Risk Management

Question 1

What information would you expect to see on a Risk Register?

Answer 1

• Risk ID
• Date risk raised
• Risk Status
• Description of risk
• Risk Response
• Risk owner
• Probability and Impact
• Expected Monetary Value

Question 2

Which risks would you normally price on a Risk Register?

Answer 2

The red risks (highest impact and probability)

Question 3

Risk management process?

Answer 3

• Identification
• Analysis
• Response to risk
• Management of risk

Question 4

What is the purpose of a risk workshop?

Answer 4

Bring together all stakeholders on a project to identify risks from all backgrounds.

Question 5

How do you evaluate a risks probability and impact?

Answer 5

Review time and cost implications of each risk and score the risk, typically 1-5 which is determined by the clients attitude to risk.

Question 6

How does a Monte Carlo simulation work?

Answer 6

Data is inputted into programme and a simulation is ran to give a percentage likelihood of the risk occurring.

Question 7

How does Monte Carlo differ to Probability and Impact?

Answer 7

Monte Carlo runs a computer simulation over a wide range of parameters and scenarios whereas Probability and Impact is done just the once.

Question 8

What are the various risk responses?

Answer 8

SADEM:
- Shrink
- Accept
- Distribute
- Eliminate
- Monitor

Question 9

When distributing or transferring a risk to another party, what do you have to consider?

Answer 9

The ability of the other party to manage that risk, the effect of them baring that risk and cost of transferring the risk.

Question 10

Under traditional procurement, who bares the risk?

Answer 10

• Client bares design risk
• Contractor bares construction risk

Question 11

Under design and build procurement, who bares the risk?

Answer 11

• Contractor bares construction risk
• Design risk is transferred from Client to Contractor

Question 12

How do single stage and two stage tendering differ in terms of risk?

Answer 12

Design risk transfer remains the same however exposure to risks may reduce due to early contractor involvement.

Question 13

How would you calculate contingency on a project?

Answer 13

• Utilising priced risk register
• Or apply a percentage based on risks associates with the project based on the four risk parameters within NRM.

Question 14

How would you cost the risks on a risk register?

Answer 14

Only cost the red risks - high impact and probability.
Only include EMV based on chance of happening.

Question 15

What are some of the key risks you have come across on projects?

Answer 15

• Ground conditions
• Existing utilities
• Unknown existing building conditions
• Asbestos