Risk management Flashcards
what is risk management in an engineering sense
coping with future uncertainties through planing for unintended outcomes through mitigation, avoidance and management
types of risk (categrories)
project risk (late delivery, poor quality) technical risk (design standards for natural disasters etc) saftey and environemnt (health and saftey , construction) financial risk (liability control )
four things in the ipenz code of ethics
1 give priority to saftey of community, in regards to client dutys
2 assure steps are taken to avoid risk of loss of life/injury
3 draw attention of the significance of risk to those affected
4 assess and minimise potential dangers when constructing and using products
what is included in the revision of code of ethics
an engineer who has reasonable grounds to think that an engineering matter has the potential for adverse consequences must alert
sources of risks in design contracts (5)
inadequate scope unrealistic time frames loss of intellectual property poor design resulting in liability unforseen things leading to major changes
More sources of risk (calculations) 4
faulty data
faulty assumptions
incorrect calculations
software problems
sources of risk in resource consents
- assumtion that consent will be non notified
- request for more info
- consultation outcomes unexpected
- consent refuesed
- conditions to hard
- need to appeal to enviro court
sources of risk in construciton
prices higher than thought bad designs leads to higher construction cost bad weather etc delays building consent requirements too few firms bid for work
three general steps for risk management
identify
prioritise
choose how to manage
options for choosing how to manage?
accept avoid control transfer monitor
what is risk retention vs transfer
retention -accepting loss, true self insurance
transfer-moving risk to 3rd party through outsourcing or insurance
when, what and why and how are risk workshops
part of risk analysis identify issues ahead of time ūsed to review risk register people from varied backgrounds continuous iterative process
what is probabilistic risk analysis
statistical analysis of a project so that time and cost variations can be predicted. uncertainty is quantified
how do we deal with uncertainty? (3)
estimate (max, min, assign statistical distribution)
incorporate into model (excel)
run monte carlo analysis
how does monte carlo work
picks random value between min and max for each variable, and repeats this 5000 times, gives distribution.
