Risk Management Flashcards
What are the 4 risk categories?
- design development
- construction
- Employer change
- Employer other
What is a risk?
An uncertain event that would negatively impact a project
What is a risk register?
A document that list all the risks on a project and explaining the nature of these risks
What is the purpose of risk management?
If risks can’t be eliminated, they need to mitigated against to try and not affect the project
How can risk be calculated?
- A % can be applied to an order of cost estimate.
- register identifying all risks and costs against them on a cost plan
What is a risk assessment?
An assessment identifying all risks, the likelihood and severity of these risks
What risk management strategies can be used?
- Avoidance
- Reduction
- transfer
- Share
- Retention
What is the Monte Carlo simulation?
Computer software to help predict risks
What are the positives of the Monte Carlo simulator?
Positive is it may predict risks that were not foreseen.
What are the negatives of the Monte Carlo simulator?
- Time consuming putting in variables
- only as good as the data you put in
What is a contingency allowance?
A sum included to cover unknown risks on the project
Can you benchmark risk allowance?
Methods of quantifying risks
- Probability trees
- Monte Carlo system
