THE INTEGRATION OF VALUE AND RISK MANAGEMENT IN INFRASTRUCTURE PROJECTS: LEARNING FROM OTHERS

The idea of integrating value management (VM) and risk management (RM) has started more than ten years ago as many professionals realised that it is impossible to separate between value and risk. VM is about articulating what represents value in terms of project benefits while RM is about identifying causes of uncertainty and what can go wrong. Both activities compliment each other; VM can reduce risk and RM provides opportunities to increase value. In the construction industry, both VM (including VE) and RM are widely accepted as best practice tools for effective management of projects. The most important features for integrating VM and RM are that both are systematic processes, involving a multi0disciplinary team in creative workshops. They both use a brainstorming technique as means for decision making process. Therefore combining the two processes within a single study is practical and logical as both share the same resources. This paper examines the application of the integration of RM and VM which is subsequently known as Value and Risk Management (VRM) based on several infrastructure project case studies.