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Risk Management of Brownfield sites projects in Urban enviroment

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In 2016, more than half of the world’s 7.4 billion people lived in urban areas, according to the U.S. Census Bureau. By 2030, 1 in 3 people will live in cities, a 2016 United Nations report says.
Developing Brownfield sites in cities offers a promising solution. According to Wikipedia, Brownfield land is an Anglo-American term used in urban planning to describe, in Western Europe, any previously developed land that is not currently in use, whether contaminated or not”.

Noordwal-The-Hague-Netherlands By transforming unused industrial locations (Brownfield sites), ranging from former shipyards to abandoned smelting facilities, project teams can help deliver thriving new mixed-use neighborhoods with condos, retail, office space and community gardens. Breathing new life into plots with checkered pasts helps cities meet growing housing demands—without sacrificing precious green spaces.

Lets see what are the Threats of these projects: Brownfield redevelopment projects often require teams to grapple with a variety of risks related to environmental remediation, regulatory requirements and varied stakeholder groups. Those groups include government agencies and an array of contractors— each responsible for a different aspect of the project. However, these redevelopment projects often come with controversy. Brownfield sites can be tainted with toxins left by their former owners, which can make transformations a risky endeavor. If the contamination isn’t well understood, skyrocketing remediation costs can explode project budgets. And if the community isn’t convinced that the cleanup will get the job done, protests can delay or doom development.

2012-construction_2195408kOn the other hand there are a number of Opportunities focused on the benefits Brownfield projects and tese opportunities ultimately will deliver—things like revenues, jobs, new property taxes and blight elimination. For instance, abandoned industrial sites might already have power, water and other urban infrastructure systems in place, which cuts projects costs. Plus, planning commissions are often eager to support projects that will reduce blight and generate new tax revenues.

A very crusial element in Brownfield projects is the management/engagement of key stakeholders—such as the municipality, environmental regulators and community groups—to make sure everyone is aligned on the project’s goals and final deliverables. Keeping Brownfield redevelopment projects on track requires creating a clear multi-stakeholder communication and implementation plan from the start. Communicating the positive benefits the project will deliver to the community can help bolster public support.

Below, you can read a number of Case Studies regarding Brownfield sites projects:

Case study 1: Barangaroo Delivery Authority project

0Barangaroo Delivery Authority in Sydney, Australia. The Authority is leading a AU$6 billion, 22-hectare (54-acre) project to transform a former container wharf into a commercial, residential, retail and recreation destination on Sydney’s waterfront. The Barangaroo site was previously home to various industrial facilities, and part of the
site contains contaminants, such as coal tar and asbestos, that need to be removed.
These types of health and safety issues can create public concern, but Mr. Greenrod and his team have won over neighbors and other stakeholders by showcasing how cleanup of the site will benefit future generations. For example, Barangaroo aims to be the first urban community of its size to be “climate positive”—meaning it has no net greenhouse
gas emissions associated with energy, waste and transportation.
“Our project plan includes goals to be carbon neutral, water positive, generate zero waste and  enhance the well-being of the community,” Mr. Greenrod says.

Read more in:

 

Case study 2: Battersea Power Station in London (pdf file)

1The Battersea Power Station is a London landmark. Resting on the banks of the River Thames, the 80-year-old, decommissioned coal plant is one of the largest brick buildings in the world. The 42-acre (17-hectare) site in southwest London, England has been abandoned since 1983—and it’s crumbling. Massive concrete towers are rotting from years of corrosive coal smoke and need to be completely rebuilt. The brick and steel structure needs significant repairs. But given the 2building’s status as a historic world monument, it can’t be demolished.  “It is an expensive beast to refurbish. Previous
developers didn’t have the land mass to make the project cost feasible,” says Mike Grice, the Londonbased chief construction officer of Battersea Power Station Development Company.

Read more in: Battersea Power Station in London

Case study 3: Riverline Development project in Chicago, Illinois (pdf file)

3A prime chunk of the east bank of the Chicago River, in downtown Chicago, Illinois, USA, has long sat undeveloped, overgrown and littered with garbage. But soon all that will change. The US$1.5 billion Riverline development project promises to transform this
lucrative stretch of land—and could fundamentally change the way the city engages with the river. “Addressing unique site conditions, 4such as part of the site having historically been where the Chicago River flowed, required upfront testing and careful oversight and coordination with the City of Chicago and regulatory authorities,” Mr. Weeks says. “This is where a lot of preparation and perhaps a bit of luck become important.”

Read more in: Riverline Development project in Chicago

5Also, below are some similar Future Projects at the stages of Identify Stakeholders and Development of Risk management Plan

Read: Future Projects

 

References: PM Network magazine, March 2017

 

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The neglected art of Risk Detection in Bank Sector

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Yesterday, I read a very interesting article by Piotr Kaminski  (senior partner in McKinsey’s New York office) and Jeff Schonert (Associate partner senior partner in McKinsey’s). They are writing and analyzing about the “Neglected art of Risk Detection in the Banks Sector”.

CIO-Survey-biggest-risks1

In the article you can read a number of interesting topics concerning Risk Management like:

– Assessing control effectiveness

– Probability theory

– False positives and risk management

–  Credit collections and portfolio management

–  Five actions can improve risk detection significantly

and many more…..

risk

The article starts as below:

“At the core of risk management is risk detection, an art that can be skillfully improved if banks and regulators accept new analytical methods.

The modern risk-management framework generally relies on the “three lines of defense” scheme, with the businesses, control functions, and audit as the first, second, and third line, respectively. The concept borrows from the language of military strategy, in which intelligence plays a key role. For risk management, intelligence means effective detection: to prevent the bank’s reputation, liquidity, and capital position from being harmed, the lines of defense must detect risks early”

Continue reading at: https://www.mckinsey.com/business-functions/risk/our-insights/the-neglected-art-of-risk-detection?cid=soc-web

Enjoy!!!!

Ref: https://www.mckinsey.com/business-functions/risk/our-insights/the-neglected-art-of-risk-detection?cid=soc-web

Let’s talk about the “Risk Management Plan”!!!

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My dear collegue, Mr. Harry Hall, has posted the below 2 very interesting articles about “Risk Management Plan”:

a. How to Right-Size Your Risk Management Plan

b. The Risk Management Plan

11813060-Male-executive-drawing-risk-management-diagram-on-a-whiteboard-Stock-Photo

I am quoting a part from the first article:

” Plans should vary in size, dependent on the size and scope of your projects. A risk management plan for the Mercedes-Benz Stadium will be much larger than a plan for a Southern Living Idea House.

Why is that some project managers have over or undersized risk management plans? First, individuals may be looking for shortcuts. They simply copy someone else’s plan and check a box. Second, others want to impress others with their knowledge by writing plans longer than The Grapes of Wrath.

Want to really make a good impression? Work with your team to develop a risk management plan that is fitting to your project, aids in decision making, and adds value. Document the plan but keep it practical and to-the-point.

So, how can we right-size our plans?  The answer in the articles!!!”

risk3

References:

a. How to Right-Size Your Risk Management Plan by Harry Hall

b. The Risk Management Plan by Harry Hall

Reflections on Organisational and Risk Culture

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Hello to everyone,

yesterday I found the below useful booklet named ” A collection of essays written and published by Richard Anderson “ which is talking about Risk Culture.

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I am quoting the first words of the Booklet:

“At the moment everyone in the risk and governance world is talking about Culture, and quite a few are talking about Risk Culture. Not many can articulate the difference between the two. In this booklet, Richard Anderson shares his thinking on the difference, and he explains why he thinks the two concepts are important to directors, regulators and all those interested in risk management. Far from being the “final word” on the subject, Richard Anderson sees this as a contribution to the thinking in the hope that later developments will rapidly build on and then supersede the ideas presented here.

16 November 2015″

Find below a copy of the booklet:

Risk-Culture-Booklet

If you want to learn more about Human Asset seminars concerning Risk Management,  (in class or online) contact with:

Fourtounas Athanasios, at.fourtounas@gmail.com ή +306946003220 (Trainer)

Also read what our participants have comment after the seminars.

athens-nov-2015-6nov-15-21

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Note: “PMI”, “PMP”, and “PMBOK Guide” are registered marks of the Project Management Institute, Inc.

Why do Accountants and other professionals need better Risk Management competencies?

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My dear colleague Alex SIDORENKO posted a very interesting article answering to the very crucial question “Why do Accountants and other professionals need better Risk Management competencies?” 

webinar-risk-academy-800x419

In his article, he speaks about Biases but he also provides us with some practical ideas to bring risk management competencies to life, regardless of where you are in the organization!

Enjoy reading the article Here!

Ref: a. https://www.risk-academy.ru

b. http://theaccountant.org.mt/why-do-accountants-and-other-professionals-need-better-risk-management-competencies/

 

Why Risk Management?

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Hello to everyone,

a lot of people ask me “Why Risk Management is important?”

So I answer them with the following photo because a picture equals to 1000 words!!!

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Ενημερωθείτε για τα σεμινάρι Risk Management της Human Asset που οδηγούν στις εξετάσεις της διεθνούς πιστοποίησης “Risk Management Professional (RMP)”:

Σχετικά με Σεμινάρια Risk Management

Εισηγητής: Φουρτούνας Αθανάσιος, at.fourtounas@gmail.com, +306946003220

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Δείτε τι είπαν παλιότεροι συμμετέχοντες:

Σχόλια Συμμετεχόντων

Ειδικές τιμές για όσους στον παρελθόν παρακολούθησαν προγράμματά μας!

Οι ομάδες έχουν αρχίσει να συμπληρώνονται και οι θέσεις είναι περιορισμένες για καλύτερη ποιότητα του προγράμματος. 

Το σεμινάριο προσφέρει 20 PDUs για όσους κατέχουν πιστοποίηση PMP

Note: “PMI”, “PMP”, and “PMBOK Guide” are registered marks of the Project Management Institute, Inc.

Preparing for a Black Swan Risk

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Hello to everyone,

you all know that I am a fan of Nasim Taleb and one of my favorite books is “The Black The_black_swan_taleb_coverSwan: The Impact of the Highly Improbable“, released on April 17, 2007. So, during my internet research, I have found the following papers about “Black Swans Risks” and I want to share with you.

Black Swans Risks

Black Swans are defined as rare, random, and high-impact events and are characterized to be catastrophic and broad.   However, many argue these events are occurring more and more frequently: massive earthquake in Haiti (2010), coal ash spill in Tennessee (2008), and Hurricane Katrina (2005). Some skeptics believe, in hindsight, that these events should have been identified because post-event investigations found warning signs that signaled such an event was likely to occur that experts failed to see in their predictions. In reality, Black Swan events still continue to be unpredictable and unpreventable. Although you can’t prepare for every scenario, but you can establish principles and protocols to be better prepared for the unexpected. A recent thought paper by Ernst & Young explains how to do that.

Principles for Preparing for and Responding to a Black Swan

The paper provides broad-based principles that can be applied to any organization. black-swanHaving these principles in place before the Black Swan event occurs is crucial to an effective recovery. Here is a brief summary of the core principles:

  1. Establish response goals, assigning leadership to meet those goals and establishing reporting channels during the crisis.
  2. Establish immediate response goals and values in order to limit the impact before a formalized plan is developed.
  3. Empower local leadership and personnel to recognize and mitigate emerging catastrophic risks.
  4. Plan and execute redundant mitigation responses in case the primary response fails.
  5. Know your resources and how to use them during a catastrophe. Leaders should keep track of internal and external recourses including personnel, financial, and physical resources.
  6. Incorporate outside perspectives and experiences into their response strategy.taleb-5
  7. Remain objective throughout the process when analyzing, discussing, and responding to catastrophic risks.
  8. Maintain the moral high ground by planning and executing responses based on what is right, rather than planning for only the company’s best interest.
  9. Challenge your response strategy with an independent perspective to help identify weaknesses before the Black Swan does.

Response Protocols for a Catastrophe

The paper includes some basic protocols for responding to a Black Swan. The following protocols are not designed to be a step-by-step process but rather a general basis for responding:

  1. Develop risk recognition criteria in order to know when and how to respond.Black_Swan_White-Paper
  2. Develop a quick response team led by a senior manager, typically the COO. This team should include personnel from across the business functions and external advisers. The team should concentrate on containing and minimizing the event.
  3. Create a response team of leaders who should assess the situation, understand the risks faced, and response goals in order to quickly initiate the correct response plan.
  4. Develop multiple response options and categorize them base on largest contribution toward response goals.
  5. Evaluate each option by considering its risk/reward and whether the organization has the capabilities to carry out the plan. Critical assumptions should be documented during this process for future reference.Societe Generale Black Swan
  6. Implement the response following the guidelines and procedures previously established during pre-event planning.
  7. Assess continually the effectiveness of the response by making corrections as need. After the event, management should discuss lessons learned and incorporate these lessons into training and future response planning.

Conclusion

Black Swans are unpredictable but can be prepared for by establishing identification cigno-nero-black-swanmethods, response goals, and quick response strategies before the event occurs. The principles and protocols that Ernst and Young provided in this thought paper are intended to help guide your organization to establishing a response strategy. Taking this approach can provide your organization with a number of benefits including but not limited to reputation protection, a faster return normal business, and minimization of the impact.

Click the link below to download the thought paper.

Link: Ernst & Young

Ref: https://erm.ncsu.edu/library/article/risk-planning-blackswan

https://en.wikipedia.org/wiki/The_Black_Swan_(Taleb_book)

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