The Importance Of The Risk Response Process

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Recommended: The advantages and disadvantages of risk management

1. It helps to differentiate the scope of work for every process.
2. It helps to understand the action transfer among sub division/group in the process.
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Major risk relates to the project is cost overrun and delay. Delay of project is of most importance because the reputation of developer and contractor is on the line, for market purpose and attract customers’ project need to be deliver on time with best quality.
Identification of delay reasons and their effect on project completion is also purpose of conducting this research on ongoing NCR project.
There are 3 types of delays:
1. Compensable
2. Excusable
3. Non excusable

Compensable delays are due to the owner’s responsibility / fault / negligence. Delays occur at different intervals …show more content…

The main tools and strategies that obelise the risk response process:
1. Avoid
It is the risk response plan which takes action at the beginning to reduce the probability to zero or the impact. In this, such response allows risk to be eliminated completely. For ex a material to be used for a product but its use was very risky, so to avoid risk new material is used for the product and risk is eliminated.
2. Transfer
In this case risk is shifted towards the third party and they are responsible for the risk and its impact. It is normally done during the contract agreement. Another method mostly used in construction industry, use of insurance policy against the extra cost inquires because of risk impact.
3. Mitigate
It is the response to reduce the risk by undertaking necessary actions. This response looks to reduce the probability and impact.
For example the risk of more rework in designing of a very complex project, accomplished by the addition of project team with better knowledge and experience. The risk is not completely avoided but reduced by mitigation.
4.

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