3.7 Risk Management Flashcards
What is Monte Carlo simulation?
Computational mathematical risk analysis
What is a risk assessment?
A review of the risks to identify the likelihood and severity.
What are risk response strategies?
-Risk avoidance
-Risk transfer
-Mitigation
-Risk acceptance
Key benefits of effective risk management?
-Reduce chance of conflict
-Reduced costs/time overruns
What are the four risk categories in the NRM
Employer change risk
Employer other risk
Design development risk
Construction risk
What is a risk allowance?
Monetary allowance set aside on the risk register to cover costs should the risk be realised.
How would you calculate your risk allowance?
Cost estimate - simple percentage
Cost plan - risk assessment
Risk - level 2 example?
Network rail pier - Considered the use of concrete and geogrid bypass uncharted serviced.
Ways to identify risk? (SoE)
Risk workshop
Lesson learnt
Existing risk reg
One to one
How is risk allocated?
Risk should be allocated to the party who is best suited to manage/minimise it.
How is risk assessed?
Risk = Likelihood x severity. Both time and cost assessed.
