Risk Management Flashcards
1
Q
Types of Risk
A
- Project Risk
- Technical Risk
- Safety and Environment
- Financial and Commercial Risk
2
Q
Project Risk
A
- late delivery
- poor quality
- desired outcomes not achieved
3
Q
Technical Risk
A
- Quality Management System (QMS)
- Design standards for natural hazard
- Quantitative Assessment of both occurence and severity
4
Q
Safety and Environment
A
- construction risk
- health safety and environmental management system (HSE)
5
Q
Financial and Commercial Risk
A
- contract risk management (limit of liability, 3rd party reliance, consequential losses)
6
Q
IPENZ Code of Ethics
A
engineers have a duty of care to protect life and safeguard people:
- give priority to the safety and wellbeing of the community
- be responsible for ensuring that reasonable steps are taken to minimise the risk of loss of life, injury or suffering
- draw attention of those affected to level of significance of risks associated with the work
- assess and minimise potential dangers involved in the construction, manufacture and use of a member’s products or projects
7
Q
2014 revision to Code of Ethics includes:
A
an engineer who has reasonable grounds to believe that an engineering matter gives rise to adverse consequences, shall bring the matter to the notice of the appropriate person or regulatory authority
8
Q
Sources of Risk for Engineers in Design Contracts
A
- inadequate scope or brief
- unrealistic timeframes
- liability from design inadequacies
- unforeseen circumstances require major changes
- loss of intellectual property
- faulty or missing data
- faulty assumptions
- calculation errors
- inadequate or improperly used software
9
Q
Sources of Risk in Resource Consenting
A
- assumption that consent would be non-notified
- request for further info leads to delays
- consultation outcomes unexpected
- consent refused
- conditions of consent too onerous
- need to appeal decision to environment court
10
Q
Sources of Risk in Construction
A
- prices much higher than estimated
- poor design documents lead to additional costs
- too few firms bid for work
- building consent requirements lead to changes, cost, delays
- delays from weather, labour strikes, health/safety incidents
11
Q
Risk Management for Design
A
- Identify Risks
- Prioritise Risk
- Decide how to manage risk (avoid, reduce, mitigate, transfer, accept)
12
Q
Risk Mitigation options
A
- Assume/Accept
- Avoid
- Control
- Transfer
- Watch/Monitor
13
Q
Risk retention
A
- involves accepting the loss, or benefit of gain from a risk when it occurs
- true self insurance falls in this category
14
Q
Risk transfer
A
- often used in place of risk sharing in the belief that you can transfer risk to a 3rd party through insurance or outsourcing
- as the buyer of the contract generally retains legal responsibility for the losses “transferred” may be described as a post event compensatory mechanism
15
Q
Risk Analysis Process
A
- should be performed as part of the risk management process
- risk workshops to identify potential issues
- continuous and iterative process
