Developing a New Structure for Determining Time Risk Priority using Risk Breakdown matrix in EPC Projects

Abstract

Managing the effects of risks on projects is known as a key factor for successful project management. In this paper, a new structure is introduced to measure the risks. By combining RBS (risk breakdown structure) - a classified set of all the risks of the whole project- with WBS (work breakdown structure), a new matrix called RBM (risk breakdown structure) is constructed. RBM indicates the impact of the risk sources on work packages (WPs). Here, for better consistency with the nature of EPC projects, the structure of RBM is modified to give a better imagination of the project components affected by time risks. In addition, the way of measuring the risk number is modified and an improved RPN (risk project number) is produced which considers the time delay and the slack of activities which intensify or compensate the risks. Such modification provides a more reliable tool to decide which parts of the projects should be focused so that the risks are controlled. This methodology was applied in a typical power plant's EPC project and the results in terms of measuring the time risks have been reported to be reasonable.