Practice Groups

PRIME Project risk intelligence, Mitigation, and evaluation

Definition

In today’s business environment, companies face multiple key project risks that go beyond traditional challenges like engineering and geology.

HBW Resources and Sirius Solutions offer companies a proprietary Project Risk Intelligence, Mitigation, and Evaluation (PRIME) service designed to reduce project delays, vulnerability to lawsuits and negative publicity. This enables an increased confidence from investors, regulators and other stakeholders, including local communities where projects are located. PRIME evaluates risks from all vantage points, advocate and adversary alike, allowing management teams to put in place mitigation and advocacy strategies that better ensure overall project success.

Failing to identify potential obstacles and non-technical hazards, or neglecting to address the risks that they pose, can result in substantial delays, material financial losses and increased uncertainty over future opportunities. HBW Resources and Sirius Solutions offer an unbiased and independent viewpoint to identify potential project hazards, quantify the situational risks a project faces, and provide a successful path forward. This assessment is essential to developing and putting in place tailored risk avoidance and mitigation strategies.

Description

PRIME addresses project risks in three stages: Identification, Qualification and Quantification, and Mitigation.

Risk Identification

At the Identification stage, our team conducts an exhaustive survey of all potential concerns, with consideration given to the impact of each issue at various points in the project’s lifecycle. This approach ensures that no potential obstacle is overlooked. We cast a wide net at this stage with the evaluation of a broad range of issues including: regulations, permits & approvals, legislation, political concerns (local, regional, and federal), litigation (precedent & pending), environmental issues, community concerns, and public sentiment. Projects are analyzed from all perspectives and from the vantage point of each stakeholder.

Risk Quantification and Qualification

During the Qualification & Quantification stage, project risks are assessed and prioritized. The probabilities of various scenarios and outcomes are evaluated, with the results subjected to a battery of tests, including statistical analysis and Monte Carlo simulation. Each risk is considered individually and collectively relative to potential impact on project milestones and overall project value. This allows management to more effectively assess various approaches to the development of a project, from the most conservative to the most aggressive. Our approach is collaborative. New information is communicated on a real-time basis, allowing senior management to swiftly alter project development plans. Actions taken during this stage remove guesswork to the greatest degree possible and introduce discipline into the process.

Risk Mitigation

The results of the first two stages are utilized to assist management teams in developing targeted, cost-effective strategies to mitigate non-technical project risk. Strategies are tailored to suit a specific project and culture of the sponsoring organization. A plan of action is developed to reduce, and in some cases eliminate, the adverse effects of hazards that have been identified. Tactics employed may include community and stakeholder outreach, grassroots advocacy efforts, regulatory engagement, litigation avoidance, and legislative activity. Mitigation of reputational risks constitutes an important effort throughout the PRIME process.

“While technological and process innovation have reduced technical risks to business and industrial operations over the past several decades, non-technical risks have emerged as the greatest threat to projects that companies face today. HBW Resources is pleased to combine its public policy, legislative, and regulatory experience with the analytical expertise that Sirius Solutions provides. PRIME will give companies the ability to successfully assess all of these risks, quantify and qualify their impacts, design and implement an appropriate mitigation strategy, and make decisions based on the best available data and analysis.”
Jack Belcher Executive Vice President HBW Resources, LLC

“We are excited by the prospects of teaming with HBW to support the project development needs of our clients. domestic and international projects face new challenges. And we firmly believe the combination of HBW’s regulatory expertise with the financial and quantitative muscle of Sirius Solutions gives our clients a unique and powerful tool to assist with project development and decision-making.”
Steve Young Transaction Advisory Services Practice Sirius Solutions

logo-sirius

About Sirius Solutions, LLLP

Sirius Solutions, LLLP, is an independent business consulting firm specializing in Business Operations, Compliance/ Controls, Technology, Financial & Legal Advisory Services. Since our founding in 1998, our mission has been to partner with clients to provide conflict-free consulting and deep subject matter expertise, resulting in sustainable solutions to complex business challenges. Our experienced base of professionals serves clients in over 40 countries across a wide range of industries, including energy, financial services, health care, manufacturing, power/ utilities, and transportation/logistics.