Control: 2.S.8 Economics Meets Opportunity Requirements
| Title | Description |
Context |
Technical and commercial assumptions and terms and conditions may have been modelled from a very early stage in the opportunity maturation. Incorrect estimates of value occur when changes in the technical and commercial environment have not been communicated and therefore not incorporated into the updated valuation model. As a result, incorrect value estimates could lead to flawed decision making, and sub-optimal concept selection. |
Activity |
Ensure the valuation model and the application of the assumptions and input as contained in the opportunity data book is based on the most recent technical and commercial base line. Ensure that the technical assumptions and inputs are objective and free from bias. |
Purpose |
To ensure that quality decision making and concept selection is done on the basis of the up-to-date and assured valuation model. The opportunity team can confirm that the valuation model reflects the technical and commercial aspects of the opportunity accurately and the assumptions/input have been independently verified. |
Requirements from other Standards |
Economics are to be assured prior to the Proposal to Commit to Project (PCP) and Group Investment Proposal (GIP)submission in accordance with the Opportunity Realisation Standards (ORS) Assurance Framework. |
Evidence recorded in |
Concept Select Report |
Accountability for meeting Control Intent |
Front End Development Manager |
Phase |
Select |