| What is risk made up of? | Likelihood/consequence and probability |
| Risk management is... | a mandated process in most countries in the world. |
| Why should you manage risks? | Commercial reasons
Personal reasons
Environmental reasons |
| What are the commercial reasons to manage risk? | Statutory and legal requirements;
Market and revenue management;
Cost management ;
Protection of reputation ;
Business improvement (profitability) |
| What are the environmental reasons to manage risk? | Statutory and legal compliance;
Enhancement of reputation; |
| What are the social reasons to manage risk? | • Statutory and legal compliance;
• Achieve “Employer of choice” status;
• Health & safety management;
• Community liveability enhancement; |
| In what situations will you have to manage risks? | Personal
Business Organisations
Government Organisations |
| What are the personal reasons to manage risk? | • Statutory and legal obligations as a professional”;
• Financial management;
• Reputation and career advancement; |
| Why would business organisations have to manage risks? | • Statutory and legal requirements;
• Market assessment and revenue projections;
• Reputation and business credibility requirements; |
| Why would government organisations have to manage risks? | • Statutory and legal requirements;
• Budget control;
• Political direction and support;
• Reputation and stakeholder support; |
| Who is likely to participate in risk management? | As an employee (planner, designer, auditor, etc)
As a manager (responsible for safety of employees, for a project, etc)
As a business owner (responsible for statutory and legal compliance, commercial success, etc) |
| What aspects of project management are qualitative risk analyses used? | All aspects - planning, design, construction, maintenance, operations, etc |
| Where are you likely to participate in risk management in the delivery of capital works ? | Planning stage (pre-feasibility study, etc)
Delivery stage (detailed design and procurement, construction, etc) |
| Where are you likely to participate in risk management in the operational stage of projects? | Planning stage (revenue forecasts, operation cost estimates)
Operations stage (emergency management, operations management) |
| Give examples of human risks | Poor judgement, error, illness, death, injury or loss of a key individual/ |
| Give examples of operational risks | Disruption to supplies and operations, loss of access to essential assets, or failures in distribution. |
| Give examples of reputational risks | Loss of customer of employee confidence, or damage to market reputation. |
| Give examples of procedural risks. | Failures of accountability, internal systems, or controls or from fraud. |
| Give examples of project risks. | Going over budget, taking too long on key tasks, or experiencing issues with product or service quality. |
| Give examples of financial risks. | Business failure, stock market fluctuations, interest rate changes or non-availability of funding. |
| Give examples of technical risks. | Advances in technology, or from technical failure. |
| Give examples of natural risks. | Weather, natural disasters or disease. |
| Give examples of political risks. | Changes in tax, public opinion, government policy, or foreign influence. |
| Give examples of structural risks. | Dangerous chemicals, poor lighting, falling boxes, or any situation where staff, products, or technology can be harmed. |
