Services And Example Projects
Risk Analysis during Feasibility and Option Selection
Supporting the Development of Business Cases
Embedded Risk Management throughout the Project Life Cycle
Review of Financial Models and Risk Calculations
Review of Tenders and Bids – Bidders and Clients
Risk Analysis and Management of a Portfolio of Projects
Implementing an Investment Risk Appraisal Process and Training
Audit of Existing Risk Management Process
Time Risk Assessments for Critical Project Plans
Services we provide and example projects
Risk Analysis during Feasibility and Option Selection
DS+A were involved in the development of the West London Tram Scheme from 2003 to the end of 2007 when the scheme was abandoned. The DS+A team provided a full range of programme and risk management services including Quantitative Risk Assessments (QRA) of the overall project costs for the implementation and operation of the scheme for a wide number of different options, e.g. route options through key locations along the route and of Depot options.
In addition we have also carried out risk assessments to support of the option selection for the Croydon Tramlink Extension Project. The study included the evaluation of the risk exposure of four different route options and recommendations on how to mitigate the risk exposure during the option refinement stage.
Supporting the Development of Business Cases
DS+A developed two of the five calculations underpinning the Crossrail business case: the Risk Model and the Investment Model. Crossrail is a £15bn railway infrastructure project sponsored jointly by the Department for Transport and Transport for London. Crossrail will use existing surface railway routes and a new tunnelled route under London to link Maidenhead in the West to Shenfield and Abbey Wood in the East.
The Risk Model justified a quarter of the funding and the Investment Model calculated the overall cost. DS+A also devised the Crossrail Risk Management Plan. External reviewers described our work as exceeding industry standards in their report to Government.
Embedded Risk Management throughout the Project Life Cycle
The East London Line Enhancement Programme (ELLEP) is a £1bn north–south rail link between Dalston and West Croydon that opened in 2010. The scheme is an integral part of Transport for London’s strategy for urban infrastructure.
Risk management provided by DS+A, since 2002, has remained a key component of the client management methodology where it is used to assure the sponsors of the scheme that risk is being controlled and the contingency reserves are efficiently managed. The team have also supported associated works including the North London Rail Investment Programme , Phase 2 of the East London Line and the Latchmere Curve Scheme.
Review of Financial Models and Risk Calculations
DS+A was appointed by the National Audit Office to advise on the financial models used for appraising the letting of rail franchises between 2005 and 2007, and was also appointed to the Expert Advisory Panel.
We reviewed the structure of the models and examined how they assessed the revenues and costs of the bids.
We examined how allowances were made for assumptions about risks in the proposed business solutions. The work was cited in the NAO report on Letting Rail Franchises 2005-2007 (The Stationary Office, 2008).
Reviews of Tenders and Bids – Bidders and Clients
DS+A have helped many bid teams in facilitation of risk workshops and provided detailed risks assessments for the contractor to understand the inherent risks in the works tendered for. In addition we have, on numerous occasions, supported the client teams with the procurement process in establishing risk related input to tender documentation and supported the contractor selection process, including detailed risk assessments of the competing bids to understand the risk exposure inherent in each bid.
Risk Analysis and Management of a Portfolio of Projects
DS+A provides Quantitative Risk Analysis (integrated cost and schedule) supporting Docklands Light Railway in implementing the risk management process for a number of investment projects, including: 3-Car Platform Extension Works, implementation of New Vehicles, Stratford International and Woolwich Arsenal Extension.
Works has included facilitating risk identification, assessment, and mitigation workshops with DLR and external stakeholders to ensure clear understanding of responsibilities within each project team and supporting the team in the execution of these. The analyses has also included assessment of how risk money will be spread through time that is some cases has enabled the Managing Director to release risk allowances from individual projects prior to project completion. This ensures that the capital funding is fully utilized over the portfolio of projects.
Implementing an Investment Risk Appraisal Process and Training
DS+A developed and rolled out a new investment appraisal process for the New Zealand equivalent of the UK Highways Agency.
This involved the production of documentation, training of key staff, completing a number of case-book examples of proposed investments and reviews of current major projects.
Audit of Existing Risk Management Process
DS+A carried out a review of the risk management processes used by Transport for London’s Major Project unit and developed a new approach to risk in the department in order to ensure that risk services were properly understood and recognised, as well as to raise the profile of risk work and to improve the techniques used in reaching robust estimates and relevant quantitative cost risk assessments (QCRA) for funding applications.
Time Risk Assessments for Critical Project Plans
DS+A provided risk management services for the North London Rail Investment Project (NLRIP), delivered as part of Networks Rails programme supporting the necessary transport requirements for the 2012 Games. We worked on the project from initiation to successful delivery of the project requirements in 2011.
Part of our work included the production of Quantitative Schedule Risk Assessments (QSRA) in line with Network Rail’s “Delivering Work in Possessions”. This included detailed risk assessment of a large number of hour-by-hour activity schedules for critical weekend possessions and longer blockades of up to 14 weeks. These assessments ensure adherence to the corporate policy but, more importantly, gave the project teams the necessary level of confidence in being able to hand back on time, minimising the disruption on the running railway.