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GM-TEG1-6220-010 (Risk Management Plant)
GM-TEG1-6220-010 (Risk Management Plant)
G M-T E G
1-6220-010
ISSUED APR.01,’10
Unless stamped “CONTROLLED”, any hard copy is handled as “Non-controlled”.Users should confirm that the copy is the
latest version.
GM-TEG1-6220-010h.doc
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ENGINEERING GUIDE FOR GENERAL G M-T E G
RISK MANAGEMENT PLAN 1-6220-010
ISSUED APR.01, ’10 PAGE 1 OF 2
CONTENTS
1. PURPOSE 2
3. SCOPE OF APPLICATION 2
4. PROJECT-SPECIFIC DOCUMENT 2
4.1 Blue & Italic text 2
4.2 Red & Italic text 2
History(P.1/1)
GM-TEG1-6220-010.doc
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ENGINEERING GUIDE FOR GENERAL G M-T E G
RISK MANAGEMENT PLAN 1-6220-010
ISSUED APR.01, ’10 PAGE 2 OF 2
1. PURPOSE
The purpose of this document is to summarize the standard project Risk Management Plan, plan and programs to
be implemented throughout the project.
This document is also a part and the section 10 of Toyo’s standard Project Execution Plan (PEP) which consists of
total 16 sections. Each section of PEP is documented in each engineering guide listed in clause 2 hereunder.
Project Execution Plan (PEP) is the basis for project execution. Each project must establish firm and project-
specific PEP based on the following standard engineering guides. These engineering guides describe standard
elements of project management in each aspect. Section 1 Project Execution Strategy should be issued first,
immediately after the effective date of contract.
3. SCOPE OF APPLICATION
This standard Risk Management Plan is established assuming a large size, EPC and JV/Consortium project. Each
project must establish firm and project-specific Risk Management Plan based on this standard document and
project-specific conditions such as contract, plant type, magnitude and regulations.
4. PROJECT-SPECIFIC DOCUMENT
In order to customize this standard Risk Management Plan to project-specific one efficiently, two types of special
text are used in this document. These texts are also used in each section of standard PEP listed in the clause 2
above.
[The blue & italic text in basket] must be updated or REPLACED according to project-specific information.
The red & italic text in frame must be DELETED because these are instruction or guideline for modification of
this document.
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GM-TEG1-6220-010
Appendix (1) 1/4
Appendix (1) Section 10 Risk Management Plan
Section 10
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Appendix (1) 2/4
Appendix (1) Section 10 Risk Management Plan
CONTENTS
10.1 Objectives 3
10.2 Organization and Responsibilities 3
10.3 Risk, Mitigation and Contingency 3
10.4 Risk Management Process 3
10.5 Report, Review and Follow up 4
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Appendix (1) 3/4
Appendix (1) Section 10 Risk Management Plan
10.1 Objectives
In order to establish the Firm Project Baseline, risks shall be identified and countermeasures such as
mitigation plans for the risks shall be incorporated into the Baseline.
During project planning stage, the main objectives of risk management are to model all risks and related
countermeasures, to assign owners to identify risks and to inform the Firm Project Baseline by these
considerations.
During project execution, Risk Management is to monitor identified risks, to surface new risks as needed,
and to take suitable countermeasures on a comprehensive and continuous basis.
The key aspect of Risk Management is analyzing each risk and taking suitable countermeasures throughout
the project life cycle
PM is responsible for overall risk management. PM, PEM, PCM, PPM, FM and other discipline leads are
responsible for identification and analysis of risks and for informing PCM. PCM has responsibility for
consolidation of the information.
Risk is an uncertain event that, if it occurs, has a positive or a negative effect on the project objectives such
as schedule, cost, scope or quality. During the execution of the Project, there will be possibilities of exposure
to various risks. Degree of such exposure is manageable to a certain extent by taking available measures
prior to execution, i.e., in the proposal and planning stage. Therefore, project risks shall be identified and
countermeasures established during the planning stage.
Risk identification during the planning stage should consider not only uncertainties foreseen in project
execution but also uncertainties of the proposal and planning stages.
At the planning stage, PM, PEM, PCM, PPM, FM and other discipline leads have responsibility for
identifying risks. The following Toyo tools and methods will be used.
The Risk Management Table (Toyo standard form is shown on Attachment (1)) shall be used for
registration of identified risks. It shall also be used for subsequent risk analysis and management
processes.
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Appendix (1) 4/4
Appendix (1) Section 10 Risk Management Plan
Identified risks will be analyzed qualitatively and evaluated for degree of the impact to the Project.
This evaluation should define a priority order for the planning of countermeasures.
Probability and impact of priority risks will be quantified. Expected Monetary Value (EMV) analysis
will be used.
Countermeasures and actions shall be planned for identified risks. PM will assign related manager as
Risk Owner to implement the countermeasures and actions for the risks.
Risk Owner has responsibility for monitoring the status of implementation and actions for the related
risks, updating the Risk Management Table and reporting to PCM.
(1) Report
PCM has responsibility for consolidating Risk Management Tables and issuing a monthly overall
status report to PM. The monthly overall status report shall include:
(2) Review
A monthly review meeting will be held to review the overall status report and evaluate each risk. PM
shall decide further actions, if needed, including:
(3) Follow up
The PCM shall summarize the results of the Monthly Review Meeting and report them to pertinent
managers and discipline leads for further action. The PCM is also responsible for follow up of the
results with regard to the Project Baseline.
GM-TEG1-6220-010a1.doc
Appendix (1) Attachment (1) Risk Management Table
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Attachment (1) 1/1
GM-TEG1-6220-010a1a1.doc
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GM-TEG1-6220-010r.doc