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29 Cards in this Set
- Front
- Back
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Rics says what about risk management? |
Widely recognised as being concerned with both threat and opportunity |
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What does rics management of risk 2015 link directly to? |
To Icms ipms and underpins them, will be mandatory soon |
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Rics definition of risk |
An uncertain event or circumstance, that, if it occurs, will affect the outcome of a project/programme |
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Latham said? |
No construction project is risk free. Risk can be managed, minimised, shared, transferred or accepted, it cannot be ignored |
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Risk should be considered at |
All stages |
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How do you identify risks? |
Facilitated workshops Self assessment Checklists Organisation charts Flow charts Prompt lists |
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Risk analysis in bs 31010 |
Control analysis Likelihood and consequence |
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Risk assessment is? |
The overall process of risk identification, risk analysis and risk evaluation |
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After risk assessment comes? |
Risk treatment leaving residual risk after being treated |
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Monitoring and tdviewing |
Risks and controls should be monitored and reviewed |
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Risk register acts as |
A control document and assists as a means of monitoring the management of risks through a project |
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Types of risk assessment |
Qualitative and quantitative |
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Qualitative risk assessment |
Checklists Risk mapping |
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Quantitative assessment |
Decision trees Sensitivity analysis Expected monetary value Monte Carlo simulations |
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Wembley stadium |
Max price contract d&b 326 million Low bid 150 million loss. Failure to transfer risk cost them 430 million. Stadium complete 18 months late. No flexibility for problem solving in contract |
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Heathrow term 5 |
4.3 billion Built on time and budget Highly innovative contracting system Cm consultancy employed. Baa accepted all construction risks confront and manage risks early. Terminal roof identified as a major risk (2.4 million) prototype paid for, cost and time savings achieved however 34 flights cancelled as staff not fsmiliar |
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Hinckley point will be nearly 10% more than expected cost to rise 1.5bn to 19.6bn. Could be delayed by up to 15 months resulting in extra 700m costs |
Cross rail overruns of over a billion mainly due to design changes and low initial bids |
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Nrm1 risks |
Design development risks Construction risks Employer change risks Employer other risks |
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Nrm1 defines risk as |
The likelihood of an event or failure occurring and it’s consequences or impact |
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Risk analysis also brings benefit to? |
Contractors |
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Procurement |
Risk management and form of procurement are interlinked, optimum balance of risk, benefit and funding |
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Risk response strategies |
Share - both have risk materials Transfer - best value for money Avoid - unacceptable level Retain - residual risk Reduce - value engineer |
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Controllable and uncontrollable risks |
Controllable is curtain walking system Uncontrollable can’t be controlled or influenced by participants ie legislation |
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Risk impact assessment |
Likelihood and impact |
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Likelihood and impact equals |
Risk severity |
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Methods of assessing risk under nrm1 |
Simple method of assessment Probabilistic analysis Sensitivity analysis |
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Risk cost calculated by |
Percentage of base cost estimate. Sum of all four equals total risk allowance |
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Risk allowances must only be |
Expended when the identified risks to which they relate occur |
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Inflation is another rusk |
Tenet inflation construction inflation |
