interrupts Litigation
impede
project
achievement Approvals / budget allocation processes Technical non-compliance Catastrophic events
Commitment / exit policy Critical / long lead items development Explosion / fire
of project
and tarnishes
objectives Strategic agenda Hardware & software - plant / work tools Security
corporate
Project fails to Documentation image
Conflict of/ competing interest Vapor cloud explosion
meet operating
Work culture / processes / expectation specifications Use of standards and concession Environmental impact
Corporate merges / acquisition Plot plan / layout Pollution
Misleading influence Engineering design hazards / defects Ground / river water contamination
Lack of support from executive
Construction methodologies Effluent
management
7- STAKEHOLDER APPROVAL Technology hazards Emission
Internal Prototype / unproven technology Noise
Project sanctioning processes Scale -up Spill
Budget allocation processes Catalyst Leak
Internal approval processes Obsolete technology Toxic release
Approval Limits of authority 8- CONTRACT & PROCUREMENT Scheduled waste
processes External Contracting Strategy Carcinogenic materials
foster Local authorities approvals Terms and conditions of contracts 9- PROJECT MANAGEMENT
inadequate
Tax laws & changes Misinterpretation Inexperienced personnel
due diligence
and affect Environmental laws & changes Misunderstanding Individualism
project Human rights Disputes of work scope "Operation Staff" leading the project
progress Government laws / policies & changes Coordination and interfacing Lack of teamwork
Delays / difficulties Agreements with key stakeholders Poor fund management
Contract Change of scope (Design changes during Inadequate understanding of operation
Corruption / bribes provisions do construction ) issues
not meet
Liability issues One-sided contracts Project Insufficient manpower
expectations of
10- TIMING contracting Change of laws / regulations management Under manning
Internal approval cycle parties Conflicting clauses capabilities Lack of continuity / sponsorship
External approval cycle Applicable law inadequate to Inadequate skill
Weather Breach of contract handle the Poor coordination / interfacing
Market demand / supply cycle Gentleman agreement project Ineffective communication
Market / price trends Ambiguity Unable to control contractor
Slow or late delivery of material by
Construction defects / plant performance Lesson Learned not utilized
manufacturers
Entry point Shortage of material in local market Insufficient or no risk planning
Material delivery 11- QUALITY Poorly defined project requirements
Poor quality of project management by
Engineering drawing issuance Material / equipment under specification
owner's project management team
Project Handover to Operation Incomplete documentation 12- CONTRACTOR
Construction completion delay Poor workmanship Selection / lack of interest
Regulatory approvals Construction not to design specification Off-range lowest bid contractor
Project
Contractor / subcontractor cashflow
milestones Regional economic crisis Plant underperformance
problem
are not met Equipment,
materials, Underperformance / under manning / slow
Optimistic implementation plan Wrong material selection
services, progress
Utility supply commitment workmanship Product under specification Non – performance of sub contractors
Feedstock supply commitment and Contractor Reputation / size / experience
Product sales commitment performance do does not meet Past history / LTI record
Rework not conform to contractual Quality control programs
Competing projects specifications / obligations HSE commitment standards
requirements
Abandonment Default
Unrealistic schedule Technical non-compliance
Recalcitrant contractor
Obscure work scope
Deliberate substandard quality
Poor organization of contractors
Shortage of skilled labor
Resources

“Because <cause>, <THE RISK> may happen, leading to <consequence>" Because we are working in a remote area <the cause>, logistics may be more difficult than we anticipate <the
risk> leading to delays and liquidated damages <consequence>.
PROBABILITY SCALE IMPACT SCALE

RISK RATING
 High High
Probability (L) (3) M H HH (3)

Probability (L)
Medium Medium
(2.5) L M H (2.5)

Low Low
(1) L L M (1)

Low Medium High

(1) (2) (3)

Impact (I)
 M H HH
(3 x 1 = 3) (3 x 2 = 6)

L M H
(2.5 x 1 = 2.5) (2.5 x 2 = 5)

L L M
(1 x 3 = 3)

Low Medium High

(1) (2) (3)

Impact (I)