SHARD LONDON BRIDGE

RISK MANAGEMENT PLAN

Version Number: 7.0
Version Date: <09/09/2018>

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 Shard London Bridge Project

Project Description

The Shard London Bridge, previously known as London Bridge Tower, is a mixed-use building
project in London. Designed by Renzo Piano, the structure has been constructed on the site of
an existing 1970s office building, known as Southwark Towers, adjacent to London Bridge
station. It provides a mix of shopping, office, hotel, leisure and residential uses, as well as
offering a variety of public spaces, including viewing galleries.

VERSION HISTORY

Version Implemented Revision Description of Change

Number By Date
1.0 Sabina Thapa 08/15/2018 Risk Identification
2.0 Saniya Gupta 08/16/2018 Purpose of RMP
3.0 Swapneel 08/24/2018 Process of Risk Management, Roles and
Deshpande responsibilities
4.0 Swapneel 08/29/2018 Qualitative Risk Analysis
Deshpande
5.0 Pooja Thapliyal 08/31/2018 Tools and techniques, Lessons learned and
Closing of risks
6.0 Sabina Thapa 09/07/2018 Contingency Budgeting
7.0 Saniya Gupta 09/08/2018 Quantitative risk analysis, Risk Responses and
monitoring and controlling of risks

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TABLE OF CONTENTS
INTRODUCTION...............................................................................................................3
1.1 Purpose Of The Risk Management Plan.......................................................3
RISK MANAGEMENT PROCEDURE...............................................................................3
2.1 Process..........................................................................................................3
2.2 ROLES AND RESPONSIBILITIES.......................................................................4
2.3 Risk Identification..................................................................................................4
2.3.1 Methods for Risk Identification....................................................................5
2.4 Risk Analysis.........................................................................................................6
2.4.1 Qualitative Risk Analysis.............................................................................6
2.4.2 Quantitative Risk Analysis...........................................................................6
2.5 Risk Response Planning................................................................................7
2.6 Risk Monitoring, Controlling, And Reporting..................................................9
2.7 Risk Contingency Budgeting........................................................................10
3.0 TOOLS AND PRACTICES...................................................................................10
4.0 CLOSING A RISK.................................................................................................10
5.0 LESSONS LEARNED..........................................................................................11
APPENDIX A: RISK MANAGEMENT PLAN APPROVAL.............................................12
APPENDIX B: REFERENCES........................................................................................12
APPENDIX C: KEY TERMS............................................................................................12

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INTRODUCTION
1.1 PURPOSE OF THE RISK MANAGEMENT PLAN
The project risk management plan is intended for guiding the project management team
throughout the entire process of managing project risks which includes major steps such as
Identifying Risks, Analyzing Risks, Response to the risks and Controlling or monitoring of
the risks. The risk management plan’s primary purpose is to provide the team with a
clear understanding of the necessary actions to be taken in order to protect the project from
hidden and identified threats and to utilize existing opportunities for improving project
performance. A mitigation approach is adopted for the Shard London Bridge Project
wherein preemptive actions are applied to either mitigate the specific risks during the
construction or to reduce the impact of the risk occurred.

RISK MANAGEMENT PROCEDURE

2.1 PROCESS
In order to run the project smoothly, a successful application of a systematic risk
management process will be required which includes the process steps required to mitigate

these risks. The below process will be used to respond to project risks

 Identification: Once the team identifies the risks affecting our project as well as project
outcomes. These risks after a careful discussion will be used to prepare a Project Risk
Register

 Analysis: After the identification of the risks the team will determine the probability of
these risks happening along with their effects. The team will then study the impact of
these risks on the overalls goals for the project as well as the objectives. These will be
further recorded in the Project Risk Register

 Evaluation: After thoroughly studying the risks these will be provided a ranking on the
basis of their significance and repercussions and noted in the Project Risk Register

 Response: This crucial process step will be utilized to plan a response towards the
risks according to their ranks from highest to lowest. A plan will be laid out to attend
these risks or mitigate them to an acceptable level. This process step will be used to
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 Shard London Bridge Project

create approaches ignorer to mitigate or prevent risks as well as any contingency plans
required in emergencies. These approaches will be further added to the Project Risk
Register

 Monitor & Review: Using the Project Risk Register, this process step in the Risk
Management Process will be used to carefully monitor, evaluate the current standing of
the risks and then further review if any changes need to be made ignorer to mitigate the
risks.

2.2 ROLES AND RESPONSIBILITIES

Managing risks is one of the most important parts of any projects. Here in our project while
this responsibility will be shared amongst all the stakeholders of the project, but majority of
the decision-making authority will be by the Project Manager. The project manager will be
solely responsible to making the decisions to have the final approval on the responses to
the risk in order to mitigate them as well as he will be responsible to implement any
contingency plans as well. The Project Manager will be responsible to convey the
Management Team in case there will be any changes or modifications to be required on the
way in the contracts which are previously laid out. Below is the table which lays out the
responsibilities as well as the roles which will handle the several aspects of the Risk
Management Plan.

Role Responsibilities
Entire Project Stakeholders Identifying the Risks
Project Manager Managing the Risk Register
Entire Project Stakeholders Evaluating the Risks
Entire Project Stakeholders Identifying the different options of the Responses
that can be provided to the Risks
Project Manager Final Approval on the Responses to the Risk
Project Manager Planning for the Probability of the occurrence of the
of Risks
Project Manager Monitoring and Reviewing Risks / and the reporting
of risks

2.3 RISK IDENTIFICATION

The Project Manager in leadership to the risk management will be solely responsible for
identification of risks and categorizing them as threats and opportunities for better
understanding and planning. Following are some of the elements enlisted which will be
crucial for identifying risks:
 Climate conditions such as rain, snow, hail, storm
 Excessive heat and freezing weather
 Rise and fall of external temperature
 Availability of required materials
 Testing Equipment

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 Tide wavelength and timing

 Availability of human labor
 Mechanism used for lifting

2.3.1 Methods for Risk Identification

The following methods will be used to assist in the identification of risks associated with
Shard London Bridge Project:
 Brainstorming: Brainstorming is done among the stakeholders on regular basis to
come up with better and innovative ideas. All participants are encouraged to face-to-
face interactions and express their views based on their expertise and have a
discussion to find out the positive as well as negative aspects and collaborate to
choose the best option for each situation. Environmental impact and maximizing
energy efficiency are the key concern in this project for which a better solution can be
obtained through brainstorming.
 Interview: Based on the project objectives, experts who have similar experience will be
selected from different sectors for the interview that are applicable to the project and
get their perspectives on each step of project approach. Key risks are identified from
their broader knowledge and experience and can be used to identify the probable
project risk.
 Check List: Potential risks of the project are listed based on the past experience and
knowledge that came up from the similar situations and proper risk response planning
for those risks can be done. Each risk listed is cross-checked frequently based on the
relevant information on the project. This analysis is useful for project budget and the
deadline which are determined assuming that the project work does not deviate from
the main objective as project work progress forward.
 Document Reviews: Each detail of the project is documented and are reviewed
regularly as the project work progress and keep it up-to-date. Project design and
workflow reviews give the insight about the potential risks can be corrected ahead of
risk occurrence based on the relevant information extracted from the documentation.
 SWOT Analysis: Strength, weakness, opportunities, and threat of the project will be
listed from the expert knowledge and analyzed all of them in details to look for the
potential risks considering the distinct aspects and impact level of the project. Further
action can be taken on time to enhance the strength level, work on the weakness,
utilize the opportunities and lower the threat impact.
 Assumption Analysis: As there will be the number of assumptions made in the
project, careful attention should be given on them and should be analyzed frequently
considering different possible outcomes to ensure that the assumptions made for the
project are still valid. It is assumed that this project will sustain its long-term goal by
creating an opportunity for future investment in developing the business area. All these
assumptions should be frequently reviewed.
2.4 RISK ANALYSIS
It is of ultimate importance to determine the probability of occurrence of all the risks for
our project along with the repercussions they might cause should they occur. Below is
the analysis which provides the process how the risks will be analyzed for our project
and their prioritization based on their level of importance.

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2.4.1 Qualitative Risk Analysis

The Qualitative Risk Analysis will involve two major factors that is the probability of the
occurrence of any risk and second would be the impact that is the considerable
influence the occurrence of this risk will have on the project, its objectives and goals.
Our project will be assigned the probability of occurrence as stated below. This
Qualitative Risk Analysis will be performed by the Risk Management Team and will be
head by the Project Manager. The Project Manager will be the final decision maker
and will be responsible to review and take any actions if needed.

Probability Description Point Extreme Hig Mediu Low Negligibl

s ly High h m (D) e (E)
(A) (B) (C)

Frequently These types of risks will show 5 5A 5B 5C 5D 5E

occurrence continuously during the
project unless a fix is provided
Less These types of risks will not occur 4 4A 4B 4C 4D 4E
Frequent frequently but will take care with minimal
review
Sporadic These types of risks can occur 3 3A 3B 3C 3D 3E
sometimes periodically

Unlikely These types of risks to occur will be 2 2A 2B 2C 2D 2E

improbable

Highly These types of risk to occur will be 1 1A 1B 1C 1D 1E

Unlikely highly improbable
Table : Qualitative Analyses Table for Probable Impact Matrix Schème [1]
2.4.2 Quantitative Risk Analysis
Highest priority risks will be quantified in order to determine the probability of achieving
overall cost and schedule objectives. The quantitative analysis will be conducted by
the risk management team and the analysis will be reviewed by the Project manager.
The project manager will also be responsible to evaluate the results of the analysis
and take any further action if needed. Throughout the construction, the EMV process
and the decision tree analysis will be utilized to get better results and will also cater to
the contingency reserves.

Following matrix will be used to define the probability and impact for the risks:

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 Shard London Bridge Project

Among these risks, the very high and high risks, scaled 4 and 5 will be further prioritized
for risk response planning and contingencies if required.
2.5 RISK RESPONSE PLANNING
In the response strategies elaborated below, the efforts should be taken equally by the
risk management team and the Project manager pertaining to the severity of the project.
The strategies adopted will be time bound and a single action can serve as response for
multiple risk events. The strategies can also be selected by the subject matter experts
and the stakeholders. The person in charge, who is assigned to implement the
strategies are mentioned below.

Negative risk response strategies:

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Risk Response Assigned To

Strategy

Use this risk strategy when risk is identified but project team cannot manage the
Project
Escalate risk due to lack of authority. Project team will be well acquainted with the
Manager
escalation processes to tackle such risks.

In this risk strategy, we will try to lessen the impact of the risk. This can be done
Risk
by reducing the risk probability or risk impact. For example, risk arising from
Management
Mitigate resource leaving in the middle of the project. This can be mitigated by bringing in
team
another resource from some other team in the organization until new resource is
member
appointed on board.

This strategy is used when there is a scarcity of the skills or resources to tackle Project
Transfer the risk or there is no time to plan for the risk. Taking insurance is one of the risk Management
transfer strategy. team
Risk
In this strategy we will try to remove the risk or risk impact completely. This can Management
Avoid
be done by making changes in project scope, schedule or plan. team
member
Project
Accept In this strategy we will take no action and acknowledge the project risk.
Manager

Positive risk response strategies:

Risk
Responses Assigned To
Strategy

Similar actions are taken in response to this risk strategy as mentioned in the
Project
Escalate negative risk responses. Project team sees to it that the opportunity is out of
manager
project scope and escalates to the authorities.

This risk response strategy is exactly opposite to Avoid strategy discussed in the Risk
Exploit above section. Resources are invested to exploit the risk opportunity which can Management
benefit the entire project by reducing duration or cost. team member

Project
Project teams use this strategy to increase the probability of the positive impacts
Enhance management
of an opportunity which can benefit the project.
team

This positive risk strategy includes sharing some or all the opportunity to a third Project
Share
party who can help capture the opportunity for the benefit of the entire project. Manager

This strategy is similar to negative risk strategy, where no action is needed, and Project
Accept
the project risk is accepted as it is. manager

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 Shard London Bridge Project

2.6 RISK MONITORING, CONTROLLING, AND REPORTING

All the risk activities will be recorded and saved in the archives in a folder named Shard
London Bridge Risk Management. This folder will be password secured and will be
accessible to the project team, stakeholders and the risk management team.

The list of actions involved in monitoring and controlling risks are:

 Determine the occurrences of risk triggers which help in reducing the risks in the
initial stages

 Identify and monitor residual risks if any

 Maintain the risk identification, analysis and monitoring recurring process in the
project

 Evaluate the effectiveness of risk response plan

 Risk status will be collected, documented, recorded in archives and communicated

 Monitor the impact of risk management procedures

 Identify if additional risk responses need to be determined

 Recommend corrective measures which can be further used to reduce and mitigate
risks

 Look for unexpected effects or consequences

 Update the risk management and risk response plans timely; weekly

 Perform variance and trend analysis

 Use contingency reserves and adjust for approved changes

 Save the unapproved change requests in the archives that can be used on the
future.
2.7 RISK CONTINGENCY BUDGETING
The budget allocated for this project is £2bn. The overall project budget is divided into
various categories such as; Construction, Resources, Equipment and supplies and
Work capital. The Contingency budget for each category is allocated individually which
makes it easier to track manage the project budgeting. The project manager is
responsible for maintaining the risk management and budgeting. There will be a firm of
advisors who are experts in each category. The project manager ensures the regular
communication with the advisory firm, sponsors and other stakeholders and will review,
reevaluate any new risks associated with those categories and authorize the
expenditures to handle the risks.

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 Shard London Bridge Project

Total Budget Contingency Budget

Construction 42%= £756,000,000 10%=£75,600,000
Resources 28% = £ 504,000,000 7%=£35,280,000
Equipment and supplies 20%=£360,000,000 4%=£14,400,000
Working capital 10%=£180,000,000 2%=£3,600,000
Total £1,800,000,000 £128,880,000

3.0 TOOLS AND PRACTICES

All risks need to be recorded to a risk register. It is the form of an excel spreadsheet and is
used to track risks throughout the life of a project. It is also a useful document for re-evaluating
once the project is completed. The project manager can revisit the learn lessons from the
process. Once the risks have been recorded in the risk register, a risk analysis can be
conducted. The project manager was responsible for maintaining the information in the risk
register. He tracked the probability of risk occurrence. By monitoring triggers and risk, plans
can be adjusted to deal with project change that may alter risk levels. If a risk impact drops
and/or the risk actually occurs, the risk may be a candidate for retirement or closure. If the risk
does occur, defined contingency plans minimize the risk’s effect on project deliverables.

4.0 CLOSING A RISK

The criteria to close the risks were as follows:
1. The risk no longer exists, as the scope of the project changed, or the risk is not relevant.
2. The risk has been addressed and solved.
3. The risk is now considered as an issue and not a risk.
The risks are managed and tracked in a risk register and their status is updated from time
to time. Risks can be assigned to any team member depending on the domain they fall
under but will be closed in the presence of the project manager only. Hence, we can say
that the project manager will be responsible to close the risks after receiving input from the
team.

5.0 LESSONS LEARNED

The lessons learned will be identified as follows:
1. The teams will meet weekly to identify any risks. It’s important to have collaboration in order
to make sure there are no risks to the project.

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2. Each stage of the project will be evaluated, and a retrospective will be conducted so that
the lessons learned can be documented all along the project and improvement can be
made as needed.
3. The lessons learned document will have the detailed information on what the risks were
and how they were solved all along the project.
4. Entire team should be contributing to the lessons learned to make sure everything is well
documented.

APPENDIX A: RISK MANAGEMENT PLAN APPROVAL

We hereby approve that the Risk Management plan created is up to date and contains all the
information required to for a thorough risk assessment process.
____________________________
Project Manager In-charge
____________________________

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Risk Management team In-charge

____________________________
Entire Project Stakeholder

APPENDIX B: REFERENCES
The following table summarizes the documents referenced in this document.
Document Name Description Location
Tom Kendrick Text Book for Risk Management N/A
Practice Standards Book for Risk Management N/A
for Risk by PMI
Management
Project Description Description and terms for https://www.designbuild-network.com/projects/london-bridge/
the Shard Bridge design
project
Risk Management Public Health Emergency / https://www.phe.gov/about/amcg/contracts/Documents/risk-
Plan / Qualitative Office of Acquisitions, management.pdf
Risk Assessment Management, Contracts
and Grants.

APPENDIX C: KEY TERMS

Term Definition
Brainstorming Produce an idea or way of solving an issue by holding a spontaneous group
discussion
EMV Expected Monetary Value (EMV) is a quantitative risk assessment technique
which involves quantities in the forms of probability and impact of the risk; EMV is
the product of these two values and results in the contingency amount.
Contingency reserves The term contingency reserve refers primarily to the amount of quantity of funds or
other financial resources that is required to be allocated at and above the
previously designated estimate amount to reduce the risk of overruns to an
acceptable level for the responsible organization. However, contingency reserve
need not refer exclusively to monetary terms.
Risk assessment Systematic process of evaluating potential risks identified in a project
Lessons Learned Recorded and documented ideas and conclusions made throughout the life of a
project which can be negative or positive and can be used in any related or similar
kind of projects.
Decision Tree Analysis This is a support tool that will help in analyzing the risks and the main causes and
consequences of a risk, including cost estimates, resources, planned schedule
etc.

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