Risk Management

Question 1

What is risk management

Answer 1

The process that allows individual risks and overall risks to be understood and managed proactively, optimising success by minimising threats and maximising opportunities. It encourages the team to identify and preempt the things that might affect project progress. This should be carried out at the start of a project and maintained throughout.

Question 2

What is the risk management progress

Answer 2

Initiate 
Identify
Assess
Plan 
Implement 
Monitor

Question 3

What are the benefits of risk management?

Answer 3

• defines the way in which risks are dealt with (clear and concise process)
• it is a mechanism to achieve continual improvement
• it allows proper contingency to be in place
• it ensures everyone is doing the same thing through the project
• it provides a common reference
• it ensures the client is fully aware for the risks

Question 4

What is a risk?

Answer 4

An uncertain event or set of circumstances that should it occur will have an affect on the achievement of one or more of the projects objectives. It is measured in terms of likelihood and impact.

Question 5

How do you measure risk?

Answer 5

Risks have an element of uncertainty attached to them which is indicated via probability. The risk will be measured in terms of time, cost and quality and failure to meet performance criteria.
Using a RAG system or outcomes of VH, H, M, L, VL
You multiply the likelihood of it happening by the impact to get a severity rating.
Can then allocate accountability
Can then allocate contingency

Question 6

How do you manage risk?

Answer 6

• implement risk management plan
• identify risks and document them on a risk register
• look for mitigation measures (avoidance, reduction, risk transfer)
• hold people responsible for owning the risk
• hold regular risk workshops
• communicate often, clear and concise.

Question 7

What should you do if a risk occurs?

Answer 7

If a risk occurs, it becomes an issue. It left unattended it will become hard to manage so it needs to be dealt with early to help prevent project failure. Stakeholders need fill information and contingency allocation is required.

Question 8

What is Monte Carlo simulation?

Answer 8

A computer generated simulation used to model outcomes. It is a technique used to understand the impact of risk. It helps to visualise most or all potential outcomes to have a better idea regarding the risk of a decision.

Question 9

How do you identify risks?

Answer 9

Hold early risk workshop and then regular workshops throughout the project. Get the team to brainstorm ideas and input to the risk register.
You can also use lessons learnt from other projects to identify risks or hold interviews.

Question 10

How do you assess a risk?

Answer 10

Using probability and impact technique. Qualitative assessment. Using a risk register, establish severity ratings.

Question 11

How do you plan for a risk?

Answer 11

Put mitigation measures in place and make people accountable.
If the risk is unavoidable the QS will need to allocate contingency.

Question 12

What types of risks are there?

Answer 12

Safety hazards 
H&S
Getting design information signed off
Getting request for information responses back in time 
Unknown site conditions
Labour shortages 
Utilities or works reliant on third party
Adverse weather conditions 
Neighbours and adjoining owners 
Management of change orders

Question 13

How can risk be mitigated?

Answer 13

Avoidance 
Transfer
Reduction 
Sharing 
Retention

Question 14

What risk categories are there?

Answer 14

External uncontrollable
External influenceable 
Internal client operations 
Internal user requirements 
Internal project processes 

These could be 
Political 
Business risks 
Benefits risks 
Project risks 
Programme risks 
Consequential risks
Design development 
Construction risk 
Financial risk 
Employer change risk

Question 15

How does risk ownership and procurement route relate?

Answer 15

All procurement routes should be sufficiently evaluated. The right procurement method can help a project succeed as it defines the interfaces and relationships between stakeholders, the allocation of risk and the responsibility for design. A traditional route means the client owns the risk in terms of time, cost and information, as they retain control of the design and required quality. This differs to a D&B route with single stage process as the contractor owns the risk items of design and construction. For a two stage process there is an interim share when the client appoints a design team that is novated later in the project and the risk of design and construction is then owned by the contractor.

Question 16

Tell me a time when you have had to manage a risk

Answer 16

FP - quality

Question 17

Tell me a time when you have had to assess a risk

Answer 17

FP - HV cable

Question 18

What is a residual risk?

Answer 18

It is the risk remaining after the risk treatment.
You identify the risk, then you need to mitigate the risks. Once you treat the risk, you won’t completely eliminate all the risks because it is simply not possible. Therefore, some risks will remain at a certain level and this is what residual risk is. The point being that you will know whether the planned treatment (ie mitigation) is enough.

Question 19

What is qualitative and quantitative assessment?

Answer 19

Qualitative risk is the method to prioritise individual project risks for further analysis or action by assessing their probability and impact to determine their overall severity.

Quantitative risk is the process of numerically investigating the combined impact of identified single project risks. It explains the overall risk to a project once all risks have been considered. It usually follows qualitative risk analysis. It uses available data to produce a numerical value which is then used to predict probability of a risk event outcome.