RISK MANAGEMENT IN CONSTRUCTION PROJECTS Flashcards
(25 cards)
What is the definition of Risk in construction management?
Risk is defined as a possible future event that can impact project outcomes, whether positively or negatively.
Risks can be uncertain, unknown, or unexpected, making their identification crucial for project success.
What is the primary goal of risk management?
To transform unknown unknowns into known risks, allowing for better planning and mitigation strategies.
Why is effective risk identification important?
Without identifying risks, project managers cannot account for potential issues, leading to unforeseen challenges during execution.
How can risks be classified?
Risks can be classified into three categories:
* Known risks
* Known-unknowns
* Unknown-unknowns
What are common causes of project failures?
Common causes of failure include:
* Delays in project completion
* Capital cost overruns
* Technical failures
What external factors can influence project success?
External factors include:
* Government interference
* Fluctuations in raw material prices or shortages
What tools are essential for identifying risks?
Essential tools for identifying risks include:
* Document reviews
* Information gathering techniques
* Brainstorming
* Delphi method
* Interviews
* SWOT analysis
What does SWOT stand for in risk management?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
What is qualitative risk assessment?
Qualitative analysis involves assessing the probability and impact of identified risks to prioritize them effectively.
What is a probability/impact matrix?
A probability/impact matrix visually represents the likelihood of risks occurring against their potential impact on the project.
What are risk factors in project management?
Risk factors are numerical representations of the likelihood and consequences of specific events affecting a project.
What does the Red/Yellow/Green Method assess?
It qualitatively assesses risks based on their likelihood and impact, using color codes for easy visualization.
What are the pros of the Red/Yellow/Green Method?
Pros include:
* Quick visual representation of risks
* Easy to communicate to stakeholders
What is the Rating Scale Method in risk management?
This method refines the Red/Yellow/Green approach by introducing numerical rating scales for risk factors.
How is the overall risk rating calculated in the Rating Scale Method?
The overall risk rating is calculated by multiplying the likelihood and consequence ratings.
What are the components of risk assessment?
Components include:
* Risk identification
* Risk analysis
* Risk evaluation
What are the four risk response strategies?
Risk response strategies include:
* Mitigate
* Transfer
* Avoid
* Accept
What does mitigation involve?
Mitigation involves reducing the probability or impact of a risk to an acceptable level.
What is risk transfer?
Risk transfer involves shifting the negative impact of a threat to a third party.
What does acceptance of risks mean?
Acceptance indicates a decision not to change the project management plan in response to a risk.
What are strategies for managing positive risks or opportunities?
Strategies include:
* Sharing opportunities
* Enhancing opportunities
* Acceptance of opportunities
What is the definition of safety culture in construction?
A good safety culture translates organizational values into effective safety controls.
What does the WHS Act 2011 outline?
The WHS Act outlines the duty of care and responsibilities for ensuring health and safety in the workplace.
What constitutes high-risk construction work?
High-risk construction work includes activities that pose significant safety threats, such as working at heights.
