QRA

When is best to run QRA?

At SOMA Risk Management, we believe in maximizing the value of your Quantitative Risk Analysis. The best time to conduct a risk model depends on your project’s stage and key decision points. We recommend the following approaches:

1. Start of Project

Performing a QRA at the beginning of a project, before a baseline is agreed upon, provides a solid foundation for risk management. It allows you to identify potential risks, quantify their impact, and establish realistic schedules and cost estimates from the outset.

2. Key Decision Points

Carrying out a QRA at significant decision points during project delivery is crucial. These points may include design changes, major milestones, or when additional resources are required. Conducting a QRA at these stages helps evaluate the impact of decisions on project outcomes and provides insights to mitigate risks effectively.

3. Time-Critical Work

For time-critical pieces of work, such as outages, commissioning, or infrastructure blockades, running a risk model is essential. It forecasts the probability of delivering on time and helps focus attention on critical areas to minimize the chances of delays.

Outputs of Quantitative Risk Assessment (QRA)

At SOMA Risk Management, we believe in maximizing the value of your Quantitative Risk Analysis. The best time to conduct a risk model depends on your project’s stage and key decision points. We recommend the following approaches:

A Risk Register provides a systematic documentation of identified risks, their likelihood, potential impacts, and recommended risk response strategies. It serves as a centralized reference tool for the project team to understand and manage risks effectively. Our Risk Registers are clear, concise, and provide a comprehensive overview of the project’s risk landscape.

QRA helps evaluate the potential impact of risks on the project schedule. By incorporating uncertainties and risk factors, we generate probabilistic assessments of task durations and dependencies. The Schedule Impact Assessment highlights critical activities, potential delays, and their causes. This enables you to prioritize resources, allocate contingency time, and develop effective schedule risk mitigation strategies.

With QRA, we assess the potential cost impacts of risks on your project. Monte Carlo simulations allow us to model cost uncertainties and generate a range of possible cost outcomes. The Cost Impact Assessment provides insights into potential cost overruns, cost variances, and the key risk drivers. It empowers you to make informed decisions about budgeting, resource allocation, and risk mitigation measures.

We employ advanced techniques, such as Tornado Charts and Sensitivity Analysis, to identify the key risk drivers in your project. These visual representations show the relative importance of different risks and their impacts on project outcomes. By understanding the critical risk drivers, you can focus your resources and efforts on mitigating the most significant risks, leading to more effective risk management strategies.

QRA provides a probabilistic view of project outcomes, offering confidence levels and probabilistic forecasts. This allows you to understand the range of possible project outcomes based on different risk scenarios. Our outputs provide insights into the likelihood of meeting project milestones, achieving budget targets, and overall project success. These probabilistic forecasts facilitate more accurate project planning, decision-making, and risk mitigation.

To ensure effective communication and stakeholder engagement, we provide executive summaries and comprehensive reports summarizing the findings of the QRA. These reports present key risk metrics, highlight critical risks, and provide actionable recommendations. Our reports are designed to be clear, concise, and accessible to both technical and non-technical stakeholders, enabling effective decision-making at all levels.

At SOMA Risk Management, our QRA outputs are customized to meet your specific project requirements. We work closely with you to ensure that the outputs are relevant, actionable, and aligned with your project goals. Our aim is to provide you with the necessary information and insights to navigate risks confidently, make informed decisions, and achieve successful project outcomes.