Risk Management in Construction Projects

Running head: RISK MANAGEMENT
RISK MANAGEMENT
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Executive Summary:........................................................................................................................3
Introduction:....................................................................................................................................5
Communication and consultation:...................................................................................................6
Establishing the context:..................................................................................................................6
Identifying all relevant stakeholders:...........................................................................................6
Internal stakeholders................................................................................................................6
External stakeholders:..............................................................................................................7
Clients:.....................................................................................................................................7
Rules, roles and responsibilities:.................................................................................................8
Processes and tools:.....................................................................................................................9
Risk register:............................................................................................................................9
Training of employees:............................................................................................................9
Definition of risk criteria:............................................................................................................9

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Risk assessment:............................................................................................................................10
Risk tolerance table:..................................................................................................................10
Risk treatment:...............................................................................................................................10
Monitoring and review:.................................................................................................................10
Discussion:.....................................................................................................................................11
Conclusion:....................................................................................................................................11
References:....................................................................................................................................12

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Executive Summary:
The discussion below shows that risks are inherent parts of construction projects. The risks which construction projects face stem from
factors like changes in laws and technology. The construction projects come under direct influences like dangers like natural
calamities and hostile political situations. It can be inferred from the attachments and the report that construction companies have no
control over these risks. However, it has already been pointed out that these companies have to take mitigation steps to avoid or at
least minimize the risks. Finally, it can be concluded that risk management strategies of companies should include supply chains as
well. We will apply
AS/NZS ISO 31000:2009 in the assessment.
Scope of the assignment:
 Construction of a two storied building
 Assessment of the risks the building project during and after construction.
 Recognizing the stakeholders and the impact of the risks on them.
 Formulation of risk management techniques.
Purpose of the construction of buildings
 To use them as commercial buildings

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 To use them as residential buildings
 To use them as both residential and commercial buildings
Risk management method applied:
The risk management methods applied would according to the AS/NZS ISO 31000:2009 and failure mode, effect and critical
analysis framework or FMEA.

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Figure 1. Risk management process according to AS/NZS ISO 31000:2009 (6)