Abstract:

In project risk management many firms use bubble diagrams to get a graphical presentation of a project's most uncertain attributes. The bubble diagrams and procedures used to put attributes into these diagrams are seen to provide a rational framework for managing risks. In this paper we review and discuss the use of these diagrams and procedures. Special attention is given to the way safety is treated. We show that the standard use of bubble diagrams is not adequate for identification and follow up critical activities that affect safety. The main problem is that the present structure means that the uncertainty is not properly taken into account. In this paper a reformulated bubble diagram is suggested that better reflects safety related uncertainties. The offshore oil and gas industry is the starting point, but the discussion is to large extent general.
Received on November 18, 2009, revised August 3, 2010
References: 12