Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APC > Risk Management > Flashcards

Risk Management Flashcards

1
Q

What is a ‘Risk’?

A

An uncertain event that, if it occurs, will affect the outcome of a project
Risk can refer to both positive and negative uncertainties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is ‘Consequential Risk’?

A

A risk that may occur as a result of another risk occurring

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is an ‘Issue’?

A

Events that are happening now or will almost certainly happen in the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is ‘Risk Appetite’?

A

The willingness of a person or an organisation to accept risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a risk register?

A

The willingness of a person or an organisation to accept risk
The purpose is to continuously monitor risks throughout the project period to minimize or mitigate the consequences

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the NRM1 risk categories?

A

Design development risks
Construction risks
Employer change risk
Employer other risks (e.g. early handover, postponement, availability of funds etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is risk management?

A

 Client’s risk appetite
 Who is responsible for risk management
 How risks will be identified, analysed, managed and reviewed
 Frequency of risk review meetings
 Software tools and techniques that will be used
 Reporting forms and structures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Explain a typical risk management process? (5 main steps)

A

 Identification – workshops, checklists, interviews, design review etc.
 Analysis (qualitative and quantitative)
 Management (risk response and management actions)
 Review(s)
o Risk probability and impacts (monthly)
o Implementation of risk responses (monthly)
o Update risk register (quarterly)
o Risk management maturity (quarterly)
 Reporting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a risk maturity model?

A

maturity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What risk response and mitigation strategies are available?

A 
Risk avoidance (where the impact is unacceptable)
Risk reduction (where the level of risk is unacceptable)
Risk transfer (pass responsibility to another party better able to control the risk)
Risk sharing (where the risk is not entirely transferred and the employer retains some element of risk)
Risk retention (employer retains risks that are not necessarily controllable – reduces as the project progresses)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Explain quantitative risk analysis (QRA)?

A

Calculation of cost or time effects of risk.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is ‘expected monetary value?’

A

Multiplying the likelihood of the risk occurring by the size of the outcome (as monetised)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are probability trees?

A

 Technique for determining the overall risk associated with a series of related risks. Used to calculate ‘expected monetary value’ in more complex situations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is fault tree analysis?

A

Involves working back from a negative outcome to identify cause(s)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is event tree analysis?

A

Find possible outcomes from an initial event - opposite of fault tree analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is percentage addition?

A

Risk allowance is based on a percentage of the cost – should only be used for initial order cost estimates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the simple method of assessment?

A

Likely cost is assigned to all risks in the risk register along with a probability. The cost is multiplied by the probability to give an expected value.

18
Q

What is the probabilistic method?

A

More in-depth version of the simple method (sometimes called 3-point estimating) – best, likely and worst cases for each risk are prepared. The probabilities for all 3 should total 100%. An expected value per assumption is generated (probability x impact) which is totalled to apply an expected value to each risk.

19
Q

What are the different type of risk?

A 
Site (Ground conditions, asbestos, contamination)
Design
Construction
Programme
Client 
Stats
Tender
S106
20
Q

What are the types of risk allowance?

A

Design development
Construction
Employer change
Employer other

21
Q

What is design development risk allowance?

A

Allowance for use during design process to provide for risk associated with design development.

Planning requirements, legal agreements, covenants, environmental issues, stats, procurement process and tender delays

22
Q

What is construction risk allowance?

A

An allowance during the construction process for the risks associated with site conditions, ground conditions, existing services and delays by stats.

23
Q

What is Employer change allowance?

A

Allowance for both design and construction phases for changes made by the client

24
Q

What is employer other risk allowance?

A

An allowance for other risks

Early handover, postponement, acceleration, availability of funds, LDs

25
Q

How can a client minimize his design risk?

A

The client is able to minimize the design risk mostly through procurement by utilising a D&B contract.
Or through Contractors Design Portion

26
Q

What does a risk register look like?

A

Description, priority, probability, value, owner, mitigation strategy

27
Q

How do you identify risks?

A

A risk workshop where all parties can have an input

28
Q

How to calculate a risk?

A

To provide an informed risk budget I would gather as much information as possible (workshop- Delphi)
Benchmarking

29
Q

How to calculate the likelihood of a risk occuring?

A

Workshops, Monte Carlo, Central Limit Thereom

30
Q

Who owns a risk?

A

Can be dependent on:
risk itself
procurement route

31
Q

How are risks captured?

A

Risk register

32
Q

Approaches to identifying risks?

A

Lists, brainstorming, delphi technique

33
Q

What is risk allocation

A

To allocate to the party who can manage risk best

34
Q

Benefits of Risk Management?

A

Increased confidence in achieving project objectives
Reduces surprises and cost/time overruns
Enable greater decision making
Encourages communication and collab

35
Q

How to price risk at NRM1?

A

Risk allowances will typically be excluded from my cost plans and priced separately within the Risk Register

36
Q

How are risks identified?

A

Risk workshops

Previous experiencdes

37
Q

What are the techniques of valuing risks?

A 
Expected monetary value
Probabilistic method
Central Limit Thereom
Monte Carllo
Route Means Square
38
Q

Why are risks tracked?

A

Within progress meetings to potentially alleviate risks and to value risks throughout

39
Q

Why is a QS so important to Risk Management?

A

Monitoring of the clients budget and costs

40
Q

Risk protection included in the Contract?

A 
Contract Type/Procurement Route
Bonds
Retention
Materials on/off site
Schedule of amendments

APC (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions