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The Owner's Role in Project Risk Management (2005)

Chapter:Appendix B: Statement of Task

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Suggested Citation:"Appendix B: Statement of Task." National Research Council. 2005. The Owner's Role in Project Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/11183.
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Appendix B
Statement of Task

In response to a congressional directive, the National Research Council has appointed a committee to review and assess the progress made by the U.S. Department of Energy (DOE) in improving its project management practices. This study includes evaluation of the implementation of recommendations in the 1999 NRC report Improving Project Management in the Department of Energy. The principal goal of this effort is to assess DOE’s efforts to improve project management practices, including: (1) specific changes in organization, management practices, personnel training, and project reviews and reporting; (2) an assessment of the progress made in achieving improvement; and (3) the likelihood that improvements will be permanent. These tasks will also require development of a framework for evaluation and performance measures specifically tied to DOE’s project management process.

NOTE: The committee made the following recommendation in its 2003 assessment report:

DOE should develop detailed procedures and guidance for identifying risks, planning strategies to address risks, and managing risks throughout the life cycle of projects, and should require their implementation for all projects. Projects should not pass CD-1 or CD-2 without an effective risk mitigation plan. (NRC, 2004, p. 38)

The DOE Office of Engineering and Construction Management (OECM) requested the committee to provide assistance for following this recommendation by summarizing practices the committee believes constitute excellence in risk management.

Suggested Citation:"Appendix B: Statement of Task." National Research Council. 2005. The Owner's Role in Project Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/11183.
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Effective risk management is essential for the success of large projects built and operated by the Department of Energy (DOE), particularly for the one-of-a-kind projects that characterize much of its mission. To enhance DOE’s risk management efforts, the department asked the NRC to prepare a summary of the most effective practices used by leading owner organizations. The study’s primary objective was to provide DOE project managers with a basic understanding of both the project owner’s risk management role and effective oversight of those risk management activities delegated to contractors.

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