Lecture 16 - Risk Management

CE 5575 - Lecture 16

define risk

uncertain event/condition that has + or - impact on project if it occurs

define risk management

attempt to recognize/manage potential trouble spots that may occur

what is on the x axis of this Risk Event Graph

defining, planning, executing, delivering

how owners control risk management

risks associated with setting performance expectations

how designers control risk management

risks associated with design

how contractors control risk management

safety, cost, quality, schedule

4 steps of risk management

identification, assessment, response development, response control

step 1 - risk identification

list possible risks, focus on certain risk events, make RBS

step 2 - risk assessment

scenario analysis, qualitative risk consequence rating, risk severity matrix

step 3 - risk response development

project risk register

what is this?

risk break down structure

what is this?

risk severity matrix (probability x impact)

qualitative vs quantitative risk

qualitative = probability x impact, quantitative includes money or time impacts

step 4 - risk response control

monitor triggering events, start contingency plans, look for new risks

what is on a risk register

details, categorizes, % probability, impact, contingency plans, current status

responses for opportunity risk

exploit, share, enhance, accept

responses for threat risks

mitigate, avoid, transfer, accept