RISK MANAGEMENT PLAN

Tables of Contents
1.0 Introduction ........................................................................................................................................................................ 6
2.0 Definitions and Interpretations........................................................................................................................................ 6
3.0 Risk Management Process................................................................................................................................................... 7
3.1 Timing of Risk Assessments .................................................................................................................................................... 8
3.2 Risk Assessment ..................................................................................................................................................................... 8
4.0 Risk Assessment Procedure ........................................................................................................................................................ 8
4.1 Identification of Hazards ......................................................................................................................................................... 9
4.2 Identification of Who/what is at Risk of Harm/Damage ......................................................................................................... 9
4.3 Risk Evaluation...................................................................................................................................................................... 10
4.4 Existing Risk Controls ............................................................................................................................................................ 10
4.5 Evaluating Factors ................................................................................................................................................................ 10
4.6 Determination of Consequence ............................................................................................................................................ 11
4.7 Determination of Probability ................................................................................................................................................ 12
4.8 Determination of Risk Rating ................................................................................................................................................ 13
5.0 Risk Management and Control ................................................................................................................................................. 14
5.1 Risk Management Action...................................................................................................................................................... 14
5.2 Risk Treatment ..................................................................................................................................................................... 14
5.3 Hierarchy of Risk Control ...................................................................................................................................................... 14
5.4 Residual Risk ......................................................................................................................................................................... 16
5.5 Implementation of Control Measures .................................................................................................................................. 16
6.0 Monitoring and Reviewing ....................................................................................................................................................... 16
6.1 Monitoring ........................................................................................................................................................................... 16
6.2 Review .................................................................................................................................................................................. 17
6.3 Records ................................................................................................................................................................................. 17
6.4 Audit ..................................................................................................................................................................................... 17
7.0 Communication of Risk Management Controls ........................................................................................................................ 17
7.1 Communication Tools ........................................................................................................................................................... 17
7.2 Competent Person................................................................................................................................................................ 18
8.0 Training .................................................................................................................................................................................... 18
9.0 Documentation......................................................................................................................................................................... 18
10.0 Project Risk Register ............................................................................................................................................................... 19
1.0 Introduction:
The purpose of this section is to introduce minimum requirements for Risk Assessments. These requirements
are intended to provide Consultants, Contractors, sub-Contractors, and Visitors with guidelines for the
identification of health and safety hazards and environmental impacts, development of a risk and impact
assessment process and development of risk controls for the management of identified hazards in order to
minimize undesirable incidents, damage and losses.

2.0 Definitions and Interpretations:

Risk Assessment: The process of hazard, aspect, impact, identification, assessment of the risk, and
identification of the controls required to manage the risk to an acceptable level to
ensure the health and safety of those affected by the activity and the protection of the
environment from harm.

ALARP: As Low as Reasonably Practicable.

Analysis: Describe the likelihood of an event arising and its consequences.

Consequence: The outcomes of an event expressed qualitatively or quantitatively, being a loss, injury,
disadvantage, or gain.

Frequency: A measure of the rate of occurrence of an event expressed as a number of

consequences of an event in a given time.

See also Likelihood and Probability.

Hazard: Source or situation with a potential for harm in terms of injury or ill-health, damage to
property, damage to the workplace environment, damage to the natural environment,
or a combination of these.

Hazard Identification: Process of recognizing that a hazard exists and defining its characteristics.

HAZOP Study: Examination of a task or process by a team of people familiar with the process to
identify actual and potential hazards in the operations, so that they may be eliminated
or mitigated.

Likelihood: Used as a qualitative descriptor of probability or frequency

Probability: The likelihood of a specific outcome, measured by the ratio of specific outcomes to the
total number of possible outcomes. Probability is expressed as a percentage between
0% and 100%, with 0% indicating an impossible event or outcome and 100% indicating
an event or outcome is certain.

Quantitative Analysis: This uses numerical values (rather than the descriptive scales used in qualitative
analysis) for both consequence and likelihood using data from a variety of sources. The
value of the analysis depends on the accuracy and completeness of the numerical data
used.
Residual Risk Number: A risk level number generated from an assessment of the likelihood and severity of
injuries arising from a hazard with mitigating controls in place.
 Risk: The chance of something happening that shall have an impact upon objectives.

Risk Register: A register that summarizes all of the risk assessments and can act as a management
tool for the monitoring and updating of risk assessments.

Risk Evaluation: The process used to determine risk management priorities by comparing the level of
risk against predetermined standards, target risk levels or other criteria.

Risk Factor Number A risk level number generated from an assessment of the likelihood and severity of
injuries arising from a hazard.

Risk Management: The culture, processes and structures that are directed towards the effective diverse
management of potential opportunities and adverse effects.

Severity: Used as a qualitative descriptor of an undesirable outcome.

Tolerable Risk: Risk that has been reduced to an acceptable level that can be endured by all impacted
parties having regard to legal obligations and Health and Safety policy.

3.0 Risk Management Process

General

There are several processes used to manage H&S risk at various stages of a project, from development,
design, and construction, through to operation and maintenance.

An effective risk management system should comprehensively cover all parts and processes of the project and
shall address all identified potential risks to a particular project.

As an example of identified risks, all the risks below need to be considered:

Natural disasters
Deliberate acts
Hazardous events in the vicinity of the project
Unusual, atypical or abnormal events and conditions

An effective risk management system shall also provide a process to:

Assess such risks in a quantitative manner (if possible) based on collected data (in order to minimize
guesswork)
Ensure regulatory compliance
Aim for risk elimination, or, at the very least, reduce risk to a tolerable risk
But most of all, an effective risk management system shall protect people, the environment, property
and as a result of that, the Project.
3.1 Timing of Risk Assessments

Risk assessments shall be conducted as and when necessary, including:

Project Start Up (before work activities begin)

As part of a change management program
As part of incident investigation close outs
Upon introduction of new workers
Upon introducing and usage of new machinery/equipment
In the presence of a high level of risk associated with a specific work activity
When legislative obligations (including regulations) change

3.2 Risk Assessment

All H&S risk assessments shall be documented and tracked using a Risk Register. The outcomes of risk
assessments shall then be communicated as Procedures, Project Instructions, Method Statements, JHA’s and
Work Checklists as required.

The Risk Assessment Register gives an overview of the hazards associated with tasks involved in a project and
should be specific enough to accurately determine which tasks need closer examination.

On completion of a Risk Assessment the record shall then be used to supply the following information to the
relevant persons at risk:
Hazard/risk/impacts
Preventative and protective measures
Emergency procedure
Name of emergency wardens or incident controllers
Instruction and training to carry out the work safely

All activities undertaken under the Risk Assessment (and controls therein) shall be monitored to ensure that
the assessment is both suitable and sufficient and is being worked to.

Any changes in work must be notified to the competent person who has developed the Risk Assessment and
must result in a review of the assessment and if necessary, a revised assessment produced.

4.0 Risk Assessment Procedure

The risk assessment procedure can be addressed systematically in five steps:

Identify the hazards
Risk control & Hierarchy of control
Identify who may be harmed or what may be damaged, and how
 Evaluate the risk level
Determine additional control measures (if required) and implement
Monitor and review effectiveness of the control measures
Keep Health and Safety First in all Things

4.1 Identification of Hazards

The first step in risk management is to identify hazards. There are many methods which can be employed for
hazard identification. These include:
Inspect and assess the workplace to identify what could reasonably be expected to cause harm.
This may arise from work activities, plant and machinery or known hazards
Review existing incident reports and near miss reports from the actual workplace or from similar
activities on other projects
Consult with management, workers, and stakeholders to bring together different areas of expertise
to identify hazards/risks that are not immediately obvious to everyone
Visit regulatory agency websites or contact H&S trade associations for practical guidance on where
hazards occur and how to control them. Information may be available on the hazards that might
affect the organization
Check manufacturers’ instructions or data sheets for chemicals and equipment as they can be very
helpful in spelling out the hazards and putting them in their true perspective
Review accident, injury and ill-health records to help identify the less obvious hazards
Assess long-term hazards to health (such as high levels of noise or exposure to harmful substances)
as well as safety hazards
Make judgments based on experience and records, flow charts, brainstorming, systems analysis,
scenario analysis and systems engineering techniques

Other important considerations while identifying hazards are:

The more input / data, the better the result. This can include hazard information, drawings,
inspection reports, industry bulletins, and records of incidents, illnesses and disease)
There are risks associated with each life cycle phase of the project (design, procurement,
construction (and subcontracting), commissioning, operation (and maintenance) and
decommissioning)
Hazards/risks can arise from sources both internal and external to the Project, and may affect any
levels/contexts/work processes within the Project

4.2 Identification of Who/what is at Risk of Harm/Damage

For each hazard it is vital to be clear about who or what might be harmed or damaged, as it will help identify
the best way of managing the risk. This involves identifying groups of people (e.g. ‘people working in the
storeroom’ or ‘passers-by’), objects (e.g. plant/machinery) or sensitive/ protected environmental areas (e.g.
wetlands or forests).
 In each case, it is very important to determine:
Who faces these hazards (e.g. ‘passers-by’ or ‘marine habitat’)
How many are at risk
How they might be harmed (e.g. what type of injury or ill-health might occur)
The degree of exposure to that risk

It is also important to remember that some workers have additional difficulties, such as
inexperienced workers, new or expectant mothers and people with disabilities that may put them
at particular risk. Extra thought is also needed for some hazards:

Cleaners, visitors, Contractors, maintenance workers and similar, who may not be in the workplace
all the time
Members of the public, if they could be hurt by Contractor activities

4.3 Risk Evaluation

Risk evaluation is about understanding the risk, determining if the risk needs additional controls, and
identifying what the most appropriate and effective risk treatment strategy is.

A common method of risk assessment is a semi-quantitative analysis, where the qualitative descriptors of
consequence and likelihood are given numerical values which are then used to give a risk rating. Consideration
is given to the sources of risk, the resultant consequences and the probability of them occurring.

4.4 Existing Risk Controls

When considering risk controls, it is likely that all current work activities use some form of risk control, either
documented (such as a risk assessment or JHA), or as accepted industry practice (such as fall protection).
Therefore, the objective of a risk assessment should be to ascertain whether these existing risk controls are
adequate and what risk controls are necessary to reduce the risk to a tolerable risk.

4.5 Evaluating Factors

Additional information or evaluating factors can be obtained from assessing the staff, workplace or
environment to determine the relative consequence of a risk.

Environmentally, the evaluating factors from the discharge or emission of a pollutant include:
Toxicity of discharge
Concentration of chemical / potential dilution
Duration/persistence of discharge and volume released
Proximity to water bodies or other sensitive receptors
Area of land/marine waters affected

From a safety and health perspective, evaluating factors can include:

 Size, shape, surface character and weight of materials that may be handled
The distance and heights to which materials have to be moved
Duration, frequency and locations of activities being undertaken
Competency of individuals undertaking activities
Potential damage to assets (such as plant or premises) from activities

4.6 Determination of Consequence

For a particular event, there may be a range of possible outcomes. For example, a person who slips on wet
steps can have differing consequences and resulting degree of injury/illness/disability:
Stagger but not fall
Fall, which may result in a: bruise, broken limb or broken neck (death)

For risk assessments, five levels of severity of consequence have been used – insignificant, minor, moderate,
major and catastrophic.

Table 1 below assigns a number to a consequence level (1-5) and provides definitions as to what that level
means for impacts to health and safety, and the environment. Where there is doubt as to which outcome
would have the highest risk level, both should be considered, with the highest one being selected.

Table 1 – Hazard Consequence.

Level Descriptor Health & Safety Environment

5 Catastrophic Multiple fatalities or multiple Massive pollution with significant

permanent disabling injuries recovery work lasting more than 12
or disease. months.

Global media interest.

Significant permanent
damage.
4 Major Fatality or permanent Significant pollution with offsite impact
disablement from injuries or and recovery work requiring 6 – 12
disease. months to fix.

Long term absence. Some permanent damage. National

and regional media interest

3 Serious Life threatening injury/major Pollution with some offsite impact

health affect to individual and recovery work lasting 1 – 6
requiring medivac to hospital months.
facilities.
Short term absence from work. Possible outside assistance
required to contain. Some local
media interest
 2 Medium Injury and illnesses requiring Minor pollution, slight or negligible
treatment by medically qualified impact, negligible remedial / recovery
person. Complete recovery. work lasting less than 1 month.

No lost time. Full recovery possible.

1 Minor Injury which may or may Minimal pollution effect, contained

not require first aid
treatment. locally. Complete recovery possible

Slight health effect not immediately.

affecting performance or
causing absence.

4.7 Determination of Probability

Probability can be examined with regard to the chance or likelihood that a particular outcome will happen to
any of the following:
A single person or member of the general public;
The project (more persons potentially exposed).

Table 2 below assigns a number to the probability. As can be seen, probability can be very variable.
In order to protect people on a Project, the Likelihood Level for “Project” should be used.

Table 2 – Hazard Probability

Level Descriptor Health & Safety Environment

5 Almost > 1 per week Continuous or will happen frequently

Certain
>25%

4 Likely 1 per week – 1 per month 5 – 12 times per year

10-25%

3 Possible 1 per month – 1 per year 1 – 5 times per year

1-10%

2 Unlikely 1 per year – 1 per 10 years Once every 5 years

0.1-1%

1 Rare < 1/10 years Less than once every 5 years

0.1%
4.8 Determination of Risk Rating

The level of risk for each individual. Hazard is calculated by multiplying the consequence level against the
probably of occurrence. This will assist when determining the additional control measures (if required) that
are needed.

Table 3 below shows a matrix (in the conventional format of consequence on the horizontal axis increasing to
the right and probability on the vertical axis decreasing with height) which provides a consistent method of
assessment.

Once the risk factor number (RFN) has been determined, the hazard is placed in one of four risk categories
based on the score:
Low Risk (hazard risk rating of 1-4)
Moderate Risk (hazard risk rating of 5-11)
High Risk (hazard risk rating of 11-19)
Extremely High Risk (hazard risk rating of 20-25)

Table 3 – Risk Level Matrix

CONSEQUENCE
1 2 3 4 5
Minor Medium Serious Major Catastrophic
1st Aid MTI Medically RWI LTI Fatality
First Aid Injury Treated Injury Restricted Work Lost Time Injury
SAR10K - Injury
1 < SAR10k SAR20k – SAR100k – > SAR500k
SAR20k SAR100k SAR500k
A – Almost Certain
MODERATE HIGH EXTREME EXTREME EXTREME
> 1 per week
11 16 20 23 25
(>25%)
B – Likely
MODERATE HIGH HIGH EXTREME EXTREME
1/week – 1/month
7 12 17 21 24
(10-25%)
LIKELIHOOD

C – Possible
LOW MODERATE HIGH HIGH EXTREME
1/month – 1/year
4 8 13 18 22
(1-10%)
D – Unlikely
LOW LOW MODERATE HIGH HIGH
1/year – 1/10 years
2 5 9 14 19
(0.1-1%)
E – Rare
LOW LOW LOW MODERATE HIGH
< 1/10 years
1 3 6 10 15
(0.1%)

RESIDUAL RISK RATING RESULT CONTROL LEVEL

(after controls in place) (Authority)
TOLERABILITY CRITERIA

EXTREME Unacceptable General Manager

HIGH Undesirable Project Director/Manager

Tolerable, but risk should be reduced if
MODERATE Supervisory Staff
reasonably practical
LOW Broadly acceptable Procedural Control
5.0 Risk Management and Control

5.1 Risk Management Action

The risk level will determine what corrective action is required in order to manage the hazard
at an acceptable and ‘as low as reasonably practicable; (ALARP) risk level, as well as the
timeframe for implementation. The higher the risk level, the more senior the management level
responsible for risk control action approvals and the more urgent the action timeframe (unless
work has not yet started, or has been stopped pending risk control action).

It should be remembered that all incidents must be reviewed in light of the proposed and actual
risk controls existing at the time of the incident. Any necessary re-assessment of the risk level
associated with that incident shall be communicated to all relevant persons both on and off site.

5.2 Risk Treatment

The options for risk treatment are:

• Accept – accept the risk where the risk level is estimated to be within the tolerable risk range.
If some risk remains, it is called retained risk (tolerable risk) and financially may be treated
by self-insurance

• Avoid – by deciding not to proceed with that activity

• Transfer – in full, or in part, to another party (i.e. a specialist). However, it is important to

note that some liability for that risk may still remain with the Employer or Consultant.
Methods used include transfer by subcontracting the work, obtaining suitable insurance or
hedging.

• Reduce – Reduce the risk level to an acceptable level, either through reducing the
consequence, the probability, or (preferably) both. Risk reduction shall utilize the generally
accepted hierarchy of risk control

5.3 Hierarchy of Risk Control

Control of identified hazards and risks shall, in the first instance, be in accordance with any
regulatory authority requirement or mandatory Code of Practice. Where no regulation applies,
the basic hierarchy of risk control is shown below, in reducing order of effectiveness.
From a health and safety viewpoint, the hierarchy of control is:

• Elimination – Eliminate the task or hazard/risk. This is a permanent solution, and the
preferred option
• Substitution – Substitution refers to the replacement of the source of the hazard / risk with
a less hazardous one. This control basically reduces the possible consequence but not the
likelihood

• Engineering controls – Engineering controls involve some structural change, or re-design

(including isolation) to the work process or work environment, to physically prevent, or
reduce, exposure to the hazard. Generally, these controls reduce likelihood.

• Procedural controls – Procedural or administrative controls are dependent on appropriate

human behaviour for effectiveness and generally reduce likelihood. These controls include
such measures as:

➢ Job Rotation to Restrict Exposure

➢ Controlled or Limited Entry to Hazardous Areas
➢ Suitable and Effective Supervision
➢ Training, Education and Instruction Programs
➢ Preventative Maintenance Procedures
➢ Proper Housekeeping
➢ Warning Signs
• Personal Protective Equipment (PPE) – PPE places a barrier on the wearer to prevent
exposure to the hazard, the success of which is dependent on: the suitability of PPE selected
and used; and ensuring appropriate human behavior by the wearer;

Wherever possible, elimination of a hazard/risk shall be the preferred control, followed by

substitution, then engineering controls. These are permanent solutions, which are not
dependent on compliance by people for success. Administrative controls and the use of PPE are
the least desirable options, as they are dependent on compliance by personnel, which may
necessitate increased levels of supervision.

From an environmental viewpoint, the hierarchy of control is:

• Avoidance / Source Reduction

• Re-use
• Recycling
• Recovery of energy
• Treatment
• Containment
• Disposal
• Remediation and clean up
 5.4 Residual Risk

Once the appropriate risk control measures have been selected, the new Probability and
Consequence of the hazard are reassessed to calculate the Residual Risk level that remains,
which is documented on the H&S Risk Register. This Residual Risk shall be assessed and
evaluated using the same processes as before.

• Where the Residual Risk Number (RRN) is 6 or greater, a detailed method statement for the
particular task is to be prepared with controls established to manage the risk.

• Where the Residual Risk Number is greater than 15 a hazardous operations (HAZOP) study
of the task may be undertaken before the method statement is prepared. The Project
Manager shall convene the HAZOP study which shall include supervisory staff responsible
for the operation, Contractor’s supervisory staff and the Project H&S Representative.
• Where the initial Risk Factor Number (RFN) was greater than 6 and is now subsequently
reduced to a Residual Risk Number of less than 6 through risk mitigation, a method
statement shall be produced and completed to ensure that the mitigating actions are in
place and effective.

It requires consideration of different options to ensure risk is reduced to a level whereby the
cost or effort for any further reduction is grossly disproportionate to the risk reduction
achieved.

5.5 Implementation of Control Measures

When the appropriate control measures are identified, an action plan is formulated to
address:

• Roles, responsibilities and accountability for hazards

• Training required for the relevant parties
• Communication to relevant parties (workers, members of public, etc) of any changes to
existing tasks or activities in light of the risk assessment and the reason why
• Timeframes for completing the actions
• Any required changes for the H&S management systems and associated documents
/procedures
• Procedures for monitoring, maintenance, inspection and quality assurance to check on
effectiveness of control measures

6.0 Monitoring and Reviewing

6.1 Monitoring

Ongoing monitoring of the effectiveness of the control measures will be undertaken by the
H&S Representative through actions such as observation/inspections, review of maintenance
logs, and discussion with workers undertaking the activity.
 Adequate supervision should be provided to verify that the new control measures are being
implemented and sued correctly.

6.2 Review

The risk management process for a particular task or process shall be reviewed:

• As a result of any incident or near miss associated with the works

• Any change in the method of work
• At the end of the task if it is considered that a better method could be employed
• Prior to the task commencing the next time;
• As a result of an inspection or audit finding

Prior to the task commencing on the next project

At least once annually for tasks and activities with implementation periods
exceeding 12 months

Where it is considered that a better way or more effective controls could be used, or in the light of
any incident, the risk management process shall be reviewed and revised accordingly. Any changes
shall be approved by the Contractor's Project Manager and Supervising Consultant and
communicated to all relevant persons both on and off site in a timely manner.

6.3 Records

The H&S Risk Register shall be kept in a designated file for record and reference purposes by the
Project H&S Department.

6.4 Audit

The risk management process shall be audited as part of the HSMS Audit according to the audit
schedule and appropriate recommendations made and subsequently implemented as required.

7.0 Communication of Risk Management Controls

Workers and other relevant parties identified through the risk management process as being at risk
shall be given suitable information and training in the risk management controls selected and
documented on the H&S Risk Register and the method statement. Records of attendance will be
kept and maintained.

7.1 Communication Tools

The information is usually disseminated is on site through Pre-mobilization and Tool Box Meetings.
Should there be specialist training identified (e.g. Tag Out/Lock Out, Confined Space, etc.), this shall
be given by suitably qualified personnel to those people who require it.
The outcomes of risk assessments shall then be communicated as Procedures, Project Instructions,
work Method Statements as required and will be posted on site.
 7.2 Competent Person

Those carrying out risk assessments should be competent to do so as certain situations will require
that person to have a high level of knowledge and experience of the subject along with an
understanding of the process being assessed.

The Contractor's Project Manager and H&S Manager will check that the competent person has the
appropriate H&S qualification (some of which may be competency based and/or industry specific)
or membership of a professional body or similar appropriate organisation to confirm that they have
a sufficient level of competence. In certain situations, additional support in the form of an industry
expert for complex processes and/or employees who undertake the task in question

8.0 Training

Those persons performing, facilitating and reviewing the Risk Assessment processes of the
organization or project shall undergo formal training in Risk Assessment methodology. A record
shall be kept and maintained of those who attended the training.

The Contractor's Project Manager and/or Project H&S Representative shall carryout site-specific
hazard recognition training during the construction phase, when new or unrealized hazards are
identified, for all project-based employees that are exposed to potentially hazardous work zone
activities and environments, before work commences.

9.0 Documentation

The Contractor maintains project records at the site for the duration of the project and archives
them for a minimum retention time of 10 years from creation date.
10.0 Project Risk Register

DOC. # PPCO-SPR13-F-06

PPCO ISSUE # 01
ISSUE DATE 01-12-20

Risk Management Register & Mitigation Plan

Consequence Mitigation Who is Residual

S/N Process Risk Risk Rating Causes Risk Rating
of Risk Measures Responsible

L C R E H M L

Increased Delay in Project Lack of Coordination drawing Engineering

Percentage of Completion and C 3 High communication on should be made for Manager &
Rework Increased Cost 13 the distribution of each discipline. QA/QC
L
latest revision of Manager
drawing Inspection should be
done at each step of
activity
QA/QC

Incomplete Possibility of the Miss inspection of Procurement should Procurement L

1. inspection material will not C 3 High process inspection complete the Manager
document for the conform with the 13 inspection document
received material Project standard before the material
inspection & deliver

Improper System Final Revision of Not updated Maintain the drawing Design L
of Drawing Control Drawing are not C 3 High drawing control log control sheet Manager
properly 13
conveyed to
execution team

Page 19 of 32
 Construction/Prod Increased Construction / Quality training and Construction L
uction supervision Possibility of C 3 High Production awareness / / Production
do not stop the Rework / 13 personnel is not information Manager
activity on hold Rejection aware of QMS
point

Malfunctioning of Delay in delivery No Calibration Develop and update QA/QC L

Measuring to customer D 1 2 tracking log calibration log Supervisor
Equipment

NCR Reworks, cost & Lack of supervision Provide training and

L
project delay C 3 High awareness
13

Rejection of Approval delay Incomplete Timely request for Engineering/ L

design C 2 8 information of project information Design
project Manager
Engineering & Design

Issuance of wrong Rejection of C 3 High Mismanage of Document controller Engineering/ L

drawing design 13 document must have a proper Design
numbering data log Manager

2. Improper follow Disturbing design Poor Proper coordination Engineering/

up process for schedule will communication should be made with Design L
approval drawings result in project client Manager
Moderate
delay
C 2 8
Engineering
department should be
notified in case of
delay from the client

Page 20 of 32
 Incomplete Delay in C 3 High Poor Issuance of PO with Engineering/
design, defective manufacturing 13 communication, complete Design L
design, activities, competence of requirements, Manager
inadequate defective product designer, Inspection on
specifications Errors Reviewing and
receiving

Incomplete Delay in C 3 High Poor planning and Proper planning for Engineering/ L
design, installation of 13 communication for long lead items to be Design
inadequate Plant, Delivery design and delivery planned and design Manager
specification. failure from of material and must be approved by
Incompetent supplier. installation. client and third party
workforce. Incompetent third must be prequalified
party to execute
the job.

Poor design. Delay in C 3 High Poor designer Designer must be Engineering/ L

Material job/failure 13 competency. prequalified and Design
unavailability. delivery from Material delivery material must be Manager
supplier delay by supplier approved by client
Construction

Delays of material Delay of Project C 2 Poor Proper Project L

Project /

delivery Moderate Communication Communication Manager

3. Cash Flow / Follow the
8 Damages Procurement Plan

Page 21 of 32
Sand Storm, Rain Delay of Project C 2 Weather Condition Monitor weather Project L
and Extreme Work Stoppages Moderate forecast and plan for Manager
weather time schedule
temperature 8
Preventive measure
for emergency

Inspection & Delay in delivery D 2 5 No Calibration Develop and update QA/QC L

Testing to customer tracking log calibration log Supervisor
(Malfunctioning of
Measuring
Equipment)

(Material Delay in Process C 2 Moderate Lack of awareness Awareness to Procurement L

purchase) (Fit Up, Welding, on part of purchaser/Transporter Manager
Defective painting, 8 purchaser and and Material handler
/Damage Material, Assembly and Transporters.
equipment failure, etc.) Back up of Supplies
Special Material, and Suppliers
Material Delivery Failure Import from foreign
Unavailability from Supplier country, long lead
time

Competence of Delay in D 1 Low Lack of awareness Awareness Training Project L

personnel (Poor Construction 2 and training, and and sessions Manager
workmanship/ communication, Proper distribution of
Performance, long working hours work load, working
labor dispute) intervals

Page 22 of 32
COVID-19 Work stoppage B 4 Not following Strict Implementation Project M
Pandemic Delay Extreme COVID-19 COVID-19 preventive Manager
21 preventive measure measures per MOH &
NEOM Guidelines

Equipment Construction C 3 High No preventive or Periodic Inspection of Equipment L

breakdown delay 13 corrective the equipment Supervisor
maintenance
inspection for the
equipment

Changes in local Shortage of Labor dispute, Adherence to local HR/ Admin L

Laws, and manpower, Delay extended working laws Manager
regulation, in Project & D 2 Low hours
requirements for delivery, less 2
permits, safety output
rules

Breakdown, Road Delay in delivery C 2 Moderate Expired documents, Periodic inspection Equipment
permits accident, road and maintenance, Supervisor L
8 condition updated licenses and
(Road works) documents

Delay in delivery Delay in the Improper planning, Coordination to Project

of material, activity and tools not purchase and Manager
Low L
Damage tools and Personal injury D 2 inspected and lack transport material. All
5
equipment. of awareness. tools must be as per Logistic
standard. Supervisor

Page 23 of 32
 Work permit, Delay in the Defective Equipment must be Project
Damage execution equipment, TPC, Proper Planning Manager
Equipment, improper planning, must be done prior to
Personal injury to Lack of skilled avoid delay in
employee. Low manpower. Delay in obtaining work L
D 2
5 work permit from permit. Third party
MOT. manpower hired must
have Pre-qualification.

Competency Less efficiency of D 2 Low Cost Periodically sent the HR / Admin L

(unexperienced work 5 Pressure workers for training as Manager
workers, per his designation
HR/ADMIN

insufficient
training )
4.
Ethic and behavior Project delay Non strict Strong Policy and HR / Admin
of the workers implementation of implementation, Manager L
Low
(absenteeism) D 2 the policy Awareness training
5
regarding ethic & work
behavior

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 Delay Recruitment Lack of Rules and Spare VISA must be HR/ADMIN
Process Manpower for regulation are available Manager L
the Project complicated
causing delay to
the project Couldn’t get easily
Low VISA from labor
D 2
5 office

Logistic
Not providing Not able to C 2 Moderate Production not Provide the delivery Supervisor
early delivery plan provide Providing weekly plan in advance
8 L
transportation delivery plan Production
(trailer trucks) Manager
every required

Delivery truck Delay in delivery C 2 Moderate Expired documents, Periodic inspection Logistic
Logistic

Breakdown, accident, road and maintenance, Supervisor

5. Road permits 8 updated / check
condition
licenses and Driver
documents
L

Follow Saudi
Government Traffic
Rules and Regulation
at all times in all
location

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Transport Delay in delivery Lack of logistic Advance planning Logistic L
shortage, bad to customer, planning Supervisor
Low
weather, Vehicle delay in D 2
5
condition construction

Damage material Reworks Material not proper Secure material Logistic L

Moderate Supervisor
during Material cost & secure during properly and inspect
C 2
transportation manpower transportation before dispatch
8
(lashing)

Incompetent Accident C 3 High Lack of policy for Driver must have Logistic
delivery truck (Property 13 transportation Heavy Vehicle Supervisor
driver damage) Government License
L
(SAG License)

Provide defensive
driver training

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 Vehicle/Heavy Delay in Improper Planning Proper Planning must Logistic
Equipment Mobilization for mobilization. be done. Supervisor
malfunctioning Lack of awareness, Drivers/Operator must
Accident while competency and have valid SAG/TPC
travelling to site. carelessness. license before
(Mobilization at operating a
site) Moderate
Vehicle/Heavy L
C 2
8
Equipment. Personal
must have safety
induction.

Material use by Material shortage Material issuing Material issuing Warehouse L

Low
un-allocated to D 2 without work order without work order Supervisor
5
project BOQ BOQ

Wrong material Delay ongoing Material issuing Do not issue material Warehouse
consumption by project High without work order without work order Supervisor L
B 2
Warehouse

production 12 BOQ BOQ, and make sure and

it’s deliver to the Production
6. designated location. manager
Extra material Time and cost
Moderate L
usage losses Misjudgment scope There Must be Eng. Dept
C 2
8
change of work continence and
Production.
Time loss and
Moderate L
Unavailability of delaying in Lack of manpower Admin Dep. Should Admin Dep.
C 2
forklift operation projects source and arrange it And HR
8
manpower

Page 27 of 32
 Lack of storage Effects the quality Some areas Must be a proper Management L
space and need of materials occupied by shelter, Providing
shelter for another material protection
materials department team tools.
(Production team)
High
C 3 that belong to
13
warehouse.
Lack of interest by
management.

No timely Early submittal of

Materials delay Production delay approvals. materials. Quick Procurement
Low Custom delays. approval of materials. L
D 2
5 Manufacturing Dependency of many
delays. suppliers.
Miscommunication
Wrong installation Delay in and Awareness training. Production
of assembly sequential Low misunderstanding Double checking. manager/en L
Production

D 2
component activity 5 the instructions. gineer/super
7. visor
Labor concerns
Delay of execution Delays activity C 3 High (health) Secure the number of Admin, HR
of the work and impact on 13 Heavy demand of required manpower in Dep. L
activity. project. work. the project. Production
manager
Parts breaking
Moderate
Breakdown of Delay of Provide maintenance Production
C 2 L
equipment production 8
team,
(overhead crane, maintenance

Page 28 of 32
 NC machine and
forklift)

Poor Quality Reworks involving Moderate Poor workman Proper supervision. Production
time and C 2 shift, Work monitoring manager/en L
materials 8 Lack of supervision. gineer/super
visor

Weather (Sun Production delay Work exposing to Rescheduling work Production

storm, sun, storm or rain. time manager/en
extreme gineer/super
Moderat
temperature) C 2 visor
8 L

Lack of Fail to implement C 3 High Lack of Health & Must have Health & HSE
Management Health & Safety 13 Safety Policy Safety Policy with a Manager
L
Commitment to Policy clear commitment
Health & Safety with the top
management
Health & Safety

Unawareness of Lead to accident C 3 High No training and Provide safety training HSE
8. the workers about which cause 13 awareness for & awareness Manager
L
the site in respect delay in project employees (orientation /
of Health & Safety induction, daily
toolbox meeting).

Undefined roles Confusing in Moderate Improper Everyone must have HSE

and responsibility making decision C 2 management roles and Manager L
8 system responsibilities to

Page 29 of 32
 execute the job and
address the issues

Accident or injury Low morale of C 3 High Lack of Health & Suitable Construction HSE
to site personnel workers, 13 Safety management H&S Plan in place Manager
system and its together with site
Causes delay implementation safety procedures.
or liability claims,
damage to Lack of monitoring Continuous L
company image monitoring and
regular tool box talks.

Adverse health Lack of noise Stated levels to be Environmental

impacts and monitoring in high agreed with NEOM. Coordinator
health and noise area
biodiversity of Shall ensure that
ecosystems, Moderate Equipment vehicles an inspection
Noise Pollution
Hearing Loss C 2 operation plan maintained and L
Environmental

(Temporary 8 (compactor shall comply with

threshold shift, machine, Road safety.
9. Permanent generators, mobile
threshold shift), crane and etc.)
Tinnitus

Air Pollution Adverse health Generation of dust Requirements for dust Environmental
(dust impacts, Low and emission from & equipment emission Coordinator
D 2 L
accumulation, Increased air 5 equipment in the management must be
emissions (dust event of communicated to all
Page 30 of 32
equipment and exhaust construction onsite personnel
emission) emission) activities. including that all site
personnel have
responsibility for
monitoring work areas
continually for dust
emissions and
reporting excessive
dust generation,
particularly in the
vicinity.

Land /soil Impact on the No assessment for Prior to land Environmental

Disturbance due natural behavior Construction disturbance, the Coordinator
to construction of wildlife. Moderate activities in respect Contractor must
activities C 2 to environmental undertake an L
8 issues assessment of the site
to identify potential
land disturbance.

Accumulation Adverse health C 3 High No plan for waste The Contractor will Environmental
Construction impacts (injuries), 13 management establish a waste Coordinator
Waste management plan.
Land / Soil Improper disposal
contamination of waste Provide designated
location approved by
L
Property damage No proper the NEOM
(fire) segregation of Environmental
materials Representative, at site
(combustible, for sorting the wastes
flammable or into the various waste
recyclable) streams, segregating
regulated wastes and
Page 31 of 32
 waste storage prior to
transport off-site.

Water Groundwater No proper storage Contaminants must

Contamination quality, Adverse for liquid waste not be directly or Environmental
health impacts, indirectly released to Coordinator
Impacts Improper Storage any waters except as
Terrestrial of fuel and lube oil permitted under the
ecology and at site. relevant
biodiversity Moderate Environmental
C 2
8 No proper Authority. L
secondary
containment for Provide spill kit
spillage Provide secondary
containment for (fuel
tank, generator,
chemical storage and
etc.)

Page 32 of 32