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Risk is an inherent part of any undertaking and, particularly, of construction projects. Project Risk Management techniques and practices try to bring the random uncertainty of a project into the field of a measurable uncertainty based on past experience and historical data statistical usage. Project Risk Management is the process of identifying, analyzing and responding to project risk. In this chapter, risk identification is first presented based on the principles of risk breakdown structures, along with techniques to identify risks. Second, the process of analyzing risk and quantifying probable costs associated with risk is highlighted, as well as contingency budget and plan. Finally, the main methods and practices to respond to project risk via risk plans and contingency management are outlined.
KeywordsContingency Budget Risk Breakdown Structure (RBS) Risky Events Contingency Management Process Risk Response
References and Additional Resources
- British Standard Institute (1991) No. 4778, Section 3.1Google Scholar
- Macomber JD (1989) You can manage construction risks. In: Harvard business review. Harvard University, Cambridge, MA. March–April 1898Google Scholar
- Project Management Institute (2016) A guide to the project management body of knowledge, 6th edn. Project Management Institute, Newtown Square, PAGoogle Scholar