Risk Management

Question 0

How to identify a risk?

Answer 0

Experience
Risk register
Analysis of assumptions and hazards

Question 1

What are the stages in the risk management process

Answer 1

1. Indentification
2. Assessment
3. Develop a response plan

Question 2

What type of risks are there within construction

Answer 2

• Political (change of regulation, government)
• planning (changes to match planning policy)
• financial ( change in market,lower income)
• project technical (incorrect technique)
• human ( mistake at site)
• criminal (safety)

Question 3

How should greater risks be assessed

Answer 3

Elementary risk analysis
Probability analysis
Sensitivity analysis

Question 4

What is the choice of assessment technique based on

Answer 4

Available experience

Computer software

Question 5

What are 2 common approaches calculating risks

Answer 5

Techniques included expected monetary value

Monto Carlo simulation (computer random sampling with significant uncertainty)

Question 6

What is the equation for risk exposure?

Answer 6

Impact x probability

Question 7

What should be considered for each risk

Answer 7

1. The optimistic outcome
2. The most likely outcome
3. The pessimistic outcome

Question 8

What are the rules in risk estimation

Answer 8

1. The most likely outcome must have the highest value

2. The total value of probability

Question 9

What are the risk assessment tools

Answer 9

Risk register
Decision tree
Influence diagram

Question 10

Explain a risk register

Answer 10

It is a table where all the risks are stated the impact and the probability is valued in 3 different levels (high/medium/low)

Question 11

How to calculate a dynamic control document

Answer 11

Risk register- regular reviews

Question 12

Explain a decision tree

Answer 12

Information is shown graphically with results and probabilities included. It is an effective tool to trace:

• causes
• origins
• consequences

Question 13

Explain influence diagram

Answer 13

It relates risk effects and causes. Risk effects are marked on a horizontal axis and risk causes are identified against each risk effect

Question 14

How is causes categorized in a influence diagram

Answer 14

Main causes
Sub-causes
Sub-sub-causes

Question 15

What response should occur for risks

Answer 15

• avoidance
• reduction
• transfer
• acceptance

Question 16

What stages should be included in risk analysis and management

Answer 16

1. Understand the project
2. Identify risks
3. Assess the risk exposure
4. Develop a response plan
5. Implement the plan
6. Review the effectiveness of the plan

Question 17

Why is it important to continual review risk register

Answer 17

• monitoring and if necessary, correcting progress on risk mitigation measures
• identifying new risks
• closing down expired risks
• amending risk assessment for existing risks
• approving the draw down

Question 18

What could be done to mitigate or avoid risks in construction

Answer 18

1. Ensure the adequacy of project funding
2. Obtain more geotechnical information
3. Conduct constructibility reviews
4. Set realistic performance time
5. Work and rework cost information
6. Introduce phased pricing
7. Pre-plan for permits, utilities and zoning
8. Pre-define rates, equations and procedures
9. Use experienced project personnel
10. Use the contracting process as a risk avoidance measure