Experts update model to help British industry bury reputation for poor planning

RAMP has been developed by a partnership of the two British bodies, IFoA and ICE, in order to provide a methodology for quantifying and managing risk over the life of a project. With many risks being uninsurable, both bodies see the potential for a greater degree of success in project outcomes.

Chris Lewin, member of the IFoA who edited the Guide said, “This Guide will help those who plan or manage any kind of project, large or small, to think through the risks systematically and develop cost-effective actions to mitigate them."  

There is plenty of evidence from completed projects, e.g. Edinburgh trams project, which suggests there is scope for significant improvement in the risk-management methods commonly adopted. 

In particular, the importance of establishing a risk management strategy played a part in the discussions with the UK Government, before London’s Crossrail project was authorised, and was used as a best practice reference in the Crossrail project from 2006.

Simon Adams, Head of Commercial Services at Crossrail, comments: “The Crossrail Executive embraced the principles of RAMP when establishing its risk management strategy.  From that point, understanding risk has been central to Crossrail’s management philosophy, informing key decisions and enabling the project to remain within its funding envelope.”

Sir John Armitt, Chairman of the Olympic Delivery Authority, comments: “At the heart of RAMP is a comprehensive framework within which all kinds of risk and uncertainty can be systematically identified, evaluated, reduced and controlled. Crucially, it sets out to deal with risks throughout the history of a project, including operation and eventual close down, as well as planning and construction. Practitioners need more than principles and RAMP brings together, for those charged with delivering major infrastructure projects, the combined wisdom derived from years of experience.”

The third edition of RAMP has been substantially revised to take account of clearer ways of presenting risk to decision-makers through simple scenarios and criteria for determining whether risk responses should be adopted.  The Guide includes the latest thinking about the management of wider aspects of uncertainty (with a new chapter on this topic) and a new chapter on social and environmental responsibility and risks in infrastructure projects.

For further information on RAMP (RRP £40.00, ISBN: 978 07277 4157 8) please visit https://www.icevirtuallibrary.com/  

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Media contact

Fiona Lane, Beattie Communications, tel: 0113 213 0307, email: fiona.lane@onlybeattie.com
Annette Heninger, IFoA, tel: 020 7632 2126 email: annette.heninger@actuaries.org.uk 

Notes to editor

More about Risk Analysis and Management for Projects (RAMP)

Risk Analysis and Management for Projects is a well-established and bestselling framework for analysing and managing risks in all kinds of projects, with an emphasis on the strategic and financial aspects. It results in better decision-making and improves the likelihood that the project will be judged a success.

RAMP concentrates on risk and its consequences, identifying new risk areas and aiding the choice of cost effective risk response packages. 

RAMP results in better decisions being made on whether to go ahead, and increased control of risks once underway, with effective follow-through from the appraisal phase to the implementation and operational phases. Further information:  http://www.ice.org.uk/topics/management/ICE-ICES-Management-Panel/Risk-Management 

About ICE

The Institution of Civil Engineers is an international membership organisation that promotes and advances civil engineering around the world.

ICE is a professional qualifying body; a provider of resources to encourage innovation and excellence; and, through its publishing and conference programmes, a centre for the exchange of specialist knowledge for academics, researchers, and practitioners.

About the Institute and Faculty of Actuaries

The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.  Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, and are involved in a diverse area of work, helping companies to evaluate and manage all types of financial risk especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.  

Some members of the IFoA also have a statutory role in the supervision of pension funds and life insurance companies and to provide actuarial opinions for managing agents at Lloyd’s.  

Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.

ICE Publishing

ICE Publishing, established in 1836, is a leading provider of information in the fields of civil engineering, construction, and materials science.

As the publishing division of the Institution of Civil Engineers, ICE Publishing produce a wide range of publications that disseminate best practice, expert advice, and ground-breaking research.