On risk management in large infrastructure projects

Large infrastructure projects are in general unique as the conditions and demands vary from one project to another. Furthermore, these projects are often related to risks of different nature due to high technological level, high environmental, public and political focus, long lead and project times, large and complex organizations, complex contracts etc. This paper aims to give some guidelines how to perform a successful management of risks in a large infrastructure project. The main conclusion is that the key to a successful risk management in a large infrastructure projects is early planning and a strict and continuous execution during the entire life-cycle of the project. Good planning and control of the risks enable an organized, comprehensive and iterative approach for identifying and evaluating the risks and give handling options necessary to optimize the project strategy. The management of risks should be performed as early as possible in the life-cycle of a project in order to ensure that critical risks are incorporated into the project plan and addressed with mitigation actions.