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Critical approach in project risk management - Essay Example
Engineering and Construction
Pages 16 (4016 words)
CRITICAL APPROACH IN PROJECT RISK MANAGEMENT [Your name here] [Name of university] [Due date of paper] 1. Introduction In construction industry, risks are inevitable. No construction project can ever be free of risks (McDonald 2013). Design risks, fire risk, and acts of God risk always stay in frame for every firm related to construction industry…
As Wrona (2010, p. 1) states, “companies that do perform a risk management process on a fairly typical multi-month project (no longer than 12 months) will identify and manage possibly five to ten easily recognized project risks”. This statement shows that doing comprehensive risk analysis regularly at each stage of the project can reduce the occurrence of risks and make companies able to respond properly to any type of project risk. Risk analysis is necessary to conduct to ensure completion of construction projects within time and available budget. As Flanagan and Norman (1993, p. 45) state, “attention to risk is essential to ensure good performance”. It is the responsibility of the risk management departments to perform risk management activities regularly in order to save time and budget. The risk management staff needs to be able to identify all types of project risks that a company may face in order to take effective measures to eliminate the occurrence of risks. 'In this paper, we will examine the way risk management approach changes with changes in each stage of construction projects. Along with this, the paper will also cover the way risk analysis can be used to drive project management decisions. ...