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Welcome! 
Thank you for accepting the invitation to join me today for the opportunity to solve a 
problem. 
My goal is to enlighten you to a strategic way to enhance our capacity to capture profits 
and reduce uncertainty in our project performance.
1
To achieve this goal I have set out a plan that takes us from the source of the issue, risk, 
through to the solution.  
Explaining, defining, why risk is both the root cause of our problem and, when managed 
effectively and in a comprehensive way, actually part of the solution.
I will take you through the form and structure of the solution, and finally set out the call to 
action necessary to exploit this opportunity.
2
Design‐Build is not typically a companies largest business unit by sales but it is often the
largest contributor to profits.
Additional benefits include the ability to participate in some of the largest and most 
noteworthy projects in the industry.
These benefits are always balanced with some challenges – the designer almost certainly 
get SQUEEZED between owners and contractors, having to satisfy the needs of both while 
maintaining a goal orientated performance focus and fiduciary responsibility to our 
contracting partner.
Like the mantra of the investing world… no risk, no reward (“There's no reward in life 
without risk.” Barry J Farber). We do Design‐Build for the access to higher profits, the 
reward. What we inherit in the process is risk.
3
We know… Design‐Build is a business fraught with risk.
We pursue large infrastructure projects because they fit, marry, with our core business 
practices and have the profit potentials we seek – the reward.
You would think that if not us at least as an industry as a whole we would do what it takes 
to capture and retain the reward.
As you can see from McGraw‐Hill’s industry survey however the numbers prove out here, 
as an industry we do a poor job managing the three things that directly impact our ability 
to control profits – scope, schedule and fee (McGraw‐Hill Construction. (2011). Mitigation 
of Risk in Construction: Strategies for Reducing Risk and Maximizing Profitability. New York: 
McGraw‐Hill Construction).
We not only expose ourselves to risk, we also do a poor job of assessing its effects and 
developing mitigations to reduce them.
4
So, what is risk?
From Merriam‐Webster its “the possibility of loss or injury” (Merriam‐Webster, 2012, 
http://www.merriam‐webster.com/dictionary/risk).
Loss is “destruction, ruin” (Merriam‐Webster, 2012, http://www.merriam‐
webster.com/dictionary/loss). 
Loss equates to threats and opportunities. Harmful events and beneficial acts.
For us loss equates to not only to the direct impact of an event, threats that effect our 
ability to perform, but the failure to capture opportunities.
To maximize our potential to capture profits and achieve our goals, rewards, we need to 
reduce threats and exploit opportunities.
5
Now, everything that we have shared so far has been laying the common groundwork from 
which we operate business and execute projects. No big surprises, just rounding out our 
understanding.
The problem though is that this is where our path to success currently ends. Just short of 
identifying and implementing a way to make meaningful change and producing results.
Looking at the problem again now then we reflect on a few simple facts – we want to 
control our ability to capture more profits, risk – realized threats and missed opportunities 
– have impacted our profits potential, and we have also done a poor job of assessing risks 
effects and developing mitigations to reduce or exploit our exposure to them.
Ideally our solution to this problem would address each of these and help shift the effect of 
risk on our cost down the scale minimizing its impact.
Graph source: FTA Risk Assessment, Construction Roundtable, 2004 
6
The Enterprise Risk Management Process – E.R.M.P., the simple solution.
The cyclical process of identify, assess, mitigate, allocate and control is applied at every 
phase in the project lifecycle. It is also imbedded in the plan for project execution and 
delivery. The source of the financial expectations and risk response goals is driven by 
corporate objects.
Graph source: Mike Debiak, 2012
7
The process is defined, achievable, repeatable and responsive to the need – shifting the 
cost curve back to the left. 
Depicted is the integrated process that reaches across the company, touches all the key 
stakeholders, embraces every employee and project, defines accountability and provides 
the action planning steps to assure that we are taking the greatest advantage to mitigate 
our exposure to cost growth and exploit opportunities to increase our profits.
Graph source: FTA Risk Assessment, Construction Roundtable, 2004 
8
"Failures don't plan to fail; they fail to plan" ‐ Harvey MacKay
Using a sound process that increases our opportunity to capture profits and reduce costs 
makes perfect sense at the project level.
Why would this same process not make sense to implement at the corporate management 
level? 
Bringing the management of risk to the inter‐project and interdepartmental level, and 
reaching up to the business group and market sector levels defines our company‐wide 
threats and opportunities.
We are than able to use this information to drive decisions at each subordinate level, 
ultimately enabling project teams to respond to risks based on how they fit into the 
corporate structure. 
Important too is who will be responsible and accountable for assuring that threats are 
mitigated and opportunities realized. The corporate‐wide or enterprise approach assigns 
responsibility and defines accountability.   
9
Its time to answer the call to action necessary to exploit this opportunity and mitigate the 
threat of failing our goal.
Implement the Enterprise Risk Management Process.
The next step toward effecting control of profits.
Graph source: US Government Accountability Office (GAO), Cost Guide, 2011
10
11
12

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