The Risk-Based Review/ Audit process is by invitation only from an Engineering & Construction Risk Institute Sponsor Company. The audit will comprise a health-check review of individual Sponsor's Risk Management processes with preparation of observations and / or recommendations with regard to same together with a Confidential written report back to the individual Company.
Part of the process will be to benchmark Sponsors RM Processes against peer group and Industry Best Practices and to act as a tool for expanding / rationalizing ECRI's Risk Management Review "Best Practice" methodology.
Company Risk Status Audit
An ECRI Company Risk Status Audit will apply a proven methodology to review an Engineering & Construction company's Risk Management Process to determine and its to the adequacy commitment and effectiveness in utilizing the process. A company's concern about the adequacy of its risk management methods generally will be a function of the maturity of that company's Risk Management Process. The review of a company's Risk Management Process is a three levels process:
- Audit Phase I addresses the existence and adequacy of the company's framework for its Risk Management Process and company's Executive Management commitment to drive the process.
- Audit Phase II addresses whether the company's business methods and procedures work processes are fully aligned and integrated with the Risk Management Process
- Audit Phase III addresses specific proposals and projects and tests their adherence to the company's Risk Management Process as well as the resulting project risk management plans using a dashboard audit.
Companies new to formal risk management will probably work Phases 1 and 2 until confidence is achieved in the suitability and practicality of their processes. All Engineering & Construction companies should consider regularly using Phase 3 for their work in progress.
Project Risk Status Dashboard Audit
The purpose of the Project Risk Status Dashboard is to share a recommended set of parameters which, experience shows, can be used to indicate that a project is being managed adequately and in accordance with the project's Risk Management Plan.
There are three categories of parameters defined if the Project risk analysis Dashboard:
- Project Data which briefly addresses the project's contractual format and liabilities
- Risk Process Utilization which addresses conformance to the firm's Risk Management Process
- Performance Risk Indicators which address actual project results & issues.
the Engineering & Construction Risk Institute Sponsor Practices & Procedures ECRI-RA-001 outlines the Audit of a Firms Risk Management Process and is available from the Sponsors Best Practices and Procedures library.