Risk Management Flashcards
(41 cards)
What is a risk?
An uncertain event or circumstance that, if it occurs, will affect the outcome of a programme/project.
What is an issue?
An event that is happening now or will occur in the future.
How do you measure risk?
The likelihood of an event or failure occurring and its consequences or impact.
Likelihood x impact.
What are the different risks under NRM?
Design Risk
Construction Risk
Employer Change
Employer Other
Provide 2 examples of design risk?
Inadequate / unclear project brief
Unclear design team responsibilities
Inadequate site investigation
Planning constraints
Ineffective design coordination.
Provide 2 examples of construction risk?
Access to site
Archaeological remains
Contaminated ground
Existing services
Performance of statutory undertakers
Weather implications.
Provide 2 examples of employer change risk?
Changes to scope of works
Change in quality / specifications
Change to time
Client led design change.
Provide 2 examples of employer other risk?
Unrealistic timescales
Unrealistic tender periods
Timescales for decision making
Delay in payment
Liquidation of main contractor.
At what stage of the traditional procurement route would you address risk?
From inception of the project, so that I can include an allowance within my initial cost estimate.
How would you address risk within your cost estimate / cost plan?
5% design risk
5% construction risk
This is based on what I see within the fit out market and benchmarking projects.
How is that built up?
The likelihood of an issue occuring and its cost impact.
Who helps identify the risks?
Key stakeholders, client, design team and other consultants.
Would this process change as you go through the project?
Risks become known as the design progresses. Design risk allowances can be drawn down on.
As a contractor comes on board, under D&B they will be managing risks on site.
What are some actions / responses for known risks? Plus examples
Risk avoidance
Risk reduction
Risk sharing
Risk transfer
Risk retention
Why is it important to quantify risks?
To understand the impact on the project budget.
How are these risks quantified?
The simple method is the most basic quantitative method for calculating a risk allowance on a project.
A likely cost is assigned to all risks in the register along with a, usually subjective, probability or occurrence. The cost is then multiplied by the probability to give an expected value. The expected value for each risk is then totalled for an overall risk allowance.
How does the different RIBA stages effect how a risk is quantified?
As the design becomes more detailed, the risks become more precise and accurate to quantify. Moves from budget allowances to elemental costs.
How does the level of risk and area of risk change as the RIBA stages progress?
As the design progresses, specifications are identified and the level of detail increases. Where design develops over the budget, risk allowances can be drawn upon as necessary and with approval from the client.
What is a risk register?
A database of captured risks containing a summary of the information necessary for managing the risks.
What do risk registers include?
Identified risk
Consequence – time, cost, quality, H&S
Risk owner
Action to mitigate.
Likelihood and impact
Rating
Who is involved in preparing a risk register?
How are risks managed with a risk register?
For each risk identified, information is included, such as a description of the risk, risk consequences, impact rating, risk owner and so on.
Who manages the risk register process?
In my experience, it has been either the EA/PM or the architect that oversees, but all consultants contribute.
What is the EMV?
Expected Monetary Value
