Risk Management

Question 1

What is a risk?

Answer 1

A risk is a product of uncertainty which can have a positive or negative impact

Question 2

What are the stages of risk management?

Answer 2

1. Identify
2. Analyse
3. Respond
4. Monitor

Question 3

What are risk response strategies or techniques?

Answer 3

1. Avoid
2. Reduce
3. Transfer
4. Share
5. Retention (absorb it)

Question 4

What is the key to good risk management?

Answer 4

1. Identifying and analysing risks - owning them
2. Ensuring the relevant party can manage the risk
3. Monitoring or recording it

Question 5

What are some examples of risk throughout a construction project?

Answer 5

Competence, programme delay, weather, insurance, economic, legal, price fluctuating after tender

Question 6

What is a risk register?

Answer 6

A document used to identify, analyse, respond and monitor risks. We have risk registers at project level

Question 7

How have you managed a risk?

Answer 7

1. Climate Matrix
2. ICCE IP risk

Question 8

What is ISO 31000 2018? What are the implications in your role?

Answer 8

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

Question 9

What is IP? What issues are typically associated with IP?

Answer 9

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.

Question 10

Is CarboniCa’s IP at risk? How is this managed?

Answer 10

No – the risk is managed by the CarboniCa team and MSG’s general counsel who writes all licensing or legal documents

Question 11

How did you bring the legal parties together to find resolution for the ICCE IP issue?

Answer 11

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)

Question 12

What are environment risks?

Answer 12

This means a hazard or danger to nature as the result of an error. This includes land contamination, noise pollution, radiation, etc

Question 13

What are people focussed risks?

Answer 13

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

Question 14

What is compliance risk?

Answer 14

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

Question 15

What is financial risk?

Answer 15

Financial risk refers to the possibility of losing money on an investment or business venture

Question 16

What is reputational risk?

Answer 16

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.

Question 17

Do you have any other examples of how the Climate Risk Matrix impacted the design?

Answer 17

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

Question 18

What risks were considered in the Climate Matrix? How were these ranked?

Answer 18

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

Question 19

What are the risks associated with your area of practice?

Answer 19

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)

Question 20

What is risk management?

Answer 20

A structured approach which identifies and monitors risks throughout the duration of a project

Question 21

What is ISO 31000?

Answer 21

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

Question 22

What do you know about the Monte Carlo simulation?

Answer 22

This is a computer based analysis software which can generate outputs which show the probabilities of risk at various levels or costs.