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London 2012 Olympics

Satisfactory Essays
1. Introduction

London 2012 Olympics is a megaproject that need to be complete within £7.2 billion against an immovable date. Therefore, control of risks and release of contingency are vital to this project. This essay explains the key parts of the risk framework used for the London Olympics and the methods that they used to manage and control the risks.

2. Key Parts of the Framework

Plain English ISO 31000 Risk Management Dictionary (2010) defines that ‘a risk framework is a set of components that support and sustain risk management throughout the organisation.’ The framework consists of two types of components: foundations and organisation arrangements, ensuring that day-to-day risks are analysed and key risks are escalated to the senior managers during the project. According to Risk Management Dictionary (2010), ‘Foundations include the risk management policy, objectives, mandate, and commitment. Organisation arrangements include the plans, relationships, accountabilities, resources, processes and activities used to manage the organisation ’s risk.’ The main objectives of the London Olympics risk management teams were: minimising the impact on the programme, using best data to make suitable decision, promoting the activities and releasing the contingency. In order to achieve the objectives,
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First, a clear risk hierarchy was introduced which allowing the right people to manage the right risks. Second, the Quantified Risk Analysis controlled the contingency allocation. Key risks were forecast before they occurred which allow the management team to solve the problems in advance. In addition, sufficient contingency ensured the budget maintained as appropriate. Third, a clear and open reporting system created a healthy balance of review in the whole process. Last, assurance and audit promoted an honest culture of risk
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