Lecture 12. Risk Management Flashcards
What is risk?
Combination of the chance of an event happening and the outcome should such event occur.
When is greatest uncertainty?
Start of a project.
Through what duration should risk management be taken out during a project?
Throughout.
When will risk management have most effect?
At the start of a project. (early on)
What is the most important time to apply risk management?
at the ‘project sanction’
The steps for managing risks?
Identification
Analysis
Response
What are the steps of analysing risks?
Evaluation of individual risks, evaluation of risks all together.
What must be determined for individual risks?
- Chance of occurrence
- Effect of occurrence
Process to deal with overall project risks?
- PERT (old technique)
- MonteCarlo Simulation (new tech)
- Experience
- (4 x most likely + optimistic + pessimistic)/6
How does the practical method work?
Making a decision on how to act and taking some action.
Process from risk management?
Typical responses Investigate further Avoid (change design, construction method) Share Insure (CAR)
Method for risk management?
- id
- access the vulnerability of critical assets to specific threats
- determine the risk (likelihood, consequences etc)
- was to reduce risk
- prioritise risk reduction measures based on strategy.
Who will assess the risk?
Project manager with input from project team.
What is high probability of occurrence?
Greater than 70%
What is medium probability of occurrence?
Between 30 and 70%
