1. Risk Management Plan
Project 523: Risk Management By: Shilpa S. Ubale
Construction project: Vapi City Center Mall
2. Project Overview:
- The Vapi City Center is a
landmark project located in most
preferred business centers in the
State of Gujarat
Prime project stakeholders:
Developer : Jay Bharat Industries
Architect : Ortega Shah Steinman
Structural Consultants: H.M. Raje
Construction contractor: Tirupati & Balaji Constructions
- spread over 11 acres consisting of Shopping Mall with multiplex, IT Park,
Commercial Centers and a 200-room Luxury Hotel.
- Includes: Big Bazaar, McDonald's, Benetton, Shringar Cinema, Galaxy
Entertainment and many more.
-Green development, construction
on 40% of total plot area, planned
development
3. What is Risk ?
An uncertain event or condition that, if occurs,
has a POSITIVE or NEGATIVE effect on
project’s objectives.
The processes of conducting risk
management planning, identifying, analyzing,
and responding, monitoring and controlling
project risks.
What is Risk Management ?
Objectives of Project Risk Management Process:
• Increase the probability and impact of positive events in the project
• Decrease the probability and impact of negative events in the project
Why Risk Management ?
• Risk is an inseparable part of project as almost every project is
associated with some level of uncertainty.
• Risk management planning helps to better prepare for unknown
future events by taking preventive and corrective actions
5. Risk Management Processes
Plan Risk Management: Define how to conduct risk management activities
Identify Risks : Determine which risks may affect the project & document
characteristics
Qualitative Analysis : prioritize and categorize risks for further analysis by
assessing and combining their probability & impact
Quantitative Analysis : numerically analyze and rank top risks
Risk Responses : develop options and actions to enhance opportunities &
reduce threats
Monitor and control: implement risk response plans, tracking & identify
risks, monitoring residual risks, evaluating risk process effectiveness
6. Risk Identification
• Generally risk identification process starts in project initiation process
• List of risks is prepared and documented for possible threat and
opportunities.
Inputs:
Stakeholder register
Organizational process assets: Building approval formats and specifications, communication,
procurement and contractual procedures.
Environmental Enterprise factors: Industry standards, Government and regulatory agencies code
and approval procedures, public health and safety standards.
Communication Management: Person responsible for communicating information, communication
channel and format.
Quality management: Construction site safety requirements, quality control requirement and
procedures.
Project documents: Construction management plan, Project management plan, Communication plan
and Procurement contract documents.
Tools and Techniques: documentation reviews, Expert judgment
7. Risk Assessment
- Define the chances of risk occurrence and what impact does it has on
project objectives
- Risk probability and impact matrix is defined using stakeholders risk
tolerance and past dada of similar projects.
Probability:
High
The risk is more likely to occur. P >80%
Medium
The risk is about as likely to occur as not
to occur.
20% < P < 80%
Low The risk is more likely not to occur. P < 20%
Impact:
High
This risk, unmitigated, would result in a complete failure for
the project.
Medium
This risk would have a major impact on the project’s
schedule, cost, or performance.
Low This risk would have a minor impact on the project.
8. •Acquiring Construction
permits and Environmental
agency approval
•Temporary work stoppage
due to unexpected conditions
•Negligence/ omission of
public Safety regulations
•Omission of applicable
Building Code and Local
Jurisdiction Code
•Constraints on time and
cost
•Scope changes by client
•Inaccurate schedule and
estimated cost
•Client’s past experience in
similar projects
•Poorly defined Scope
•Inadequate or insufficient
site information
•Resources Availability
•Consultants Coordination
•Conflicts Resolution
•Project drawings and Data
Sharing
•Quality control at
construction site
•Inflation / Price changes in
resources.
•Marketing material match
the details mentioned in
design documents
•Construction safety
requirements responsibility
•Project Documentation
•Adequate and efficient
personnel
Low Medium High
PROBABILITY
High
I
M
P
A
C
T
Medium
Low
Probability Impact matrix:
9. Level 0 Level 1 Level 2
Probability
Impact
Project
risks
A. Technical
A.1 Scope changes
by client
H
H
A.2 Poorly defined
Scope
M
M
A.3 Constraints on
time and cost
H
H
A.4 Inaccurate
schedule and
estimated cost
L
M
A.5 Client’s past
experience in
similar projects
L
M
A.6 Marketing
material match the
details mentioned in
design documents
L
L
B.
Construction
B.1 Construction
safety requirements
responsibility
M
L
B.2 Quality control
at construction site
H
M
B.3 Inadequate or
insufficient site
information
M
M
B.4 Resources
Availability
M
M
Level 1 Level 2 Probability
Impact
C. Organizational
C.1 Consultants
Coordination
M
M
C.2 Adequate and efficient
personnel
M
L
C.3 Project Documentation
M
L
C.4 Conflicts Resolution
M
M
C.5 Project drawings and
Data Sharing
M
M
D. Legal
D.1 Acquiring
Construction permits and
Environmental agency
approval
L
H
D.2 Omission of applicable
Building Code and Local
Jurisdiction Code
L
H
D.3 Negligence/ omission
of public Safety regulations
L
H
E. Environmental
E.1 Inflation / Price
changes in resources.
L
L
E.2 Temporary work
stoppage due to unexpected
conditions
L
H
Risk Categories: prioritize and categorize risks for further analysis
10. Quantitative Analysis: Numerically analyze and rank top risks
- using pair vise comparison matrix rank risks
- Delphi technique : ask experts to rank the risks from 1 to 9 and assign
weight to each risk
Factors Probability Sub Factor LP GP Preferences
A.1 Scope changes by client 0.42 0.134 1
A.2 Poorly defined Scope 0.30 0.096 4
A.3 Constraints on time and cost 0.09 0.029 8
A.4 Inaccurate schedule and estimated cost 0.14 0.045 7
A.5 Client’s past experience in similar projects 0.02 0.006 15
A. Technical 0.32
A.6 Marketing material match the details mentioned in design documents 0.03 0.010 12
B.1 Construction safety requirements responsibility 0.13 0.027 9
B.2 Quality control at construction site 0.11 0.023 10
B.3 Inadequate or insufficient site information 0.49 0.103 2
B. Construction 0.21
B.4 Resources Availability 0.27 0.057 5
C.1 Consultants Coordination 0.19 0.027 9
C.2 Adequate and efficient personnel 0.1 0.014 11
C.3 Project Documentation 0.03 0.004 13
C.4 Conflicts Resolution 0.34 0.048 6
C.
Organizational
0.14
C.5 Project drawings and Data Sharing 0.34 0.048 6
D.1 Acquiring Construction permits and Environmental agency approval 0.33 0.099 3
D.2 Omission of applicable Building Code and Local Jurisdiction Code 0.33 0.099 3D. Legal 0.30
D.3 Negligence/ omission of public Safety regulations 0.33 0.099 3
E.1 Inflation / Price changes in resources. 0.89 0.027 9E.
Environmental
0.03
E.2 Temporary work stoppage due to unexpected conditions 0.33 0.010 12
LP—Local percentage
GP—Global percentage
11. Risk Responses:
Factors Sub Factor Preferences Responses
A. Technical
A.1 Scope changes by client 1 Provide ample of alternatives, early stage, Facilitating change control board
A.2 Poorly defined Scope 4 early attempt to define, strategy, do not proceed, Communicate, fix scope
A.3 Constraints on time and cost 8 Prioritize risks critical path activities, resources availability, Cost plus incentive contracts
A.4 Inaccurate schedule and estimated cost 7 Re-estimate, Revise scope to fit in budget,
A.5 Client’s past experience in similar projects 15 Gain confidence, Ensure excellent personal on team
A.6 Marketing material match the details mentioned
in design documents 12
joint design reviews, Communicate accurate and recent information
B. Construction
B.1 Construction safety requirements responsibility 9
top priority, responsibility of all, insurance policies
B.2 Quality control at construction site 10 Involve all, Conduct audits, suppliers record and quality
B.3 Inadequate or insufficient site information 2 Access information, Conduct site survey, Match information, Communicate
B.4 Resources Availability 5 Suppliers record and quality, Plan early purchases, maintain relationship vendor
C.
Organizational
C.1 Consultants Coordination 9
Good planning , agree on means and lines of communication, logs, telephone conversation logs,
and e-mail protocol
C.2 Adequate and efficient personnel 11 Ensure the require personnel, Make teams, divide work, training
C.3 Project Documentation 13 old data documented,
C.4 Conflicts Resolution 6 negotiation and arbitration clause, Communication channel
C.5 Project drawings and Data Sharing 6 data software or web page, Communicate updated information
D. Legal
D.1 Acquiring Construction permits and
Environmental agency approval 3
Follow the procedure and regulations, Be proactive, prepared,
D.2 Omission of applicable Building Code and
Local Jurisdiction Code 3
Document & use current policies and processes,
D.3 Negligence/ omission of public Safety
regulations 3
Public safety should be the prime concern, List applicable codes and law
E.
Environmental
E.1 Inflation / Price changes in resources. 9 Plan early purchases, maintain relationship vendor, Negotiate the price and budget
E.2 Temporary work stoppage due to unexpected
conditions 12
Accept, transferring risk by insurance, contingency reserve
12. Risk Monitor and control:
- Implement risk response plans
-Track & identify new risk
-Monitor residual risks
-Evaluate risk process effectiveness
-Maintain risk register.