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.

Risk and Due Diligence Unit – Swinburne Update

The Introduction to Risk and Due Diligence Unit at Swinburne is going well this year with 17 students with a diverse global representation.  An aspect of the course is a tutorial presentation on some aspect of the law in different jurisdictions.  Some very interesting presentations have been made.

The student from Switzerland described the direct democracy process.  Direct democracy involves a citizen-sponsored amendment to the Constitution.  100,000 voter signatures are required, which if achieved requires a referendum.  To pass into law, a double majority in both the national popular vote and a majority of the (26) cantonal popular vote must be in favour of the amendment.  The successful amendment must then be implemented by the federal parliament.

A recent amendment was to ban golden handshakes for executives, especially for executives departing poorly performing companies.  Apparently most politicians and business leaders advised against this amendment as acting against the national interest, but it was nevertheless adopted with the highest voter turnout in recent memory.

Being about half way through the semester now, it seems like everyone, including the Lecturer is learning something new each week!

The course at Swinburne is presented each week at the Hawthorn campus (VIC). We also welcome guests, so if you have an interesting case study or project example that you would like to share with the students, please get in touch.