Risk Management Flashcards
What is risk?
An uncertain event or circumstance that, if it occurs, will affect the outcome of a programme or project
Define an issue?
Issues are events that are happening now or will almost certainly happen in the future and require more immediate action than risks
Sources of an issue?
Unmediated disputes, Unaddressed concerns, Risks that have occurred
How do you manage risk?
Response plan, Accountability, agreed action date
What is risk management?
A proactive and formal approach to identifying, assessing and managing risks on an ongoing basis
How have you managed risk on your project?
On 30-33SS I quantified a risk register to help manage and highlight risk
What is the employers residual risk exposure?
The residual risk is the amount of risk or danger associated with an action or event remaining after natural or inherent risks have been reduced by risk
controls
What are the different risk mitigation strategies?
Avoid, Reduce, Transfer, Sharing, Retention
Risk: Avoid
Where risks have serious consequences for the outcome that they are totally unacceptable. Reviewing clients brief, project reappraisal, alternate design solution or project cancellation
Risk: Reduce
Where levels of risk are unacceptable and actions are taken to reduce the change of the risk occurring or the impact of the risk should it occur
Risk: Transfer
Risks that may impact building programme are transferred to another party able to control it effectively (with a premium)
Risk: Sharing
Where risk is not wholly transferable to one party. In NRM1, this is approached by contractor taking pricing risk and employer taking quantity risk.
Risk: Retention
Appropriate risk allowance identified in cost report / plan will be reserved and managed by the employer
What is a risk event?
An event which can be predicted to some degree, generally based on historical data / experience
What is an unforeseen event?
A random event that defies prediction & impossible to manage and is usually dealt with through contingency
How does NRM1 categorise risk?
Design Development, Construction, Employer Change, Employer Other
What is risk monitoring?
Monitor risk through the use of my risk register on a monthly basis, providing a complete update on a quarterly basis. I update this with input from the design team
Can you describe the responses to risk monitoring?
Review, Monitor, Update, Review, Classify the risk
What factors should you consider when selecting a procurement route in relation to risk?
Client type, risk allocation, time available, cost certainty, design responsibility, complexity
What is the difference between risk allowance and risk contingency?
Risk allowance is a defined term in NRM1 whereas contingency is not
Why is it necessary to quantify risk?
To build risk allowance / contingency, To reduce the potential impact of risks delaying the programme, client reporting
Other than a risk register, can you describe some quantification mitigation strategies?
Probability tree, central limit theory, monte Carlo simulation, fault tree analysis, percentage addition, simple method, sensitivity analysis
What are the stages of risk management?
Identify, Analyse, Respond, Monitor & Control
How do you identify risk?
Brainstorming, cause & effect diagrams, checklist, workshops
