Quantitative Risk Assessment

Quantitative Risk Assessment (QRA)

At SOMA Risk Management, we offer comprehensive Quantitative Risk Assessment (QRA) services to help project teams understand and manage the risks associated with their projects. QRA is a powerful modeling technique that allows for a thorough evaluation of project risks and their potential impact on project schedule and cost outcomes. By utilising advanced Monte Carlo simulations, our risk models consider both project uncertainties and potential risks, providing valuable insights to support decision-making.

Quantitative Cost Risk Analysis (QCRA)

With our Quantitative Cost Risk Analysis (QCRA) service, we utilize sophisticated Monte Carlo simulations to provide a detailed understanding of potential cost risks associated with your project. By considering various uncertainties such as price fluctuations, labor and material costs, and other project-specific variables, we generate a range of possible cost outcomes based on probabilities. This enables you to make more informed budgeting decisions and develop effective strategies for cost risk mitigation.

Quantitative Schedule Risk Analysis (QSRA)

Our Quantitative Schedule Risk Analysis (QSRA) service employs similar Monte Carlo simulations to assess potential risks to your project schedule. By considering uncertainties in task durations and dependencies, QSRA provides a probabilistic assessment of project timelines. The outputs of QSRA include detailed risk impact assessments, highlighting potential delays and their causes. This information enables you to prioritize and implement strategies for effective schedule risk mitigation.

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.

Why Choose SOMA Risk Management?

At SOMA Risk Management, we are committed to delivering a holistic, data-driven approach to risk management. By partnering with us, you gain access to the following key benefits:

Confidence

We empower you to make informed decisions with clarity and certainty. Our expertise in Quantitative Cost Risk Analysis (QCRA) and Quantitative Schedule Risk Analysis (QSRA) enables us to provide comprehensive risk assessments, giving you a deep understanding of the potential cost and schedule outcomes of your project. With our insights, you can confidently navigate uncertainties and mitigate risks effectively.

Resilience

Enhance your project’s resilience to withstand threats and disruptions. By leveraging our risk management services, you gain valuable insights into potential risks and develop proactive strategies to address them. We work closely with you to identify vulnerabilities and implement robust risk mitigation measures, ensuring your project is equipped to handle unforeseen challenges and maintain its course towards success.

Growth

Unlock opportunities by understanding potential risks. Our meticulous approach to risk management goes beyond identifying threats; it also encompasses recognizing potential opportunities. Through our Quantitative Risk Assessment (QRA) services, we help you assess and evaluate both risks and opportunities, enabling you to make informed strategic decisions. By embracing a proactive mindset, you can capitalize on favorable circumstances and drive growth within your project and organization.

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.