Unit 3 DB MP344
Running Head: RISK 1
RISK 4
Title: Risk
Student’s Name:
Professor’s Name:
Date:
One of the risks in the bridge construction project is the financial risk. Financial risk results from economic factors such as inflation, interest rates, and prices among other. Example of the financial losses includes inconsistency of cash flow which results from poor management of the finances or lack of finances. This risk can cause delays in the project thus inability to complete it within the stipulated time. Another example of specific risk is the time management risk which is mostly caused by incomplete work schedules (Burtonshaw-Gunn, 2017). This risk affects the completion time of the project, my reputation as a contractor, increases costs and affects the projects that follow.
There is also the risk of injuries or accident which hurt the employees working on the site to an extent of causing death or also damage the materials. The potential impact of this loss is loss of skill and manpower as the injured employees may be able not work, increases the cost as new construction materials need to be purchase, delays in construction, penalties, involvement by investigating agent, involvement of the insurance agents among others (Coombs, 2015,). The bridge construction project can also be faced by the environmental risk. This includes the natural disaster, seasonal implications and the weather. These risks may result to losses and potential delays on the construction process. It is important to enquire on the weather pattern before commencing on the project. Another type of risk is the design risk. The design of the bridge depends on the use of the bridge, the size, the material to be used and the situations resulting to its construction. Choosing the wrong design of the bridge will result to increased costs during adjustment and delays. Other specific risks include insurance risk, external risks and contractual risk (Lock, 2016).
What is a risk register?
It is a tool of risk management which plots the effects of a risk and its probability of occurrence. The register documents all the risk and the methods of managing each risk that have been identified at the beginning of the project or during the project life cycle (Ruther, 2018)
Describe the probability and impact matrix and explain how it can be used in your project?
Probability and impact matrix is a risk measurement matrix that is important in estimating the cost of the risk.it is expressed as risk= probability *impact. The matrix will be important in my project as it will assist in calculating the probable loss. This will help in classifying the risk as high, medium or low, the occurrence probability and the impact the risk would cause in case it occurs
Burtonshaw-Gunn, S. A. (2017). Risk and Financial Management in Construction.
Coombs, W. T. (2015). Risk management.
Lock, D. (2016). Project management in construction. London: Routledge.
Ruther, D. (2018). Construction Contractors. Newark: John Wiley & Sons, Incorporated.