CAPITAL UNIVERSITY OF SCIENCE AND TECHNOLOGY ISLAMABAD
DEPARTMENT OF MANAGEMENT AND SOCIAL SCIENCES
Class Project Assignment
Based on RISK PROJECT MANAGEMENT
UNDER SUPERVISION OF
Sir Jamsheed Ali Turi
SUBMITTED BY
Ms. Sumera Malik BMBE183006
MS Anum Bibi BMBE183014
Introduction to Risk Management
Risk
Risk is the level of exposure to uncertainties that the enterprise must
understand and effectively manage as it executes its strategies to
achieve its business objectives and create value”
In Simple words we define Risk as possibility of loss or Project risk is an
uncertain event or condition that, if it occurs, has an effect on at least
one project objective
Uncertainties! The key word in risk management!
Uncertainties (risk items)
Uncertainty are any project activity, event or design
element for which success is not guaranteed.
Or simply... the possibility of not delivering what we’ve
planned to deliver.to deliver
Risks can be external and internal
Internal: uncertainties that project can control
External: beyond the control of the project
Is RISK good? Or bad?
We must promote the ability to look at risk as challenge, or
opportunity, and take on more risk
Risk management is not about risk elimination by canceling
projects, or other initiatives, but about taking measured
risks
Risk management serves the purpose of supporting
decision making and setting right and achievable objectives
Types of Project Risk
Technical Risk
Supply Chain
Manufacturability risks
Unit cost
Product fit/Market
Resource Risks
Program-management
Regulatory
Project Risk Management
The systematic process of identifying, analyzing, and
responding to project risks. It includes maximizing the
probability and consequences of positive events and
minimizing the probability and consequences of adverse
events to project objectives. In simple words we can say that
it is the process of finding risk and take measures according
to that.
Fundamentals of Project Risk management
The fundamental about project risk management is to know
when to take risk as a Project Manager, to know if the risk is
acceptable or unacceptable?
Risk Management Organization
It shows risk management flow down structure
Clear roles and responsibilities
Risk evaluation and prevention mechanism
Available tools and methodologies
Risk management Organization
Corporate
Policy
Program,
Business
Procedure
Work
Instruction
Risk Management planning
Process planning
It includes Perceptive, stakeholders, procedures etc.
Risk Review
Identify, qualify, quantify
Risk Response: Avoid, Mitigate, transfer, accept
Risk Tracking
Execute response plans
Process Review
Performance metrics, response effectiveness
Process Planning Risk Review Risk Tracking Process Review
RISK Identification
We can do this by
Brainstorming
Surveys and questionnaires
Interviews and focus groups
Lessons learned review
SWOT Analysis
Brainstorming
No judgment or evaluation during idea generation
Everyone contributes
Get to the point
Quantity over Quality
All ideas are welcome
Build on ideas
RISK Assessment
The process of analyzing and evaluating risk, to determine the
likelihood of an uncertainty to occur and the impact it will
cause to the business plan
6 Steps in the Risk Management Process
Identify the Risk
Analyze
Prioritize
Ownership
Respond
Monitor
Plan Risk Management
It has following plan for Risk
Methodology
Roles and Responsibilities
Budgeting
Timing
Revised stakeholder tolerances
Probability and impact matrix
Example within Pakistan
Risk Involved in the construction Industry of Pakistan
None of the construction projects in the globe is risk free.
Every construction project either it is small, medium or large
involves risks, varying in impact.
Risks in construction projects are due to the
Uncertainty involved at decision making of management
Manipulation of resources
Tackling of constraints
Implementation of quality etc.
Therefore, construction projects are always a risky
undertaking for all involved stakeholders (client, consultant,
and contractor). The contractor as one of the stakeholder has
to face maximum challenges to overcome the risk associated
uncertainties. The management is essential in dealing with
the potential risk exposures to the contractors. In response
to these ever increasing uncertainties, in developed
countries risk management was introduced as a separate
new field in construction industry to manage risks effectively.
However, construction industry in developing countries like
Pakistan has a deprived reputation for coping with risks. With
rapid advancements in the construction industry of Pakistan,
many uncertainties are bound to occur.
Three Projects in Lahore
Lahore’s mega projects continue to be delayed due to the
shortage of funds for the last three months
These projects include the
Lahore Orange Line Metro Train Project
Flyover at Shaukat Khanum intersection (Johar Town)
Improvement of Khayaban-i-Jinnah (signal-free corridor)
and construction of 12 sports complex in various
National Assembly constituencies of the provincial
capital.
Lahore Orange line Metro Train Project has following
impacts
Environmental Impact
Air Quality and Noise
Resource Conservation
Social issues
Public Utilities
Conclusion
Project risk management Maximizes the areas of Project over
which interval stakeholder control the outcomes and minimize
the area over which stakeholder have absolutely no control. It
involve identify the risk assigning them and planning the
appropriate responses.
Unlike craises management good project risk management
often goes un noticed . well run project appear to be almost
effortless but a lot of work goes in to running a project well.
