Risk management and risk response planning,
Risk management is the process of taking calculated risks, reducing the possibility of loss,
and reducing the size of the loss if it occurs.
The main goal of the risk management process is to reduce the impact of risk on the project’s goals and thus improve the decision -making process.
It includes both possible problems and early detection of actual problems when they occur.
The Cognitive Authority for Project Management has determined the planning planning of risk management,
as the process of determining how to approach and plan risk management activities for a project.
It is important to plan the following risk management operations, to ensure that the level,
type and clarity of risk management is commensurate with both the risks and importance of the project for the institution.
Risk management and risk response planning
The size of the task of managing the risk with the size and importance of the project is different.
Shawwalbi suggested that risk management is a set of principles.
Where the project manager constantly evaluates the risks and its consequences,
and takes appropriate preventive strategies.
The risk management at the present time is a decisive factor in managing successful projects,
as projects tend to be more complicated and more striking competition.
There is a direct relationship between the effective management of risks and the success of the project,
as the risks are evaluated through its potential impact on the project goals.
The contractors have traditionally used high profit margins to cover risks,
but since their margins have become smaller, this approach is no longer effective.
In addition, the building industry has seen major changes, especially in purchase methods,
while customers allocate greater risks to contractors.
There is a stage of planning to respond to the risks, to develop responses to the specified risks,
which are appropriate, investigative and affordable.
The owners are also allocated to each risk response, to be responsible for its implementation and monitoring its effectiveness.
Risk responses are usually assembled according to their intended effect on the risks that are treated.
It is common to use four groups, or risk strategies:
- Avoid seeking to eliminate uncertainty, by making it impossible to occur risks (i.e. reducing the possibility to zero).
Or by implementing the project in a different way that achieves the same goals,
but it isolates the project from the impact of the risks (i.e. reducing the effect to zero).
- Transfer: Defining another interesting person who is better capable of managing risk, to which responsibility and responsibility can be transmitted.
- Reducing: Reducing the risk volume to make it more acceptable to the project or organization, by reducing the possibility or effect.
- Acceptance: Acknowledging the need to bear the remaining risks and respond to it either actively by allocating the appropriate emergency or not doing anything, negatively, except for monitoring the state of the danger.
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