Engineering Due Diligence Workshop

The learning method at the R2A-EEA public workshops follows a form of the Socratic ‘dialogue’. Typical risk issues and the reasons for their manifestation are articulated and exemplar solutions presented for consideration. The resulting discussion is found to be the best part for participants as they consider how such approaches might be used in their own organisation or projects.

Current risk issues of concern and exemplar solutions include:

• Project schedule and cost overruns. This is much to do with the over-reliance on Monte Carlo simulations and the Risk Management Standard which logically and necessarily overlook potential project show-stoppers. A proven solution using military intelligence techniques will be provided. This has never failed in 20 years with projects up to $2.5b.
• Inconsistencies between the Risk Management Standard and due diligence requirements in legislation, particularly the model WHS Act. A tested solution that integrates the two is presented, as is now being implemented by many major Australian and New Zealand organisations.
• Compliance ≠ due diligence. Solutions to avoid over reliance on legal compliance as an attempt to demonstrate due diligence are provided.
• SFAIRP v ALARP debate. Model solutions presented (if relevant to participants) including marine and air pilotage, seaport and airport design (airspace and public safety zones), power distribution, roads, rail, tunnels and water supply.

Participants are also encouraged to raise issues of concern. To enable open discussion and explore possible solutions, the Chatham House Rule applies to participants’ remarks meaning everyone is free to use the information received without revealing the identity or affiliation of the speaker.

Remaining dates for 2017 are:

Perth               21 & 22 JuneBrisbane         23 & 24 AugustWellington       5 & 6 SeptemberMelbourne       25 & 26 October

Swinburne – Introduction to Risk and Due Diligence

R2A’s unit Introduction to Risk and Due Diligence at Swinburne University is now a core unit for two postgraduate Master courses, The Master of Professional Engineering and The Master of Construction and Infrastructure Management. With 140 students enrolled in the course, delivery has become a real team effort.The Master of Professional Engineering is designed to help students develop skills in professional management, communication, and research methods and principles in the engineering discipline. Students undertake research and project work and benefit from the industry focus of the program. Students participate in a professional industry project. This experience allows students to apply their knowledge and skills to industry problems. They also enhance students’ awareness of industry and provide valuable networking opportunities.The Master of Construction and Infrastructure Management aims to prepare graduates for future roles in managing people, equipment, materials, technological processes and funds in the construction, management and maintenance of buildings and assets in the civil infrastructure. This aim is facilitated by the study of advanced management and engineering techniques in the fields of construction, building and maintenance.Students gain significant knowledge and skills in procurement and project delivery, resource planning and management, project costing, health and safety, and risk management. They also learn about the environmental, financial, legal and contractual considerations associated with project-based industries.To provide students with a broad understanding of risk management, including basic concepts and the suite of available techniques.The key learning outcomes for the unit are to:

1. Understand fundamental due diligence, risk and reliability concepts;
2. Apply the safety, economic and legal drivers of risk management requirements;
3. Comprehend different organisational risk paradigms and models;
4. Recognise the liability and due diligence implications of risk managers, and how they relate to quantified risk management (QRA) techniques;
5. Apply risk modelling and generative information gathering techniques;
6. Apply the use of mathematics in risk and reliability analysis;
7. Generate safety cases demonstrating due diligence and limiting legal liability; and
8. Apply both top-down and bottom-up risk management techniques – and know when to use each

Further information about the Master of Professional Engineering or The Master of Construction and Infrastructure Management can be found on the Swinburne website.

EEA R2A Due Diligence Workshop Wrap Up

As a new addition to the R2A Consulting team, the timing of the recent EEA (Engineering Education Australia) and R2A ‘Engineering Due Diligence’ workshop was such that I was able to attend in my first few weeks of my new role.

Richard Robinson presented the workshop with eight participants from various industries and locations in Australia, which provided for interesting and varied discussion.

The workshop was the first of its kind following the recent partnership between R2A and EEA. Previous workshops had been more structured and closely followed the framework of the R2A text (2013) Risk and Reliability: Engineering Due Diligence, whereas the focus of this workshop explored in greater depth the queries and views of the participants in attendance.

The topics that stimulated most discussion amongst the group were -

1. Risk paradigms as they relate to business, projects and safety
2. Implications of the model Work Health and Safety Act
3. Limitations of the risk management standard as a tool to manage critical vulnerabilities
4. Determining critical success factors and undertaking a vulnerability assessment
5. Establishing time sequence diagrams
6. Establishing threat-barrier diagrams and locating the legal loss of control point

Of interest also was the diverse range of legal and technical examples that Richard drew upon to support the points of discussion that demonstrate due diligence or not, the case may have been.

The workshop format worked well and the feedback from the group was overwhelmingly positive. And no R2A workshop would be complete without the entertainment of a good set of well delivered jokes!

R2A is set to conduct more due diligence workshops like this in 2014 which I think will be of great value to personnel of varied responsibility including but certainly not limited to company directors, senior executives and project managers.