Members

What is a Risk?

Unknown

Unexpected
endeavor
Risk
action
Undesirable

Unpredictable
 Enshassi and Mosa( Palestine )

 Tauha Ali ( Pakistan)

 SCOTT BAKER ( UK)

 Syed M. Ahmed ( Florida)

 Anna Klemetti ( Finland)

 Rizwan A. Farooqi (Pakistan)

 Risks in Construction
Economic Factors

Client

Supplier

Environmental Factors
Contracto
r
Social Factors

Architect Quantity
Survey

Engineer Project
Manager

Inspector`
Political Factors
 Risk Planning

 Risk Assessment
 Risk Identification
 Risk Analysis

 Risk Handling

 Risk Monitoring
 Common Practice
 Objective sources
 Subjective sources
 Delphi Method

 Nominal Group technique

 Study of the Identified Risks

 Information
to Judge the probability
of Occurrence, if risk occurs
 Experience

 Data from Relevant lessons

 Expert judgments
 Cost evaluation

 Schedule Evaluation
 High Risk

 Moderate Risk

 Low Risk
RISK
RESPONSE
 Risk response/handling is a process
that identifies, evaluates, selects and
implements options in order to set
the risk at the acceptable level.
 The critical part of risk response
involves refining and selecting the
most appropriate handling option(s).
 Can the option be feasibly
implemented?
 What is effectiveness of handling
option?
 Is the option affordable?
 Is the time available?
It includes:
# Risk Assumption
# Risk Avoidance
# Risk Control
# Risk Transfer
 Risk assumption (i.e. retention) is an
acknowledgment of the existence of
a particularly risky situation and a
conscious decision to accept the
associated level of risk without
engaging in any special efforts to
control it.
 It is suitable for the low risks.
 Risk avoidance involves a change in
the concepts, requirements,
specifications and/or practices to
reduce risk to an acceptable level.
 It eliminates the sources of high risk
and replaces them with a low risk
solution.
 Risk control is an attempt to reduce,
mitigate the risk.
 It manages the risk in a manner that
reduces the likelihood and
consequence of its occurrence.
 Risk transfer includes sharing of the
risk or entire transfer of the risk.
 Examples of risk transfer includes
the use of insurance, warranties,
bonding (e.g. performance bonds,
payment bonds).
RISK MONITORING
 Riskmonitoring is the process that
systematically tracks and evaluates
the performance of risk handling
actions against established metrics
throughout the acquisition process.
 Thekey to the risk monitoring
process is to establish a cost,
performance and schedule
management indicator system over
the program/activity that can be
used to evaluate the status of the
program/activity.
 Selection of topic.
↓
Literature Review.
↓
Research Technique
↓
Design Of Questionnaire
↓
Data Collection & Analysis
↓
Conclusion and suggestions
 1. Contractors’ perception about risk

 2.
Risk management program and
procedures

 3. Risk identification process

 4. Risk assessment process

 5. Risk response strategies,

 6. Risk response control

 7.Risk management training

structures

 8. Risk management performance

 9.Obstacles in implementing formal

risk management
AwarenessLevel In Construction Industry of
Multan

30%

70%

Figure
Project risk management efforts should
typically begin

20%
20%

Conceptual planning
Conceptual design
Detailed design
10%
Construction
30%
 lack
of awareness of the utility and
benefits of risk management

 All
Parties agree that a major
proportion of project risks evolves
during project development stage
(especially during detailed design
phase)
 Multan’s Construction Industry lack
risk related policies and
management support

 Due to absence of risk management

systems in the industry, most
contractors are either risk averse or
risk neutral.
 Mostof the Contractors do not usually
have a defined risk response strategy
and hence responded invariably.

 Educational level is low

 NoWorkshops, No Training Programs

have ever been conducted in Industry
 No Relation between the Industry
and Institutions
 Generate awareness, educate
project staff and change attitude.

 Developand document approach to

risk management to projects.

 Prepare project risk management

plans for all levels of work.
 Promote staff participation and
contribution by pre-task meetings
and initiate brainstorming sessions.

 Training
workshop, and lectures
need to be conducted

 Industry
must flow the Technical
problems to the Institutions .