Project Techniques and Risk Management - 1894 Words

2010 Project Techniques and Risk Management A practical and effective approach Eng. Hayder Issa Engineering Contracts Management Engineering Arbitration Rule in Solving Disputes Post Graduate Certificate in Project Management - UK Project Techniques and Risk Management A practical and effective approach Managing business risk means managing the protection of your employees, customers, property, information and the environment. Risk management is attempting to identify and then manage threats that could severely impact or bring down the organization. Risk management is all about keeping your risk under control. The more controlled your risk is, the more flexible you can be when you need to be. Traditionally,†¦show more content†¦Define Risk Management Milestones 5. Define risk rating/scoring techniques Page 2 6. Establish risk thresholds 7. Define risk communications 8. Define risk tracking process Risk Management and Project Selection Techniques Two commonly used project selection techniques are Benefit Measurement Models and Mathematical Models, i.e. (Mathematical Models used for extremely complex projects). In the workplace, Benefit Measurement Models are more often used. Some techniques in this category are: (1) Cost-benefit analysis: Which provide a net gain. Typically, the net gain is proportional to the risk level, i.e. the higher the risk, the higher the gain. (2) Weighted Scoring models: Risk of Incompletion is a factor that needs to be considered when comparing projects, using the Weighted Scoring Model for Risk Management and Project Selection to help you select a project. (3) Cash flow analysis: Takes into account the payback period, AND (4) Time Value of Money: Uses Net Present Value (NPV) and Internal Rate of Return (IRR). Generally, the higher the NPV, the better the proje ct is. There are positive risks in every project that require knowing how to respond to them. Risk Management and Project Selection should also account for positive risks. Risk Identification Risk identification is the process of understanding what potential events might hurt or enhance a particular project. The customary originsShow MoreRelatedRisk Management Techniques For Construction Project1280 Words   |  6 Pages Research Paper on Risk Management Techniques for Construction Project Pariekshit Guttikonda Lawrence Technological University Abstract Construction is a risky industry and there is no other industry that requires proper application of business practices much as construction industry. The main objective of this research is to gain understanding of risk factors faced by building projects. The study also aims to investigate the effectiveness of risk preventive and imitative methods. From thisRead MoreRisk Management Techniques For Construction Projects1206 Words   |  5 PagesResearch Paper on Risk Management Techniques for Construction Project These are the 7 types of the risks that are mainly occurring in construction projects in the real world in most kind of construction projects. 1. Technical Risks: Incomplete Design, Inadequate specification, inadequate site investigation, Change in scope Construction procedures, insufficient resource availability. 2. Construction Risks: Labor productivity, Labor disputes, Site condition, Equipment failures, Design changes, tooRead MoreRisk Management Techniques For Construction Projects1238 Words   |  5 Pagesresearch is to gain understanding of risk factors faced by building projects. The study also aims to investigate the effectiveness of risk preventive and imitative methods. 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