Chapter 3
3. METHODOLOGY
3.1 3.1 Introduction
Nowadays, some construction companies in Iran are starting to become aware of the RMP, but are still not using models and techniques for managing risks. Due to the fact that the construction industry is trying to be more cost and time efficient as well as have more control over other objectives of the projects, risk management should be associated to any project. In this research risk management process for steel structure buildings in Iranian construction projects was investigated due to its more popular and has so much advantages. Risk management would be studied in five stages including earth work, reinforcement, formwork, concrete work and steel structure to develop the accomplishment of risk management through the appropriate method.
3.2 3.2 Research Method
Risk identification often produces nothing more than a long list of risks, which can be hard to manage. The list can be prioritized to determine which risks should be addressed first, but this does not provide any insight into the structure of risks on the project (Hillson, 2002). The best way to deal with a large amount of data is to structure the information to aid understanding. It can be based on the Risk Breakdown Structure (RBS) which groups identified risk events into different levels following a bottom-up approach.
A risk RBS can be defined as “A source-oriented grouping of risks that organizes and defines the total risk exposure of the project” (Hillson, 2003). The method adopts a full hierarchical structure, where each level increasingly shows more details about the risk source.
Many project teams mistakenly believe that risk management is only a high-level evaluation of the risks of the project. Instead, risk manag...
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...with a high risk exposure (high-risk) which will be located in dark gray area with the largest numbers in the probability and impact matrix should definitely move into the plan risk responses process. Moreover moderate risks which will be located in the light gray area with in-between numbers, require management control and to be paid attention and might decide to move into the plan risk responses process. Finally, low-risk will be displayed in the medium gray color with the smallest numbers are risks that can be accepted without further investigation or response and simply document.
This research will be considered risk responses only for risk with high exposure (high risk) on project objectives (time, cost, quality and health and safety).
Next chapter will present data collection and analysis and explains how the chosen methodology was adopted to this research.
As project activities are directed and finished, risks components and events will be observed to figure out whether in certainty trigger occasions have happened that would show the risk is currently a reality. In view of trigger occasions that have been reported amid the risk investigation and moderation forms, the project group or project administrators will have the power to order emergency courses of action as esteemed suitable. Everyday risk relief exercises will be instituted and coordinated by the project managers.
For this a risk assessment strategy should be developed. For making the strategy, the possible risks should be evaluated. A list of possible risks associated with the results and the information of the research paper should be formed.
In the majority of all project activity, it entails some kind of risk of which may overall impact the successful project completion. Upon the completion of the project with its scope, tasks, budget and timeline, it is imperative to make an overall risk assessment to access any risk that may be considered impactful in the project (Lock, 2007). Any associated risk assessment is well-thought-out
Hillson, D, & Simon, P. (2012). Practical project risk management: The ATOM methodology (2nd ed.). Vienna, VA.: Management Concepts.
Hillson, D. & Simon, P., (2012). Practical Project Risk Management, The ATOM Methodology: Second Edition. Vienna, VA: Management Concept Press
...f project. Furthermore, the successes of a project can be guarantee by identifying the procurement variables that have a major influence on risk management such as project delivery method, form of payment, and the use of collaboration or partnering arrangements. However, many projects suffered from variations in cost affecting in the present which is the risk management was not carried out consistently throughout the project stages. Nevertheless, in the projects with early involvement of the clients and their participation, the chances for open talks and collaboration throughout suitable procurement selection can produce an efficient risk management procedure for the project. While project delivery methods define formal risk allocation, the use of incentives and collaboration or partnering arrangements help to establish a collaborative approach to risk management.
A process of identifying, analyzing and responding to risk factors throughout the life of a project is called Risk Management (Stanleigh, n.d.). Every Information Technology (IT) project should invest in being proactive rather than reactive. Someone should be identified to gather and minor risks, and work with the teams to develop mitigation plans for those risks associated with the future events. The following risks have been identified with the Omnitracs project.
The failure of Information Technology projects has always been a hurtful problem for many organizations. With tons of new technologies coming out throughout the year, new IT, projects continue to grow by the year. Unfortunately, the success rates of the projects are very low and have actually lowered since its last estimate. Project risk factors are important to know and avoid in making of a success project. This paper is going to explain risks in knowledge areas, how to identify risks, and explain the risk register. Also, it’s going to identify and define the qualitative and quantitative risk analysis. In addition, it will cover planning for positive and negative risk responses. Finally, it will conclude with how to monitor and control IT project risks
Here we will discuss risk management in the construction sector and in execution of construction project, project risk management is one of the most critical phase for successful completion of the construction project. Risk can be both negative and positive for the project. Negative risks are considered as threats and positive risks are taken as opportunities.
Risk Management is the process of identifying, analyzing and responding to risk factors throughout the life of a project and in the best interests of its objectives (Stanleigh, 2015). This paper is focused on the trends and methods of managing risks in a project. It also analyzes different ways of mitigating risks in a project and why risk management is important in an information technology (IT) environment.
Risk management is among the most important practices in the field of project management. A successful project completion and risk management often go side by side. An interesting aspect of project management is that a project can sti...
These are the specific risks involved to a particular project or program. The organisations continuously undertakes specific projects, which should be managed with consistency with the legal obligations to be kept in mind. There are significant program management methodology which spell out the requirement and clear risk management approach within the project environment and align by the whole of the AS/NZS ISO 31000:2009 Risk management – Principles and guidelines.
Some include risks at the enterprise level, managing risks in complex projects and dealing with turnarounds and large capital projects. Liu, Zou, & Gong (2013) explore how enterprise risk management (ERM) may influence the ability and performance of project management risk (PRM) by considering the features of the construction industry, its businesses and projects. Managing risks within projects such as these has become an important process to achieve project objectives in terms of the scope, time and cost. The results show that enterprise risk management can positively influence the implementation of project risk management. This can be achieved through implementing a risk focused culture, setting up risk management departments and setting up risk procedures. This will help control the project risk and improve the performance of project risk management. Communicating the concerns with other team members can help identify the risks earlier on rather than later in the development of the project. If the Stakeholders and managers involved are satisfied then the project outline becomes a
In this competitive world, companies have to deal with various types of risk all the time with there projects. Generally, it affects the budget and schedule of the project. So it is important to keep in mind the risk management strategies while creating an initial project plan.
As the first step, identify potential risks plays a crucial role in the risk management process. The core purpose of identifying risk is to figure out causes of risk and analyze result caused by the risks and its probability . Hence, risk identification can begin with the source of problem, or with the problem itself. The chosen method of identifying risk may depend on culture, industry practice and compliance. The identification