Risk Assessment Methods for Construction Engineering Research Projects

This report delves into the critical aspects of risk assessment within construction engineering research projects. It begins by establishing the significance of risk assessment and management in ensuring project success, highlighting the uncertainties inherent in research endeavors. The report then provides a literature survey, defining risk and risk management, and emphasizing the importance of research in this context. It explores methodologies such as Risk FMEA (RFMEA), risk decision-making models, risk analysis and prioritization, four-phase risk management, and flexible technical and market risks. Each methodology is examined in detail, outlining its approach, benefits, and applications. The report underscores the need for effective risk management techniques to mitigate potential adverse impacts and improve the success rates of construction engineering research projects. The workplan and milestones are also included. The content is contributed by a student to be published on Desklib, a platform providing AI-based study tools for students.

RISK ASSESSMENT METHOD

Contents
RISK ASSESSMENT METHOD..................................................................................4
INTRODUCTION..........................................................................................................4
PROBLEM CONTEXT.................................................................................................4
LITERATURE SURVEY...............................................................................................5
Risk........................................................................................................................................5
Research.................................................................................................................................5
RFMEA..................................................................................................................................6
Methodology 1.......................................................................................................................7
Methodology 2.......................................................................................................................7
Methodology 3.......................................................................................................................9
Methodology 4.....................................................................................................................10
Methodology 5.....................................................................................................................10
Methodology 6.....................................................................................................................11
Methodology 7.....................................................................................................................12
Methodology 8.....................................................................................................................12
METHODOLOGY.......................................................................................................13
POTENTIAL RISKS TO THE RESEARCH AND MANAGEMENT.......................14
Risks Managed.....................................................................................................................14
WORKPLAN WITH MILESTONES..........................................................................16
Workplan..............................................................................................................................16
Milestones............................................................................................................................20

RISK ASSESSMENT METHOD
INTRODUCTION
Risk assessment in the construction engineering has been considered as
just a formal process, rather than a detailed process. It is evident that the
projects, no matter it has a life of one year or thousands of years, has their
objectives completely fulfilled, when the risk assessment and mitigation are
done timely and effectively, in addition to an effective project management
plan.
PROBLEM CONTEXT
The uniqueness of risks of the construction engineering research projects
is the uncertainties, occurring in almost every stage of the research project.
Hence, risk management in the research projects becomes significant challenge
and no alternative, but has to go through effective and efficient risk
management methods, by the project managers. When implemented these
effective risk assessment methods, the success rate of the projects, will no
doubt, be increasing.
The uncertainties, possible in the research projects usually originate from
various and wider range of sources and they tend to end up with the affects,
from potential to adversary, to the success of the project (Jalonen, 2012). Not
assessing and addressing these potential risks and not aware of the possible
sources, implies increased adverse effects and risks, in a large number to the
projects, resulting in low rates of success. Hence, it becomes primary
responsibility of the project managers to apply specific techniques and methods
of risks, allowing them to identify as well as manage all possible uncertainties
to the best possible extent.

LITERATURE SURVEY
Risk
Risk refers to unpredictability, in terms of organization’s outcomes
(Miller, 1992). Risk management can be defined as a systematic approach
towards assessment and evaluation of the risks, after identification, and
associated risks ranking and then necessary resources allocation, to monitor,
control and then minimizing the possible undesirable events’ adverse impacts.
Over the time, many organizations have realized the improvement of the
performance and success of the project, by implementation of the risk
management (Teller, 2013) so, comprehensive and effectual construction risk
management system has become one of the core competencies of the project
management (Hung, 2012). Risk management is regarded and considered for
the good control evaluation, for various projects (Power, 2007).
Research
Research is a process, which is riddled with and regarded as more
uncertainty (Liu & Han, 2014) and the risks are arises from the uncertainties.
Research involves exploring various construction engineering related issues and
hazards and numerous factors influence these projects and these factors are
dramatically altered, in every stage. The uncertainties with these factors
collectively have the impact and are construed as the primary cause for the low
rate of success of the research projects, in the history. It is because of the poor
performance of the project and can be overcome, by the application of
techniques of effective risk management (Mu, Peng & MacLachlan, 2009).
Construction engineering research projects suffer from wider range of risks’
adverse influence and the same problem compounded further, because of less
knowledge of these factors, creating uncertainty, additionally, in the projects,
supporting the innovations (Jalonen, 2012).

Risk management methodologies were assessed, for research
organizations, throughout the world, by Leung and Isaacs (2008), in order to
identify the best practices to adopt in the research projects in the public sector.
RFMEA
Risk FMEA has been developed as an extended version of the FMEA
(Failure Mode and Effect Analysis), after acknowledging the effectives of the
FMEA, based on the empirical evidence. According to Mastroianni, RFMEA is
considered as one of the best risk assessment methods, when compared to the
other methods, existing, in terms of identification and prioritization of the major
risks (Mastroianni, 2011). This foregoing method is expected to constitute also a
remedial solution for addressing the possible. However, there is a lack of
enough literature inquiries, substantiating the claims, in terms of RFMEA risk
management model effectiveness in the context of the research. According to
the organizations of South Australia, RFMEA model would be helpful and
potential to identify effective plans of contingency, towards high-priority risks
mitigation, in the construction research projects. The report of the study was
finding the frameworks that are applicable to specific industries types,
compared to the others. The same results were confirmed also by the study of
construction engineering research conducted by Vargas-Hernandez,
Sariolghalam and Noruzi (2010). The existing risk management techniques are
insufficient in effective risk management in research projects, as they are
specific and targeted to the needs of the construction industry. Hence, more
studies are invoked for research risk management.
Types of construction risks associated with the research projects have
been ascertained by Keizer and Halman (2007) and found that the risks are of
two kinds. The first type is ambiguous risks, occurred, during difference of
opinion, within the project and organization. The second kind is the
unambiguous construction risks, which are related to the marketing and
acceptance of consumer. In other literature review of kinds of risks in the

construction research projects, by Park (2010), two kinds are found to be
internal and external risks.
As the existing risk management methodologies are inefficient, new
frameworks have been designed and developed for the risk management, by
some researchers.
Methodology 1
Risk decision making model
This methodology was developed by Kwak and Dixon (2008) and it
contains total 13 practices that are found potential. The primary objective of this
methodology is the decision making model for the risks. The other practices
include involving the members of the team, analytical approach of the risk
management, usage of the analytical tools, usage of the flexible tools. The
methodology also emphasizes to draw upon various researches that include the
academic research significantly. The model assesses the risks not at once, but to
be performed continuously and consistently, since the nature of the construction
risks is dynamic and keep changing time to time rapidly. The model also
assesses the risks in multiple dimensions and benchmark. The task of the
construction risk management is incorporated into the timelines of the project
(Kwak & Dixon,2008).
The risk management assessment is performed as a continuous and
consistent process, which is outsourced and managed on regular basis and
efficiently. The model is specific about using the scenario planning and also
employs the experts to assess and mange the risks (Kwak & Dixon,2008).
Methodology 2
Risk analysis and Risk Prioritization
The methodology has been developed by Wageman (2004). This
methodology is developed to resent the techniques and tools that are specific to
the analysis and prioritization of the risk and its aid.

The task emphasizes to list out all the risks possible in the specific
project. Though it is not possible to list all the risks possible at one instant, the
list has to be updated time to time, since the nature of the risks is dynamic and
keep changing with the time to time. The checklist becomes the primary
reference for assessment and management of the risks related to the
construction engineering, related to the project. Preparation of the checklist is
done on the basis of the templates, which has been designed by the experts,
according to the nature of the project, which is specific to the research.
The methodology makes use of intense approach for the construction risk
assessment. It involves the process of expert interviews, through which multiple
minds explore the possibilities of the risks, specific to each of the department
and each of the unit of the project. Each of the experts comes with different set
of risks and each of them is considered against possibilities and the necessary
managerial action gets decided. Each of the set of risks gets evaluated and the
respective plan is developed and evaluated, based on the possibility and severity
of the risk. Each of the plans gets analyzed after evaluation. The analysis gets
analyzed through decision analysis. This analysis is done by the project
manager and the experts of the respective departments. Further analysis gets
done by the project manager and this analysis is called the network analysis. In
this network analysis, the entire set of risks get proposed and decided, based on
the cross analysis among all the departments of the project, throughout the
network.
After the decision and network analysis performed by the project manger,
the master checklist of the risks is prepared. Though it is considered as the
master list, it is not final, since, the new list gets updated time to time, based the
obsolete risks and newly generated possibilities of risks, from time to time. And
then the checklist would be made into action, after incorporating the list against
two important parameters, such as schedule and cost risk simulation. Once the
simulation is completed, the total cost and schedule would be analyzed and the

decision is taken, based on the budget and schedule of the project (Wageman,
2004).
Methodology 3
Four-Phase Risk Management
The four-phase risk management has been proposed and developed by
Vargas-Hernandez (2011). The methodology assesses the risk and manages the
risks in the construction industry in four phases, as specified.
Phase 1
Identification of the Parameters
There are numerous parameters that define the success and failure of the
project. Each of the parameter that is potential for the success and failure of the
project, is explored and identified. Each of the parameter that has been
identified would be listed, for further analysis.
Phase 2
Analysis of the Parameters
As a matter of fact, every parameter is crucial for the success of the
project, however, there are certain parameters that influence the project with
more intensity and become the parameters of risk in the project. After
identification of the parameters of success, each of the parameters gets analysed
against its severity and degree of influence to the project, in terms of risk. So,
such parameters are analysed against the risks in the construction engineering.
Phase 3
Solving and Monitoring
After analysis is done, to identify the important parameters that can be
riskier to the project, an attempt is made to solve the risky problems. The
solution is proposed by the project manager, by consulting the respective team,
with which the risk is associated with. The solution is then developed in such a
way that the budget and duration of time spent over the solution of the risk is
feasible in construction engineering. The solution of the risk is developed in

such a way that the budget and time spent over the risk solution is not greater
than the loss resulted from the risk.
Phase 4
Learning
Every project has a limited life cycle, in terms of the sole project.
However, the experience incurred from the project, retains its life and extends to
the further projects, more for the similar projects. The list of the risks for the
project, though are numerous, the probability of occurrence is not the same for
all the risks in the industry of construction. So, the most probable risks of the
project are to be considered with more emphasis, by allocating enough budget
and enough time spent. The risks occurred in the present construction project
should be well recorded and reported, so that the same record can be the viable
list of the risks for the following projects, taken up by the project manager and
the organization (Vargas-Hernandez, 2011).
Methodology 4
Flexible Technical and Market Risks
The flexible technical and market risks are proposed and developed by
Wang and Yang (2012). The methodology focuses on two kinds of risks, which
are primary and prone to the construction and research projects. The two risks
are majorly technical risks, which are prominent, during the research of the new
product or service and market risks, in which the marketing risks, associated
with the product or service marketing, in the market. The risks related to the
market can be the setting of price, branding of the product or service, etc.
The methodology covers the technical and market risks, from which most
of the risks are covered for the kind of projects, called research projects (Wang
& Yang, 2012).
Methodology 5
Strategy and Performance Measurement

Every methodology for the risk assessment is done for the project, in
order to increase the success rate of the project. The strategy and performance
measurement system methodology is proposed and developed by Wang, Lin and
Huang and their focus is more on the strategy followed by the corporate.
The two emphasizing elements of the risk assessment and management in
this methodology are the strategy and performance. The strategy followed by
the corporate is taken as the basic reference, as they tend to believe that the
corporate strategy is more scientific, compared to the traditional strategies of the
local organizations. Not only setting the strategy for the risk assessment and
management in the construction industry, the outcome and the performance of
the risk management is also measured, by setting performance measurement
system, specific to the risks associated with the research projects. This
methodology is used mostly by the corporate objectives and of course can also
be used by the typical and non-corporate organizations also (Wang et al., 2010).
Methodology 6
FMEA + PMBOK
Every methodology has its own pros and cons and so the FMEA and
PMBOK. Both the FMEA and PMBOK are considered as the basic reference
methodologies in the construction project management industries. Cabral and
Souza dos Santos have proposed and developed this combined methodology, to
exploit the benefits of the FMEA and PMBOK methodologies of the risk
management.
The objective of this methodology is twofold, first to improve the
identification of the risks associated with the research projects and to improve
the planning of action. The benefits of both these famous and most viably used
methodologies can be combined in this methodology for the best outputs to be
obtained (Souza & Cabral, 2008).

Methodology 7
FMEA + Risk Analysis
FMEA is a famous analysis used and followed by many of the project
management organizations, for increasing the success rate of the project. The
methodology is developed by Carbon and Tippett (2004). The methodology is
developed based on the principles associated with the FMEA methodology and
this methodology is combined with the analysis of the project risk. The
methodology becomes more viable and useful, since the risk assessment
analysis and management is done, on the basis of the FMEA, with respect to the
risk contingency. The methodology can help in developing the risk contingency
plan, more prominently. It also helps in improving the risk contingency
planning prioritization (Carbone & Tippett, 2004).
Methodology 8
3 Stage Risk Management
One more methodology is developed for the risk assessment and risk
management of the construction research projects. The methodology is
developed and implemented in three stages and is proposed by Park (2010). The
methodology works exclusively for the assessment and management of the
risks.
Stage 1
Risk Assessment
The first stage of this methodology is the risk assessment, where the all
the possible risks are listed, specific to the research projects. These risks are
assessed based on various factors, stages of the research projects.
Stage 2
Risk Management & Performance Measurement
The risks assessed and possible during the stage 1 are managed in the
stage 2. The risk management stage ensures that all the risks proposed and

explored are well managed with a good planning. Apart from the regular risk
management task, which is regular for every research project, performance
measurement is added. The methodology emphasizes the performance
measurement, since it reminds the need for the result-oriented processes and
methods to ensure that all the risks are addressed and managed.
Stage 3
Risk Reduction & Performance Increase
The methodology not only focuses on the assessment and management of
the risk, but also on the reduction of the risk. There are special methods and
processes processed developed so that the risks are reduced further, not only for
the same project, but also for the following projects. Additional methods are
proposed to increase the performance of the future projects.
METHODOLOGY
The research project is being developed with the methodology of three
stage construction risk management process. The reason for the selection of this
methodology is that it can cover wider range of actions of risks. The
methodology can give better experience of working of the risks, not just
limiting with the assessment and management, but also extended to the risk
reduction activities. The methodology can give an opportunity to increase the
success rate of the future research projects, as the framework continues to work
with the efforts to increase the performance of the project.
The 3 stage risk management process enables the research project to
increase the success rate of the construction research projects. This
methodology can be implemented in much deeper and profound ways, so that
the risks can be managed to the best possible ways.