Summary: Uncertainties present a common threat to project managers and the track record of cost and time overruns in these projects is well documented. A risk is defined according to ISO 31000 as the effect of uncertainty on objectives. It is the measure of the probability, severity and the exposure to all hazards of an activity. Risk management aims to identify the possible causes of threats and opportunities that may affect the project objectives, to assess them qualitatively and quantitatively and to propose an action plan for risks deemed critical in order to decrease the undesirable effects on project objectives. The usual objectives of a project are the management of cost, time and project performance. Megaprojects are strategic and complex projects which tend to exhibit cost overruns and schedule delays. They consist of complex activities and, require, in their life-cycle, a specific organization and a specific approach to manage the project risks. The complexity of a project leads to the existence of a network of interdependent risks, where complex phenomena may occur, hard to anticipate and hard to keep under control. While front-end planning is important, not all events and scenarios can be foreseen when the project can take several years to complete and may involve many companies and stakeholders. There are different causes of risks such as the size of the project, time constraints, organizational and technical complexities. In addition to the organizational and technical complexities, project managers have to consider a growing number of stakeholders and parameters both inside and outside the project, such as environmental conditions, social influence, safety standards, and financial, economic or contractual factors that may be crucial for the megaprojects. In our research, we find that a formalized and systematic Risk Management Process is necessary for the complex and strategic projects. This process permits to identify and analyze systematically the risks and opportunities throughout all the project life-cycle, associated with the chronological decomposition of the project, with the organizational structure of the project, with the resources and the external or environmental factors. The formalized and systematic risk management process is adapted to the dynamic feature of the projects, to the different perspectives of the project stakeholders and proposes a risk management method in parallel with the project management. A user-friendly prototype interface has been developed making it possible to apply the process for real construction projects. How it works in practice is illustrated through a case study of the construction of a US$20 billion dollar project. What Your Will Learn: Understanding the features and environment of complex and strategic projects Development of a formalized and systematic risk management process Modeling a multi-dimensional project analysis PMI PDU Category: Technical – 1 PDU Activity Code: IPC2018-S28
