18 Risk

Question 1

How would you define ‘risk’?

Answer 1

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Question 2

What is risk management?

Answer 2

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Question 3

Explain to your client the benefits of following a risk management strategy.

Answer 3

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Question 4

What types of risk are there?

Answer 4

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Question 5

How can you identify risk on a project?

Answer 5

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Question 6

Why do you need to monitor risk?

Answer 6

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Question 7

Explain the principles of risk analysis.

Answer 7

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Question 8

What are the benefits of formally analysing risk?

Answer 8

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Question 9

What is a risk register?

Answer 9

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Question 10

What would you expect to see in a risk register?

Answer 10

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Question 11

Explain how a risk workshop works.

Answer 11

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Question 12

What are the main ways of dealing with risk?

Answer 12

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Question 13

Who should own risk?

Answer 13

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Question 14

What is the Monte Carlo Simulation?

Answer 14

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Question 15

How can the principles of risk management be used to control the uncertainty of project delivery?

Answer 15

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Question 16

What contractual mechanisms in JCT contracts protect the client against risk?

Answer 16

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Question 17

What contractual mechanisms in NEC contracts protect the client against risk?

Answer 17

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Question 18

How has risk been mitigated on one of your projects?

Answer 18

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Question 19

How is risk managed in large building projects?

Answer 19

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Question 20

What typically are the client’s risks on a project?

Answer 20

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Question 21

How can a client minimise his risk?

Answer 21

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Question 22

Is it possible to pass all the risk to a contractor?

Answer 22

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Question 23

Explain to your client who is best placed to act as a risk manager on a project.

Answer 23

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Question 24

What risks are associated with the main types of procurement?

Answer 24

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Question 25

How is risk included in a contract sum?

Answer 25

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Question 26

How would you go about calculating a project contingency?

Answer 26

The value of a contingency sum may depend on:

1. Complexity of the project
2. Risk of unforeseen works
3. How developed the design is
4. Assessment of the client’s budget
5. Previous projects of a similar nature

• A percentage figure will then usually be agreed with the client based on the above factors
• Alternatively, the sum of quantitative items on a risk register may be more appropriate to use

Question 27

What are the main dangers of using a lump sum percentage based contingency?

Answer 27

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Question 28

How do you generally expect risk to be dealt with in a feasibility estimate?

Answer 28

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Question 29

How do you generally expect risk to be dealt with in a cost plan?

Answer 29

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Question 30

What is Cost/Schedule Quantitative Risk Analysis and how does it work?

Answer 30

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Question 31

If a client is worried about the non-performance of a contractor, what can he do to protect himself?

Answer 31

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Question 32

What are the risks associated with either a performance bond or a parent company guarantee?

Answer 32

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Question 33

What risk does a collateral warranty protect against and who is it protecting?

Answer 33

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Question 34

Explain the concept of the phrase ?reasonably foreseen by a competent and experienced contractor?.

Answer 34

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Question 35

If a client has transferred design responsibility to the contractor, how can he be sure that he is protected against a faulty design in the event of the contractor going into liquidation?

Answer 35

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Question 36

What sort of risks can be covered by insurances?

Answer 36

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Question 37

How do the New Rules of Measurement deal with risk?

Answer 37

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Question 38

How is a risk register used in the post contract phase of a project?

Answer 38

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