3.7 Risk Management

Question 1

What is Monte Carlo simulation?

Answer 1

Computational mathematical risk analysis

Question 2

What is a risk assessment?

Answer 2

A review of the risks to identify the likelihood and severity.

Question 3

What are risk response strategies?

Answer 3

-Risk avoidance
-Risk transfer
-Mitigation
-Risk acceptance

Question 4

Key benefits of effective risk management?

Answer 4

-Reduce chance of conflict
-Reduced costs/time overruns

Question 5

What are the four risk categories in the NRM

Answer 5

Employer change risk
Employer other risk
Design development risk
Construction risk

Question 6

What is a risk allowance?

Answer 6

Monetary allowance set aside on the risk register to cover costs should the risk be realised.

Question 7

How would you calculate your risk allowance?

Answer 7

Cost estimate - simple percentage
Cost plan - risk assessment

Question 8

Risk - level 2 example?

Answer 8

Network rail pier - Considered the use of concrete and geogrid.