Geocomp Consulting: Services: Active Risk Management

Geocomp Corporation's consulting practice focuses on risk management for heavy civil construction. Geocomp pioneered the concept of Active Risk Management which consists of a systematic process of identifying, analyzing, planning, monitoring and responding to project risk over the life of the project. It involves processes, tools, and techniques that help the project team minimize the probability and consequences of adverse events (threats) and maximize the probability and consequences of positive events (opportunities). Active Risk Management relies heavily on close monitoring of key performance indicators during design and construction to detect warning signs that risk elements are emerging that threaten the project's schedule and cost. Early detection permits early intervention with risk mitigation strategies to help reduce the consequences of these risk elements.

Active Risk Management starts with a thorough risk assessment to capture all of the potential risk elements that may impact cost and schedule, including factors that are hard to quantify except by using expert opinion. The risk assessment defines the likelihood that each risk event will occur and the consequences if it occurs. Once the risk assessment is complete, we identify measurements that can be tracked to monitor the development of risk events. We also define mitigation strategies that can be taken to reduce the likelihood of occurrence or the consequences. A key part of Active Risk Management is to have effective mitigation strategies well defined and the operational flexibility to put them into action as the earliest practical time.

Active Risk Management was pioneered by Dr. Marr and some of his MIT colleagues during the 70's and 80's as part of their consulting practice. The ideas were developed through application of risk assessment concepts to dams, slopes and refineries. Geocomp is now applying Active Risk Management to major infrastructure projects of all types.

Geocomp has historically used staff consultants to extend its internal capabilities and provide more resources to clients. Our staff consultants are typically single practitioners or university professors with specialized expertise in risk assessment, cost estimating, scheduling, and construction practices. We embed them in our project team to enhance our capabilities, provide independent review, and add technical bench strength.