PROJECT EXECUTION & ASSURANCE PLAN SECTION: A-3.

9
(RISK MANAGEMENT)
UNDERGROUND CIVIL WORKS 6838-01-09-41-0009 Rev. 0
STRATEGIC STORAGE OF CRUDE OIL Page 1 of 2
PROJECT, VISAKHAPATNAM

PROJECT EXECUTION &

ASSURANCE PLAN
(RISK MANAGEMENT)

UNDERGROUND CIVIL WORKS

PROJECT : STRATEGIC STORAGE OF CRUDE OIL

OWNER : INDIAN STRATEGIC PETROLEUM RESERVES LTD.

PMC : ENGINEERS INDIA LTD.

JOB NO. : 6838

0 25.05.2007 ISSUED FOR BIDS NA AA SM

Rev. Prepared Checked Approved
Date Purpose
No by by by

Format No. EIL-1641-1924 Rev.1 Copyright EIL – All rights reserved

 PROJECT EXECUTION & ASSURANCE PLAN SECTION: A-3.9
(RISK MANAGEMENT)
UNDERGROUND CIVIL WORKS 6838-01-09-41-0009 Rev. 0
STRATEGIC STORAGE OF CRUDE OIL Page 2 of 2
PROJECT, VISAKHAPATNAM

1.0 RISK MANAGEMENT

Risk Management is the systematic process of;

a) Identifying hazards and associated risks, through Risk Assessments, that

impact on the project’s outcome in terms of costs and programme,
including those to third parties

b) Quantifying risks including their programme and cost implications

c) Identifying pro-active actions planned to eliminate or mitigate the risks

d) Identifying methods to be utilized for the control of risks

e) Allocating risks to various parties

Risk is defined as the combination of consequence (or severity) of a hazard and

its likelihood

1.1 The Bidder shall prepare, and submit as part of the Bid, a Bid Risk Register as well
as a Risk Assessment appropriate to the methods of working described in the
Bidder’s Method Statements. The same shall be implemented and maintained by
the CONTRACTOR at site for the risk assessment and management during
execution of project.

1.2 The Bid Risk Register should demonstrate how the bid submission adequately
and appropriately caters for risks identified and to be allocated to the Contractor
including management and control procedures, proposed contingency measures
and the cost and programme implications of the implementation of contingency
measures.

1.3 Hazards shall be identified and evaluated on project-specific basis and their
consequent risks shall be identified and quantified by Risk Assessments
throughout all stages of the project by the CONTRACTOR.

1.4 Risk Registers shall be developed and maintained as “live documents” or

databases that shall be continually reviewed and revised as appropriate and
available for scrutiny by OWNER/PMC at any time. CONTRACTOR shall provide
an auditable trail throughout the life of the project to demonstrate compliance with
the contract requirements. CONTRACTOR shall identify hazards, consequent
risks, mitigation and contingency measures, proposed actions, responsibilities,
critical dates for completion of actions and when required actions have been
closed out.

Format No. EIL-1641-1924 Rev.1 Copyright EIL – All rights reserved