Risk and Life Cycle Costs and Benefits for Underground Projects ? Introduction

The underground industry is challenged by many complex technical and non-technical issues and risks. The most obvious of these are the traditional technical issues that we usually try to address with risk management techniques. However, there are many other non-technical risks that our projects face on a daily basis which we often fail to fully recognize or appreciate. This paper addresses some of the less-technical broad-based risks in order to put them into perspective with the technical risks we face day to day in underground planning, design and construction. The good news is that Risk Management techniques are not always about bad things. For obvious reasons Risk Management is always thought of in terms of the ?downside? of risk (i.e., the identification and mitigation of things that can go wrong). On the contrary, there is an ?upside? of things that might go better than expected. Fortunately, if a deliberate effort is made, the same principles and techniques that our industry uses in Risk Management can be applied toward identifying and quantifying the Opportunities and Benefits that might occur. In this way, the process of conducting risk management programs can not only identify the downside risk but can be used to identify and direct projects to take advantage of the upside of uncertainty (i.e., Opportunities as they arise). This beneficial aspect of risk management programs will be highlighted in this paper together with the importance of the non-technical issues.