Risk Management Flashcards
(15 cards)
What is a Risk?
An uncertain event that, if it occurs, will affect the outcome of a project. Risk can refer to both positive and negative uncertainties.
What is Consequential Risk?
A risk that may occur as a result of another risk occurring.
What is an Issue?
Events that are happening now or will almost certainly happen in future.
What is Risk Appetite?
The willingness of a person or organisation to accept risk.
What is a Risk Register?
Document describing key information on all identified risks.
What are the NRM 1 categories of Risk?
- Design Development Risks
- Construction Risks
- Employer Change Risk
- Employer Other Risk
What is Risk Management?
The process for identifying, assessing and responding to risks
Name the Risk Mitigation Strategies
- Risk Avoidance (where the risk is unacceptable)
- Risk Reduction (where the level of risk is unacceptable)
- Risk Transfer (passes responsibility to another party to better control the risk)
- Risk Sharing (risk isn’t entirely transferred and the employer retains some element of risk)
- Risk transfer (employer retains risks that are not necessarily controllable – reduces as the project progresses)
Typical inclusions in a risk register
- Description of the identified risk
- Severity
- Impact – cost or time
- Mitigation Strategy
How can the assignment of monetary value to risks aid in risk management?
It allows the severity of the risk to be categorised, therefore meaning risks can be prioritised. It also allows a financial cost-benefit analysis to be conducted.
What is a MEWP?
Mobile Elevating Work Platform
How can carrying out surveys aid in de-risking a project?
Surveys increase the scope of knowledge of risk, meaning the implications of the risk can be better understood, and therefore the cost of rectifying/not rectifying the issue can be realised.
Would you typically include or exclude employer’s other risk in a Cost Plan/OCE?
I would ask for the client’s preference.
How can you minimise risks?
- Surveys & site investigations.
- Early Contractor involvement.
What are some risk analysis techniques?
Monte Carlo analysis – Computer generated simulation used to model outcomes.
Simple method – Likely cost is assigned to all risks on the risk register along with the probability. Cost is multiplied by the probability to give an expected monetary value.
