Risk Management

Question 1

How does NRM categorise Risk?

Answer 1

• Construction Risk
• Design Development Risk
• Client Change
• Client Other

Question 2

Can you give me an example of a Risk from each category?

Answer 2

• Construction Risk = Below ground contamination
• Design Development Risk = Changes that occur throughout the design changes. For example increased specification
• Client change = Key client changes, for example instructing CAT-A
• Client other = Acceleration of the works

Question 3

Within your cost plans, which risk categories do you include allowances against?

Answer 3

Design Development Risk
Construction Risk

Question 4

What are the key stages of risk management?

Answer 4

• Identify
• Allocate
• Monitor
• Manage

Question 5

Can you talk us through the contents of one of your risk registers?

Answer 5

• Risk ID
• Risk Description
• Likelihood
• Impact
• Mitigation Strategy
• Pre-mitigated (EMV) = Expected Monetary Value (Likelihood x £ impact = EMV)
• Post-mitigation (EMV) = Expected Monetary Value (Likelihood x £ impact = EMV)
• Mitigation method
• Risk Owner

Question 6

How might you go about identifying Risks on a Project?

Answer 6

Collaborative Team meetings, each person identifies possible risks
Lessons learnt from similar developments and previous projects.

Question 7

Do you know what the EMV is?

Answer 7

Expected montary value = (EMV) = Expected Monetary Value (Likelihood x £ impact = EMV)

Question 8

Are you aware of any methods in which to quantify Risk?

Answer 8

Monte Carlo simulation
Central limit theorum

Question 9

How does a Monte Carlo work?

Answer 9

Runs thousands of scenario based simulations to generate a range of possible outcomes.

Question 10

How is Risk managed on a broader scale? (P & T Strategy)

Answer 10

Dependent on the procurement strategy that has been used. For example, Design and Build is the least risky procurement route.