Risk Management Flashcards
What is risk analysis?
A means to achieving a BETTER UNDERSTANDING of the risks identified and quantifying their effects in terms of probability and impact.
How define Risk?
An uncertain event that will have an effect on achievement of the objectives if occurs, and measured in terms of probability and impact.
What is risk management?
A process of identifying, assessing, and responding to risks through an approach by which risks are managed in a proactive manner
What are the stages of Risk Management?
IARM
Expand on the Identify, Assess, Respond, approach? (When)
Def Ea Imp Re Mit
What is a Risk Event?
An event that can be predicted to some degree and MAKING A DECISION according to the probability of it occurring
What is an uncertain or unforeseen event?
A RANDOM event that cannot be predicted
Why is Risk Management needed in construction?
CompAllRed
Examples of risk?
ExFiSiCDesCon
What is Risk Allocation?
Allocation of risk to those best able to manage it, with financial allocation [transfer] achieved through the contract documents
What are the benefits of risk management?
ConfContDecFac
How can the impact of a risk be mitigated? (response)
AccMonRedTrAv
Effective management or risks that cannot be avoided must be allocated to party best able to manage it
What is the format of a Risk Register?
DOPIRARS
What role QS plays in risk management?
ContRelCerBid
What methods of Risk Analysis? (probability)
SubDecSenMonEx
Can risk be calculated?
yes, but not exactly, otherwise not a risk. Probability x cost. Most common experience: workshops, registers, professional judgement - cost and programme
What is Monte Carlo simulation used for?
A probabilistic risk analysis to assess probability of achieving targets using random sampling of variables that change simultaneously and run by a programme 1000 times to avoid bias.
What is Expected Monetary Value?
EMV is the probability x cost (ie the risk register), and used to establish the overall monetary value of risks, within the project.
What happens during a risk workshop?
project team formed with a facilitator appointed who will brief the team about the scheme and purpose of the workshop beforehand.
Risk for client working oversees projects?
CconLegFluCulUnd
