Risk Management of Brownfield sites projects in Urban enviroment

Posted on 02/12/2017 Updated on 02/12/2017

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”.

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.

On 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

Barangaroo 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:

•  https://www.menardoceania.com.au/news/69-building-a-fresh-future-for-barangaroo
• http://www.jbsg.com.au/projects/project-barangaroo

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

The 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 building’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)

A 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, such 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

Also, 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

The neglected art of Risk Detection in Bank Sector

Posted on 18/11/2017

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”.

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…..

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”!!!

Posted on 01/11/2017

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

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!!!”

References:

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

b. The Risk Management Plan by Harry Hall