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Closure; This last phase represents project completion. Project managers sometimes hold a post-mortem meeting to evaluate what went well in the project and identify failures. Then, the team creates a project punch list of any tasks that did not get accomplished, performs a final budget, and creates a project report. Before proceeding to discuss the proposed risk assessment model it is essential to elucidate what we connote while using the "risk" terminology.

Risk is associated with every aspect of our daily life. Further, wherever risk exists, the tendency to adequately mange it will be found. However, when the construction industry is examined it would be seen that formal risk management has only become an integral process in the past few decades.

One of the drivers for the recent sudden increased need to manage risk is the rapid development of technology; as a result risk and its management have turned to be wholly specialized subject. With the adequate assistance of risk management two essential advantages will be captured, more confidence can be given to the estimated project costs and profits will be maximized.

For the context of this chapter, the available risk definitions from business perspective will be revealed, and then the offered risk management practices will be examined to depict the essential role of the identification and assessment steps in the risk management process. Moreover, this chapter will include a comparative summary for some of the existing risk management standards and guidelines, which will reveal considerable amount of similarities between the formal processes of conducting risk management.

Wherever risk exists the desire to adequately manage it will be found; where the management actions are taken either intuitionally or systematically. Risk stems from uncertainty which narrow our knowledge about future events. Since ever it was accepted as a fact that people can not know; understand; or control everything. Therefore, the term "risk" has become relative to many aspects of human being daily life. Risk is related to personal circumstances health, pensions, insurance However, it is believed that mankind incessantly seeks to deal with risk and try to manage it proactively.

Consequently, not only risk is found everywhere but also the concept of risk management. As every aspect of human behaviors is combined with risk; its existence within most of human venture is recognized as unavoidable, subsequently there is a continuous effort to identify and understand risk. Accordingly, within various segments of business the phrase "risk management" has been used to describe the attempts undertaken to identify, understand and respond to risk.

We have demonstrated above that there are numerous standards and guidelines which aim at providing guidance to business practitioners for effectively utilizing risk management practices in order to enhance their business performance. To understand the differences and capture the similarities between the various standards it would be handy to undertake a comparison between the major steps for practicing risk management proposed by these standards. However, it would be neither practical nor useful to compare all and every available guideline; as not all of them serve the same scope and some of them have limited scope for implementation, thus major differences may be encountered which will impede the achievement of effective comparisons.

The previous section has demonstrated the fact that there is a general agreement among risk professionals within different business environments on what should be the major steps for managing risk, yet as this study is relevant to construction project risk and since each construction project encompass unique characteristic in terms of its scope or execution methods; it is believed to be of great importance to have an integral review for the significant issues regarding construction project risk management process; therefore, this section will go through a more relevant process that takes into account the unique nature of the construction industry.

Risk Analysis and Management for Projects RAMP is a process for analyzing and responding to risks that can have an influence on the achievement of project investment opportunity objectives. The RAMP process consists of four activities, these activities are carried out at different stages of investment lifecycle, the activities together with the times into which they suppose to be conducted are indicated below:.

Furthermore, each activity contains a number of phases which in turns consists of various process steps. More to this point, the number of times for performing each activity differ according to the purpose of conducting them;. As well, risk management activities are continuous actions performed within risk reviews intervals and with accordance to the analyses, strategies and plans resulted from previous risk review.

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Risk identification is critical phase, since the result of this phase will have an effect on the succeeding phases; as if this stage misses any risk consequently the following phases will not take it into account. Therefore, if risk is not identified it will not be evaluated and managed. Searching and responding to risk is iterative process.

The first step is to develop individual lists by each risk analyst; each list will contain risks associated to each objective, key parameter, major "deliverable" or principal activity within relevant analysts specialization area; the analyst team should cover every aspect of the investment. At the first step no checklists or prompts are used in order to prevent the limitation of the discovery process. Then, the discovered risks are listed in the risk register. Afterwards, the previous step is repeated with the assistance of the risk matrix and other prompt aids, where risk matrix is the presentation of information about risks in a matrix format, enabling each risk to be presented as the cell of a matrix whose rows are usually the stages in the investment lifecycle and whose columns are different causes of risk.

A risk matrix is useful as a checklist of different types of risk which might arise over the life of a project but it must always be supplemented by other ways of discovering risks.

The resultant identified risks from the previous steps are then listed in the risk register for later review and analysis, at this stage each risk is listed with provisional choice of the degree of its significance i. The following step is to conduct a brainstorming session including some or all of the risk analysts, and others who can provide useful contribution.

The brainstorming session is to improve the risk register by reviewing the previously identified risks and to discover new risks. Accordingly, reasonable degree of risk identification is reached by identifying as many as feasible risks. Then, the identified risks must be classified and clustered to aid in the evaluation process. Each identified risk; which has a "clearly significant" or "possibly significant" consequence, should be assessed to establish qualitatively the values listed below:.

Then the result of the assessment process, either for individual or grouped risks;. On the other hand, great deal of attention should be given to the identification and classifying risks which could have either serious catastrophic consequences or high expected values, or exceptionally favorable consequences;. To achieve effective risk management it is of crucial importance to select the optimum mitigating strategies for risks to reduce their impact while maintaining desirable rewards from the investment.

Moreover, risk mitigation strategies should be implemented throughout the project lifecycle from inception to close-down. Following are the considered options within the framework of risk management strategy:. Then each risk is entered to the risk register accompanying with the chosen mitigation option and the motive behind the choice.

A plan is then prepared to undertake each action, as common or related actions; which may be utilized for dealing with several risks; are grouped together. Then, a risk mitigation strategy is assembled containing the action plans and a risk account which shows the costs and benefits of the mitigation measures.

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As the net present value NPV is a method for cost benefit analysis that is commonly used for analyzing the investment opportunity, after preparing the costs and benefits of the mitigation measures;. This may be done by calculating the NPV for each possible combination of risk impacts i. Afterward, the results are evaluated again to reveal if they can be enhanced by eliminating the measures that comprise high cost and low beneficial effect, and for risks that need exhaustive study the available options are reevaluated within this step.

The residual risks are then ordered according to their significant for each investment parameter. Next, risk response plan is developed to assign responsibility regarding each residual risk to a "risk custodian".

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Contingency budgets, for the potential impact of the residual risks on each of the principal parameters in the investment plan. A major benefit from conducting RAMP process is to decide whether the investment project worth to be undertaken; and if there is a better opportunity presented by other investment. Accordingly, the decision to proceed or not is dependent on the combination of the following:.

A description of the most significant risks and how it is proposed to mitigate them. Finally, at the end of the risk review activity, a risk review report is prepared to present a summary of the main results of the review, which include the major risks identified, their likely effects and the overall risk level of the investment. Further, the report includes the comments on the effectiveness of the review, problems experienced, lessons learnt, and recommendation for improving future reviews.

Through this activity the residual risk analysis, risk mitigation strategy and risk response plan are all implemented within the main stream investment, project and operating management processes. Then, actions are monitored to assure their timely and satisfactory completion;. Moreover, risks that occur later in the project lifecycle should be monitored.

Furthermore, throughout the project lifecycle the residual risk analysis, risk mitigation strategy, and risk response plan are reviewed and the contingency budget is utilized due to risk exposure. At the end of the investment lifecycle or on premature termination of the project, a revision is undertaken to determine the effectiveness of the implementation of RAMP process to the investment.

A RAMP close-down report is developed using the result of this review. The report compares the performance of the investment with the original objectives. Furthermore, an assessment is performed for the risks and their actual impacts comparing them with those predicted. Finally, the report records the learnt lessons and suggested improvements for future investments. Bring to a close regarding risk management process issue, and when RAMP process framework is compared with any other standard or guideline examined earlier it can be said without reservation that there is a general theme which is repeated within all the guidelines that is the concentration on the indispensable role for adequate identification and assessment for the risk events and their sources to ensure effective implementation for the subsequent risk management phases.

Moreover, no fundamental differences are found between the several guidelines examined regarding the structure of the proposed process for managing risk which lead to a key conclusion that implies the existence of a general consensus between them concerning the main steps for implementing risk management. The previous sections in this chapter have given immense attention to define terms and expressions associated with risk management such as "risk", "uncertainty" and "risk attitude".

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Ancak bu sanal gerçekliğe rağmen, karşılaştıkları riskler oldukça gerçektir. Toggle navigation Home. Facebook'ta Paylaş Twitter'da Paylaş. Kanser hastalığına yakalanan Esma Esad kimdir? Contact Copyright Privacy.

In addition, consideration was given to the historical development for practicing risk management within the business environment to understand the essential areas for emphasis when functioning risk management. Prepare and manage overall master schedule integrating work breakdown structure using scheduling software P6. Track, monitor and forecast progress of all activities and deliverable such as products, engineering documents, fabrication status and construction of all discipline. Analyze gaps between the planned and actual progress and highlight the areas of concern which required action of the associate task member.

Develop and update resource manpower and equipment histogram weekly or monthly as required. Prepare and update the look-ahead schedule that reflect the priority activities. Company Name Akon International. Prepare and update three weeks and three months look-ahead schedule that reflect the priority activities Monthly Invoice Preperation and Following with Contractors and Clients Making Cost Controller regarding indirect and direct cost Preparing Tender and follow up the site works exhaustively Procurement of site materials and equipments by dealing with the suppliers from Saudi Arabia Analysis the man power and man hour according to executed work on site.

Following Site Works and giving comment and waring according to schedule for delaying circumstances Preparation of correspondence official letters to Main Contractor and Subcontractors Preparation of Method Statements and Execution Plan.

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Assess productivity during the work.. Monthly Invoice Preperation and Following with Contractors and Clients Analyze gaps between the planned and actual progress and highlight the areas of concern which required action of the associate task member. Making Cost Controller regarding indirect and direct cost Preparing Tender and follow up the site works exhaustively Procurement of site materials and equipments by dealing with the suppliers from Saudi Arabia Analysis the man power and man hour according to executed work on site.

Prepare detailed construction schedule in Level 5 based on the requirements of the Area Superintendent and Construction Manager. Instantly informing the project manager and site managers regarding the situation of project Preparation  and Submission of Project Operation Maintenance Manuals and Procedure Manuals Finalization and submission to consultant and employer for related hand over and as built documents Preparation and Follow Up of Commissioning Plan and Operation Maintenance Manuals Execution of Site Works as Site Engineer and Site Manager Preparation and Follow Up of Protocols, Handover Protocols and Contracts for Subcontractors and Employers Preparation of related documentation for Handing over to Employer Review all related documentation and minutes of meetings Working with master plans coordinately Preparation of correspondence official letters to Client, Consultant and Subcontractors Preparing daily reports, weekly schedule and data transmission to related engineers.

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