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Tecnimont Risk Analysis
Tecnimont Risk Analysis
Tecnimont Risk Analysis
Fabrizio Bosia
Vice President
Quality, Health & Safety, Environment
2. Tecnimont Overview
2. Tecnimont Overview
Over 4,500 employees, more than half of whom are employed outside Italy
About 40 operating companies worldwide
MANPOWER*
ITALY 2,173
EUROPE 296
ASIA 1,942
SOUTH
AMERICA 127
TOTAL 4,538
Milan (Italy):
C&P plants,
O&G plants,
renewables
2. Tecnimont Overview
Business Description
Main Clients
Business Description
The business unit, also thanks to the special know-how in state-of-
the-art gas turbines inherited from Fiat Avio, has developed
excellent capabilities in Italy and abroad in EPC projects for power
plants:
simple-cycle and combined-cycle gas-fired power plants
coal-fired power plants
hydro, biomass and waste-to-energy plants
cogeneration
re-powering
electrical and energy distribution systems for civil and
industrial use
district heating systems
Main Clients
Client: EDISON
Value: 181mn
Business Description
The Infrastructure & Civil Engineering Business Unit designs and
builds complex infrastructure with the ability to combine
specialised competences.
Through partial or global services, it participates in the realisation
of:
railways including high speed/high capacity
highways and motorways
tunnels
metro systems
The Business Unit also offers highly specialized services in:
re-qualification of industrial sites, design and build of complex
works ( hospitals, universities, offices, facilities)
Main Clients
2. Tecnimont Overview
Since November 2008 Tecnimont Group has been following a strict procedure as far as the
Project Risks Analysis is concerned.
To identify Project risks and implement mitigation plans or actions to keep those risks
under control in order to minimize the negative impact connected with risks and, possibly,
To protect the Project from the residual effects of events with negative impact that could
eventuate during the execution phase, by assigning since the proposal phase the
To establish an important communication tool between the Project parties and the
Company Management;
Risk Assessment;
Risk Communication;
Risk Management.
Risk Communication:
Selects and implements the plans or actions that are required to ensure that those risks
are controlled;
Attributes each risk to a Risk Owner, who is in charge of the implementation of the plans
An interactive dialogue between the Company Management and the Risk Analysis
Responsible, who actively inform the other processes, through Risk Owners, and verify the
The sooner the risks are identified, the sooner the mitigation plans can be implemented.
A prompt risk analysis has a positive impact on the effectiveness of the mitigation plans.
The Project Risks are preliminarily assessed during the Bid No Bid phase by a dedicated
committee from the Board of Tecnimont which decides whether to proceed with the project
or not. The Project Risk Analysis continues during the proposal phase and during the
execution phase.
During the proposal phase it is carried out before the final quotation in order to evaluate
and mitigate the negative events and to be very clear and careful when defining the
contingencies.
During the execution phase it is periodically carried out in order to update the identification
and mitigation actions, and to control how the contingency amount is managed during the
project development.
Proposes the contingency sum for the coverage of the residual effects of the negative
events;
Runs the Monte Carlo Simulation to calculate the coverage of risks offered by the
Transfers the Risk Analysis with relevant contingency plan to the Project Manager as
Periodically calls the risk review meetings in order to update the identified risks and to assess
Follows-up the implementation of the agreed mitigation actions and monitors their
effectiveness;
Allocates at the proper level of the Cost Breakdown Structure the contingency sum for the
Runs the Monte Carlo simulation to calculate the coverage of the residual effects of the negative
events offered by the contingency amount for the rest of the life of the project;
Dialogues with the Company Top Management about the results of the overall Risk Analysis.
Cost Estimation
Contractual
Financial
Client
Execution
HSE
No
t
BASIC DETAIL ENGINEERING & CONSTRUCTION,
ENGINEERING PROCUREMENT COMMISSIONING & START-UP
The number of risks usually decreases with the progress of the project.
If they dont occur either the coverage of risks offered by the contingency amount
R=M*P
Where:
R Risk
Both during the project proposal phase and the project execution phase the Risk Register is
the key element.
Data for Risk / Opportunity Management Data for Quantitative Analysis and Contingency Assessment
Starting from risk exposure distribution, the Monte Carlo simulation produces the
distribution curve of the combined risks and the cumulative risk curve.
This makes it possible to understand which is the probability that the contingency amount
will be sufficient to cover the risks during the execution phase and up to the end of the
project.
Milan
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20124 Milan
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Turin
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10138 Turin
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Florence
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50124 Florence
Ph. +39 055 2280609
Fax + 39 055 2335517
info@mairetecnimont.it www.mairetecnimont.it