Risk Management (SOE)

Question 1

What are the key principles of risk management

Answer 1

identification, assessment, response, monitoring and review

Question 2

How would you identify risks

Answer 2

Brainstorming , lessons learned from other projects, team workshops, historical information

Question 3

What is a risk management stratgey

Answer 3

Define who is responsible for risk management
Frequency of risk meetings
Define the software and tools used (Monte carlo)
Identify risk and identify mitigation

Question 4

What is the PRA

Answer 4

Probabilistic Risk Assessment - Quantifies risk by evaluations both the likelihood of hazards and the impact hazard would have

Question 5

What is a monte carlo simulaion

Answer 5

Computational method that uses random sampling to simulate a range of possible outcomes

Question 6

Define risk

Answer 6

The likelihood or an event causing a negative impact

Question 7

Define Issue

Answer 7

An unforeseen event that requires management

Question 8

What are the risk management principles

Answer 8

Identification
Assessment
Response
Monitoring and review

Question 9

What are ethe risk categories as defined by NRM1. Can you give an example of each (4 nr)

Answer 9

Design development risk - Additional planning requirements
Construction risk - Unforeseen ground conditions
Employer change risk -Changes to scope (variation)
Employer other risk - Acceleration requirements

Question 10

What are the general risk catergories

Answer 10

Political and business risks
benefit risk
Consequential risks
Project Risks
Programme risks

Question 11

What are the risk management strategies

Answer 11

Risk avoidance
Risk reduction
Risk transfer
Risk retention

Question 12

What is included in a risk register

Answer 12

Description of risk, risk category, risk owner, impact / likelihood, EMV, mitigation strategies

Question 13

Can you name some risk quantification techniques

Answer 13

PRA Probabilistic method
Percentage add on
Probability trees

Question 14

How would you undertake a monte carlo simulation

Answer 14

Identify risk
List key inputs (Material cost, labour cost, Programme delay)
Assign distributions (Triangular, Normal, uniform)
Run simulation through software (@risk / Primavera)

Question 15

What are the seven risk environments under RBS?

Answer 15

Natural
Economic
Government
Societal
Client
Constriction
Project

Question 16

What are the risk categories

Answer 16

External - uncontrollable
External - influenceable
Internal - Client operations (Controllable)
Internal - User requirements (Controllable)
Internal - Project processes (controllable)