Security Level 2

G M-T E G
1-6220-010
ISSUED APR.01,’10

ENGINEERING GUIDE FOR PROCESS PLANT

PROJECT MANAGEMENT, COORDINATION & CONTROL

RISK MANAGEMENT PLAN

Unless stamped “CONTROLLED”, any hard copy is handled as “Non-controlled”.Users should confirm that the copy is the
latest version.

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ENGINEERING GUIDE FOR GENERAL G M-T E G
RISK MANAGEMENT PLAN 1-6220-010
ISSUED APR.01, ’10 PAGE 1 OF 2

CONTENTS

1. PURPOSE 2

2． PROJECT EXECUTION PLAN 2

3. SCOPE OF APPLICATION 2

4. PROJECT-SPECIFIC DOCUMENT 2
4.1 Blue & Italic text 2
4.2 Red & Italic text 2

Appendix (1) Section 10 Risk Management Plan （P.1/5～P.5/5）

History（P.1/1）

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ENGINEERING GUIDE FOR GENERAL G M-T E G
RISK MANAGEMENT PLAN 1-6220-010
ISSUED APR.01, ’10 PAGE 2 OF 2

1. PURPOSE

The purpose of this document is to summarize the standard project Risk Management Plan, plan and programs to
be implemented throughout the project.
This document is also a part and the section 10 of Toyo’s standard Project Execution Plan (PEP) which consists of
total 16 sections. Each section of PEP is documented in each engineering guide listed in clause 2 hereunder.

2． PROJECT EXECUTION PLAN

Project Execution Plan (PEP) is the basis for project execution. Each project must establish firm and project-
specific PEP based on the following standard engineering guides. These engineering guides describe standard
elements of project management in each aspect. Section 1 Project Execution Strategy should be issued first,
immediately after the effective date of contract.

(1) GM-TEG1-6220-001: Section 1 Project Execution Strategy

(2) GM-TEG1-6220-002: Section 2 Project Initiation Plan
(3) GM-TEG1-6220-003: Section 3 Communication Management Plan
(4) GM-TEG1-6220-004: Section 4 Project Control Plan
(5) GM-TEG1-6220-005: Section 5 Project Information Management Plan
(6) GM-TEG1-6220-006: Section 6 Engineering Management Plan
(7) GM-TEG1-6220-007: Section 7 Procurement Management Plan
(8) GM-TEG1-6220-008: Section 8 Change Management Plan
(9) GM-TEG1-6220-009: Section 9 Business Management Plan
(10) GM-TEG1-6220-010: Section 10 Risk Management Plan (This document)
(11) GM-TEG1-6220-011: Section 11 Quality Management Plan
(12) GM-TEG1-6220-012: Section 12 Health, Safety, Security and Environment Plan
(13) GM-TEG1-6220-013: Section 13 Construction FEED Plan
(14) GM-TEG1-6220-014: Section 14 Construction Management Plan
(15) GM-TEG1-6220-015: Section 15 System Turn-over Plan
(16) GM-TEG1-6220-016: Section 16 Project Closing Plan

3. SCOPE OF APPLICATION

This standard Risk Management Plan is established assuming a large size, EPC and JV/Consortium project. Each
project must establish firm and project-specific Risk Management Plan based on this standard document and
project-specific conditions such as contract, plant type, magnitude and regulations.

4. PROJECT-SPECIFIC DOCUMENT

In order to customize this standard Risk Management Plan to project-specific one efficiently, two types of special
text are used in this document. These texts are also used in each section of standard PEP listed in the clause 2
above.

4.1 Blue & Italic text

[The blue & italic text in basket] must be updated or REPLACED according to project-specific information.

4.2 Red & Italic text

The red & italic text in frame must be DELETED because these are instruction or guideline for modification of
this document.

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Appendix (1) Section 10 Risk Management Plan

Section 10

Risk Management Plan

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Appendix (1) Section 10 Risk Management Plan

CONTENTS

10.1 Objectives 3
10.2 Organization and Responsibilities 3
10.3 Risk, Mitigation and Contingency 3
10.4 Risk Management Process 3
10.5 Report, Review and Follow up 4

Attachment (1) : Risk Management Table (P.1/1)

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Appendix (1) Section 10 Risk Management Plan

10.1 Objectives

In order to establish the Firm Project Baseline, risks shall be identified and countermeasures such as
mitigation plans for the risks shall be incorporated into the Baseline.
During project planning stage, the main objectives of risk management are to model all risks and related
countermeasures, to assign owners to identify risks and to inform the Firm Project Baseline by these
considerations.
During project execution, Risk Management is to monitor identified risks, to surface new risks as needed,
and to take suitable countermeasures on a comprehensive and continuous basis.
The key aspect of Risk Management is analyzing each risk and taking suitable countermeasures throughout
the project life cycle

10.2 Organization and Responsibilities

PM is responsible for overall risk management. PM, PEM, PCM, PPM, FM and other discipline leads are
responsible for identification and analysis of risks and for informing PCM. PCM has responsibility for
consolidation of the information.

10.3 Risk, Mitigation and Contingency

Risk is an uncertain event that, if it occurs, has a positive or a negative effect on the project objectives such
as schedule, cost, scope or quality. During the execution of the Project, there will be possibilities of exposure
to various risks. Degree of such exposure is manageable to a certain extent by taking available measures
prior to execution, i.e., in the proposal and planning stage. Therefore, project risks shall be identified and
countermeasures established during the planning stage.

Risk identification during the planning stage should consider not only uncertainties foreseen in project
execution but also uncertainties of the proposal and planning stages.

Categories of countermeasure include “Avoidance”, “Transfer”, “Mitigation” and “Acceptance”. Certain

risks can be “Avoided” by changing the plan or “Transferred” by insurance. Also, certain risks can be
“Mitigated” by taking early action. However, certain remaining risks cannot be avoided, transferred or
mitigated, and so these must be “Accepted”. Examples are contractor residual risks and self insurance risks.
The proactive strategy for “Accepted” risks is to establish a contingency reserve.

10.4 Risk Management Process

(1) Risk Identification

At the planning stage, PM, PEM, PCM, PPM, FM and other discipline leads have responsibility for
identifying risks. The following Toyo tools and methods will be used.

• ITB Review Sheet and ITB Review Meeting

• Contract Review Meeting
• Risk Management Table at proposal stage
• Technical Query (TQ)
• Feed Back Data Sheet (FBDS)

The Risk Management Table (Toyo standard form is shown on Attachment (1)) shall be used for
registration of identified risks. It shall also be used for subsequent risk analysis and management
processes.

(2) Risk Analysis and Evaluation

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Appendix (1) Section 10 Risk Management Plan

Identified risks will be analyzed qualitatively and evaluated for degree of the impact to the Project.
This evaluation should define a priority order for the planning of countermeasures.

(3) Risk Quantification

Probability and impact of priority risks will be quantified. Expected Monetary Value (EMV) analysis
will be used.

(4) Plan of Countermeasures and Actions

Countermeasures and actions shall be planned for identified risks. PM will assign related manager as
Risk Owner to implement the countermeasures and actions for the risks.

(5) Implementation of Countermeasures and Actions

Risk Owner has responsibility for implementation of countermeasures and actions.

(6) Risk Monitoring

Risk Owner has responsibility for monitoring the status of implementation and actions for the related
risks, updating the Risk Management Table and reporting to PCM.

10.5 Report, Review and Follow up

(1) Report

PCM has responsibility for consolidating Risk Management Tables and issuing a monthly overall
status report to PM. The monthly overall status report shall include:

• Consolidated Risk Management Tables

• Top 10 Risk List
• Action Plans Status Report
• Statistics Review Report – Risk Matrix

(2) Review

A monthly review meeting will be held to review the overall status report and evaluate each risk. PM
shall decide further actions, if needed, including:

• Reinforcement or modification of countermeasures and actions

• Disposal of Contingency

(3) Follow up

The PCM shall summarize the results of the Monthly Review Meeting and report them to pertinent
managers and discipline leads for further action. The PCM is also responsible for follow up of the
results with regard to the Project Baseline.

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ENGINEERING GUIDE FOR GENERAL GM-TEG1-6220-010

RISK MANAGEMENT PLAN HISTORY

PAGE 1 OF 1
･ISSUE DATE
REV. ･ISSUE GRADE DESCRIPTION
･AUTHORIZATION
0 APR.01,’10 (1) Background and Reasons for Establishment
Newly Established Newly established as the section 10 of Toyo’s standard Project Execution Plan (PEP).
Project Management (2) Department and Author:
Division Project Management Division Hideki Shida
Proposal Division Kensuke Kitajima
(3) Consultation:
Overseas Project Coordination Department Hideaki Takahashi
Project Management Division Hideto Matsushima
Project Management Division Makoto Wada

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