19. RM Flashcards
What is a risk?
A risk is an uncertain event that, if it occurs, will affect the outcome of a project.
RICS define risk as ‘the likelihood of an event occurring and it’s impact’. This is often used to score the risk of EWNs.
What is risk management?
A process that establishes ways of managing risk.
E.g. EWN & RRM. Risk Register & QCRA
What is a Risk Register?
A Risk Register is a list of risks that could affect a project.
Defined term. Also cl 16 mention.
Where in the NEC contract does it mention Early Warning Register / Risk Register and is there a requirement for them?
16.4 - Risk Register is stated here in standard form. Yes there is a requirement under this clause.
HOWEVER… In our HS2 contract, they have called it an Early Warning Register (not sure why as this is NEC4).
Extra… Our HS2 16.6 - states the WI may include the need for a risk register, but it is not a defined term.
What are risk allowances?
The monetary allowances, for works or services, whose quantity and specification are unknown and are at the risk of the client.
What did you learn from GN on Management of Risk, 1st edition?
A risk is an uncertain event that, if it occurs, will affect the outcome of a project.
Key principles of risk management - Identify. Analyse. Control. Manage.
Also… NRM1 states that management of risk is required by the employer. A risk register can aid the process, allocating risks to the parties. NRM states that risks will take one or more of the following risk mitigation strategies: Risk avoidance, reduction, transfer, sharing, retention.
Risk quantification techniques - Qualitative Risk Analysis & Quantitative Risk Analysis.
How were you able to advise your client on Risk Management on the project?
EWN & RRM
Risk Register (& Top 5 risks provided to the client in the F&R meeting)
QCRA
What does LADs stand for and what are they?
Liquidated and ascertained damages (or LDs)
They are fixed rates of damages, agreed by the parties, that are payable in the event of breach of contract.
What is an EWN?
Early Warning Notification.
A notification by one party to another, that communicates a potential risk to the project. This can be time, cost or quality. Once aware of an issue, there is a duty to inform the other party.
What is the NEC clause for EWNs?
16
Name 2 mitigation strategies.
Risk avoidance, reduction, transfer, sharing, retention.
What is risk avoidance, and what is risk reduction?
Risk avoidance = risk is so serious they must be avoided. May have to review the brief.
Risk reduction = level of risk is too high, so need to lower it (could share).
What is a RRM?
After an EWN has been submitted, this is followed by a risk reduction meeting. This is where both parties work collaboratively to mitigate the risk.
Risk title, background, discussion, actions.
Difference between qualitative risk analysis and quantitative risk analysis?
Qualitative - based on judgement/experience. Used to identify risks that can’t be measured/quantified. They are scored and ranked without cost.
Quantitative - based on data. Used to identify specific risks and their probability and impact.
Take me through when you’ve contributed towards the identification of a risk?
I have identified a few risks and shared them with the client:
1. TM Clash
2. Long-lead items
3. Unforeseen obstructions
During the design stages of this package, I was informed some of the TM planned for this scope clashed with TM elsewhere. I liaised with the delivery team and planners to confirm the details. I drafted an EWN to HS2 informing them of a potential impact to the programme and potential consequential price impacts. I helped mitigate this risk by proposing those specific works could be carried out earlier on another live package, WP26.1A, to accelerate and de-risk the programme. The programme was re-phased.
Also - raised an EWN to HS2 regarding the long-lead items for WP26.1B.
Also - added unforeseen obstructions to the risk register.
