Risk Management Flashcards
Chosen who owns the risk based on your procurement route
Brede Eel Screen: I conducted a workshop with the Contractor to run through risks. It was agreed that any design risk would be retained with the Contractor. They argued that if the information they were given was incorrect, they would not be liable for it. This was the only exception originally, and the risk that incorrect information would be passed on was retained by the client.
When have you contributed towards risk identifiation on a construction project
PAVA System Replacement: I conducted a workshop at the start of the project to identify the key risks and mitigations. The primary risk that was identified in this was damaging the system (which causes evacuations of the building) or turning it on by accidentally knocking it during the works.
When have I contributed to strategies to mitigate risks?
PAVA: A major risk was something going wrong during the changeover weekend. My mitigation strategy was to have multiple meetings with the Contractor, the FM team, the Engineering team and security team. This was to ensure that all possibilities were planned for.
One tangible solution was to bring in additional resource to ensure all the work was completed.
When have I analysed risks on a project
WINEP Schemes: While not a project, I looked comprehensively at a full programme of works to identify how the risk calculation was happening. It turned out that the project risk allowances were way off, as the previous PM had been allocating the mitigation cost as the risk cost. This is incorrect, and I adjusted in the system.
I calculated the rates based on the impacts of the risk occurring, not what it would cost to resolve. For example, a risk was a certain type of hydraulic modelling would not be up to standard. This was mitigated by bringing in an additional resource. The risk was having to repeat the modelling process later on.
When have I considered risk impact on a programme
I always group them to understand programme impacts. I recently did this on my Level 10 Refresh project, where a specific piece of kit was required but it wasn’t identified until late on in the project.
Originally, it was expected to have an 8 week lead time which would have delayed the project considerably. I’ll be honest, it was very lucky that there was a second hand one that the Contractor was using that could fit, so it didn’t actually impact the completion date.
How do I quantify risks on a project I am familiar with
Mains Replacement projects: Typically, what I would do on any given risk for a mains replacement scheme is identify if it has a programme impact, and use that to identify a base cost. I would use this based on rates I had for the contractors time. Then, I would look at cost for additional material required, and I would allocate roughly 10%.
What I would do overall is put this into the clients risk management system which conducts a monte carlo analysis based on worst case, medium case, and best case (likeliness considered as well).
Who is responsible for raising risks, and assessing them
Raising risks: this must be done by the entire project team. On my projects, I review the risk register at every session and provide an opportunity for project team members to share.
Assessing: This has been led by myself on my projects. I would rely on the expertise of others to fully understand the situation.
How do I run a risk workshop
I conducted one for my Large Scale Mains Replcaement scheme. I ensured all the relevant people were in the room before identifying the risks that I was aware of, assigning responsibility, scoring, and identifying a mitigation method.
Once these were done, I spoke to each member of the team on the call for them to identify missing risks, and finalise. Once done, the full team had to agree they were confident on the risk register covering everything they could think of. This would be revisited weekly.
