Every project includes risks, whether it is designing and building an aircraft carrier or planning for the impact of tourist demand on a water system. Managers must strive to identify, assess and manage such risks. Their effort is essential to reduce exposure to accidents, cost overruns, broken schedules and other consequences.
Software now being offered by Price Systems is designed to reduce the administrative burden involved in risk management while simultaneously improving the effectiveness of the risk management effort.
Called REMIS (for Risk Evaluation and Management Information Systems), this structured database helps risk managers identify risks, assess their importance and probability, catalog measures to counter risks and monitor risk reduction measures.
Perhaps its most striking advantage over other risk management methods is REMIS analytical ability. It can create a weighted combination of each risks probability of occurrence and the seriousness of its impact. This capability makes it far easier for risk managers to recognize and respond to particular risk that needs immediate attention.
Southwest Water, in the Southwest of England, recently purchased the program in part to help plan for a total eclipse of the sun expected in early August, according to a company spokesman. A million tourists are expected to flock to Southwest Waters service area in Devon and Cornwall counties to view the eclipse. If problems occur with the water system during the peak tourist days, traffic problems may hamper any emergency response.
The REMIS program makes use of Microsoft products such as Access and Word. It is Year 2000 compatible. System requirements include: IBM PC compatible 486 or better; 8 MB RAM or better; 10 MB hard disk space; and Microsoft Windows(r) 3.1, NT or higher.
Users capture the data on each risk in the risk workspace with automatic index numbering. They may assign a risk type from a choice of 14 predetermined types. They can improve the speed of data entry by choosing the pre-defined generic risks. These generic risks can be modified by the user to reflect particular projects or industries. Users may also define the impact scales for time, cost and performance parameters.
Analysis options enable various graphical reports to be produced. They can be used to highlight risk "hot spots" and communicate the real issues by risk area, type or owner. Customized reporting allows a risk manager to selectively report only the relevant issues. The risks can be sorted by owner or probability and impact.
"By tightening up the entire risk management process, REMIS can improve the profitability of projects and reduce a companys risk exposure," said Price Systems President Anthony DeMarco.
Price Systems is a world leader in advanced cost estimating solutions. It is the distributor of the REMIS software outside the United Kingdom. The software was developed by HVR Consulting Services Risk Management Group for its own use. Today it is used successfully in many organizations in both Europe and North America.
