Risk management

Question 1

How do you identify risk in a project?

Answer 1

Through a risk workshop

Question 2

What is the difference between qualitative and quantitative risk?

Answer 2

Qualitative calculates the likelihood and impact of the risk, though a heat diagram, RAG
Quantitative quantifies the risk by producing a contingency figure.

Question 3

What are the benefits of assigning risk to members of the project team?

Answer 3

It means a specific person is focused on the risk and ensures that the team do not lose sight of it. It ensures that nobody loses sight of the risk and the relevant people have the correct skills to mitigate this risk.

Question 4

How is risk dealt with in the NEC form of contract and how does this differ from the SBCC?

Answer 4

RISK register is a contract document.

Question 5

What are the common risks you would expect to encounter on a housing project on a brownfield site?

Answer 5

Depending on whether there are existing assets on the site that need refurbished or demolished - asbestos, contamination, existing services, ecology risk - bats, birds, TPO

Question 6

When advising on the risk of price changes – what advice do you offer on how to mitigate the risk?

Answer 6

Categories of risk-
- Design Development Risk
- Construction Risk
- Employer Change Risk
- Employer other risk
Risk can be controlled by
- Avoidance
- Reduction
- Transfer
- Sharing

Question 7

On your Inverclyde project how did you go about advising the Client on using a risk register vs a percentage-based contingency?

Answer 7

Held a risk workshop with the client and design team
Identified different risk types across the 4 sites (design, pre-construction, construction, H&S)
Reviewed the probability of the risk
Impact of the risk on cost time and quality
I allocated a possible cost effect
Then Allocated a risk factor = Probability x (Cost + Time + Quality)
Weighted Cost Effect = Probability x Possible Cost Effect

We also had a general allowance for construction contingency of 2.5%