The occurrence of risk events and their consequences are accidental

Risks are always relative to the subject of project activities

Gains always come with the possibility of losses. The greater the likelihood and amount of loss, the more people want to compensate for it The greater the loss, the greater the gain. In turn, the greater the benefits, the greater the risks people are willing to take

The more investment in project activities, the greater the hope for success, and the smaller the risk you are willing to take.

① Higher-level managers are able to take greater risks than lower-level managers. ② Different individuals or organizations have different tolerances for the same risk. ③ The more resources an individual or organization has, the greater its risk tolerance.

pure risk

speculative risk

Natural Risks & Perceived Risks

overall risk

local risk

Project owner risk

government risk

contractor risk

Investor risk

Design unit risk

Supervision unit risk

Supplier risk

Guarantor risk

insurance company risk

Known risks - design and construction changes, material price fluctuations

Predictable risks - untimely approval/delivery, mechanical failure, unforeseen geological conditions

Unpredictable risks – natural disasters

Determine methods, tools and data sources that can be used to implement project risk management

Determine the leadership, support and composition of the risk management team for each activity in the risk management plan. for this Assign people to these roles and clarify their responsibilities

Allocate resources and estimate costs for risk management for inclusion in the project cost baseline

Determine the number and frequency of risk management processes to be implemented throughout the life of the project and what should be included in the project process planned risk management activities

It provides a structured approach to systematize and comprehensive the risk identification process so that the organization Able to conduct risk identification under a unified framework, with the purpose of improving the quality and effectiveness of risk identification work

Prioritize risks based on their potential impact on achieving project objectives

Brainstorming

Delphi technique

Interview

Root Cause Analysis

cause and effect diagram

System or process flow diagram

influence diagram

Risk probability assessment refers to investigating the likelihood of each specific risk occurring; A risk impact assessment is designed to investigate the potential impact of a risk on project objectives such as time, cost, scope or quality, including both negative impacts or threats and positive impacts or opportunities

Prioritize risks. Divide risks into low, medium and high risks. Use different grayscales to represent differences risk level

Interview

Probability distributions

sensitivity analysis

Expected monetary value analysis

Decision tree analysis

Models and Simulations (Monte Carlo)

avoid

transfer

alleviate

accept

open up

improve

share

Bounce back plan-plan B

Contingency measures - unplanned emergency measures

Contingency planning - can be activated when a risk is imminent

Additional risk response planning

Examine and document the effectiveness of risk responses in addressing identified risks and their root causes, as well as risk management effectiveness of the management process