Project Management in the Oil and Gas Industry

8.7 Risk Monitoring and Control
Risk monitoring and control is the process of keeping track of all the 
identified risks and identifying new risks, as their presence becomes 
known and residual risks that occur when the risk management plans are 
implemented on individual risks. The effectiveness of the risk management 
plan is evaluated on an ongoing basis throughout the project.
Figure 8.5 presents the steps of risk monitoring and control. After 
obtaining the risk priority for each risk, you should obtain a solution with 
the project team and then agree on the emergency plan and, according to 
every risk, define the monitoring system that you will follow as the project 
manager.
When a risk is apparently going to take place, put a contingency plan 
into place.
If there is no contingency plan, then the risk is dealt with on an ad hoc 
basis using what is termed a ‘‘workaround.’’ A workaround is an unplanned 
response to a negative risk event. A corrective action is the act of perform-
ing the workaround or the contingency plan.

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The History of Graphene 307
The concern of the project manager and the project team is that risk 
responses have been brought to bear on the risk as planned and that the 
risk response has been effective.
After they have observed the effectiveness of the risk response, additional 
risks may develop or additional responses may be necessary.
Risk management is a continuous process that takes place during the 
entire project from start to end. As the project progresses, the risks that have 
been identified are monitored and reassessed as the time that they can take 
place approaches. Early warning indicators are monitored to reassess the 
probability and impact of the risk. As the risk approaches, the risk strate-
gies are reviewed for appropriateness and additional responses are planned.
Risk assessments, reviews, and audits may be performed periodically to 
review the probability and potential impact of risks that have been identi-
fied and are nearer to their possible occurrence. Risks that have already 
taken place can be reviewed and audited to assess the effectiveness of the 
risk response.
As each risk occurs and is dealt with or is avoided, these changes must 
be documented.
Good documentation ensures that risks of this type will be dealt with 
in a more effective way than before and that the next project manager will 
benefit from these lessons learned.
8.8 Example
Use the same example we discussed before in Chapter 4 about a small proj-
ect for a new gas compressor.
Risk control
Define solutions
Emergency plan
Monitor and control
Figure 8.5 Steps in controlling the risks.

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Project Management in the Oil and Gas Industry