Managing a business isn’t day after day of clear skies. Uncertainties abound. At VMS, effective risk management requires identification, analysis, response, communication, and management. Our focus on function-driven risk management delivers multiple response strategies to minimize threats and maximize opportunities. VMS strives to provide clients with cost-effective and high-quality facilitation, risk management, and VE expertise, both in team leadership and team members, which facilitates implementable alternatives, valuable management strategies, and promotes cost-effectiveness and performance-based results throughout all project phases.
Providing the user the project they need in order to accomplish their mission for the right cost, plus balance the initial construction costs with operating and maintenance costs – this is what we strive to accomplish at VMS. Therefore, we assist our clients in all facets of risk management, from developing an effective risk management framework, implementing proper data management tools, qualitatively and quantitatively analyzing risk, forecasting economic uncertainties, developing a Risk Management Plan, to implementing active risk monitor and control. We bring to bear over 20 years of corporate experience in applying VE to achieve the best possible results.
- Risk Analysis and Risk Management
- Cost Estimate Validation and Cost Estimate Management
- Risk Modeling and Risk Simulation
- Risk Management Program Development
We integrate Risk Management as both stand-alone workshops and as a component of its VM studies. Risk Management complements VM very well as the use of Risk Analysis is an excellent means of proactively managing value by identifying and quantifying the many threats and opportunities that a project is challenged with. The use of VM provides the framework for identifying solutions to minimize those threats and maximize the opportunities.
VMS utilizes a combination of tools, including proprietary quantitative models incorporating either @Risk or Crystal Ball, proprietary qualitative and semi-qualitative models, custom risk-based data management systems. Depending on the scope and scale of the project VMS risk experts will help to cater to every project’s needs in order to proactively manage uncertainty. Using each of these tools, VMS is able to work with clients in systematically identifying, qualifying, and quantifying risks while effectively communicating their potential impact on the project performance, budget, and schedule.
Estimating a project’s costs is not an easy task. Price volatility observed in markets since 2003 highlights the need for greater scrutiny around cost estimates. If the estimate is too large, capital is committed and other necessary projects may not be funded. If the estimate is too small, the project could overrun, eroding the capital effectiveness and jeopardizing future projects. From planning level estimates to final design estimates, VMS aids clients in better understanding capital investments required for project costs in an uncertain world.
Each of the three core principles of cost estimate validation – Validate, Communicate, Improve – are included in our specialized process as capital expenditures, budgeting, and planning ultimately hinge on costs and the ability to have confidence in the underlying estimates. Regardless of the quality of the design deliverables, if estimates are not accurate, the likelihood of making inefficient capital allocation decisions and/or having a poor basis for cost controls is increased. Too often cost estimates are interpreted by the customer as a deterministic value. The VMS approach is to develop and present a probabilistic model and ensure the client understands how the project cost can be influenced.
We provide a robust estimating process that is transparent and allows for a full understanding of the key items involved. Overall, decision makers need readily available information to confidently make capital allocation decisions, manage projects, and to deliver within expectations. The Cost Estimation Validation Process provides a means to fully understand project costs such that key decisions can be made while efficiently deploying capital in uncertain markets.
VMS supports client decision making by using proven expertise and a wide array of tools to effectively manage project and program risks and uncertainties. In order to understand the nature and plausible effects of various risks and uncertainties facing a project, VMS provides qualitative and quantitative modeling techniques in both static and simulation formats. Using a combination of proprietary modeling techniques and proven cutting-edge industrial software packages, VMS is able to synthesize the data to provide actionable information and support for decision makers to be confident in charting their strategic direction.
VMS uses qualitative modeling to provide structure and framing of the risks that may impact a project. Understanding a situation in the proper context when limited information and data is available is often a daunting task; however, with qualitative modeling more clarity and transparency of issues can be realized. The unique qualitative modeling techniques utilized by VMS enables decision makers to more effectively understand complex problems, frame decisions in the proper context, and provide clear priority of uncertainties most in need of management.
Quantitative modeling builds on what is offered by qualitative modeling by providing detailed statistics and profiles for project or program performance, cost, schedule, and other key metrics under observation. Modeling in a quantitative fashion provides enhanced definition of risk magnitudes, relative risk rankings, and information suggesting proper allocations for project and program contingencies and schedule float. VMS has found that the information and understanding of potential risks and uncertainties is further clarified as a result of quantitative modeling and the valuable data that results from such in-depth analysis.
No matter what delivery phase a project or program is in, no matter how complex, no matter how challenging, VMS will develop a unique solution for every situation. The modeling techniques and experience VMS has can help your organization enhance clarity of project complexities, focus on the right risks to manage, deploy resources more efficiently, and successfully navigate an uncertain world.
Establishing a Risk Management Program may be both novel and a shift in culture within your organization. Coupled with this understanding, VMS helps clients to integrate risk management into everyday practices by structuring a program that cohesively integrates into the organization.
VMS helps clients engage in effective and proactive management of both known and unknown uncertainties by developing a customized Risk Management Program. The management of uncertainty in organizations across multiple disciplines and projects is complex and requires utilization of the proper structure and strategy. VMS uses its proven expertise to customize and deliver effective Risk Management Programs for any organization that will ultimately result in successful Risk Management.
A robust Risk Management Program first requires careful analysis of how best to integrate it into the organization. While Risk Management is a process by its very nature, often the details of execution are overlooked. The proven expertise in program development and execution that VMS provides for clients is unparalleled in terms of the careful planning, strategizing, and hands-on collaboration. From the development of strategies to efficiently conduct risk identification, to proven techniques in risk response planning, VMS offers the most innovative solutions that can be catered to best fit the needs of any organization.
Process execution and management of uncertainties become routine as proactive risk management becomes second nature. VMS will help your organization optimize its performance and strategic management of uncharted waters by defining mechanisms to incorporate Risk Management into everyday activities. Through the implementation of processes and information management tools that keep managers and decision makers informed, coupled with the professional support of VMS, risks can be more effectively managed across the entire organization.