Necessary Processes In Building Construction Project Risk Management Construction Essay

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A study conducted by Wideman, (1992) outlined that, experience on many projects reveals poor performance in terms of reaching scope, quality, time and cost objective as a result of poor performance of project management. Therefore this research methodology intends to evaluate how we can identify, implement and manage the necessary processes in building construction project risk management system whiles providing evidence on how the PM can improve risk management performance in terms of reaching quality, time, and cost objective within the execution phase. These questions will be outlined and the necessary processes together with their implementation strategies which can enhance building construction industry to achieve excellence will also be discussed.

Key words: Risk, Risk Management, Risk Management Process, Execution Phase, Excellence, Project Manager, Management & Implementation.

PART II-DISSERTATION Introduction In other to achieve success in every project within the execution phase, Risk Management system must be well implemented simply because; you cannot achieve quality in a project without making proper implementation of risk management. Risk management is all about being able to identify risk, making analysis on the risk as well as making proper planning on how the risk can be tracked in other to control them. To achieve excellence in building construction within the execution phase, the role of experience PM can never be overlooked since inexperience of PM leads to poor performance of project delivery as results of unforeseen events due to risk and this should be avoided. It has been analysised and confirmed in the literature review that, a company with proper effective implementation of risk management modern tools and techniques which is one of the best practices is likely to achieve project success. Therefore risk management is totally concern of laying the necessary principles and processes that will enable the building construction industry to achieve project success within the execution phase.

In view of this, the first step of this research will make critical analysis of ''How can we identify, implement and manage the necessary processes in building construction project risk management system''? Within this stage, all the necessary processes will be outlined according to the literature review. After the identification, their implementation and the management process will also be outlined. This done, the next step of the research will emphasize on the second research question thus ''How can we improve risk management performance in terms of reaching quality, time, cost objective and Project management within the execution phase''? This question will lay down the measures and principles which must be putting into places by the PM in other to improve risk management performance in terms of reaching quality, time, cost objective and Project management within the execution phase.

Finally, after the above necessary process has been identified, the last part of the research will be focused on a case study with a multi-storey building construction where their risk management processes on a project specific will be accessed in (according to the required standard used by their company) accordance to ISO/DIS 31000:2008. This part will be done through an interview and the final conclusion will be drawn basing on the literature review.

Definitions: Risk Risk is defined as the ''cumulative effect of the probability of uncertain occurrences that may positively or negatively affect project objective. Event may happen to the project, causing (impact to the project objectives). (Ward, 2000)

Risk Management Risk Management is define as an ''organized method of identifying and measuring risk and then developing, selecting, implementing and managing options for addressing risk''. (Scott, 2008)

Management Management is defining as using people and other resources to achieve organizational objectives. Managers are not involved directly in a production but they direct the effort of others to accomplish goals.

Project Management Project Management is the acquired knowledge and skills applied using a formal set of tools and techniques to initiate, plan, execute, monitor, control and close project. It enable organization to accomplish their pre-defined objectives within the define time limit. (Visitask, 2004)

Risk Management Process

Risk identification

To manage risk effectively during the process of execution, Risk identification should be the PM first priority. The PM should be able to identify the sources of risk, influential areas, events and their causes as well as their future outcome. The main aim of risk identification is to enable the PM to identify the risk base on the ongoing activities during the execution that might contribute, prevent, and delay the achievement of the project. In this stage, complete and thorough risk identification is crucial simply because a risk that is not recognize within this stage will not be included in further analysis. In other to obtain a successful result during this process, the organization should make sure proper application of risk identification tools and techniques which are relevant to the project objectives as well as the risk in hand is applied. During this stage, all necessary and relevant documentation must be provided for future reference. The risk identification process must be done with qualified people in other to obtain geniuen results. After the risk identification has been done to identify what is likely to happen, it is also important to put into consideration the possible causes and outline the consequences that can occur.

Risk analysis Risk analysis is all about being able to develop an understanding of the project risk. It starts with description of the risk issues which has been pointed out and accepted by the decision makers for proper evaluation. The objective of risk analysis is to collect all the necessary informations about the risk issues in other to judge the possibility likely to happen and cost, schedule and technical consequences if the risk occurs. In other to prevent resources from being misuse on issues that may not actually be risk, it is very important that only risk which has been approved should be analyzed.

Risk planning Risk planning is defining as the necessary detailed framework of a plan of action for the risk management. During this stage, all the necessary as well as the relevant documentation must be developed and it should be properly organiz and interactive to the strategy of the risk management. Besides, the useful methods in other to decide how to execute the program's risk management strategy is also outline in this process. This process is considered to be one of the most important phases which much attention must be drawn into because it includes the entire risk management process, with the necessary activities to assess (identify and analyze), handle, monitor ( and document) the risk involved in the project. Not only that but also the development and the implementation strategies in risk management process approach for the project is also outline during risk planning.

Risk tracking Risk tracking process should be properly plan and considered as part of the risk management process in the project execution phase. During this process, risk will be monitored precisely and asses the strength of risk handling behaviour against established metrics. The PM must clearly define the one who should be responsible for the risk tracking and this should involve either regular checking or periodic checking. The tools which will enable the one assigned to this task must be available in other to outline the number of report formats to be used by the employee's for different purpose. The out come of the risk tracking and review must also be recorded in other to enable the PM to use it as an input to the review of the risk management framework.

Risk control After the risk has been identify, analyzed, planned, as well as being tracked in the project execution and reasonable responses have been developed, those findings must be put into proper actions. The risk control stage is purposely design for implementation which should involve the risk plan, which is the most essential part of the project plan. The first thing in this process which must be considered is to put the plans into action and ensuring that the plans are still valid. The next thing which needs to be followed is to produce reasonable documentation to support the process which has been planned. Through this, the project team will be able to control the project risk effectively and watch the progress of the design and the outcome of the project implementation become available.

How to Implement risk management process In other to make proper implementation of risk management process within the execution phase, the PM must ensure that the above mentioned risk management process outlined should be applied at all during the execution of the project and it should be part of the organization's practices.