Risk management Flashcards
How do you define risk in the context of construction projects, and what are some common risks you have encountered?
Risk refers to uncertainties that can impact project outcomes, such as unforeseen site conditions, design errors, supply chain disruptions, and contractor performance issues. These can affect both timelines and budgets.
What is your understanding of risk apportionment, and how do the RICS Guidance Note on Risk Management and NRM1 inform this?
Risk apportionment involves distributing risks among stakeholders based on their ability to manage them. The RICS Guidance Note and NRM1 categorize risks into design development, construction, employer change, etc., and suggest managing these risks through avoidance, reduction, transfer, or sharing.
How do different procurement routes influence risk management in a project?
Procurement routes affect risk allocation; for example, Design & Build places more risk on the contractor, while Traditional procurement may place more risk on the client. Choosing the right procurement route depends on the project’s risk profile and objectives.
What are the main categories of risk allowance in costing, and how do quantified and qualitative risk assessments differ?
Risk allowances fall into four categories: known risks, known unknowns, unknown knowns, and unknown unknowns. Quantified risk assessments use numerical analysis, while qualitative assessments prioritize risks based on their severity and likelihood.
Can you describe your involvement in the risk management process for the 1 Triton Square project?
I maintained and updated the project risk register, tracked risks through various stages, evaluated cost implications, and collaborated with teams to assign risk ownership. Regular reporting on risks ensured that emerging issues were addressed promptly.
How did you manage risk allowances during the 1 Triton Square project, and what was your approach to risk resolution?
Risk allowances were adjusted as the project evolved. For instance, at Citi Bank, the potential need for an additional fire exit was a significant risk. Scenario planning and collaboration with fire safety consultants allowed for strategic decision-making to mitigate this risk.
Can you provide an example of a specific risk you encountered and how you addressed it?
At Citi Bank, the risk of needing an additional fire exit was identified due to potential changes in headcount. By pricing different design solutions and conducting scenario planning, I helped ensure that the client could make informed decisions to mitigate the risk effectively.
Can you explain the concept of risk in construction projects and how it impacts project outcomes?
Risk in construction refers to the uncertainty that can impact a project’s cost, schedule, quality, and scope. Risks can arise from various sources such as unforeseen site conditions, design errors, regulatory changes, or supply chain disruptions. Effective risk management is crucial to minimize negative impacts on project outcomes, ensuring projects are delivered on time, within budget, and to the required quality standards.
How do you distinguish between different types of risks such as unforeseen site conditions and design errors?
Unforeseen Site Conditions: These are physical conditions at the site that were not anticipated during the planning phase, such as unexpected ground contamination or hidden utilities.
Design Errors: Mistakes or omissions in the design that may lead to increased costs, delays, or the need for rework during construction.
Can you provide examples of risk avoidance, reduction, transfer, and sharing in your projects?
Risk Avoidance: Deciding not to proceed with a high-risk project element.
Risk Reduction: Implementing measures to reduce the likelihood or impact of a risk, such as conducting thorough site investigations.
Risk Transfer: Passing the risk to another party, such as through insurance or fixed-price contracts.
Risk Sharing: Distributing the risk between parties, often seen in partnership agreements.
How do the RICS Guidance Note on Risk Management and NRM1 categorize and address construction project risks?
The RICS Guidance Note on Risk Management categorizes risks into strategic, operational, financial, and compliance risks. NRM1 (New Rules of Measurement) provides a framework for quantifying these risks and integrating them into cost plans.
Describe your experience in maintaining and updating a project risk register, such as for the 1 Triton Square project.
The risk register is a dynamic document that lists identified risks, their potential impact, and the strategies to manage them. Regular updates are essential, especially when new risks emerge or existing risks change in severity.
Example - 1 Triton Square Project: Regular risk register updates were conducted through scheduled risk workshops involving key stakeholders, ensuring all potential risks were identified and managed throughout the project lifecycle.
How do you ensure that risks are effectively monitored and managed throughout the project lifecycle?
Continuous monitoring involves regular risk review meetings and updates to the risk register. Engaging the project team and stakeholders in these reviews ensures that risks are actively managed and that mitigation strategies are adjusted as needed.
How do you evaluate and incorporate risk allowances into cost plans?
Risk allowances are contingencies included in the cost plan to cover potential risks. These allowances are evaluated based on the likelihood and impact of identified risks, often using quantitative risk analysis techniques.
Can you provide an example where you adjusted risk allowances as the project progressed?
On a complex project, risk allowances were initially set based on a preliminary risk assessment. As the project progressed, these allowances were adjusted downwards due to the successful mitigation of certain risks, freeing up contingency funds.
