Risk Analysis and Assessment
Risk Analysis to Optimize your Opportunities
A study from the Hertie School of Governance promulgated in May, 2015 confirmed the earlier results of research, including what we hear and read in the daily media, namely: 170 major projects in Germany, for which 141 billion Euros were budgeted, ended up costing 200 billion Euros more. The reported average cost overrun for completed major projects was 73% and 41% for uncompleted projects. The study named a combination of technical, economic, political, psychological factors, conflicts of interest, over- optimism, and a systematic underestimation of risk and overestimation of benefits as reasons for the project specific cost overruns.
The Federal Ministry for Transportation and Digital Infrastructure developed an „Action Plan for Major Projects“ to address this problem, and the plan was subsequently passed in December 2015 by the Federal Cabinet. The federal government will thereafter require that risk management plans for major projects be optimized accordingly.
The underlying causes often lie beyond the immediate sphere of influence of the project director. However it is exactly these causes that must be recognized and analysed in advance. We support your efforts at seeking clarity by transforming uncertainties into a farsighted vision based on the conceptualization of inherent project risks.
We improve the dependability of forecasts using our comprehensive and strategic Risk Analysis and Opportunity Models to ensure a successful outcome of your project.