**10. Risk monitoring and control**

Risk monitoring and control has been mentioned as one of the most common failures of risk management. In part because the follow up process is usually forgotten by the project and

risk manager and as results, there is no comparison between the baseline and actual Risk Registers or risk results. Risk metrics are fundamental for determining and assessing how risk management is contributing or enhancing the project delivery process. If the benefits of risk management are tangible and can be promoted with management and executives, the chances for formalizing the risk management process are very high. Otherwise, there will be less interest and support for keeping such a program.

Project and Enterprise Risk Management at the California Department of Transportation 425

A risk management system could be considered the ultimate tool for managing risks for a portfolio of projects. In might be a powerful instrument for communication, monitoring and control. In addition, the basis for a future risk management database could be established. In practical terms, for having a risk management system it is necessary to have developed a sufficient number of risk management studies and to have performed formal training to project managers. By having a set of projects in which risk management was previously implemented, the system can be fulfilled with data, including lessons learned. This data can provide an additional support for developing new risk management plans. A system can represent a considerable advantage for executives and project managers since can provide risk management status reports for a set of projects for specific data dates. The project manager can view, edit and direct actions to the team while using the system. Alternately, the RM can use the system for the risk management implementation. The following figure

The RMT can view all the information for their project(s). In addition, some members for example the project manager, the design manager or the risk manager can have rights for edition. Usually with these systems, electronic alerts or messages are sent via email to keep all the team informed. As well, reports can be generated for supporting the decision making

Although a risk management system is a great tool for supporting the decision making along the project delivery process. It is recommended first to start risk management with education, a pilot project and training. After several studies, the role of a system can be justified for enhancing the overall process of risk management and its communication.

Although the term of enterprise risk management (ERM) is not new, Caltrans started looking into its current process for doing business. The nature of risk management is intimately related to Caltrans functional units. Program Project Management, Construction, Environmental, Design, Right of Way and Surveys are the most representative functional divisions existing at Caltrans. Each division plays a role with the project delivery process;

**11. Risk management system** 

shows a view of Caltrans risk management system.

**Figure 12.** Caltrans Risk Management System

**12. Caltrans enterprise risk management** 

process.

Figure 11 shows the risk contingency behaviour for a given project. As can be notice, the contingency is dynamic thought the project delivery process. For example, in can be assumed that the baseline risk contingency was the one marked in grey colour. Then, after the risks responses implementation, risks are mitigated and the contingency is reduced (red colour). Nevertheless, the monitoring and control process continues and a new risk arises, increasing again the project contingency (blue colour).

**Figure 11.** Risk contingency behaviour

Caltrans has implemented risk monitoring through the project development team meetings, where the project manager and the risk manager address any changes within the current risks or document new risks. In addition, an alternative way for risk monitoring has been through email. In this case, the risk manager is in charge of contacting the risk owners for updates and feedback regarding their risks.

Risk status reports have been developed with the purpose of maintaining informed the executive though a proper risk management communication. These reports are developed by the RM and are updated every time there is a change with the Risk Register.

Risk monitoring and control must be maintain through the project life cycle until the closeout phase, were the lessons learned can include feedback from risk management. The PM and RM should put extra care in keeping a constant review of the baseline Risk Register with the purpose of actively managing the project contingency and for assessing the effectiveness of the risk responses.
