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Class Project Assignment: Capital University of Science and Technology Islamabad

The document discusses risk management in project management, outlining key concepts such as identifying uncertainties, assessing risk through likelihood and impact analysis, developing a risk management plan, and monitoring risks. It also provides examples of risks involved in construction projects in Pakistan, such as the Lahore Orange Line Metro Train Project which faces environmental, social, and funding risks. Effective risk management is important for maximizing control over project outcomes and minimizing uncontrolled factors.

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Sumera Arif Malik
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
43 views

Class Project Assignment: Capital University of Science and Technology Islamabad

The document discusses risk management in project management, outlining key concepts such as identifying uncertainties, assessing risk through likelihood and impact analysis, developing a risk management plan, and monitoring risks. It also provides examples of risks involved in construction projects in Pakistan, such as the Lahore Orange Line Metro Train Project which faces environmental, social, and funding risks. Effective risk management is important for maximizing control over project outcomes and minimizing uncontrolled factors.

Uploaded by

Sumera Arif Malik
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CAPITAL UNIVERSITY OF SCIENCE AND TECHNOLOGY ISLAMABAD

DEPARTMENT OF MANAGEMENT AND SOCIAL SCIENCES

Class Project Assignment


Based on RISK PROJECT MANAGEMENT

UNDER SUPERVISION OF
Sir Jamsheed Ali Turi

SUBMITTED BY
Ms. Sumera Malik BMBE183006
MS Anum Bibi BMBE183014
Introduction to Risk Management
Risk
Risk is the level of exposure to uncertainties that the enterprise must
understand and effectively manage as it executes its strategies to
achieve its business objectives and create value”
In Simple words we define Risk as possibility of loss or Project risk is an
uncertain event or condition that, if it occurs, has an effect on at least
one project objective
Uncertainties! The key word in risk management!

Uncertainties (risk items)


 Uncertainty are any project activity, event or design
element for which success is not guaranteed.
 Or simply... the possibility of not delivering what we’ve
planned to deliver.to deliver

Risks can be external and internal


Internal: uncertainties that project can control
External: beyond the control of the project
Is RISK good? Or bad?
 We must promote the ability to look at risk as challenge, or
opportunity, and take on more risk
 Risk management is not about risk elimination by canceling
projects, or other initiatives, but about taking measured
risks
 Risk management serves the purpose of supporting
decision making and setting right and achievable objectives
Types of Project Risk
 Technical Risk
 Supply Chain
 Manufacturability risks
 Unit cost
 Product fit/Market
 Resource Risks
 Program-management
 Regulatory

Project Risk Management


The systematic process of identifying, analyzing, and
responding to project risks. It includes maximizing the
probability and consequences of positive events and
minimizing the probability and consequences of adverse
events to project objectives. In simple words we can say that
it is the process of finding risk and take measures according
to that.
Fundamentals of Project Risk management
The fundamental about project risk management is to know
when to take risk as a Project Manager, to know if the risk is
acceptable or unacceptable?

Risk Management Organization

 It shows risk management flow down structure


 Clear roles and responsibilities
 Risk evaluation and prevention mechanism
 Available tools and methodologies

Risk management Organization


Corporate
Policy

Program,
Business
Procedure

Work
Instruction

Risk Management planning


 Process planning
It includes Perceptive, stakeholders, procedures etc.
 Risk Review
Identify, qualify, quantify
Risk Response: Avoid, Mitigate, transfer, accept
 Risk Tracking
Execute response plans

 Process Review
Performance metrics, response effectiveness

Process Planning Risk Review Risk Tracking Process Review

RISK Identification
We can do this by
 Brainstorming
 Surveys and questionnaires
 Interviews and focus groups
 Lessons learned review
 SWOT Analysis
Brainstorming

 No judgment or evaluation during idea generation


 Everyone contributes
 Get to the point
 Quantity over Quality
 All ideas are welcome
 Build on ideas
RISK Assessment
The process of analyzing and evaluating risk, to determine the
likelihood of an uncertainty to occur and the impact it will
cause to the business plan

6 Steps in the Risk Management Process

 Identify the Risk


 Analyze
 Prioritize
 Ownership
 Respond
 Monitor

Plan Risk Management

It has following plan for Risk


 Methodology
 Roles and Responsibilities
 Budgeting
 Timing
 Revised stakeholder tolerances
 Probability and impact matrix
Example within Pakistan

Risk Involved in the construction Industry of Pakistan


None of the construction projects in the globe is risk free.
Every construction project either it is small, medium or large
involves risks, varying in impact.
Risks in construction projects are due to the
 Uncertainty involved at decision making of management
 Manipulation of resources
 Tackling of constraints
 Implementation of quality etc.
Therefore, construction projects are always a risky
undertaking for all involved stakeholders (client, consultant,
and contractor). The contractor as one of the stakeholder has
to face maximum challenges to overcome the risk associated
uncertainties. The management is essential in dealing with
the potential risk exposures to the contractors. In response
to these ever increasing uncertainties, in developed
countries risk management was introduced as a separate
new field in construction industry to manage risks effectively.
However, construction industry in developing countries like
Pakistan has a deprived reputation for coping with risks. With
rapid advancements in the construction industry of Pakistan,
many uncertainties are bound to occur.
Three Projects in Lahore
Lahore’s mega projects continue to be delayed due to the
shortage of funds for the last three months
These projects include the
 Lahore Orange Line Metro Train Project
 Flyover at Shaukat Khanum intersection (Johar Town)
 Improvement of Khayaban-i-Jinnah (signal-free corridor)
and construction of 12 sports complex in various
National Assembly constituencies of the provincial
capital.

Lahore Orange line Metro Train Project has following


impacts
 Environmental Impact
 Air Quality and Noise
 Resource Conservation
 Social issues
 Public Utilities

Conclusion
Project risk management Maximizes the areas of Project over
which interval stakeholder control the outcomes and minimize
the area over which stakeholder have absolutely no control. It
involve identify the risk assigning them and planning the
appropriate responses.
Unlike craises management good project risk management
often goes un noticed . well run project appear to be almost
effortless but a lot of work goes in to running a project well.

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