Project risk management

Project risk management

Risk means, “An uncertain event or condition that, if it occurs, has a positive or negative affect on a project objective”. Your project’s success depends on thorough planning that includes possibilities for your project budget and schedule.

The benefits of project risk management

Our risk management provides you with innovative solution, you designed to significantly improve your profit.

  • Determine your contingency and budget requirements at any time
  • Accurately assess your cash draw-down requirements
  • Minimise production costs
  • Instigate reduced insurance costs

Types of risk management

  1. Technical Risks:

Incomplete Design

Inadequate specification

Inadequate site investigation

Change in scope

Construction procedures

Insufficient resource availability

  1. Construction Risks:

Labour productivity

Labour disputes

Site condition

Equipment failures

Design changes

Too high quality standard

New technology

  1. Physical Risks:

Damage to structure

Damage to equipment

Labour injuries

Equipment and material fire and theft

  1. Organisational Risks

Contractual relations

Contractor’s experience

Attitudes of participants

Inexperienced work force

Communication

 

  1. Financial Risks

Increased material cost

Low market demand

Exchange rate fluctuation

Payment delays

Improper estimation

Taxes

  1. Socio-political Risks

Changes in laws and regulations

Pollution and safety rules

Bribery/Corruption

Language/Cultural barrier

Law and order

War and civil disorder

Requirement for permits and their approval

  1. Environmental Risks

Natural Disasters

Weather Implications

 

 Risk Response Planning

Risk Transfer

Transferring risk involves finding some other party who is willing to accept responsibility for          its management, and who will bear the liability of the risk should it occur. Transferring risk can be an effective way to deal with financial risk exposure. The aim is to ensure that the risk is owned and managed by the party best able to deal with it effectively.

Risk Mitigation/Reduction

Risk mitigation reduces the probability and or impact of an adverse risk event to an acceptable threshold. Taking early action to reduce the probability and/or impact of a risk is often more effective than attempting to repair the damage after the risk has passed.

Risk Exploit

Eliminate the uncertainty associated with a particular upside risk.

Risk Share

Transferring threats and sharing opportunities are similar in that a third party is used, those to whom the threats are transferred take on the liability and those to whom opportunities are allocated should also be allowed to share in the potential benefits

Risk Enhance

This response aims to alter the “size” of the positive risk. Seeking to facilitate or strengthen the cause of the opportunity, and proactively targeting and reinforcing its trigger conditions.

Risk Acceptance

Ultimately it is not possible to eliminate all threats or take advantage of all opportunities – we can document them and at least provide awareness that these exist and have been identified, some term this „passive acceptance.

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