2. Introduction Time Quality Cost Project Constraints Success Introduction

3. Delays Poor Quality Cost overrun Project Constraints Risks

4. Risk Unknown Unexpected Undesirable Unpredictable endeavor action What is the risk

5. Risks in Construction Contractor Supplier Project Manager Engineer Architect Client Quantity Survey Inspector` Social Factors Political Factors Economic Factors Environmental Factors

6. Physical Risks Financial Economic & Acts of God Political Environ. & Design Const. Related Types of Risks in Construction

7. Physical Risks Financial Economic & Acts of God Political Environ. & Design Const. Related Acts of God Flood Earthquake Landslide Fire Wind damage

8. Types of Risks in Construction Physical Risks Financial Economic & Acts of God Political Environ. & Design Const. Related Physical Damage to structure Damage to equipment Labor injuries Fire Theft

9. Types of Risks in Construction Physical Risks Financial Economic & Acts of God Political Environ. & Design Const. Related Financial & Economic Inflation Availability of funds Exchange rate fluctuations Financial default

10. Types of Risks in Construction Physical Risks Financial Economic & Acts of God Political Environ. & Design Const. Related Political & Environmental Changes in laws and regulations Requirement for permits Law & order Pollution and safety rules

11. Types of Risks in Construction Physical Risks Financial Economic & Acts of God Political Environ. & Design Const. Related Design Incomplete design scope Defective design Errors & omissions Inadequate specifications

12. Types of Risks in Construction Physical Risks Financial Economic & Acts of God Political Environ. & Design Const. Related Construction Related Labor disputes Labor productivity Different site conditions Design changes Equipment failure

13. Risk Management A systematic approach to control the level of risk to mitigate its effects. Risk Identification Risk Estimation Risk Evaluation Risk Response Risk Monitoring Controlled Risk Environment Risk Identification Risk Estimation Risk Evaluation Risk Response Risk Monitoring Controlled Risk Environment Risk Analysis Risk Management Life Cycle

14. Risk Analysis Estimating the potential impacts of risk to decide what risks to retain and what risks to transfer to other parties Ranking options Comparing options Descriptive analysis Qualitative Risk Analysis Techniques Probability analysis Sensitivity analysis Simulation techniques Quantitative

15. Risk Response Risk Response Methods EliminationTransferReductionRetention

16. Risk Response Risk Response Methods EliminationTransferReductionRetention Risk Elimination Practices Tendering a very high bid Placing conditions on the bid Pre-contract negotiations as to which party takes certain risks Not biding on the high risk portion of the contract

17. Risk Response Risk Response Methods EliminationTransferReductionRetention 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.

18. Risk Response Risk Response Methods EliminationTransferReductionRetention 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.

19. Risk Response Risk Response Methods EliminationTransferReductionRetention Risk Reduction Continuous effort. Related with improvements of a company’s physical, procedural, educational, and training devices. Improving housekeeping, maintenance, first aid procedures and security. Education and training within every department.

20. Risk Monitoring and Control ◦ Risks can be monitored on a continuous basis to check if any change is made. New risks can be identified through the constant monitoring and assessing mechanisms.

21. Risk Management Process ◦ Each person involved in the process of planning needs to identify and understand the risks pertaining to the project. ◦ Once the team members have given their list of risks, the risks should be consolidated to a single list in order to remove the duplications. ◦ Assessing the probability and impact of the risks involved with a help of a matrix.

22. continue ◦ Split the team into subgroups where each group will identify the triggers that lead to project risks. ◦ The teams need to come up with a contingency plan whereby to strategically eliminate the risks involved or identified. ◦ Plan the risk management process. Each person involved in the project is assigned a risk in which he/she looks out for any triggers and then finds a suitable solution for it.

23. conclusion ◦ An organization will not be able to fully eliminate or eradicate risks. Every project engagement will have its own set of risks to be dealt with. A certain degree of risk will be involved when undertaking a project. ◦ The risk management process should not be compromised at any point, if ignored can lead to detrimental effects. The entire management team of the organization should be aware of the project risk management methodologies and techniques. ◦ Enhanced education and frequent risk assessments are the best way to minimize the damage from risks.

24. Assessment 1 1.Chose 1 project 2.Identification the risks 3.Identification potentials impact 4.Risk response 5.Risk Monitoring and Control