Monitoring

To keep control of the risks, a risk register should be produced which lists all the risks and their method of management. Such a list is shown in Figure 16.7. Where risk owners have been appointed, these will be identified on the register. The risks must be constantly monitored and at preset periods, the register must be reassessed and if necessary amended to reflect the latest position. Clearly as the project proceeds, the risks reduce in number, so that the contingency sums allocated to cover the risk of the completed activities can be allocated to other sections of the budget. However, sometimes new risks emerge which must be taken into account. These must be recorded in the register under the heading of risk closure.

The summary of the risk management procedure is then as follows:

1 Risk awareness;

2 Risk identification (checklists, prompt lists, brainstorming);

3 Risk owner identification;

4 Qualitative assessment;

5 Quantification of probability;

6 Quantification of impact (severity);

7 Exposure rating;

8 Mitigation;

9 Contingency provision;

10 Risk register;

11 Software usage (if any);

12 Monitoring and reporting.

Project Key: H

Prepared b

y:

Reference:

high: M, medium: L, low

Date:

Type of risk

Description of risk

Probability

Impact

Risk reduction strategy

Contingency plans

Risk owner

H

M

L

Perf.

Cost

Time

Figure 16.7 Risk register (risk log)

Figure 16.7 Risk register (risk log)

To aid the process of risk management, a number of software tools have been developed. The must commonly used ones are @Risk, Predict, Pandora and Plantrac Marshal, but no doubt new ones will be developed in the future.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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