Risk Management

Question 1

Outline some examples of risks on a risk register

Answer 1

Asbestos

Ground obstructions

Archaeology finds

Bombs

Question 2

How can you deal with risks outlined on a risk register

Answer 2

Contingency

Transfer the risk

Question 3

What reduction or mitigation measures could you put in place for asbestos

Answer 3

Asbestos R&D survey

Remove/ manage asbestos (put a cost against it)

Question 4

How do you decide the level of contingency in a cost plan

Answer 4

With the input of the project design we would produce a risk register.

My duty would be to advise the team on the cost allocation if the risk item should be realised.

By pricing the register and assigning probability and impact profiles the contingency can be calculated.

Question 5

Define risk

Answer 5

an uncertain event that, if it occurs, will affect the outcome of a programme/project

Question 6

Name the forms of risk avoidance/ mitigation strategies

Answer 6

Risk avoidance - the risk is completely unacceptable and needs mitigating

Risk reduction - the level of risk is unacceptable and actions are taken to reduce the likelihood or impact.

Risk transfer to the contractor - Risks that may impact the building programme are transferred to another party able to control it more effectively, usually involving a premium to be paid.

Risk sharing by both employer and contractor - when a risk is not wholly transferred to one party and some elements of the risk are retained by the employer.

Risk retention by the employer

Question 7

Name some risk avoidance measures

Answer 7

a review of the employer’s brief and a reappraisal of the project, perhaps leading to an alternative design solution

Question 8

Name some typical risk reduction methods

Answer 8

further site investigation

using different materials/suppliers to avoid long lead times

using different construction methods.

Question 9

As per NRM what’s the approach to dealing with risks apportioned between the employer and contractor

Answer 9

will normally be dealt with using provisional quantities, with the pricing risk being delegated by the contractor and the quantification risk being allocated to the employer.

Question 10

How is risk managed where it’s retained by the employer

Answer 10

the appropriate risk allowance identified in the cost plan will be reserved and managed by the employer.

Question 11

What NRM document discusses risk

Answer 11

NRM1

Question 12

What are the risk categories as per NRM 1

Answer 12

Design risk

Construction risk

Employer change risk

Employer other risk (e.g. acceleration/ LD’s)

Question 13

What are the key risks when choosing a procurement strategy

Answer 13

Time

Cost

Quality

Question 14

What are the key risks when choosing a procurement strategy

Answer 14

Time

Cost

Quality

Question 15

When allocating a cost to a risk in a risk register what method do you use

Answer 15

The simple method of assessment

Question 16

Explain how the simple method of assessment works when quantifying risks

Answer 16

A likely cost is assigned to all risks in the register along with a, usually subjective, probability or occurrence.

The cost is then multiplied by the probability to give an expected value. The expected value for each risk is then totalled for an overall risk allowance.

Question 17

What’s a more detailed method for quantifying risk

Answer 17

Probabilistic method

Question 18

What can be put together to outline who is responsible for each risk

Answer 18

A risk responsibility matrix

Question 19

How is the quantitive severity rating calculated in a risk register

Answer 19

Likelihood X Impact

Question 20

Name an RICS publication on risk

Answer 20

Management of risk guidance note

Question 21

What’s the Monte Carlo simulation

Answer 21

A mathematical technique that predicts possible outcomes of an uncertain event