ABSTRACT
The paper provides practical guidance in transposing the latest ISO31000 and ISO31010 to underground works. The reporting technique of risk management varies through the project phases, and consistency in implementation throughout the project’s life cycle is fundamental. After recalling background notions on risk management, the paper introduces the financial risk report (according to IFPS 15 – International Financial Reporting Standard – and the European Directive in force since January 2018) addressing each project phase: the design phase, concerned with the balance between cost, time and residual risk, in interaction with the owner’s evolving risk tolerance; the procurement phase, concerned with the appropriate allocation of residual risks between the parties; the construction phase focused on the contractual perspective to understand if site conditions come under previously agreed risk allocations or generate new risks; the operations phase where risks relate to design life, structure’s running costs or level of service availability.
