MANAGEMENT SYSTEM PROCEDURES0 A 20 SEP 07 12 SEP 07 INITIAL ISSUE ISSUE FOR REVIEW K. GRAJEK C. WOOD -T THOMAS REV DATE DESCRIPTION ORGINATED BY CHECKED BY QHSE APPROVED APPROVED BY DOCUMENT TITLE : PROJECT RISK MANAGEMENT DOCUMENT NUMBER : PR-GL-ECD-PC-1390 This document is proprietary to KBR. Paper copies of this document are UNCONTROLLED. Please refer to the KBR Management System website for the current version PR-GL-ECD-PC-1390 Rev. 0 Page 2 of 28 TABLE OF CONTENTS DESCRIPTION PAGE NO. TABLE OF CONTENTS ............................................................................................................................... 2 1.0 2.0 3.0 4.0 5.0 PURPOSE........................................................................................................................................ 3 SCOPE............................................................................................................................................. 3 REVISION HISTORY ....................................................................................................................... 4 DEFINITIONS .................................................................................................................................. 4 PROCEDURE .................................................................................................................................. 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6.0 OVERVIEW ............................................................................................................................ 5 PROCESS APPLICATION GUIDELINES .............................................................................. 5 RISK STRATEGY................................................................................................................. 10 RISK IDENTIFICATION........................................................................................................ 11 RISK ASSESSMENT............................................................................................................ 15 RISK RESPONSE PLANNING............................................................................................. 18 RISK MONITORING............................................................................................................. 20 RESPONSIBILITIES / INTERFACES............................................................................................ 23 6.1 6.2 RESPONSIBILITIES ............................................................................................................ 23 INTERFACES....................................................................................................................... 25 7.0 8.0 REFERENCES............................................................................................................................... 27 ATTACHMENTS............................................................................................................................ 28 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT ATTACHMENT A B C D E F G H KBR RISK BREAKDOWN STRUCTURE / RBS............................................ 28 IRC & PRC MAJOR RISK SUMMARY (EXCEL TEMPLATE).......................... 28 IRC & PRC MAJOR RISK SUMMARY SLIDE (POWERPOINT TEMPLATE) ..... 28 OPS REVIEW MAJOR RISK SUMMARY (EXCEL TEMPLATE)........................ 28 OPS REVIEW MAJOR RISK SUMMARY SLIDE (POWERPOINT TEMPLATE) ... 28 PSR MAJOR RISK SUMMARY (EXCEL TEMPLATE).................................... 28 RMS REGISTER UPLOAD TEMPLATE (EXCEL TEMPLATE) ......................... 28 RMS SUBMITTAL UPLOAD TEMPLATE (EXCEL TEMPLATE)........................ 28 This document is proprietary to KBR. Paper copies of this document are UNCONTROLLED. Please refer to the KBR Management System website for the current version Suggestions for improvement to the procedure should be directed to the Director. GD-GL-ECD-PM-1206. This document is proprietary to KBR. The goals of this procedure are to provide guidance when executing the Project Risk Management (PRM) process such that. The methods outlined in this procedure shall be executed in accordance with process requirements unless superseded by an approved alternate by KBR Corporate Management. Any deviation from this Procedure must be formally approved by the Vice President. Project Managers. throughout this procedure are references to locations within the KBR Intranet. schedule. The PRM process applies at varying levels of input detail and output deliverables to all projects performed by KBR as defined by PRM Guidelines GD-GL-ECD-PM-1202. The Company can better deliver predictable results that support the business strategy and increase Shareholder value. quantified and managed prior to award and throughout project execution. GDGL-ECD-PM-1203. • • • • 2. Sales Managers. Those accountable for the process implementation are the Sales Leaders. It is not intended that this procedure be a "stand alone document". and Business Managers responsible for obtaining or managing projects. Paper copies of this document are UNCONTROLLED. Opportunities can be proactively managed throughout a project’s life cycle as a means to increase the probability of occurrence or to maximize their impact. Revisions to this Procedure require Project Risk Management Departmental approval. Please refer to the KBR Management System website for the current version . Threats can be proactively managed throughout a project’s life cycle as a means to reduce the probability of occurrence or to minimize their impact. Appropriate project risk provisions can be developed.0 PURPOSE The purpose of this procedure is to establish a basis of understanding for all project team members and corporate personnel in fulfilling the requirements of the Project Risk Management process when executing projects in accordance with The KBR Vision. Proposal Managers. The Project Risk Management Procedure is accessible to all company personnel via the Energy & Chemicals EPC Project Management and Project Controls web sites. ECD Project Risk Management or to the Vice President. and primary business objectives prior to contract commencement.0 SCOPE This Procedure is applicable to all of KBR’s Energy & Chemicals Division. Those responsible for executing the process include all personnel of the Energy & Chemicals Division. in relation to cost. 0 Page 3 of 28 1. project. ECD Project Controls.PR-GL-ECD-PC-1390 Rev. The changing risk profile can be monitored throughout the project life cycle. Mission and Values. • • Risks can be identified. commercial terms. ECD Project Controls. Proposal Leaders. Please refer to the KBR Management System website for the current version . will have an effect on the achievement of the project’s objectives” APM PRAM GUIDE 2004. planned. 0 Page 4 of 28 3.0 REVISION HISTORY Rev. The Risk Management process manages both threats and opportunities with the objective to minimize losses and to maximize gains. KBR has adopted both the risk and risk management definitions stated in the Project Risk Analysis and Management (PRAM) Guide published by the Association for Project Management (APM) Risk Specific Interest Group (SIG) 2004.0 DEFINITIONS Definitions can be found in the Project Controls Glossary of Terms. APM PRAM GUIDE 2004 This document is proprietary to KBR.PR-GL-ECD-PC-1390 Rev. and supporting work methods to this procedure. “an uncertain event or set of circumstances that. monitored. PR-GL-ECD-PC1399. Risk Management is “the process whereby responses to the risks are formulated. This definition of a risk. as an “uncertain event”. A Risk is defined as. should it occur. progressed. reviewed. measured for success. recognizes the potential for both positive and negative Project Risk impacts. Risks are viewed as threats or opportunities arising from uncertainty that affect the project objectives. justified. A Issued for Review 12-SEP-07 4. Paper copies of this document are UNCONTROLLED. initiated. adjusted and closed”.0 Initial Issue 20-SEP-07 Rev. ) must be fully committed to formally managing risk throughout the project. Finance. The project leadership team led by the Project Manager and other contributing groups (i. Figure 5. 0 Page 5 of 28 5. As a result. Sales.1 shows the five steps of the PRM Process and the underlying objectives. identification of potential risks. The process includes the creation of a risk strategy. Successful risk management leverages the experience of all project participants while maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to achieve the project objectives. The Project Risk Management Process is composed of five steps: Strategize. development of risk response plans. KBR Energy & Chemicals Division’s Risk Management philosophy is the systematic process of identifying. assessing. Figure 5. Identify. assessment of risk severity. Respond and Monitor.1 – PRM Five Steps 5. Assess.e. Please refer to the KBR Management System website for the current version .2 PROCESS APPLICATION GUIDELINES The purpose of this section is to provide guidance when determining what deliverables are required and what resources are needed to execute the PRM This document is proprietary to KBR.0 PROCEDURE 5. KBR recognizes risk as a condition that exists in all project endeavors. etc. Paper copies of this document are UNCONTROLLED. Proposals.1 OVERVIEW As stated in the Project Risk Management Guideline GD-GL-ECD-PM-1203.PR-GL-ECD-PC-1390 Rev. The process is iterative and is used across the project organization throughout the project’s life cycle. and proactively responding to risk throughout the entire project life cycle from “prospect” through “contract closeout”. Project Risk includes both threats to the project’s objectives as well as opportunities to improve on those objectives. and monitoring of risk status. Contract Revenue – the dollar amount of project work that will be / is contracted to KBR. resources should be allocated to match the desired level of project risk management requested by the client. the following are the primary criteria listed in hierarchical order: 1. It is highly recommended that the project leadership team. KBR executes a multitude of project types with varying scopes of work. 0 Page 6 of 28 process from prospect to contract close-out. service contracts. As a minimum. show the primary deliverables and approximate hours for a typical EPC project during the proposal phase. • This document is proprietary to KBR.PR-GL-ECD-PC-1390 Rev.2 and 5.3. When determining the resources and deliverables for the PRM process. Exception should be sought from the IRC if the deliverables differ from the PRM proposal phase deliverables as defined in Tables 5. Please refer to the KBR Management System website for the current version . the process is required and resources must be allocated to match project requirements.2 and 5. it is desirable to acquire client funding of proposal development including the proposal phase of the PRM process when ever possible. it is important that the process be commensurate with the project requirements. KBR is to execute the PRM process at the appropriate level to evaluate all risks directly related to KBR’s business regardless of contract type or whether a client is funding the effort. Paper copies of this document are UNCONTROLLED. segregated by Contract Revenue. Usage 4. If the client approves the PRM post-award process. To ensure the most value from the PRM process. client approval of the PRM process after award should be actively pursued. If approved.3 and 5. Project Value – the total installed cost (TIC) of the project that is inclusive of all contractor and owner costs for the project. reference Project Risk Management Guideline GD-GLECD-PM-1203 in conjunction to the details found within this procedure to gain a good overall perspective as to the expectations and interdependencies of the PRM process. 6. Tables 5. Estimate accuracy 3. The PRM requirements are defined as follows: • Tables 5. The section offers further explanation of the general requirements presented in PRM Guideline GD-GLECD-PM-1202 and GD-GL-ECD-PM-1203. In any case.5. segregated by Project Value. Estimate classification 2. For lump sum or fixed unit rate contract types. resources should be allocated to match the desired level of project risk management requested by the client and appropriately priced in the proposal. For reimbursable contracts. Contract type (lump sum/fixed unit rate or reimbursable etc. show the primary deliverables for ITBs for studies. contracts and budgets. technology licensing and for FEEDs where the work is potentially not leading to a KBR pursuit of an EPC project during the proposal phase.) 5. complexities.4. 50% +/. ITB FEED. < $50 < $5 R R R R R O O O R R R R R O R R R O R R R O O R O O O O R R O O O O Conceptually Defined Definitive +/.2 PRM Proposal Phase EPC Project Estimate Classification Expected Accuracy Usage Project Value $MM Risk ID Method Project Risk Management Deliverables Lead Order of Magnitude Factored +/. etc.25% Feasibility Studies. Reimbursable Funding.10% FEED. This table is for Non-EPC & Service Proposals. The table shows project risk process deliverables for EPC projects that KBR is planning or executing. cost process in ITB response. The project risk process is to be recommended as a service to clients when the client or others have liability for the installed cost. < $20 < $100 < $500 > $500 R R R R R R R R O R R R R R R R R R R R R R R R R R R R R R O R R R O O R R O R R O O X X X X X X X X Conceptually Defined Definitive +/. Estimates. Unit Rate.10 .10% Service Contracts. FEEDs. < $50 < $200 Risk Response Plans Major Risk Summary 3rd Party Facilitator KBR Risk Facilitator Risk ID Workshop KBR is to execute the PRM process at the appropriate level to evaluate all risks directly related to KBR’s business regardless of contract type or whether a client is funding the effort. Plan Schedule Model Risk Register Cost Model X X X X X .30 . etc. This document is proprietary to KBR. Tech. ITB Pre-FEED. Pre-FEEDs. Package etc. Risk ID Workshop Risk ID Survey Risk Synopsis Table 5.15% +/. Budget Approvals.15 .5 . Lump Sum Bidding. 0 Page 7 of 28 Table 5.5 . Plan Schedule Model Risk ID Survey Risk Synopsis Risk Register > $200 Legend: R = Required for Lump Sum / Fixed Unit Rates Required for Reimbursable KBR Exposure as Appropriate O = Optional X = Primary Lead Cost Model KBR Est. < $20 < $100 < $500 > $500 Risk Response Plans Major Risk Summary 3rd Party Facilitator KBR Risk Facilitator Lead KBR is to execute the PRM process at the appropriate level to evaluate all risks directly related to KBR’s business regardless of contract type or whether a client is funding the effort. / Controls Legend: R = Required for Lump Sum / Fixed Unit Rates Required for Reimbursable KBR Exposure as Appropriate O = Optional X = Primary Lead Risk Mgmt. Project Screenings.. Execute PRM Proposal Deliverables commensurate with KBR contract scope of work.10 .PR-GL-ECD-PC-1390 Rev. as defined by the level of estimate. Requirements are a function of project installed cost and the project phase. Please refer to the KBR Management System website for the current version KBR Est. / Controls Risk Mgmt. Paper copies of this document are UNCONTROLLED.15% +/. If client approves. Operations & Mainten.3 PRM Proposal Phase Non-EPC and Service Contracts Estimate Classification Expected Accuracy Usage Contract Revenue $MM Risk ID Method PRM Proposal Deliverables N/A N/A Studies. etc. Lump Sum Bidding. Risk ID Workshop 140 485 625 Conceptually Defined-Definitive FEED to EPC. Reimbursable Funding. FEED. Please refer to the KBR Management System website for the current version . Lump Sum Bidding.50% to +/.PR-GL-ECD-PC-1390 Rev. Risk Register 3. Budget Approvals Order of Magnitude-Factored Feasibility Studies.15% +/. Cost Model 7. Optional Cost Model 0 80 80 Conceptually Defined-Definitive FEED to EPC.15% to +/.15% to +/. Schedule Model 8. Paper copies of this document are UNCONTROLLED.5% < $100 1. Proposal Risk Mgmt. Optional Schedule Model 10 180 190 Conceptually Defined-Definitive FEED to EPC. Reimbursable Funding. Risk Register 3. Unit Rate etc. Major Risk Summary 5 25 30 > $500 1. Pre-FEED. Screenings. Proposal Risk Mgmt. Risk Register 3. Estimates. Risk Synopsis 5. Major Risk Summary 5 25 30 < $20 1. Plan 6. Unit Rate etc.15% +/. Hrs 0 Project Team Hrs 25 Total PRM Hrs 25 1. Major Risk Summary 2. Estimates.4 shows the approximate EPC hours associated with the PRM process deliverables shown in Table 5. Risk Response Plans 4. Proj.5% > $500 160 590 750 This document is proprietary to KBR. Risk Response Plans 4. Proj. Cost Model 7.15% to +/. Proposal Risk Mgmt. Pre-FEED. Optional Cost Model 7. Risk Register 3.5% Project Value $ MM < $20 Project Risk Management Deliverables PRM Dept.15% +/. Reimbursable Funding. Optional Risk ID Workshop 1. Estimates. Plan 6. Optional Proposal Risk Mgmt.4 PRM Proposal Phase Workhour Budgets EPC Approximate EPC Hours Estimate Classification Usage Order of Magnitude-Factored Feasibility Studies. Estimate Accuracy Ranges +/. Proj. Plan 6. Major Risk Summary < $500 1. Lump Sum Bidding. Budget Approvals Order of Magnitude-Factored Feasibility Studies. FEED. +/. Screenings. +/. Screenings.50% to +/. Risk Synopsis 5. Major Risk Summary 2. Unit Rate etc. 0 Page 8 of 28 Table 5. Unit Rate etc. Abbreviated Risk Response Plans 4. FEED.15% to +/. Plan 6. +/.2 PRM Proposal Phase EPC Project.50% to +/. Risk Synopsis 5. Schedule Model 8. Abbreviated Risk Synopsis 5. Table 5. Major Risk Summary 2. Major Risk Summary 2. Reimbursable Funding. Estimates. Budget Approvals Conceptually Defined-Definitive FEED to EPC. Risk Response Plans 4. Lump Sum Bidding.5% < $500 1. Pre-FEED. Estimate Accuracy Ranges N/A Contract Revenue $ MM < $50 Project Risk Management Proposal Deliverables 1. This document is proprietary to KBR. Plan 6. Operations & Maintenance etc. Conceptually Defined-Definitive Service Contracts. Risk Register 3. Operations & Maintenance etc.5% < $200 1. Table 5. Major Risk Summary PRM Dept. Major Risk Summary 2. 0 Page 9 of 28 Likewise. Paper copies of this document are UNCONTROLLED.5% < $5 1. Risk ID Workshop 8. Optional Proposal Risk Mgmt. Risk Register 3. Table 5.15% to +/.3 PRM Proposal Phase Non-EPC and Service Contracts.5% < $50 1. Risk Synopsis 5. Risk Response Plans 4. +/. Optional Risk Synopsis 5.5% > $200 1. Operations & Maintenance etc.15% to +/.5 PRM Proposal Phase Workhour Budgets Non-EPC and Service Contracts Approximate Service Hours Estimate Classification Usage N/A Studies. Optional Risk Response Plans 0 80 80 Conceptually Defined-Definitive Service Contracts. Major Risk Summary 2. Risk Register 3. Cost Model 7. Optional Risk ID Workshop 80 195 275 Conceptually Defined-Definitive Service Contracts. Optional Schedule Model 120 280 400 If Post-Award Execution Phase workhours are required for budgeting.15% to +/. Abbreviated Risk Response Plans 4.PR-GL-ECD-PC-1390 Rev. Optional Proposal Risk Mgmt. ITB FEED. +/. Plan 6.15% to +/. consult with the Project Risk Management Department to develop an approximate estimate that reflects project requirements.5 shows the approximate Non-EPC and Service Contract workhours associated with the PRM process deliverables shown in Table 5. Major Risk Summary 2. Optional Cost Model 0 180 180 Conceptually Defined-Definitive Service Contracts. Optional Risk Register 3. Cost Model 7. Optional Risk Synopsis 5. Optional Proposal Risk Mgmt. Risk Response Plans 4. Hrs 0 Project Team Hrs 10 Total PRM Hrs 10 +/. Operations & Maintenance etc. +/. Plan 6. Technology Package etc. ITB Pre-FEED. Major Risk Summary 2. Please refer to the KBR Management System website for the current version . a jointly developed document between the Project Team and the PRM Department. Review project timeline and constraints. deliverables and budget. Please refer to the KBR Management System website for the current version . business strategy and scope.3 as well as KBR’s Business Development and Oversight (BDO) Procedure P-GL-KBR-BDO-1702 should be referenced to aid in determining the overall Risk Strategy and subsequent PRM Detail Work Plans to implement the Strategy. Client / JV Partner (where applicable) and other team members as required. Review project objectives. The level of detail in the Risk Strategy document is dependent upon the Project phase and scope requirements. Create subsequent PRM Detail Work Plans and supporting documents. and 5. After project award. Tables 5. must address how the PRM process will be deployed for the Proposal Phase and Post-Award Execution Phases of the project life cycle.PR-GL-ECD-PC-1390 Rev. define and align all stakeholder expectations.3 RISK STRATEGY Within PRM. success criteria. Identify. The Risk Strategy is to summarize the Project Objectives. Project Risk Analyst. The Risk Strategy document serves as the basis for the subsequent PRM “Proposal Write-ups” during the Proposal Phase and Project Execution Plans (PEP) during the Post-Award Execution Phases. the associated PRM Objectives and the resources required to achieve those objectives for each project phase. the Proposal Phase may require the Project Team to develop a “Proposal Write-up” about the PRM work process reflecting client PRM requirements found in the proposal submittal documents. the step is to be executed immediately following the Proposal Kickoff Meeting and again following the Proposal Handover Meeting. The Risk Strategy. plan and implement the project risk management activities for a project or program.2. The objectives of the Risk Strategy step are: • • • • • • • • Evaluate project requirements for a given project phase. the Risk Strategy step is the process of deciding how to approach. Clearly communicate the overall approach to risk management that a project team will utilize at each project phase in managing risk Document the PRM Strategy. Paper copies of this document are UNCONTROLLED. The Project Risk Management Strategy Document and Project Risk Management Detail Work Plans are to be continuously updated throughout the project’s life cycle to ensure the project risk management process is effective. Sales Leader. The Project Risk Analyst from the PRM Department working in close collaboration with the Proposal Team is to lead and facilitate all these activities. Project Risk Coordinator. During the Proposal Phase after the Proposal Kickoff Meeting. gather to develop a PRM Strategy that matches the needs of the proposal effort. Define PRM process scope of work. As a minimum. the Proposal Leader / Project Manager. Additionally. the Proposal Team is to brief the Project Execution Team about the Strategy used during Proposal This document is proprietary to KBR. 0 Page 10 of 28 5. during the Proposal Handover Meetings. ENVIRONMENT This document is proprietary to KBR. From this Strategy. The KBR RBS is organized by Section and Category. The primary objective of the Risk Identification effort is to clearly identify threats and opportunities as early as possible in the project life-cycle. The RBS is a source-oriented way of classifying risk that organizes and defines the total risk exposure of a project. KBR utilizes a Risk Breakdown Structure (RBS). The PRC and PRM Analyst are to regularly communicate and lead the revision of these PRM documents prior to major project phase changes as required. In order to aid the identification. description. Please refer to the KBR Management System website for the current version . The seven sections are: T C K P S M H TECHNOLOGY / TECHNICAL COMMERCIAL / CONTRACTUAL MANAGEMENT ORGANIZATION PROJECT OPERATIONS COUNTRY / REGION MARKETS FOR MATERIALS. organization and general management of Risk Items. Paper copies of this document are UNCONTROLLED. working with Project Controls and the PRC. a Post-Award Execution PRM Strategy is to be created reflecting the intent of the Proposal efforts for the project. it is critically important that the PRM activities be part of the overall project planning and schedule development to ensure resources and Project Team priorities can be properly established. As the project matures along its life cycle. EQUIPMENT AND LABOR HEALTH. is to ensure the key PRM activities and milestones are placed in the Overall Project Plan / Schedule for each phase. 0 Page 11 of 28 development and negotiation stages. each descending level represents an increasingly detailed definition. which helps define the various risk sources and provides insight into the Risk Profile of a project. The Project Risk Analyst. This integration also serves to effectively communicate the series of PRM tasks relative to the other project work that often serves as inputs into the PRM process. The PRM PEP is to provide the detail as to how the PRM objectives and strategies are to be achieved. Once the Proposal PRM Strategy is “handed over”. 5. SAFETY. the PRM Strategy needs to be revised to ensure the PRM process meets the project requirements. Like a conventional WBS. the Risk Identification step is the continuous process of determining and defining all risks inherent in a project or program. Finally.PR-GL-ECD-PC-1390 Rev. The PEP is to serve as the daily PRM procedure for the project. the Project Risk Analyst and PRC are to fully support the Project Team and to ensure they understand and execute the PRM process. a Project Execution Plan (PEP) is to be developed by the Project Risk Analyst working in close collaboration with the Project Risk Coordinator (PRC) and Project Management Leadership. To ensure a successful Strategy.4 RISK IDENTIFICATION Within PRM. Risk . the Cause is the best target in developing Risk Response Plans to manage specific risks. All risks identified for a project shall be assigned to one Section and Category.The Effect is the unplanned variation from Project Objectives resulting from the occurrence of the Risk. will have an effect on the achievement of the Project’s Objectives. should it occur. It is very important to use the C-R-E structure so that uncertainties (Risks) are differentiated from facts (Causes). Causes are factual and certain.PR-GL-ECD-PC-1390 Rev. The system operates 24/7 across all operating centers for users with access to the KBR intranet. Reference Attachment G RMS Register Upload Template (Excel template). To document and clearly communicate a risk. RMS is a web based repository and reporting tool for Project Risk data. An example: Due to a change in governmental policies after the election in May of 2008 -there is a risk that the project funding may be stopped -. 0 Page 12 of 28 Further descriptions for each Section and Category are provided within Attachment A KBR Risk Breakdown Structure / RBS. For those persons working outside the KBR network or for those persons who are in the early stages of a proposal prior to IRC. Please refer to the KBR Management System website for the current version . KBR projects shall structure the risk description into three parts Cause-Risk-Effect (C-R-E). There are two tools that can be used to assist with the identification and recording of Project Risks. The primary tool is the KBR Risk Management System or RMS for short. Paper copies of this document are UNCONTROLLED. C-R-E is an acronym for Cause-Risk-Effect where: Cause . Effect . The risks gathered in this template allow the PRC or PRM Department to upload entries into RMS at the appropriate later date to satisfy PRM Corporate Requirements. This template is typically used on an interim basis in the early Proposal stages of a project.The Cause is a definite event or factual circumstance which gives rise to uncertainty (Risk) on the project. The effect can be beneficial or damaging to objectives depending on the nature of the risk. With consent from the PRM Department. This structure can support strategic and tactical decisions for managing Threats and Opportunities during a project's life cycle.The Risk is an uncertain event or set of circumstances that. it may be used for very small projects in rare instances. an Excel spreadsheet template is available which mimics RMS functionality. This document is proprietary to KBR. Separating Causes from Risks allows the Project Team to focus on the source of the Threat or Opportunity rather than the effects or symptoms.which may result in premature close-out of the contract. If properly described. All KBR projects shall use the KBR RBS in recording their risk items in support of Project and Corporate Risk Profile reporting requirements. If the Project Team is not using RMS. ECD Project Controls. Reference the PRM Identification & Qualitative Assessment Work Method that supports this procedure for further details and information. Paper copies of this document are UNCONTROLLED. during the This document is proprietary to KBR. The majority of KBR’s Energy and Chemical Projects utilize the Risk Workshop method to establish and update the Risk Register during the proposal phase. all proposals and projects are required to identify risks using the survey method. Please refer to the KBR Management System website for the current version .PR-GL-ECD-PC-1390 Rev. If a small project was approved in using the template and later warrants a more appropriate tool for managing their risk information beyond the RMS Register Upload Template. The second method is a “Risk Identification Workshop”. as a minimum. All other forms of risk registers shall not be used when recording or managing risk information unless approved by the Director. 2. Early stages of the proposal approval cycle (e.2 of this procedure. As a minimum. the method is used throughout the Post-Award Execution phases to effectively identify and communicate risk to large project teams. there are two methods for risk identification: one is the use of risk identification forms. Within KBR. the second is to hold a workshop. but without a formal facilitated gathering of project personnel in a workshop setting. The Excel RMS Register Upload Template is the standard for KBR when not engaging RMS. The Risk ID Workshop is a formal gathering of key project team members. for further Risk Management requirements. but can be used on all project sizes. After documenting the risks in the either the KBR Risk Management System (RMS) or the Excel RMS Register Upload Template. The Risk Identification Survey method is most suited to the following scenarios: 1. For very small projects that will not be using RMS. 0 Page 13 of 28 The characteristics of a project and the advancement along its life cycle will determine the appropriate risk identification effort. The Risk ID Survey is conducted by the Project Team using the information provided from the Risk Identification & Qualitative Assessment Work Method that supports this procedure. the project team needs to consult Section 5. known as a “Risk ID Workshop”. all risks for the Risk Identification Survey Method are to be documented in Attachment G RMS Register Upload Template (Excel template). known as a “Risk ID Survey”. Services Only &/or Factored Estimates. the risks are to be stated in the appropriate IRC and C-10 form’s sections as prescribed by the BDO. The Risk ID Survey Method is typically a series of survey forms that act as prompts for Risk Identification.g. After IRC approval. Sales and Proposal Procedures. The method is typically used for Super Major to Major Proposals. IRC approval). the project team is to consult with the KBR PRM Department to implement the KBR Risk Management System (RMS). 3. Additionally. This is the primary method used to identify risks for KBR’s large complex project types. ECD Project Risk Management or the Vice President. The Project Team uses such information sources as the KBR RBS. As a minimum. The Major Risk Summary is a listing of major risks from contract terms and conditions to project execution risks that are presented at IRC. Populate the Excel templates then paste into the Power Point templates. These items serve as the starting point for risk identification and clarification discussions. held in a neutral location. The workshop is structured for both content and time. the following sample list should be considered when assembling a group of participants for a risk ID workshop: • • • • • • • • • • • • • • • • Project Manager Commercial Manager Legal Staff Financial Analyst Discipline Leads Project Controls Personnel Construction Manager Key Construction & Installation Personnel Engineering Manager Procurement Manager Commissioning Manager Specialist Contractors (where appropriate) Client (where appropriate) JV Partners (where appropriate) Operations staff (where appropriate) Managerial staff (where appropriate) The primary deliverable from of the risk identification workshop is a clearly described list of ranked risks. The workshop also includes exercises to capture new risks originating from the discussions as well as scoring and ranking of risks. Lessons Learned Database and other prompt lists to help stimulate and record within RMS what are known as “Pre-workshop risk ideas” prior to the workshop. A neutral location helps ensure participants are allowed to focus fully on the task of risk identification without interruption from normal day–to-day activities. This document is proprietary to KBR. OP’s. The workshop is attended by key members of the project team to ensure that all facets of the execution strategy are represented. The ideas are then collected and consolidated for use in the workshop by the PRM Risk Analyst. Please refer to the KBR Management System website for the current version . PRC. Reference these Attachments for the appropriate Major Risk Summary format.PR-GL-ECD-PC-1390 Rev. Paper copies of this document are UNCONTROLLED. a risk register is established within RMS. From this list of risks. Participants should be drawn from the project team and any other stakeholders to form a group that will represent the full potential range of risks facing the project. A typical formal risk identification workshop is one to two separate half-day sessions. Following the Risk ID Survey or Risk ID Workshop a Major Risk Summary is to be created. 0 Page 14 of 28 project handover / set-up phase and during post-award project risk update efforts at key milestones. and typically is facilitated by an experienced PRM Department Risk Analyst or Project Risk Coordinator. ERC and Project Status Review meetings. This evaluation provides a basis for prioritizing risks and allocating resources to manage them. Execution Phase at First Check Estimate. Schedule etc. the Risk Assessment step is the process of prioritizing and analyzing the likelihood and effect of risk upon the project or program objectives. During a Qualitative Risk Assessment. Please refer to the KBR Management System website for the current version . 5. Production Check Estimate and approximately every 6 months as the project progresses. Impact – The effect that risk will have on the project if the risk occurs (in terms of Cost. The requirements to execute Quantitative Assessments are referenced in procedures Cost Risk Assessment PR-GL-ECD-PC-1391 and Schedule Risk Assessment PR-GL-ECD-PC-1392. All projects within KBR shall use the PRM Corporate Scoring Matrices to prioritize risks. risks are assessed to determine their potential likelihood of occurrence. There are primarily three dimensions used to assess the importance of a risk: Probability – The likelihood that a risk will occur. 3. Initiate & Planning Phases as estimate and schedule baselines are established. KBR has two PRM Corporate Scoring Matrices.). Paper copies of this document are UNCONTROLLED.PR-GL-ECD-PC-1390 Rev. To facilitate this effort. Manageability – The extent of control or influence the project team has over a risk. 4. The typical timing of these assessments is as follows: 1. 0 Page 15 of 28 • • • • • 5. Pre-Award prior to Operations Reviews. As directed by Senior Management to satisfy a corporate requirement. impact and degree of manageability. 2. Negotiation Phase to update KBR risk profile prior to Contract Signing. Each of these dimensions is estimated subjectively by the Project Teams. The Qualitative Assessment subjectively analyzes risk and the Quantitative Assessment leverages numerical methods to analyze risk. The Scoring Matrices include parameters in five gradations for each dimension. one for Threats and one for Opportunities. The Risk Assessment step has two sub-components: Qualitative Assessment and Quantitative Assessment. To establish the Cost and This document is proprietary to KBR.5 Attachment B IRC & PRC Major Risk Summary (Excel template) Attachment C IRC & PRC Major Risk Summary Slide (PowerPoint template) Attachment D PSR Major Risk Summary (Excel template) Attachment E OPs Review Major Risk Summary (Excel template) Attachment F OPs Review Major Risk Summary Slide (PowerPoint template) RISK ASSESSMENT Within PRM. PR-GL-ECD-PC-1390 Rev. The PRM Department will develop the proper matrices to suite a given project size and complexity. Figure 5. Paper copies of this document are UNCONTROLLED.6 shows example matrices. Figure 5. 0 Page 16 of 28 Schedule parameters within the Matrices consult the ECD Project Risk Management Department.6 – PRM Example Scoring Matrices This document is proprietary to KBR. Please refer to the KBR Management System website for the current version . Example 2 below expresses this calculation as an equation.Standard PI Score Bands Color Threats Critical Opportunities Critical Std PI Score 25 to 50 max Red Amber Significant Significant 13 to 24 Green Monitor Monitor 1 to 12 The “Standard PI” score is calculated by adding the Cost and Schedule impact scores and then multiplying that value by the Probability score. Safety. S.Alternate PI Score Bands Color Threats Critical Opportunities Critical Alt PI Score 15 to 25 max Red Amber Significant Significant 8 to 14 Green Monitor Monitor 1 to 7 The Alternate PI score is calculated by selecting the greatest impact score from the available criteria (e.KBR Alternate PI = P [Greatest of (C.KBR Standard PI = P(C+S) Risks shall also be prioritized under the following “Alternate PI” score levels.8. See Table 5. See Table 5. E. Cost. Table 5. Schedule.7. Environment. R)] This document is proprietary to KBR. Please refer to the KBR Management System website for the current version .g. Sf.) and then multiplying that value by the Probability score.8 . Table 5. Reputation etc. Example 1 below expresses this calculation as an equation.7 .PR-GL-ECD-PC-1390 Rev. 0 Page 17 of 28 Risks shall be prioritized under the following Standard PI (Probability & Impact) score levels. Paper copies of this document are UNCONTROLLED. EXAMPLE 1 . EXAMPLE 2 . These scoring methods can be applied to an Opportunity with the acknowledgement that the risk represents a positive impact to the Project Objectives. evaluating. PRC. It is therefore very important that appropriate Risk Response Plans are developed to minimize a Threat or to maximize an Opportunity. Major Risks are defined as all risks. the Risk Owner is responsible for progressing and reporting the plan’s status to the This document is proprietary to KBR. Risks with a Current Alternate PI score greater than 15 rated as CRITICAL 3. As a minimum. 5.6 RISK RESPONSE PLANNING Within PRM. SIGNIFICANT and MONITOR risks may also be part of the Major Risks as selected by the project team. The development and implementation of the most effective Risk Response Plans requires a collaborative team effort to be successful. the Major Risks are those risks rated as CRITICAL in the Red Zone of the Risk Summary Matrix with a Current PI score greater than 25 or Current Alternate PI score greater than 15. Other Yellow and Green Zone. which meet one of the following criteria: 1. Risks scoring less than the CRITICAL rating that the project team believes may impact the project. but doing something about them. Risks with a Current Standard PI score greater than 25 rated as CRITICAL 2. KBR utilizes these two methods to offer flexibility in reporting the project’s risk profile from varying dimensions and perspectives.PR-GL-ECD-PC-1390 Rev. OPS and PSR meetings’ Major Risk Summaries. selecting and implementing action plans or techniques that will enhance Opportunities and reduce Threats to the project or Program Objectives. The primary objective of Risk Response Planning is to lessen or eliminate the negative impact posed by Threats and to maximize any benefit posed by a potential Opportunity through project approved proactive measures. threats or opportunities. The Risk Owner working with the Risk Action Owner is responsible for developing and implementing a risk response plan in a timely and effective manner. Please refer to the KBR Management System website for the current version . 0 Page 18 of 28 These scoring bands represent the Risk Rating that is used in the IRC. A secondary objective is to create backup Response Plans (Contingency & Fallback Plans) as added assurance of proper Risk Management. nor too general to be of use. This means developing plans that are neither too detailed. Paper copies of this document are UNCONTROLLED. Additionally. The real driver of the management of risks is not just about identifying or even assessing risks. Further details about scoring and ranking risks can be found in the Risk Identification & Qualitative Assessment Work Method that supports this procedure. Risk Response Planning is the process of identifying. The Standard PI score offers the project the ability to apply equal weighting to Cost and Schedule impacts. The Alternate PI score offers the project the ability to plot a risk against the most impacted criteria. the Threat Treatment Options are: • • • • Avoid – Seeking to eliminate the source of uncertainty. Accept – Recognizing residual risk and developing responses to monitor them. For more information defining a “fully detailed Risk Response Plan”. Accept – Recognizing an opportunity. developing proactive Risk Response Plans can assist already lean Project Teams in dealing with the inherent uncertainty that exists on every project. A Major Risk is defined as a risk rated as “Critical” or a Risk that has been specifically selected by the project team needing focused management attention. The treatment represents the primary method to manage the risk. at a minimum. With project resources already stretched thin. when developed early in the project life-cycle. Enhance – Seeking to increase the probability and benefit impact by identifying and maximizing key opportunity drivers. Mitigate – Seeking to reduce the size of the risk exposure to below an acceptable risk threshold. These plans are to be documented within the KBR Risk Management System (RMS) as appropriate to match project requirements and lifecycle phase of development. 0 Page 19 of 28 project’s Project Risk Coordinator (PRC). This document is proprietary to KBR. Listed in order of preference. Share – Seeking to allocate ownership to a third party who is best able to maximize probability of occurrence and benefit of the opportunity. Transfer – Seeking to transfer ownership and/or liability to a third party. Risk Review Committee (RRC). Listed in order of preference. KBR has defined Risk Treatment Options for both Threats and Opportunities to aid in developing the appropriate Risk Response Plan. Project Manager and Senior Management as appropriate. For the Post-Award Execution Phases. During the Pre-Award Proposal Phase. reference the PRM Risk Response Planning Work Method that supports this procedure. fully detailed Risk Response Plans are to be generated for all Risks of the project. Those risks not considered Major Risks are to have a Plan Overview developed and in place. fully detailed Risk Response Plans are to be generated by the Risk Owners for all the Major Risks of the project. help a Project Team to more efficiently manage and understand risk during the life of the project. but developing no plans to promote its occurrence. Finally. The Risk Treatment documents KBR’s position as selected by the Project Management Leadership Team. Paper copies of this document are UNCONTROLLED. Risk Response Plans. the Opportunity Treatment Options are: • • • • Exploit – Seeking to eliminate the source of uncertainty by ensuring that the opportunity has the highest probability of occurring.PR-GL-ECD-PC-1390 Rev. Please refer to the KBR Management System website for the current version . Please refer to the KBR Management System website for the current version .7 RISK MONITORING Within PRM. Maintaining active RMS accounts for authorized personnel. Risk Status. The Risk Monitoring phase marks the last step of the PRM process and the point at which the PRM process recycles.PR-GL-ECD-PC-1390 Rev. the risk profile will change as new risks emerge and existing risks are managed and updated. The fields include: • • • • Cause-Risk-Effect. Risk Owner. Verifying that Response Plans are current. The PRM Risk Monitoring step includes the primary activities of reviewing and updating risks. Greater effort is typically expended to support company quarterly reporting requirements. Supporting clear lines of communication about the Project’s Risk Profile throughout its life-cycle. This document is proprietary to KBR. Validating that both Target Scores and Current Scores are current. Paper copies of this document are UNCONTROLLED. A Risk shall be updated on a monthly basis or more often as required to reflect its current Risk Status. Monitoring requirements include but are not limited to: • • • • • • • • Ensuring each risk has a dedicated and current Risk Owner. updating the Risk Register and reporting the project Risk Profile. Risk Monitoring is the process of monitoring. managing the implementation of Response Plans. 0 Page 20 of 28 5. When updating an existing risk. The risk monitoring activities give the project team the ability to maintain the most current risk profile. Project Risk Window Dates. As the project progresses. these fields shall be reviewed for relevance and clarity. Conducting periodic project Risk Review Committee meetings with Project Stakeholders in attendance. Ensuring Action Items and Action Owners are current and appropriate. monitoring efforts shall be ongoing and continuous throughout the project life-cycle with reporting and analysis occurring on a monthly basis. updating and evaluating the effectiveness of risk response plans throughout the project or program life cycle. Unless otherwise noted. The Project Risk Register shall be the forum to document and communicate the status of all Risks and to progress the effectiveness of the Risk Response Plans. Ensuring the Risk Register is populated with all appropriate Risks and those entries are current. Monitoring and tracking an approved risk is an essential Risk Management function to ensure that Risks Response Plans are being implemented and decisions associated with the risk are being made in a timely fashion. Risk Review Meetings are essential to the PRM process of managing Project Risk. it is important that the Project Team always ask the question. Risk Actions Items. the status shall be communicated at Mid-Point Review. • • • • • Attachment B IRC & PRC Major Risk Summary (Excel template) Attachment C IRC & PRC Major Risk Summary Slide (PowerPoint template) Attachment D PSR Major Risk Summary (Excel template) Attachment E OPs Review Major Risk Summary (Excel template) Attachment F OPs Review Major Risk Summary Slide (PowerPoint template) Beyond the updating activities associated with existing risks. For proposals. Please refer to the KBR Management System website for the current version . As the project progresses the Risk Profile continuously changes. The management of Cost Contingency is an important aspect of ensuring that cost provisions for risks are allocated for a given period of time and for a given set of risks. as Risk Response Plans are implemented. the status shall be reported to the Stakeholders on a monthly basis during Project Status Review meetings or as requested by Senior Management. Additionally. therefore. Current and Target Scores. During the Proposal Phase and Post-Award Execution Phases. “Are there any new risks to the project?” Every project team member is responsible for alerting the Project Team to new risks that may impact the Project Objectives. The scope and frequency of the meetings will depend This document is proprietary to KBR. refer to Project Controls procedure Contingency Management PR-GL-ECD-CC-1369. the Risk Response Plans for the Major Risks shall be monitored on a weekly basis. and Schedule Risk Assessment PR-GL-ECD-PC-1392. Risks should be submitted in accordance with the PRM Risk Identification practices at anytime during the project life cycle. The cost model and the schedule model can be tools to help assess the changing Risk Profile as well as other Project Controls Best Practices in forecasting. it is important to provide up-to-date information that reflects these changes. the retirement of contingency is to reflect the change in the Risk Profile. For further information. More detailed information about Risk Monitoring of these fields and several others can be found in the PRM Risk Monitoring Work Method that supports this procedure. 0 Page 21 of 28 • • • Risk Response Plan Overview. Operations Review and Pricing Review Committee or as requested by Senior Management. Reference these links for the appropriate Major Risk Summary format. As risks are closed. Paper copies of this document are UNCONTROLLED.PR-GL-ECD-PC-1390 Rev. As the project progresses. The process of periodically reporting and reviewing the status of risk is the principle mechanism for implementing effective Risk Management on a project. For Post-Award Execution Phases. the Risk Scores are to be reassessed as appropriate to reflect management status. Cost Risk Assessment PR-GL-ECD-PC1391. the Risk Profile changes and with this change the allocation of Cost Contingency. the Project Risk Management close-out activities are the last activities within the PRM Risk Monitoring step. are to be reviewed and approved. It is usually timed to be in support of the monthly PSR but can also be convened to support other project milestones and deliverables. it is important to ensure that successes and failures of the Risk Response Plans are archived for later leverage. Finally. the time spent on each risk should be commensurate to the magnitude of the potential impact. The close-out report activities are to be lead by the PRM Department in close collaboration with the Project Team. The project Risk Register is the tool to document this information. This document is proprietary to KBR. and subsequent Major Risk Summary. During the Proposal Phase. each Project Team shall document the lessons learned associated with their project’s Major Risks. 0 Page 22 of 28 upon the complexity of a particular project and the number and severity of the risks identified. such as Project Operations Reviews. As a means to improve future profitability. the committee is less formal with more ad-hoc meetings to suit the Proposal effort. The Formal Risk Review Committee Meeting (RRC) is the primary project risk review meeting and shall take place at least once a month at the project level. The PRM process has been designed to document risks that may have impact on future projects. As a minimum. The close-out activities are essential to continuously improve the company’s knowledge about its projects. For a formal monthly review. the team is to address the entire Risk Register to ensure the lower ranking risks have not become Major Risks.PR-GL-ECD-PC-1390 Rev. the team shall focus the majority of their time addressing the Major Risks (Critical) as ranked in the register. Please refer to the KBR Management System website for the current version . During the quarterly review that supports of the quarterly stock earnings report to the SEC. Any changes to the Risk Register. Paper copies of this document are UNCONTROLLED. As with all Risk Review efforts. including periodic project risk meetings. Develop. Please refer to the KBR Management System website for the current version . Review Risk Ownership of the risks. assessing and managing risk throughout the project life cycle. The Sales Leader’s responsibilities include: • • • • • • Support an appropriate PRM strategy that is to be aligned with company specific commercial objectives. provide feedback and approve Risk Response Plans as necessary. through supervision. Execute an appropriate PRM strategy that is to be aligned with project objectives. Proposal Leader / Project Manager The Proposal Leader / Project Manager is responsible for the Operations activities during the Proposal Phase and Post Award Execution Phases. Participate in the Risk Identification activities such as scoring and validation. Clarify and communicate the acceptable level of commercial risk for the project. environment.1 RESPONSIBILITIES The Project Management Leadership Team led by the Project Manager must be fully committed to formally identifying. Financial and PRM departments. The Proposal Leader’s / Project Manager’s responsibilities include: • • • • • • • Ensure the ongoing PRM strategy remains aligned with company specific commercial objectives. The roles described below are limited to reflect those who routinely participate in the PRM process. Paper copies of this document are UNCONTROLLED. This person is designated by the Proposal Leader or Project Manager in agreement with the Director of Project Risk Management. Review. Attend and provide input for the project’s Risk Review Committee (RRC) Meetings. Risk includes both Threats and Opportunities to the Project Objectives. Ensure. 0 Page 23 of 28 6.PR-GL-ECD-PC-1390 Rev. Sales Leader The Sales Leader is responsible for the commercial activities during the Pre-Award Phases. size and complexity. Project Risk Coordinator (PRC) The Project Risk Coordinator can be both a functional role as well as a full time project position role depending on the project’s phase. This document is proprietary to KBR. complexity and size.0 RESPONSIBILITIES / INTERFACES 6. effective implementation of Risk Monitoring activities. Successful Risk Management leverages the experience of all project participants while understanding the probability and consequences of events that influence the Project Objectives. review and comment on Risk Response Plans as appropriate. Participate in the assignment of Risk Owners to identified Project Risks. The PRC’s responsibilities include: • Chair RRC meetings. Coordinate Risk Management communications between Legal. Clarify and communicate the acceptable level of commercial risk for the project. status and progress of a risk throughout the project life cycle. document and report the project’s risk profile to RRC and other Project Stakeholders. The Risk Owner is accountable for the review. Respond to feedback from the team and implement necessary improvements. During the Project Lifecycle. Gather feedback from the Project Team about the PRM process and report back to the PRM Department. As appropriate. Typically the person is the project member who is best able to develop. accurate and complete. Risk Owner As nominated by the Proposal Leader / Project Manager or RRC. Report status of Response Plan Actions to Risk Owner. 0 Page 24 of 28 • • • • • • Review the Project Risk Register regularly to ensure completeness and determine whether or not the most Critical Risks should be elevated to the next level of management. The committee is less formal with more adhoc meetings to suit the Proposal effort. The Risk Owner is responsible for supporting the following: • • • • • • • • • Ensure that the risks under their responsibility are transparently and accurately described within the Risk Register as required by the project. Coach and train the project team about the PRM process. The Risk Action Owner’s responsibilities include: • • Manage and implement Action Items. Capture and report lessons learned as related to effectiveness of Risk Response Plans. This document is proprietary to KBR. Assist the Proposal Leader / Project Manager and PRC in the provision of all data necessary for the effective assessment of risks. the RRC consists of the Sales Leader. Please refer to the KBR Management System website for the current version . Analyze. Act as the focal point for their risk(s) by monitoring progress of approved response actions. trend. Proposal Leader / Project manager. maintain and manage the implementation of the Risk Response Plan for a particular risk. regularly bring newly submitted risks to the RRC for review. current. Ensure the Risk Response Plans remain.PR-GL-ECD-PC-1390 Rev. Report the status of those individuals tasked with implementing a Risk Response Plan. the Risk Owner can be any project team member. Risk Review Committee (RRC) The RRC is chaired by the PRC. Project Sponsor and other Stakeholders as required. Project Discipline Managers. During the Proposal Phase. ensure all contractors / subcontractors under their responsibility cooperate and are fully informed of the requirements supporting a timely Risk Response Plan. at all times. Close risk if no longer applicable. Assist Project Team members with entering or modifying risks in RMS and answering general RMS user’s questions. Paper copies of this document are UNCONTROLLED. Risk Action Owner The Risk Action Owner is formally selected by the Risk Owner from the project team. These project personnel are responsible for providing risk inputs from their estimating data systems to support the PRM process in accordance with this procedure.responsible for support of project implementation and compliance verification of the practices established by their respective department and the project‘s PRM execution plans in support of this procedure. Project Risk Analysts. Review and approve reports that will communicate the project’s Risk Profile to Management. INTERFACES 6. These project personnel are responsible for providing risk inputs from their controls’ forecasts and data systems to support the PRM process in accordance with this procedure. RRC responsibilities include: • • • • • • Review and approve Risk Owners.PR-GL-ECD-PC-1390 Rev.2 Vice President of Project Controls – responsible for authorization of and compliance with the practices established by this procedure.responsible for project implementation and compliance of the practices established by their department in support of this procedure. Approve any substantive changes to Risk Response Plans. 0 Page 25 of 28 During the Post Award Execution Phase the committee is formal in nature. meeting at least once a month and consists of the Project Management Leadership and other primary Project Stakeholders. Project Risk Coordinator . Paper copies of this document are UNCONTROLLED. Project Controls Personnel .responsible for project implementation and compliance of the practices established by their department in support of this procedure. With respect to “Risk Monitoring”.responsible for project implementation and compliance of the practices established by their department in support of this procedure. Approve any new risks and the closure of old risks. Accounting and Finance (A&F) . Estimating Personnel . Director of Project Risk Management – responsible for the division’s implementation and compliance verification of the practices established by this procedure.responsible for project implementation and compliance verification of the practices established by this procedure. Please refer to the KBR Management System website for the current version . This position is to interface with all projects and supporting corporate departments to ensure PRM best practices are established. This document is proprietary to KBR. Evaluate the project’s overall Risk Profile. Review and approve the Major Risk Summary. workhours. contract terms. Procurement – – responsible for project implementation and compliance of the practices established by their department in support of this procedure. pricing. commitments. pricing. productivity. Information Technology (IT) – responsible for project implementation and compliance of the practices established by their department in support of this procedure. Legal & Contracts . The group provides risk inputs per the PRM process for such items as rates. workhours. quantity variations. contract terms. productivity. Please refer to the KBR Management System website for the current version . execution duration and risk memos etc. commitments. Subcontracts – responsible for project implementation and compliance of the practices established by their department in support of this procedure. execution duration and risk memos etc. The group provides risk inputs per the PRM process for such items as unit rates.responsible for project implementation and compliance of the practices established by their department in support of this procedure. The group provides risk inputs per the PRM process for such items as pricing. execution duration and risk memos etc. 0 Page 26 of 28 The group provides input for financial and contract requirements as specified by the PRM process and procedures. Construction – responsible for project implementation and compliance of the practices established by their department in support of this procedure. contract terms. Engineering – responsible for project implementation and compliance of the practices established by their department in support of this procedure.PR-GL-ECD-PC-1390 Rev. Paper copies of this document are UNCONTROLLED. The group provides input for legal and contractual requirements as specified by the PRM process and procedures. and delivery periods of materials/equipment and risk memos etc. The group provides necessary hardware and software support of RMS. productivity. The group provides risk inputs per the PRM process for such items as rates. This document is proprietary to KBR. commitments. Paper copies of this document are UNCONTROLLED. Please refer to the KBR Management System website for the current version .0 REFERENCES PR-GL-ECD-PC-1391 PR-GL-ECD-PC-1392 GD-GL-ECD-PM-1202 GD-GL-ECD-PM-1203 GD-GL-ECD-PM-1206 Cost Risk Assessment Schedule Risk Assessment Risk Management Flow Diagram Project Risk Management Guideline Risk Register Concept P-GL-KBR-BDO-1702 BP-GL-ECD-SALES-001 BP-GL-ECD-PP-1401 DM-GL-KBR-PM-1201 PR-GL-ECD-CC-1369 Business Development Oversight (BDO) Sales Procedure Proposal Procedure PMDM.PR-GL-ECD-PC-1390 Rev. 0 Page 27 of 28 7. Section 4125 Contingency Management This document is proprietary to KBR. 0 Page 28 of 28 8.7 8. Please refer to the KBR Management System website for the current version .3 8.1 8.8 ATTACHMENT A ATTACHMENT B ATTACHMENT C ATTACHMENT D ATTACHMENT E ATTACHMENT F ATTACHMENT G ATTACHMENT H KBR Risk Breakdown Structure / RBS IRC & PRC Major Risk Summary (Excel template) IRC & PRC Major Risk Summary Slide (PowerPoint template) OPs Review Major Risk Summary (Excel template) OPs Review Major Risk Summary Slide (PowerPoint template) PSR Major Risk Summary (Excel template) RMS Register Upload Template (Excel template) RMS Submittal Upload Template (Excel template) This document is proprietary to KBR. Paper copies of this document are UNCONTROLLED.5 8.4 8.0 ATTACHMENTS 8.2 8.PR-GL-ECD-PC-1390 Rev.6 8.