Project Risk Management
High Speed Train Investment Risk
- Client
- Major Construction Group
- Country
- France
- Year
- 2002
- Industry
- Construction & Transportation
- Service
- Risk Management
A rail operator planning to invest in a new high speed line wanted more confidence in the project's feasibility at an early stage. kwantis assessed the risks of each development scenario to find the best cost versus benefit option.
The challenge
A rail operator intended to invest in a new high speed line connection. In an early assessment of the project, it wanted to increase its confidence in the project’s feasibility and to find, among the development scenarios, the option with the best cost versus benefits.
Our approach
kwantis consultants carried out a complete risk assessment of the development scenarios:
- They developed a risk register for the project.
- Each risk was evaluated individually with the relevant experts, addressing variables in terms of cost, time and revenues.
- All the variables were consolidated in a probabilistic model, so that all the scenarios under study could be compared.
The outcome
Each scenario was evaluated explicitly, with its level of confidence in reaching the profitability and schedule targets.
For its decision, company management looked in particular at the level of uncertainty and the value at risk of each scenario.
