Risk Management Flashcards
What is a risk?
A risk is a product of uncertainty which can have a positive or negative impact
What are the stages of risk management?
- Identify
- Analyse
- Respond
- Monitor
What are risk response strategies or techniques?
- Avoid
- Reduce
- Transfer
- Share
- Retention (absorb it)
What is the key to good risk management?
- Identifying and analysing risks - owning them
- Ensuring the relevant party can manage the risk
- Monitoring or recording it
What are some examples of risk throughout a construction project?
Competence, programme delay, weather, insurance, economic, legal, price fluctuating after tender
What is a risk register?
A document used to identify, analyse, respond and monitor risks. We have risk registers at project level
How have you managed a risk?
- Climate Matrix
- ICCE IP risk
What is ISO 31000 2018? What are the implications in your role?
ISO 31000 is a risk management standard which provides guidelines on managing risk faced by organisations. The guidelines can be transferred across to any business
I understand that the risk management principles are identify, evaluate probability of an event due to the risk then determine severity
What is IP? What issues are typically associated with IP?
IP is intellectual property which has been created by the mind. Issues can include:
- When an employee and company own half and the employee wishes to leave
- Using third-party IP under license
Formalised contracts will cover these issues.
Is CarboniCa’s IP at risk? How is this managed?
No – the risk is managed by the CarboniCa team and MSG’s general counsel who writes all licensing or legal documents
How did you bring the legal parties together to find resolution for the ICCE IP issue?
We had several meetings between our general counsel and NTU’s legal team. These were hosted on teams with an agenda. We had a collaborating approach to this and gave them a small aspect which we could afford to but maintained full control over CarboniCa’s IP. We offered the cheap licensing fee (as we could afford to)
What are environment risks?
This means a hazard or danger to nature as the result of an error. This includes land contamination, noise pollution, radiation, etc
What are people focussed risks?
A people focussed risk is a hazard or danger to people. For example, the greatest threat at current is cybersecurity and data privacy. However, in construction it is probably still health and safety
What is compliance risk?
Compliance risk is an organisation’s legal, financial and criminal exposure if it does not follow industry laws and regulations
MSC has best practice documents to ensure they are maintaining the best effort to follow regulation
What is financial risk?
Financial risk refers to the possibility of losing money on an investment or business venture
What is reputational risk?
This is the possible damage to an organisation based on what it or its employees has done. This is often measured in loss revenue or loss of shareholder value.
Do you have any other examples of how the Climate Risk Matrix impacted the design?
Insurance – impacted the process in that all parties needed to be involved from the earliest RIBA stage
Increased temp & heatwaves – new shading fins, focus on creating shelter with overhanging roofs
Flooding – considering how materials are to be stored
Mass migration – designing for multiple building functionality
What risks were considered in the Climate Matrix? How were these ranked?
The risks were taken from the task force for financial disclosures documentation. They were then ranked by the urgency out of 10 x the ability of impact the project. This gave the figure for the consequence. The top three risks were insurance, increased temperatures and heatwaves and flooding
Other risks analysed included mass migration, building fabric, material scarcity and regulation
What are the risks associated with your area of practice?
This varies from project to project. For construction as a whole, this is health and safety, data privacy, delays to programme, material or labour shortages, weather, etc
For an example project in my remit, it can vary. An example could be the risk associated with not triangulating data. This may result in greenwashing which would be a reputational risk for the company (I sense check data to avoid this)
What is risk management?
A structured approach which identifies and monitors risks throughout the duration of a project
What is ISO 31000?
The ISO 31000 Risk Management flowchart/process advises that you should establish the context, then identify the risk, analyse the risk, evaluate the risk and then treat the risk. Communication is needed throughout, as is monitoring and review
What do you know about the Monte Carlo simulation?
This is a computer based analysis software which can generate outputs which show the probabilities of risk at various levels or costs.
