2019 CSCE Annual Conference - Laval (Greater Montreal) Conference
Dr. Mona Abouhamad, Cairo University
Dr. Hesham Osman, Cairo University
The industrial projects construction process comprises additional high impact risks which occur due to the complex nature of these projects. Therefore, the application of risk management becomes necessary to mitigate the impact of its unique risks. This paper introduces a three-tier framework for industrial project risk identification and classification process with application to power plant construction projects in Egypt. The research introduces a risk management framework for assessing and analyzing risks pertaining to industrial projects, with application to power plants in Egypt. The framework covers the different steps in a risk management process, namely; risk identification, analysis, response and, monitoring. The framework comprises a three-tier framework for data collection. The research starts by conducting an extensive literature review to identify risk factors pertaining to industrial projects. The output is further enhanced using feedback from expert using different data gathering techniques. Probability and impact of identified risk are then deducted from reports and structured interviews. Subsequently, risk scores for different risk types are calculated and used to recommend the expected risk classes, proactive actions to mitigate the risk, and contingency actions to accept the risk. The model is applied to a Power plant construction case study. The calculated risk index is compared against the actual risk index. Case scenarios are also presented for the different actions applied versus the recommended actions based upon the risk class identified. The paper demonstrates the importance of the application of risk management process at the early stages and the practical methods to identify project risks and classes for industrial and power plant projects in Egypt.