Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

RESERVE > Risk Management > Flashcards

Risk Management Flashcards

1
Q

What are the principles of risk management?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is risk identification?

A

set of activities that detect, describe and catalog all potential risks to assets and processes that could have negatively impact business outcomes in terms of performance, quality, damage, loss or reputation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is risk assessment?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is risk mitigation?

A

strategy to prepare for and lessen the effects of threats faced by a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is risk monitoring?

A

Risk monitoring refers to an organization’s framework for staying aware of its current risk exposure, including the implemented risk management system and any other activities that inform the organization’s risk decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

WhAT IS RISK REPORTING?

A

a method of identifying risks tied to or potentially impacting an organization’s business processes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a risk register?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How would you approach a risk register?

A
  • Hold a risk management forum
  • Highlight potential risks and probability and impact
  • Devise a management strategy for risk
  • Assign to a risk holder who is best equipped to deal with it
  • Monitor in regular risk meetings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is avoidance?

A

the elimination of hazards, activities and exposures that can negatively affect an organization and its assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is transferal?

A

involves the contractual shifting of a pure risk from one party to another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is mitigation?

A

strategy to prepare for and lessen the effects of threats faced by a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is acceptance?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Give an example of a risk you highlighted?

A
  • Theft, Vandalism and security
  • Weather
  • Scaffold overhire
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Explain how you devised a risk management strategy for this risk?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Give an example of an item on the project performance review risk management plan?

A

Weather
Covid19 delays

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Give an example of where subcontractors haven’t allowed for certain items?

A

Drylining package - Quantity of access hatches and pattresses uncertain but rate provided

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How did you quantify the risk?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is risk in the context of a construction project?

A
  • Uncertain event / set of circumstances that, should it occur, could have a negative effect on the project’s objectives - Can be predicted to a degree, but it is known whether actuality will have positive/negative effect on budget / programme - Risk measured in terms of likelihood (probability) and consequence (impact)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a Risk Event?

A
  • Event predicted to some degree, based on historical data / experience and making decision according to probability of event occurring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Examples of risks in construction projects?

A
  • External factors - economic uncertainty, legislation / policy change
  • Financial risks - exchange rates, cost of borrowing
  • Site - restricted access, planning difficulties, environmental issues
  • Client - lack of experience, multi-headed client, likelihood of post contract changes
  • Design - inapt consultant team, poor team ethos, incomplete design, lack of design coordination
  • Construction / delivery - adverse weather, H&S, resource availability
21
Q

What are the NRM 1 categories of risk?

A
  • Employer Change
  • Employer Other (fund availability, acceleration, sequencing, special contractual arrangements)
  • Design Development (change in scope, statutory/legal/planning requirements)
  • Construction (access restrictions, existing buildings/conditions/surveys, statutory authority delays
22
Q

Examples of Employer Change risks?

A

As NRM1
- Changes in requirements / scope
- Changes in time / quality
- Variations introduced during construction stage
- Cumulative effects of numerous changes

23
Q

Examples of Employer Other risks?

A

As NRM1
- (un)availability of funds
- changing inflation / interest / tax rates
- unrealistic / insufficient programmes
- Acceleration / early handover / postponement
- Unclear project brief
- Unclear project organisation and management
- Statutory requirements
- Market conditions

24
Q

Examples of Design Development risks?

A

As NRM1
- Inadequate / unclear project brief / responsibilities
- Soundness of design data
- Appropriateness of design
- Reliability of area schedules / estimating data (changes in costs and inflation)
- Use of provisional sums

25
Q

Examples of Construction risks?

A
  • Inadequate site investigation
  • Archaeological remains
  • Contaminated ground / materials
  • Physical access
  • Location of existing services
  • Effects of changes on programme
  • Statutory undertaker performance
  • Material availability
  • Weather
26
Q

Can risk be calculated?

A
  • To an extent- suitable provision can be made but it can’t be calculated exactly
  • Risk involves probability of something occurring and potential impact
  • Can be assessed via a number of methods - I have most experience using risk registers in workshops to identify and assess impact on cost and programme
27
Q

How would you calculate risk allowances?

A
  • Order of cost stage - simple % (unless detailed info available)
  • Cost plan onwards - risk allowances assessed based on total cost of risk (should it be realised) and probability of occurrence
28
Q

What is Expected Monetary Value (EMV)?

A
  • Probability x impact - Used to establish overall monetary value of risks within project
  • Probability - fraction / %
  • Impact - Positive / negative monetary value
29
Q

Your client wants to use a D&B contract with GMP, what are the risks?

A
  • Client will pay premium for contractor taking on cost risk
  • Any deviation from original specification can result in costly changes
30
Q

What is a mixed use (qualitative) assessment?

A
  • Explore likelihood, consequence and magnitude of risks and opportunities (i.e. from very high to very low) to order and prioritise risks - can be weighted / skewed scoring system to rate impact higher than likelihood
  • Qualitative analysis prioritises risks in terms of importance without costing (done in initial phases)
  • Can also rank risks by proximity - how close they’ll happen in the future
  • mitigation approach i.e.: unacceptable / highly undesirable / manageable / negligible
31
Q

What are risk deliverables within a project?

A
  • Risk management plan
  • Risk register -> save once a month - Quantitative cost / quantitative schedule risk analysis results
  • Risk response plan
  • Risk management reports / progress reviews -> agendas and meetings saved
  • Procurement option reviews
  • Tender return risk reviews
32
Q

How can risks be reduced?

A

As NRM1, mitigation strategies are:
> Avoidance - Serious consequences, totally unacceptable (i.e. alternative design solution to eliminate risk)
> Reduction - level of risk unacceptable (i.e. further site investigations)
> Transfer - accepting risk doesn’t give employer best value (i.e. to the contractor, usually means premium paid)
> Sharing (by both employer and contractor i.e. provisional quantities - pricing risk to contractor, qty risk to employer)
> Retention (put apt allowance in cost plan for employer to manage)

33
Q

Risk avoidance vs risk transfer?

A

NRM1
- Avoidance = totally unacceptable with serious consequences, finding alternative design solutions
- Transfer = accepting risk doesn’t give employer best value and i.e. passing to contractor

34
Q

How does NRM assist with risk?

A

Defines different types of risks and establishes measurement rules for risk allowances

35
Q

What are the measurement rules for risk allowances?

A
  • Stage 0-1 can be % but not recommended to just be %, instead proper considered assessment
  • Separate allowances for design development, construction risks, employer change and employer other risks
  • Recommended regularly assessed risk registers and estimates during cost planning stages
36
Q

How did you monitor and quantify risk through design stages on one of your projects?

A
  • Initially benchmarked risk %, comparing other projects, level of design, abnormals, procurement/tender route
  • Review % at each RIBA design stage
  • Produced risk register, continuously monitored throughout
  • Drew down on contingencies when required
37
Q

How can a project team reduce design risk for employer?

A
  • Use trusted and experienced design team
  • Transfer design risk in procurement (i.e. D&B, CDP)
  • Effective, regular management of risk register
  • Early contractor involvement (buildability input)
38
Q

How do you monitor risks throughout the life cycle of your project?

A
  • Identify, monitor cost element of risks, including planned responses and financial allowance
  • Corrective action when risk materialises
  • Monitor actions of risk owner to ensure mitigation strategy deployed
  • Measure effectiveness of risk responses
39
Q

Once project risks have been identified, how do you allocate risks to a specific ‘owner’?

A
  • Individual / party best able to manage it
  • Allocation clearly identified on risk register
40
Q

Stages of risk management?

A
  • Identification - Analysis - Response - Monitor and control
41
Q

What happens during a risk workshop?

A
  • Project team formed prior, facilitator appointed
  • Facilitator briefs team, issues apt info about scheme and purpose and objectives of workshop- allows prep to occur prior to workshop
    Operations:
  • Identify risk, generate risk register
  • Identify risk probability and impact
  • Allocate risk items to owner
  • Agree upcoming actions
  • Agree dates for following workshops
42
Q

Benefits of risk management?

A
  • Increased confidence achieving project objectives - success
  • Reduced likelihood of cost and time overruns
  • Team understands and recognise use and composition of contingencies
  • Enables decision making to be made on assessment of known variables available
  • Workshops can facilitate team development and encourage communication
43
Q

What is typically included on a risk register?

A

May include:
- Risk identification number
- Description
- Probability risk rating (likelihood of occurring)
- Impact risk rating (severity / consequence)
- Risk score (probability x impact)
- Actions required- to mitigate effect
- Risk ownership - assigned to team member/party
- Review date
- Status

44
Q

How do you create a risk register for a new project?

A
  • Project team come together early in project life cycle and brainstorm potential risks associated with project
  • Risk checklists ensuring most common areas of project risk are considered - useful as ‘prompts’ to facilitate brainstorming
  • Usually PM collates risks and adds them to risk register
45
Q

What risk have you allowed for in say a S2 Cost Plan?

A

Usually projects will have initial risk register at this point - often provisional sum / budget figures and reasonable impact x probability applied. Total carried forward to cost plans

46
Q

What can be introduced to protect a client through contract mechanisms?

A
  • Performance bond
  • Contractors all risk insurance
  • PCG
  • Contractor’s liability
  • Retention
47
Q

What would you do in the absence of a risk register?

A
  • Planning conditions tracker
  • Mention and mitigate with every meeting
  • Benchmark against similar projects what may come on the horizon
48
Q

Give me an example of a risk you have priced?

A
  • Traffic management - found additional sources for costs of road closures within the same borough
  • Calculated costs of works to be completed
  • Advised PM of total potential cost
  • They helped assess likelihood and compared to other mitigation strategies

RESERVE (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions