No matter what product the organization is designing to launch, it is very common to take decisions that involve the risks at some point in time (Mind tools editorial team, 1996-2017). Talking about risks, it has two main parts: the likelihood that something will go wrong, and the negative consequences that can occur if the risk occurs. It is difficult to know beforehand but if the risk occurs than the following consequences related to cost, time and reputation have to be dealt smartly. When the work involves risks than risk analyses is an essential tool. It helps in knowing that what all kind of risks and consequences can be faced in assigned role.
Project risk Management helps to identify the knowledge gaps and assist in plugging those gaps 4. It helps to ascertain the risks which may be encountered during the day to day operations. It also helps in identifying the environmental, financial, technical, legal and other such miscellaneous risks which may be encountered depending on the nature of the project. 5. Merely identification of the risks is fruitless unless and until a mitigation plan is in place.
Categorizing risks is a way to systematically identify the risks and provide a foundation for awareness, understanding and elimination of such risks. However, the biggest dilemma for most project managers is how to manage the risks on its arrival? Sadly, no evaluation is carried out to determine the expertise, experience, capabilities of their team that would be required to deal with or manage those risks, on its occurrence. Too often the responsibility for risk identification, assessment and management, are left to the project team, especially once the project has started. However, the onus of responsibility should be controlled by the project manager himself as being the leader.
As a methodology, it provides a organized approach to decide the most appropriate asset maintenance plans. Upon implementation of these maintenance plans, the risk of asset failure will be low. The risk-based maintenance framework is applied to each system in a facility. The likely failure modes of the system are first determined. Then, a typical risk-based maintenance framework is applied to each risk.
Purposes of Project Risk Assessment Project risk assessment is the process whereby hazards are identified, the risks associated with the hazards are evaluated and appropriate ways are determined to eliminate the hazards. The purpose of project risk assessment is to identify potential problems or risks before they occur so that risk-handling activities may be planned and invoked as needed across the life of the project to mitigate adverse impacts on achieving the objectives. In addition, it also serves as a purpose to remove hazards or reduce the level of risks associated by adding precautions and control measures. Potential Project Risks Every single project has its own risks, whether it is a large construction project which produces artefact,
Risk is a complex phenomenon that has physical, monetary, cultural, and social dimensions . Project Management Institute (PMI) defined risk as an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives such as scope, schedule, cost, and quality . Construction industry is exposed to more risk and uncertainty than perhaps any other industrial sector . As a result, many projects fail to be done on time and within budget, and the history of the construction industry worldwide is full of projects that were completed with significant time and cost overruns .Therefore, managing of risks in construction projects has been recognized as an inherent and strictly recommended process
Therefore, the goal of risk management was defined as the process of increasing the impact and probability of positive risks and decreasing them for negative risks. It’s not about avoiding failure only, but to exploit opportunities. Risk management is an indispensable process to the improvement and success of any business. The importance of risk management becomes even greater in an industry that includes many uncertainties, such as construction industry. When it comes to the construction industry, the possibility of exposing more risks is increased, especially when to carry out the
It ensures that there is enhanced coordination and transparency with functional units, which facilitates early identification of critical risks. Risk management should not be regarded as non-essential cost to be cut in the difficult times. Instead, organizations should use the insights offered by the risk process to ensure that they can handle the inevitable circumstances & uncertainties and emerge with a best possible solution in the
TASK III: RISK MANAGEMENT The construction industry operates in an immensely uncertain atmosphere where circumstances change according to the complexity of projects. In early stages of the project, the proactive concept of risk management should be initiated to identify and manage risks associated with the project in order to avoid negative impacts on performance. Risk management consists of four main steps: Risk identification, Analysis, Response, and Review. Figure III: Risk Management Process IDENTIFICATION The aim of risk identification is to record potential risks to be managed in the project. The risks identified for Atlantis project are cultural, public, force majeure, technical, design, construction, financial (cash
In each of these areas there are different methods for assessing flood risk and its vulnerability. The repetition of risk assessments after flood mitigation measures (both structural and non-structural measures) lets appropriate judgment of the efficiency of each measure and also leads to identify components of risk which need extra mitigation (T.Tingsanchali, 2012) Vulnerability and its concept in flood risk One of the key elements in flood risk management and damage evaluation is flood vulnerability. There is a need to develop our understanding of the vulnerability because nowadays it is understood that vulnerability is the root cause of disasters. The field of vulnerability research embraces a collection of different definitions for vulnerability; United Nations described vulnerability as the degree of damage to a given items at risk caused by flood with determined amount and was expressed as a scale from 0-1 (no damage to total damage) (United nations, 1982). The International Panel of Climate Change (IPCC) described vulnerability is the incapability degree of managing climate change and sea-level rise impacts (IPCC, 1992).