Risk Management in Transport Infrastructure Projects

Project risk management is generally seen as a formal process whereby risks are systematically identified, assessed and provided for. Risk management has to be an endless process consisting of phases which enable continuous improvement in decision-making and performance improvement. The delivery of modern transport infrastructure projects is very complex and they require strategies that appropriately reflects the uncertainty and variety of risks they are exposed to. In addition, infrastructure projects involve a large number of different stakeholders entering the project life cycle at different stages with different roles, responsibilities, risk-management capabilities and risk-bearing capacities, and often conflicting interests. The fact that risks can materialize in later stages, but have actually been caused in earlier stages, requires an end-to-end risk management view, as opposed to an individualized responsibility.. Proper front-end project planning is all about shaping the project’s risk profile so it can be managed during execution, and execution is all about aggressively mitigating the risks. A more comprehensive approach to risk management would address the key issues facing all parties and stakeholders involved in a transport infrastructure project.