Risk Management in Road Construction

The report provides an overview of risk management in road construction, including technical, logistic, environmental, management, financial, and socio-political risks. It also discusses the importance of team size, staff expertise, and experience, as well as sources and advantages of risk management. The limitations of risk management are highlighted, and a risk breakdown structure is presented with respect to road construction.

Running head: ADVANCED PROJECT RISK MANAGEMENT
ADVANCED PROJECT RISK MANAGEMENT
Name of the Student
Name of the University
Authors Note:

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Table of Contents
Introduction..........................................................................................................................2
Discussion............................................................................................................................2
Definition.........................................................................................................................2
Idea about Risk and Risk Management...........................................................................3
Types of Risk in Road Construction................................................................................3
Risk exposure...................................................................................................................4
Sources of large number of risk in Road projects............................................................5
Limitation of Risk Management......................................................................................6
Probability of impact matrix............................................................................................6
Risk breakdown Structure................................................................................................7
Conclusion...........................................................................................................................8
References............................................................................................................................9

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Introduction
Risk management is nothing but a systematic process or method of identifying, providing
response and checking or analyzing to various kinds of risk which are associated with projects. It
is mainly inclusive of maximization of various kinds of risks and events (McNeil, Frey and
Embrechts, 2015). It also focuses on reduction of consequences and probability of various kinds
of events which are related to objectives of projects. Risk is generally considered to be an
important kind of choice made by environment rather than fate which is associated with it. It is
possibility of plans of somethings which can affect the achievement of project goals, business
and various kinds of prospects.
In the coming pages of the report I have provided proper definition of risk, various
concepts of risks, various kinds of risk associated with road construction project. After that
certain number of advantages of risk management has been provided. I have provided an idea
regarding Risk Priority Matrix.
Discussion
Definition
Risk can be easily defined as a situation in which there is no kind of knowledge is
available of its probable outcomes (Huang et al., 2016). It generally provides an idea regarding
the changes of injury or various kinds of loss, dangerous kinds of materials, for running risk.
Every kind of risk is known to be proportional for expected kind of values which is caused by
various kinds of risk management and probability of various kinds of events.

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Idea about Risk and Risk Management
With respect to road construction industry I have analyzed that risk can be defined as
likelihood of occurrence of definite events which is inclusive of factors related to whole kinds of
transaction.
Types of Risk in Road Construction
Road construction projects are considered to very much complex and consist of various
internal and external kinds of risk (Li et al., 2016). One of the best kinds of ways for managing
risk in road construction project is analyzing their types and proper managing of them.
Technical Risk: Technical risk is mainly inclusive of anything which generally stops one
from the creation of product and customers. This mainly inclusive of various kinds of things and
availability of various kinds of risk. The risk is mainly inclusive of various kinds of products and
scope.
Logistic Risk: There are large number of logistic risk which needs to be addressed in
road construction projects. The risk is mainly inclusive of availability of various kinds of
transport facilities, availability of equipment focus on certain number of things like spare parts
and labor.
Environmental Risk: It is mainly inclusive of certain number of things like natural
disasters, large number of seasonal implication (Yin et al., 2016). The risk is mainly inclusive of
local kinds of condition. In road construction projects one must be easily understand potential
kinds of delays and losses associated with it.
Management Risks: The common type of related risk is uncertainty of productivity of
various kinds of resources (Brighenti and da Silva, 2016). Before the beginning of road

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construction one should have enough skilled staff for properly defining of certain roles and
responsibilities.
Financial Risk: During a road construction project few number of financial risks are
only possible like local tax, inflation and availability (Olson and Wu, 2015). If someone is
working on project on international basis, then he can easily analyze the term currency exchange
in a similar way.
Socio-political risks: During a construction project one can easily understand customs,
importing of things. This risk is totally based on different codes and parameters which someone
must follow.
Risk exposure
I have analyzed that there are several number of factors which are associated with risk
exposure like:
Team size: Higher kind of probability of the various kinds of problems. Communication
can be considered to be more difficult when the number of participants increases (Grote, 2015).
So as a result the number of interaction of large number of people also increases. This ultimately
leads to increase in greater value of coordination.
History: New kinds of projects are considered to be much kind of riskier one as certain
number of processes have not been defined yet.
Staff expertise and experiences: If there is lack in the number of staff then there can be
direct amount of knowledge and experiences raleted to subject, possible number of people will
easily go along with number of time and people.

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Complexity: More the number of sophistication of a project, there can be greater the
value of mistake and problems associated with it.
Management of Stability: It is considered to be an important kind of stability which
focus on unity of direction, which in turn focus on reaching of number of goals (Thaler and
Levin-Keitel, 2016). The irritability of management can often have led to insufficient using of
large number of resources.
Time compression: If it is on tight schedule then it can easily have led to risk which is
being identified. More times generally require greater value of flexibility and various kinds of
opportunities have led to prevention and mitigation of various kinds of errors.
Resources availability: The more number of resources have led greater ability for
responding to large number of problems (Sweeting, 2017). Large number of resources does not
often lead to guarantee of protection from large number of risk.
Sources of large number of risk in Road projects
There are large number of resources which are associated with road projects like
 Various kinds of misunderstanding related to terms and condition which are
associated with projects.
 It also checks the design changes and errors associated with a particular kind of
projects.
 It generally aims in poor co-ordination of various kinds of roles and
responsibilities associated with a project.
 Large number of unskilled staff.
 Various kinds of political and legal number of problems.

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There are large number of advantages for making use of Risk Management like:
 Lesser number of uncertainty.
 Achievement of large number of objectives.
 Reliability of large number of staff members.
 Reduction or minimization of various kinds of capital cost associated with a project.
 It also results in creation of large number of values for people.
Limitation of Risk Management
There are number of limitation which are associated with risk management
 If there are large number of risk are associated with it then time can be easily
wasted in dealing with large number
 Spending too much amount of time on managing and accessing can often led to
divert of large number of resources.
 Unlikely of various kinds of events can often led to various kinds of risk and also
dealing with better retaining of large number of issues.
Probability of impact matrix
Probability risk management tools and techniques have been easily identified for
improving the success of a project (ROSSI, LOMBARDI and DI MASCIO, 2018). They have
easily analyzed the fact that risk management processes are not used on widely basis and have
also found the fact that management practices are not easily used on widely basis. They have
easily focused risk management processes are considered to be more applicable to higher value
of risk. For this proper amount of data and SWOT analysis is needed. The matrix consists of four

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parts namely meeting of functional specific values, meeting of technical specification, schedule
and various kinds of budget.
I have also analyzed that common kinds of risk which are associated are overrun with
various kinds of roads. There are several kinds of projects which are mainly associated with
project management and contracts (Teixeira et al., 2015). It generally focuses on low equipment
efficiency, high value of competition and various kinds of political situation.
Risk priority matrix is mainly done with the help of likelihood and impacts which can be
gathered from the various kinds of samples. A risk priority matrix is very much easier to make as
major portion of results can be easily made. Risk priority matrix generally provides quick views
of certain number of risk and followed by priority matrix is created.
Risk breakdown Structure
Generally, there are large number of risk factors which are associated with road
construction project (Evans et al., 2016). It can be easily categorized into various terms like
external, internal and legal value of categories.
Fig 1: Specific project Risk
(Source: Teixeira et al., 2015, pp-28)

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Conclusion
From the above discussion it can be easily concluded that this report is all about risk
management is roads. In the discussion portion of the report an idea has been provided regarded
risk, after that an idea has been provided regarding risk and risk management. Various kinds of
risk associated with road construction like technical risk, logistic risk, environment risk,
management risk, financial risk, socio-political risk. After that an idea has been provided
regarding team size, history, staff expertise and experiences has been provided. Various kinds of
sources and advantages of risk management has been discussed in details. Certain limitation of
risk management has been discussed in details. An idea has been provided regarding probability
impact matrix. After that a risk breakdown structure with respect with respect to road
construction has been provided.

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References
Brighenti, J. and da Silva, M.Z., 2016. Environmental uncertainty perception and risk
management: A study on providers of road freight transport services. BASE-Revista de
Administração e Contabilidade da Unisinos, 13(3), pp.200-215.
Evans, C., Fisher, J., Gourio, F. and Krane, S., 2016. Risk management for monetary policy near
the zero lower bound. Brookings Papers on Economic Activity, 2015(1), pp.141-219
Grote, G., 2015. Promoting safety by increasing uncertainty–Implications for risk
management. Safety science, 71, pp.71-79.
Huang, J., Li, F., Zeng, G., Liu, W., Huang, X., Xiao, Z., Wu, H., Gu, Y., Li, X., He, X. and He,
Y., 2016. Integrating hierarchical bioavailability and population distribution into potential eco-
risk assessment of heavy metals in road dust: A case study in Xiandao District, Changsha city,
China. Science of the Total Environment, 541, pp.969-976.
Li, Z., Kolmanovsky, I., Atkins, E., Lu, J., Filev, D.P. and Michelini, J., 2016. Road risk
modeling and cloud-aided safety-based route planning. IEEE transactions on
cybernetics, 46(11), pp.2473-2483.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Olson, D.L. and Wu, D.D., 2015. Enterprise risk management(Vol. 3). World Scientific
Publishing Company.

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ROSSI, G., LOMBARDI, M. and DI MASCIO, P.A.O.L.A., 2018. Consistency And Stability Of
Risk Indicators: The Case Of Road Infrastructures. International Journal of Safety and Security
Engineering, 8(1), pp.39-47.
Sweeting, P., 2017. Financial enterprise risk management. Cambridge University Press.
Teixeira, A., Sou, K.C., Sandberg, H. and Johansson, K.H., 2015. Secure control systems: A
quantitative risk management approach. IEEE Control Systems, 35(1), pp.24-45.
Thaler, T. and Levin-Keitel, M., 2016. Multi-level stakeholder engagement in flood risk
management—A question of roles and power: Lessons from England. Environmental Science &
Policy, 55, pp.292-301.
Yin, J., Yu, D., Yin, Z., Liu, M. and He, Q., 2016. Evaluating the impact and risk of pluvial flash
flood on intra-urban road network: A case study in the city center of Shanghai, China. Journal of
hydrology, 537, pp.138-145.