2011-02-02
By Editor
Femern A/S, the Danish government-owned company created to build the 11 mile fixed link between Denmark and Germany, is using Risk Decisions’ Enterprise Risk Management software, Predict!, to assess the impact of the different risks on the construction cost of the link; and realistically estimate the risk reserve required for the project.
The Fehmarnbelt link will stretch between Rødbyhavn in Denmark and Puttgarden in Germany. Construction is expected to commence in 2014 with completion estimated in 2020.
Femern A/S was tasked by the Danish government to put together proposals for two different types of transport links – a tunnel and a bridge. Per Åkesson, project manager, risk management at Femern A/S, explains, “We needed to realistically evaluate the pros and cons of both the tunnel and bridge transport links. Construction cost naturally has a strong bearing on the decision making process for a project of this size. The Monte Carlo simulation capability in Predict! enabled us to simulate the impact of different risks on the construction cost of both types of transport link and propose the respective construction risk reserves.”
“The use of Predict! at Femern A/S during this initial stage of the project is only the beginning. The solution will gradually be rolled out across the organisation as the traditional Microsoft Excel sheet style risk register is inadequate for a project of this magnitude. Predict! will be the underlying support tool of choice for all risk management processes, touching every aspect of the organisation”, Åkesson adds.
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