Professional Documents
Culture Documents
NO CONSTRUCTION PROJECT IS RISK FREE. RISK CAN BE MANAGED, MINIMIZED, SHARED, TRANSFERRED, OR ACCEPTED IT CANNOT BE IGNORED."
Group Members
M. Umer Malik Muhammad Tauqeer Attiya Nayyab
What is Risk ?
Unknown
Risk
endeavor
Unexpected
action
Undesirable
Unpredictable
Cost management
Time management (program / schedule) Scope & change management
External influences
Introduction
Success
Cost
Project Constraints
Quality
Time
Introduction
Risks
Cost overrun
Project Constraints
Poor Quality
Delays
Risks in Construction
Economic Factors Client
Architect
Engineer
Inspector`
Political Factors
Environmental Factors
Supplier
Risks
Political & Environ. Design Const. Related
Acts of God
Flood
Earthquake Landslide Fire Wind damage
Risks
Political & Environ. Design Const. Related
Physical
Damage to structure
Damage to equipment Labor injuries Fire
Risks
Political & Environ. Design Const. Related
Theft
Inflation
Availability of funds Exchange rate fluctuations Financial default
Risks
Political & Environ. Design Const. Related
Muhammad Tauqeer
Risks
Political & Environ. Design Const. Related
Design
Risks
Political & Environ. Design Const. Related
Inadequate specifications
Construction Related
Labor disputes
Labor productivity Different site conditions
Risks
Political & Environ. Design Const. Related
Design changes
Equipment failure
Risk Management
A systematic approach to control the level of risk to mitigate its effects.
Risk Analysis
Risk Estimation Risk Estimation Risk Response Risk Response Risk Evaluation Risk Evaluation
Risk Analysis
Estimating the potential impacts of risk to decide what risks to retain and what risks to transfer to other parties
Quantitative
Probability analysis Sensitivity analysis Simulation techniques
Qualitative
Ranking options Comparing options Descriptive analysis
Attiya Nayyab
Risk Response
Risk Response Methods
Elimination Transfer Retention Reduction
Risk Response
Risk Response Methods
Elimination Transfer Retention Reduction
Risk Transfer
Two basic forms. (a) The activity responsible for the risk may be transferred, i.e. hire a subcontractor to work on a hazardous process (b) The activity may be retained, but the financial risk transferred, i.e. methods such as insurance.
Risk Response
Risk Response Methods
Elimination Transfer Retention Reduction
Risk Retention
Handling risks by the company who is undertaking the project.
Two retention methods, active and passive. Active retention is a deliberate management strategy after a conscious evaluation of the possible losses and costs of alternative ways of handling risks. Passive retention occurs through negligence, ignorance or absence of decision.
Risk Response
Risk Response Methods
Elimination Transfer Retention Reduction
Risk Reduction
Continuous effort. Related with improvements of a companys physical, procedural, educational, and training devices. Improving housekeeping, maintenance, first aid procedures and security. Education and training within every department .
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