30 Jun, 1:38PM

Summarize

• Good morning ladies and gentlemen, I am Dr. N. Ganapahti Ramasamy and planning to discuss risk management and its key concepts and framework. First of all I would like to explain why we want to study the risk management. Okay, so the risk management generally in case of any construction or any kind of project mainly it will be involved a risk So, to minimize the impacts especially the negative impacts and identify the potential likelihood are to reduce the severity of the unwanted events. And to improve our decision making.So for that mainly we are using or we need to know about the risk and to improve the planning as well as to improve our forecasting system and through that we can able to attain a proper outcome within a the described time period and to protect our resources and repetitions so these are all some of the reasons why we want to know about a risk management so These are all love. These are all the contents of risk management.So, in this presentation, we are going to discuss about what is risk. And what are the risk management processes and a... How to tailoring the risk management for your project? And what are the various factors especially the risk factors which is involved in the construction. And We have to know about different technical terms like tolerance, attitude, a threshold maturity and constraints that is what we are going to discuss in this part So let us discuss about what is risk. Okay Risk is nothing but it is a formally especially the technical people it has defined as the uncertainty of an objectives. For example, if you are choosing a safer investment or else if you are wearing a helmet for a are, That is called as a safe safety environment So the risk is nothing but it is the chance of facing unexpected challenges or setbacks. For example, while you are driving a bike, if you are facing any unexpected challenges, that is called as a risk. Or else, if you are facing a economic drop down that is called as a risk if you are in a job or managing a projects especially for a construction site, what will be the risk for us?So according to us, In the construction site, If it is the project objective that are not meeting within the timeline or with not scope or with cost or Any other... Benefits that will be not covered within the time frame that is called as a risk in the conjunction rate. In this definition, we can say a threat. What we have talked about uncertainty or event that could have a negative impact on your objectives. Okay.So the first one, if it is uncertain event or condition that it will occur as a positive as well as a negative impact. Okay. Positive risks are called as the opportunities especially. For example, if we create benefits from that.So negative risk call called as a threads. And when they occur they are either issue or a problem. For the project these risks can be caused delays or increase in the cost or reduce the quality or even it may cause the project failure if it is when if it is not properly managed Okay, so we can see that there are both negative risk as well as the positive risk for the project. Now we can discuss about the negative risk. When they occur, it becomes a project issue. When the opportunities occur, they become a project benefit. Both threats and opportunities influence the project objectives. As a project managers and risk managers we often focus on the negative is which is good Because We do want to make sure our project objectives are properly met. Okay. While the risks are often seen as negative or positive aspects lie in their potential to create opportunities for the project. Okay, so As I discussed earlier, in case of any projects or uncertainties which may have positive as well as negative. And so essentially we need to make a proper decision making that is mainly important here. Now let us discuss few examples of risk. In our day to day life we can see many risks like risk on bad weather, market fluctuations and project perspective. The risk can be meeting the project deadlines or technological issues. Especially whenever we are discussing about the risk management, we must Note the term called uncertainty. Okay.So, it is not only to the project because it may happen in any scenario. So here I can give one example scenario if you are planning for a local visit or any tour to the particular place or picnic to the place our weather forecast could be somewhat unpredictable Suppose some suppose so that is called a service here Suppose the weather can be a sunny or it may be a rain. If it is rain, then it is called as a negative issue. Negative risk. Suppose in case if it is sunny that is called as a positive result. If there is a customer, the plan the picnic plan will be cancelled and the participation will be wasted and all the arrangements whatever we have made everything will be negative so if the weather is somewhat sunny then that is called as a positive risk in such case Picnic will be more enjoyable and people like in that scenario.So in case of any risk which may have the positive as well as the negative sides. Positive risk which is Especially in the project scenario, if you are completing a project before the deadline, then it is called as a positive risk.So the negative risk is nothing but if you are completing a project after the deadline or else. Even unexpected cost which is involved within your project that is an increase in the unexpected cut cost that is comes under project risk I think that there are some risk management processes. Whenever we are discussing about risk management process it is nothing but a systematic processes of identifying analyzing responding and monitoring the risk throughout the project lifecycle if you ask why we want to you follow throughout the project life cycle in the sense it is a project cycle so in all the stages we need to focus on this okay so it is a significant part of the risk management is planning especially So planning of risk management includes detailing of all the process of risk management including risk identification. There is identification in the respect of qualitative and quantitative risk analysis and risk response planning, risk response implementation and monitoring of risk.So if you are I go through all these steps we can able to minimize our stress. As well as we can able to maximize our opportunities.So as I discussed in the previous slides, So it is nothing but positive as well as negative. We are reducing the negative risk as well as we are increasing the positive risk.So that is what we have discussed from minimizing the threats and maximizing the opportunity. Toe. If you are following that we can able to increase our chances of the project success.So up to this is a slight overview of our presentation which consists of a risk management process so now i think you have all people aware about what is nothing but a risk and what are all the examples of risk and risk management processes. So we will see the next content in the upcoming presentation. Thank you all.

Key Points

• Introduction of the importance and key concepts of risk management in projects by Dr. N. Ganapathi Ramasamy.

• Risk management aims to minimize negative impacts, identify potential risks, improve decision-making, and protect resources and reputations.

• Risk is defined as the uncertainty of achieving objectives and can have both positive and negative impacts.

• Positive risks are termed opportunities, while negative risks are termed threats, both influencing project objectives.

• Examples of risks include bad weather, market fluctuations, meeting project deadlines, and technological issues.

• Risk management process involves systematic identification, analysis, response planning, implementation, and monitoring of risks throughout the project lifecycle.

• The planning phase of risk management is crucial and includes detailing processes like risk identification, qualitative and quantitative analysis, and response planning.

• Proper risk management minimizes threats and maximizes opportunities, thereby increasing the chances of project success.

  
  

30 Jun, 2:31PM

2/2

Good morning gentlemen today we are going to discuss about risk management cycle so the risk management cycle which may be starting from the foundation stage like a risk identification like how by various method we are going to identify our And next method is about risk assessment. So like here we are going to discuss about various probability and impact assessment based on prioritized and qualitative and quantitative assessment. Next phase is about risk mitigation planning so if you identify the risk what are all the various methods to mitigate the risk for example it may be in the chances of risk avoidance or in the possible chances of risk transferring to somebody and risk mitigation tools and risk acceptance. Which is involved in this stage. Followed by the next phases about risk management implementation. How the stakeholders think a involvement or engagement in the state and how to communicate everything and monitoring and control of the risk So like that we are going to discuss about various risk management life cycle.So come to the first stage, it is about a foundational phase. Generally, the people called us this stage as a foundational phase of risk management.So here only all the potential risk can be identified. So once we have identified the potential risk based on these key techniques, for example, the documentation review, if you are in a construction site, We have to examine our project plans contracts and projects based on our experience and etcetera, we have to identify our potential risk based on the document stage itself. The next stage is about brainstorming session.So brainstorming session is nothing but it involved a group of people who is joined together and discuss about and gathering the diverse list of risk for example each people can give a 10 different kind of risk based on their experience finally through our discussions made we can able to Finally, one final is based on all our experience. Next one is about checklist. Checklist is a use industry specific. For example, in case of construction industry, we are having a different checklist. Similarly, this general checklist which is to be ensured, no common risk to be missed. For example, cost-wise or time-wise or scope-wise, all the risks to be listed and we have to do the tick mark in each and every stages. Next is about the SWOT analysis. SWOT analysis is nothing but to identify the risk. By analyzing internal strength and weakness, For example, in case of an external, if you discuss about strength, weakness, that is analyzing internally. If you say about external that is nothing but opportunities and threats. Then based on the expert interviews so for example who is the expert in the field of especially time or cost related, we have to get the opinion from them.So, through that opinion, we can able to get some specialized areas for example whatever we have missed that we can able to cover from this The next stage is about risk assessment. So the risk assessment is nothing but evolution of risk in terms of likelihood and impact to prioritize effectively. The key competence of this, Risk assessment is nothing but Especially we have to identify the likelihood based on the data. And we have to get expert opinion or especially we already have the predictive models so from that we have to analyze the probability assessment. Or else the impact assessment is nothing but based on time, cost, quality and reputation, we have to measure the consequences which is affect on the objective and there is prioritization which is nothing but we have to rank our list. For example which risk is more urgent and more to be addressed or earlier time to be addressed that we need to arrange it. We have to rank it according to their importance. For example few risks we need to give attention earlier. Not even we no need to consider that so generally this crisis assessment will be carried out in the form of risk assessment matrix in the risk assessment matrix based on the color code itself we can able to identify for example red is a more danger one orange and yellow finally the green is nothing but which does not provide any impact on the The next is nothing but a qualitative and quantitative approach. Especially the qualitative approach is nothing but risk matrix or especially the risk matrix categorization... Quantitative is nothing but a Montecarlo simulation. If you are using a Montecarlo simulation, we can able to identify the EMV expected monetary value. Based on that we can able to identify the risk. The next stage is nothing but a risk mitigation planning.So in the risk mitigation planning, which is nothing but a development strategies. To manage a various kind of risk or managing the risk, especially the proactively for that we are using the risk mitigation planning so the mitigation strategies which is involved risk tolerance risk avoidance transference mitigation and acceptance come to the first one tolerance generally it is nothing but how much risk the organization is ready to take take that is nothing but a risk toleration for example if you are in a money pressure so how much money you can able to tolerate so the similar kind of thing only Risk tolerance is how much you can able to tolerate, how much you are willing to accept the risk. That is the meaning of risk tolerance. Risk avoidance is nothing but we can able to suppose your scope is getting affected in the sense. If you change or alter the scope, What else? If you change the strategy that is comes under a risk avoidance it is nothing but to eliminate the risk entity whatever the entity is there are work out the risk is there entirely you can eliminated. Better term is nothing but you have altered R? You can alter your scope or else you can alter your strategies next one is nothing but a risk transference is nothing but a shifting the responsibility to the third party. You are transferring your own risk to some other party that is called as a risk transference.So in the risk transference it is nothing but if you are having in the form of insurance or in the form of outsourcing, you are transferring your risk to some other people. For example even it may be a time related transfer risk or cost related risk everything will be transferred to the insurance company or else in the form of you are outsourcing to some other company that is called as a risk Next one is nothing but a risk mitigation is nothing but to take a risk Excellent. Or to reduce the likelihood or impact others is nothing but a... R. Mitigation. For example if you are planning to improve your processes or your process improvements especially in the quality related company they are if they're having quality related circles in your company in the sense they always Create a group in the form of risk mitigation.So what they will do in the sense they will improve their process that is process improvement and or else they try to identify the redundancy and try to rectify it. So, in that form, they try to reduce the risk. Next one is nothing but a risk acceptance. Risk acceptance is nothing but acknowledgement and monitoring. The risk without any action suppose if cost of response are the impact within a tolerance then that is called risk acceptance for example in my point of view i will accept the risk up to the certain stage that is tolerant stage it is more or less relevant to the tolerance stage so if the tolerance is okay then we are accepting the risk that is nothing but a risk acceptance so we have discussed about tolerance Whether we are accepting or not, of items. Whether we are eliminating the risk Then, Transference you are transferring the risk to the third party then mitigation like Reduce the impact through But... Then risk acceptance, acknowledging and monitoring the risk tolerance.So the next one is a risk management implementation so the risk management implementation execution of plans developed in the earlier stages or earlier phases and ensuring. Continuous control over the project that is called as a management implementation for example if you discuss the first point when the within that is a stakeholder in one engagement or involvement So especially many stakeholders in the construction site, they gave money, but more or less they won't involve in many kind of activities.So this stakeholders engagement is very much important in this stage, especially which involves key parties in the implementation for better support and visibility for the project. So their involvement were much important and their implementation for better support. One is a communication strategies in the communication strategy share their updates on risk and responses through transparent channels for example all the communications to be a proper channel through that we can able to minimise a kind of risk we can instead of saying minimizing we can able to manage our monitoring and control use various KPAs and regular reviews to track active risk and what is the action taken for example once everything is get over if you take any decision in the sense that is not a right way so in each and every stage we need to do the monitoring through the monitoring we need to identify where we are lacking or where we are away from the project stage that we need to identify and we have to take action taken report along with that Next one is the adaptation and adjustment.So... Then and there in our project execution stage we need to more flexible and update the risk update our risk strategies based on day to day or based on the real time project changes suppose your projects because project while you are doing initially the project is somewhat in a different way but while you are executing in day to day activities it will be changing so based on our time changing we need to adapt and we need to Execute it.So the next one is about monitoring and review. The monitoring and review is nothing but what kind of monitoring is required. For example, regular reviews. Or whether we are following any performance matrices any risk reporting whether in case of any lessons learned what we are going to follow root cause analysis so regular reviews are nothing but a periodical In any construction company, a periodical assessment will be happen based on how the works will be planned and how it will be executed. Whether any deviations is there in case of any deviations what kind of actions to be taken everything will be addressed in that next one is the performance matrices is nothing but effectiveness. How effectively the people get work? Okay, so the performance whether the performance is achieved from the employee side in case of ineffectiveness what kind of actions you are going to take? Then RISC report is.So the risk reporting is nothing but in then and there, your project stage you need to update Your risk to the stakeholders. For example, if the stakeholders, they need to understand what is going on within your project site as well as what kind of actions to be taken, what kind of actions you are going to take. That you need to tell to them. Then lessons learned. For example, from the, if you are working in a future project. From the current project what are all the mistakes you have carried out and what are all the lessons learned from the particular project you need to take it into a positive way to the future projects. Then root cause analysis.So this is nothing but a systematic approach. So even in some textbooks they will give us a fishbone diagram.So what is So, the root cause for this response is Here unexpected risk will be happen. In those sense what is the reasons for this whether it is time frame or else whether because of technological reasons that we need to identify it once we have identified Then you try to execute. Proper method. Next is the summary of this.So here we have used four different methods like risk identification, risk assessment, mitigation, implementation and control. So these are all the four stages. In these four stages what we have done in the sense we are first one is we are identifying the risk. Next. Once we have identified, then risk assessment we have analyzed and we have done the periodizing our results once we have done analyze and periodize then we need to define Risk responses, what response we are going to take. Okay, then we are execute and adapting the particular plans according to our implementation.So even this is the purpose in case of outcome in the sense risk identification, risk register we need to keep. This is like a lesson land suppose if you have a risk register we can able to identify what risk is going to involved in the project next resources went based on the ratings like probability impact and statistical methods we can able to identify our Once we assess that we have a risk response plan. From the risk response plan we have to give there is control and resilience method.So, these are all about risk management life cycle. So we will see it in the next video. Thank you.

Key Stages of the Risk Management Cycle

1. ?️‍♂️ Risk Identification (Foundational Phase)

• Objective: Identify potential risks before project execution.

• Techniques Used:

  • Document Review: Study of project plans, contracts, and historical data.

  • Brainstorming: Group sessions to gather diverse risk insights.

  • Checklists: Industry-specific lists to avoid missing common risks.

  • SWOT Analysis: Analyzing internal (Strengths/Weaknesses) and external (Opportunities/Threats) factors.

  • Expert Interviews: Gathering inputs from domain experts to uncover specialized risks.

2. ? Risk Assessment

• Purpose: Evaluate and prioritize risks based on:

  • Likelihood (Probability)

  • Impact (on time, cost, quality, reputation)

• Approaches:

  • Qualitative: Risk Matrix (Color-coded: Red, Orange, Yellow, Green)

  • Quantitative:

    • Monte Carlo Simulation

    • EMV (Expected Monetary Value)

• Prioritization:

  • Rank risks by urgency and severity to decide the order of mitigation.

3. ?️ Risk Mitigation Planning

• Goal: Develop strategies to address or reduce identified risks.

• Mitigation Strategies:

  • Risk Tolerance: Level of risk the organization is willing to accept.

  • Risk Avoidance: Altering scope or strategy to eliminate risk.

  • Risk Transference: Shifting risk to third parties (e.g., insurance, outsourcing).

  • Risk Mitigation: Reducing probability or impact through process improvements or redundancies.

  • Risk Acceptance: Monitoring low-impact risks that are within acceptable tolerance.

4. ? Risk Management Implementation

• Execution of Mitigation Plans:

  • Engage stakeholders for visibility and support.

  • Ensure communication strategies are in place for transparency.

  • Use KPIs and monitoring systems for ongoing risk tracking.

  • Be flexible and adaptive to project changes.

5. ? Monitoring and Review

• Key Activities:

  • Regular Reviews: Periodic evaluations of risk status and mitigation effectiveness.

  • Performance Metrics: Check if team and systems are delivering expected results.

  • Risk Reporting: Communicate risk status and updates to stakeholders.

  • Lessons Learned: Capture insights for application in future projects.

  • Root Cause Analysis:

    • Use tools like Fishbone Diagrams to understand causes of unexpected risks.

? Summary Chart

PhaseKey FocusRisk IdentificationDetect potential risks using multiple techniquesRisk AssessmentAnalyze likelihood, impact, and prioritizeMitigation PlanningDevelop action strategies (avoid, transfer, etc.)ImplementationExecute plans and engage stakeholdersMonitoring & ControlTrack progress, adapt strategies, report status

30 Jun, 2:38PM

2/2

• Good morning ladies and gentlemen. In the previous class we have discussed about various risk management concepts and examples for that. In today's class we are going to discuss about risk management concepts and examples for that. Various technical terms which is involved in the risk management which may be starting from tailoring risk management. Risk acceptance. This tolerance. Risk threshold. Various measuring techniques everything we are going to discuss so first of all I would like to discuss about a tailoring And Ruth? Management Why? Tailoring the risk management. If you want to understand the concept of tailoring risk management, you must know about The definition of Project. We all know the definition of the project. It is nothing but a temporary endeavor undertaken to provide a unique product or services. Bye. You must understand the world called as unique.So each project has the unique characteristics. So if you have the unique characteristics which is nothing but every project has a different goals, scope and timeline and complexity and because of this in every project which have the different risk tolerance level which is not common for all the projects.So based on this tolerance level, We need to. Tailoring. Our risk management for the appropriate for the specific project context so for the present specific project we need to define our risk management for a tailoring way efficient resource allocation industry specific requirements for example especially at different industries like construction IT, healthcare. And based on that we have a different risk profiles as well as we have a different risk regulation.So based this is nothing but if the company size which may be depend upon the company size. Complexity industry and culture so as I earlier discuss a different company or different industry we are having a different risk management technique similarly for size complexity and cultures so based on this tailoring concepts we can able to improve or the efficiency and as well as we can able to increase the stakeholder satisfaction and we can able to reduce risk so that's why we are mainly using this tailoring risk management concepts so for the Risk factors. Which are having different conditions and different elements we are having a different kind of risk factors which is involved in that so which may contribute likelihood of risk occurring there are many more risk factor like probability based on the probability high probability or low probability and based on the impact based on the urgency suppose I will give an example Generally, the heavy rainfall will be happen during monsoon season. So because of that the impact could be delay our project which may causing which may delay our schedule and which may affect our cost so urgency Better I am using the word urgency. High urgency if rainy season is around the corners. Okay, frequency depending upon how frequently the rainfall will be occur. Why risk factors are important from risk management perspective? The risk factors are crucial because they can help risk managers. To evaluate their risk comprehensively and it will give the idea about how to periodize and how to mitigate or managing the risk probability it will tells the likelihood that the specific risk will occur during the project The probability is typically Assisted in different terms using the scale for example in lab in the scale of one to five like liquid scale one to five like unlikely to likely or possibly or likely In quantitative risk analysis, the probability can be more precisely measured using statistical methods, especially when If you have historical data, The risk urgency, it will tell the risk is likely to occur in the project. Or whether it may occur sooner or later, it gives the sense of urgency of the risk. At the same time, the risk will tell Akkar earlier in the project have high level of urgency or it will occur later in the project.So the frequency refers how often the particular risk will be happen or when the similar kind of risk will be occur based on the historical data or past experience with similar projects. Risk attitude and appetite. Now we discuss risk appetite sorry risk attitude let us talk about the risk attitude refers to the mindset or approach or deposition of individuals or organizations towards risk taking. Okay, suppose whether the company or whether the individual is ready to take the risk. In normal day-to-day life, many of us, we hesitate to take a risk.So basically the risk attitude speaks a lot. About how the organization or individual approaches risk itself. How do they feel about uncertainty? Let us take an example to understand it is in a better way. Project developing, we are having a project for developing a new mobile app. For a retail company. The risk attitude of the project team is.. Wrist sticking. And beliefs, Taking calculated risk example, using a new innovative technology Slack. Will provide a competitive edge and another factor is RISC Happy day! it refers to the amount A type of risk that the organization or individual is willing to take So the amount, how much amount again? This will be tells about the project specific. And it is organizational specific and specific about this project sponsor it depends upon the individuals who is taking their risk it may be a company or it may be a individual or it may be a project sponsor and their key stakeholder The risk appetite is subjective and it can be defined as generally low. Medium How? In what basis you are going to take? Low medium and high based on the amount of risk and organization or individual is willing to take this reflects if the project sponsor or key stakeholders mindset are they risk taking sorry are they risk seeking or risk neutral or risk averse The same could be applied for Risk appetite for the organization. Our organization appetite decides how the organization is going to deal with this risk. Their appetite for risk may change at different points in a project life cycle. This appetite influence the business strategy. The Risk Management Framework Next, we discuss risk tolerance. And Ryska atrasioli. Let us talk about some additional important risk management tips. First we will Pass up the We will discuss about risk tolerance. This is the unified acceptability of variation of risk. For example, So the acceptable level of variance, it can be measured in terms of cost, Sedul? Or quality. It is important to denote the risk tolerance in the risk management plan and it is usually referred to a stakeholders risk tolerance. We look at risk tolerance from the perspective of negative, are rate risk There could be both organizational risks tolerance and project tolerance.So it is nothing but risk tolerance. As well as project risk tolerance. Organizational risk tolerance is nothing but how the organizational they are accepting it and the project risk tolerance is about the project, that is the individual project. When the tolerance is hit, The project needs to look at that risk and reduce the risk If it is a treat risk then perhaps increase that the risk if it is an opportunity risk. If a risk tolerance. Is started in the risk management plan. Any risks that are high must be reduced for the project. That means? That any risk is not medium or low or high. We'll need to have a risk response strategy if the risk response strategy does not significantly reduce the The risk? From the high or medium to low and it remains health. Then the contingency plan need to be put in place. Let us see an example of understanding risk tolerance better. Topos. You are managing a construction company with the budget of one la one sorry 10 lakh rupee the project stockholders define the tolerance for a budget overruns No! urgent or corrective action is record as soon as the overrun is within the range of tolerant if the overruns is exceed 10% at least exceeds 1 lakh rupee the upper limit of tolerance it moves beyond the acceptable range of risk. Stakeholders of no longer comfortable with this situation and then the project team must take action When the risk is above the tolerance or action is required to eliminate the risk or reduce to its tolerance level. Okay, so that it's a risk tolerance can be at the organizational or the project level. Next we discuss about maturity. This got some sense. Risk constraints and risk absorption.So if you want to discuss about - Rizk-! Maturity It is very important for risk management is nothing but a risk maturity. This is the concept that refers how well an individual or organization can operate with established or effective process for managing the risk some organizations have may have the high level of risk maturity This means that they have structured procedures with the other two and they have practices for risk management that have been proven to the beneficial in the identifying assessing are responding to the implementing those response for monitoring risk This approach allows better anticipation of potential risk and more informed decision making and overall improvement in risk management capabilities over time. Next one is a risk assessment. Risk assessment assumptions sorry risk assessment these are the statements that are accepted but need to be validated continuously reviewing during the iteration process. For example, even though if we accept that, But we need to, verify it based on the hydration throughout the project risk management work related to the portfolios programs or project or life cycle the risk assumptions are often identifying During the risk identification and planning phases, are they help in assessing anticipation and potential risk these assumptions need to be documented or monitor and validated in the risk assessment process risk assumptions are often identified during this sign and identification and planning phases Toe. These assumptions need to be documented, monitored and validated. Now we will discuss about absorption.So risk absorption is nothing but how? The project ability to withstand the risk impact. See even though if you are identified this is a risk For example, if your organization with a large financial service can absorb the impact of unexpected market fluctuations whereas the startup with the limited resources. Suppose if you are able to tolerate within the situation then it is called as a ability to absorb. This is the ability of organization the project or individual to withstand for the various risk if you are able to withstand then it is called as absorption Okay, so now we can see the summary of the technical terms which we have discussed. Okay, so initially we have discussed about what is risk.So as I said earlier risk is nothing but it is the effect of uncertainty of objective behavior. Or else, the unexpected challenges or setbacks is called as a risk.So we have discussed about various examples of risk like a bad weather market fluctuations and misdeed deadlines and we have discussed about positive and negative risk. Positive risk are nothing but opportunities, negative risk are nothing but threats, delays, cost overruns, missing deadlines. Okay In risk management processes, we are identifying systematic process of identifying analyzing responding monitoring of risk okay so the main goal is to minimize the threats and maximize opportunities. Which include identification analysis. Next we are discussing about tailoring the risk management. Tailoring the risk management process which is suited to the project needs complexity context. The factors which mainly involve project size complexity, stakeholder needs and industry requirements. Risk factors, we have discussed about probability factors, impact, urgency, frequency. It is used to evaluate the periodized risk and effectively risk attitude and appetite. It's nothing but attitude is nothing but mindset of the individual organization towards taking the risk appetite, the amount of and type of risk willing to accept it. Risk tolerance and threshold. Risk tolerance is nothing but acceptable range of variation which is in the ranges of 5 to 10 percentage for example 5 to 10 percentage of budget. If you are able to accept in the sense that is called as a tolerance risk threshold is nothing but point beyond which the risk is unacceptable and action where to be taken that is called as a risk threshold risk appetite is nothing but subjective It is nothing but the weather, willing to take a risk. For a benefit or not. Risk maturity is nothing but capability to manage the risk effectively. Here which consists of risk assumption accepted truth that must be validated then risk constraint What are all the limitations you are having? Absorption is nothing but the ability to withstand the impacts of off risk.So this Buddy? You are well aware about what is a roost. Management plan with this I will stop or end the presentation thank you all.

Key Risk Management Terms & Concepts

1. ✂️ Tailoring Risk Management

• Definition: Customizing risk processes to suit specific project characteristics.

• Why Important?

  • Projects differ in scope, size, complexity, and risk profile.

  • Tailoring ensures:

    • Efficient resource allocation

    • Industry-specific compliance

    • Increased stakeholder satisfaction

    • Better risk mitigation outcomes

2. ⚖️ Risk Factors

• Risk factors influence likelihood and impact of risks.

• Common Factors:

  • Probability – Likelihood of risk occurring (rated 1–5)

  • Impact – Consequences on cost, time, quality, etc.

  • Urgency – How soon a risk may materialize

  • Frequency – How often similar risks happen (based on past data)

3. ? Risk Attitude

• Refers to the mindset or approach of individuals/organizations toward risk:

  • Risk-seeking

  • Risk-averse

  • Risk-neutral

• Influences how decisions are made in uncertain conditions.

4. ?️ Risk Appetite

• The amount and type of risk an organization or individual is willing to take.

• Can be categorized as:

  • Low: Avoids risk

  • Medium: Accepts moderate risk

  • High: Willing to take aggressive risks

• Varies by stakeholder, sponsor, or organization.

5. ? Risk Tolerance

• The acceptable range of variation in objectives before risk becomes unacceptable.

• Example:

  • A project budget of ₹10 lakhs may have a tolerance of ±10% (₹1 lakh).

• Risk tolerance must be documented in the risk management plan.

6. ? Risk Threshold

• The limit beyond which risk becomes unacceptable and requires immediate action.

• Action is needed if a risk exceeds the threshold.

7. ? Risk Maturity

• Reflects the capability of an organization to manage risks systematically and proactively.

• High maturity means:

  • Well-defined procedures

  • Data-driven decisions

  • Better resilience to uncertainty

8. ✅ Risk Assumptions

• Statements taken as true for planning, but require continuous validation.

• Identified in:

  • Risk identification

  • Risk planning phases

9. ? Risk Constraints

• Limitations affecting how risks can be managed (e.g., time, budget, legal, technical).

10. ? Risk Absorption

• The ability to withstand the impact of a risk.

• Example:

  • Large organizations can absorb financial risks more than startups.

? Summary Table

ConceptDefinitionTailoringCustomizing risk strategy per project contextRisk FactorsElements that affect risk likelihood and impactRisk AttitudeHow people/organizations mentally approach riskRisk AppetiteWillingness to take risk (low/medium/high)Risk ToleranceAcceptable range of deviation from objective (e.g., ±10%)Risk ThresholdPoint beyond which action must be takenRisk MaturityLevel of readiness and structure in risk processesRisk AssumptionsAssumed truths for planning that require validationRisk ConstraintsLimits on how risk can be mitigatedRisk AbsorptionCapacity to handle the risk impact without major disruption

30 Jun, 1:26PM

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  Good morning all. To the continuation of risk management technique today we are going to discover Risk Assessment Matrix.So the Risk Assessment Matrix if you want to understand. Before that, we have to know about risk management cycle.So the risk management cycle, the first step is or the foundation step is about risk identification in the risk identification we are following so many methods like documentation review brainstorming session or by using checklist or SWOT analysis or expect a opinion so from that we can able to identify the various the risk Once we have identified the risk, the next step is the evaluation of the risk. So, evaluation is nothing but whether likelihood and impact. As well as the periodized risk that is based on the risk assessment method.So the risk assessment method is nothing but It is a method to measure the response. So there are so many methods involved in that like a impact assessment risk prioritization qualitative and quantitative techniques so under that mainly we are having the technique is called as a risk assessment matrix which is comes under a qualitative technique.So if you want to discuss about risk, Assessment matrix. So for that we have to understand what is the risk in the previous sessions if you have missed you just to go through the risk from the previous presentation risk assessment matrix it is known as probability and impact matrix it is a single matrix it is a probability and impact matrix it is a tools which is used in the risk management to Access. And periodize the risk which is based on their likelihood of occurrence and impact of the project objectives which is mainly used to support the decision making and which There is... Needed to be response.So It is nothing but it is a visualization tool to categorize and periodize the risk. Okay, so mainly which is consist of compass likelihood and impact.So from that what you are identifying the sense which is consist of a color variation or which is consist of so many values based on that only it will be mapped. So we can able to identify where we can give importance in the risk matrix where we have to give a minor importance that we can able to identify from that.So this is the likelihood levels. So which may be given in the form of a Likert scale. It's starting from 0 to sorry 1 to 5 or else 0 to 4 however we can able to give Unlikely? Possible.Likely and almost certain. Starting from one is rare it is the meaning of may occur the exceptional circumstance Okay. The next one is about unlikely could occur at possible. That is at some time. Then it's a possible I occur occasionally likely May I come? That means will probably it will be occurred this even in the decade scale 5 is nothing but almost certain expected to occur in most of the circumstances so these are all the various Likelihood levels So one is likelihood levels, another one is impact levels. Impact levels on the other side.So based on the impact levels, it is significant. Minor moderate major and catastrophic failure.So in significant is nothing but it is a minimal effect which may happen even the currents are happen which will affect very minor Well, that is very minimal. Minor is small delays or cost increases.So minor effect will be happened in the sense there is a small. Okay. Moderate which is a noticeable impact in your project. Then major is the significant disruption or the cost impact. Catastrophic is a major failure or severe consequences will be happen.So this is about impact level. The previous one is about that one this one is above the impact level Okay. How to... Use a matrix.So first step is you need to identify a risk in your project. And to assess the probability like likelihood of each risk is happening which may be starting from very low to very high. Okay, so the next one is assess the impact of each risk, which may be starting from on cost on time and quality based on that we need to assess the impact. Then plot is the risk in the matrixes which may be starting from where to be high where to be low like that we need to plot. Then we need to periodize based on the ranking which is a... Extreme are which is low which is mediate which is medium risk like medium risk means monitor and prepare the responses in case of high or extreme risk in the sense immediate mitigation or contingencies to be taken then draw risk in the sense we can ready to accept the risk or track the possibilities. Next one is about the risk mitigation strategies and examples as I said earlier. Which is mainly based on the risk level high medium low means it is acceptable media means monitor and regular or else prepare the mitigation plan i means you try to follow the risk mitigation plans like transfer rate or any other method so this is about risk assessment matrix based on impact and likelihood so as we discussed the impact which may be starting from phi scale rare unlikely possible likely and almost certain similarly catastrophic major moderate minor and insufficient so based on that if both are comes under Rar! and catastrophic which may not happen so the probability of occurrence of that particular event will be low So based on that here we are giving for example if we add these two numbers which will be less than 9. Then which will be given as low which is in the ranges of even some textbooks they have given up to 6 or 7 okay for example here it is 5 here it is 3 8 that is less than 9 only here they are given so less than 9 in the sense which is low so 9 to 13 or 9 to 8 12 which is comes under medium. Then 12 to 14 are up to less than 20 is high that is 15 to 20 is high then the remaining is the extreme condition so generally it will be denoted in color code the red color the dark red color which indicates extreme and high which require the immediate responses. In case of orange is nothing but a needs monitoring or mitigation low is given in the color of yellow and very low to be given in the green color which is acceptable and it which can be Good.So this is a different scenario based on one example. For example, delay in the materials delivery of the materials so the probability of occurrences it is always occur So the impact very high. Suppose if the material delay was happening in the sense we can't able to execute our work.So that the entire day will be wasted so it is nothing but the risk rating will be Ex-team? Red color which will be denoted in red color so you have to understand and you need to give more importance to this then The sudden resignation of our team member. Even there is a possibility and even the impact will be medium suppose some others can manage The activity so it is a medium then unexpected regulatory changes okay for example the material prices guy or other regulatory changes will occur in the cell the probability of occurrence is low but the impact is very high so we need to give more importance to that particular work next one is a slight increase in the fuel costume which is nothing but very high probability of occurrence will be very high but the impact is low So there is a slight increase in the cost.So it is a medium one. Then improved supplier pricing which is medium probability and high impact but the opportunity is more.So we can track that particular work if possible you try to order the material in earlier point of time. So this is the example of risk assessment matrix.So the previous slides we can able to see the risk assessment matrix from that you can give your number at the top at left and right hand side. So you simply add all the numbers.So if the number ranges up to 9 or 9 to 14 to 16 like that you can give the color code. If it is more than 20. Surely you can have to give extreme scenario which is less than 9 which is you know in a very low impact and the medium scale which will be lies between 10 to 20. It depends upon the project developer okay i will stop up to this risk estimate i hope you all enjoyed the presentation Thank you.

Key Points

• Introduction of the risk assessment matrix as a key tool in the risk management cycle, detailing the foundational steps of risk identification and evaluation.

• Explanation of various methods used in risk identification, including documentation review, brainstorming sessions, checklists, SWOT analysis, and expert opinion.

• Discussion on the evaluation of risk focusing on likelihood and impact, utilizing both qualitative and quantitative techniques, with emphasis on the risk assessment matrix as a qualitative method.

• Description of the risk assessment matrix as a visualization tool that categorizes and prioritizes risks based on their likelihood of occurrence and impact on project objectives.

• Elaboration on the likelihood levels within the risk assessment matrix, ranging from rare to almost certain, and the impact levels from insignificant to catastrophic failure.

• Guidelines on how to use the risk assessment matrix, including identifying risks, assessing their probability and impact, plotting them in the matrix, and prioritizing based on ranking.

• Examples of risk mitigation strategies based on risk levels, with specific examples like delay in material delivery and sudden resignation of a team member.

• Illustration of how risks are color-coded in the matrix for easy identification of urgency and required actions, with red indicating extreme risks needing immediate responses.

• Presentation of specific examples within the risk assessment matrix, detailing various scenarios and their associated risk ratings and recommended actions.

• Good morning everyone. I'm Dr. N. Kanapathy Ramaswamy, Assistant Professor, Department of Civil Engineering. SRM Institute of Science and Technology so in the previous slides we have go through about various risk management like life cycle as well as we have discussed about various risk assessment methods but in today's class we are going to see about the advanced tool that is beam based risk management so beam based risk management methods it is nothing but integrated building modeling that is a Building Information Modeling. Which is into the risk management practices. To improve the where we are using in the sense to identify the risk and to mitigate and here is the sum of the key methods which I wanted to tell is nothing but by using this building information modeling like 4d and 5d beam for risk visualization and class direction as well as we can able to Use the scenario simulation we can able to tell suppose if the time delay is happening Otherwise the cost is higher than that scenario simulation we can able to do that. Then analysis of risk libraries, checklist within a beam. A real-time risk monitoring and we can able to integrate the project management driven tools with building information modeling. That is what we are going to say in this Building Information Modeling. Based on risk management first you try to understand building information modeling that is building information modeling It is a digital representation of buildings Physical? And functional characteristics. For example, If you are constructing one building, you have to know that building information where you are going to keep your windows how much sunlight will entering into your building and where you are having your decks that informations all the informations are you will get before you construct a building itself.So we need to be no need to wait till the end of our project is completed by using this building information modeling technique in we can able to model everything in the digital representation in before reconstructing the building itself. So, which will give support design, construction and operation in all the stages. And as we discussed earlier slides, risk management, the process of identifying think mitigating risk within the project.So why we are doing risk and the examples everything we have discussed which will include safety, and quality related risk everything will be included in this okay Why we want to combine a BIM with the risk management. Okay, so as I said earlier, 4D BIM. It simulates the construction sequence. To identify the risk which is related to the schedule for example you all know about 40. Okay, next to the 3D is nothing but along with that schedule which is involved in that included in that which in which shows where will be the delay occur scheduling delays will be occur where will be the classes occur and everything will be identified 5d beam which is mainly related to the cost linked along with that while you are linking the cost The model itself it will tell where the over budgets will be happen where the under budgets will be happen everything will be given in that okay so In case the over budget is happening, so it will give the idea about improve in your edition making and reduce the design errors as well as the safety hazard. Then BIM based management workflow.So while you are using a BIM tools, we can able to like Naviswork or Revit. We can able to develop our BIM models. By using structures on the mep we can able to identify what kind of deductions will be there then the design ways risk will be identified I'm giving an example like design waste suppose you are having one detection class detection is that I so that you have identified then you can able to analyze with by using your beam tool and based on the analysis where is the pressure which one you are going to move that we can able to identify once you have identified and analyzed that then. You have to respond it where you are going to move and everything you are doing by using risk response plan planning And even if you corrected everything in the design stage in the SERP, then finally while you are executing your project, you can do the monitoring and control. And from this model, you can take your project. Feedback? And other kind of things. Okay. Next, the types of risk managed by using building information We can able to do the design risk. I gave the example for the design risk. Construction safety risk where the lack of safety is there. Cost overruns and schedule overruns that by using 4d and 5d we can able to identify cost overruns and schedule delays we can able to identify then communication gaps once in the by using building information once the design is changed everywhere Yeah. Changes will be happened that's why the main advantages of using Building Information Modeling. Then what are all the building information tools mainly used for the risk management? The first one is the Autodesk Revit. That is mainly used for design related risk will be identified. In the rivet itself you can able to identify.. What are all the designers? What are all the error will be there everything will be identified if you want to change anything in the design stage itself you can able to change by using Autodesk. And a ribbon. Next one is a Navis work. Naviswork is nothing but it is a compelling tool of rivet and Suppose you are doing your mechanical at the pump work in different softwares or If you are working, two three models by using different softwares everything will be combined in Navies work.So while you are compiling everything, we can able to identify the class. Direction. Suppose you are having class between plumbing pipe, as well as MEB pipe in the sense. Where which pipe you are going to move that kind of class direction and the movement will be carried out in navies work next one is a BIM 360 here the collaboration and the issue of tracking will be identified by using this beam 360 next one is a synchro that is a 4d scheduling tool which is mainly used for risk management okay so now what are all the benefits of BIM based risk management So, as I said earlier, we can able to yearly detection of issues. Once you identify the early detection, you can enhance your collaborations. Once you, collaborations is enhanced in the sense we can able to reduce the rework. Suppose without you are doing collaboration if all suppose one electrical work is separate one mep work is plumbing work is separate in the sun suppose the reduction is takes place at the time your rework will be increased to avoid the rework and delays for that if you do by using this BIM kind of tool in the sense we can able to reduce rework and delay. Next one is a improved safety planning we can able to plan for our safety and in a better way. Now come to the example a hospital project by using 4D BIM. Chodling.So the hospital building project is having a different schedules and while you are using your BIM tool we can able to identify where the delays will be occur. Example your plinth work is completed after that if you are going for column work in the sense how much delay between scheduled and actual that you can able to identify if your delay is within 10 percentage or 20 percentage in the sense then you need to increase your work force to compensate that or else you have to give a safer work place and better productivity from that so that we can able to eliminate a time related risk. Similarly, you are having the cost-related risk. Suppose if the cost is increasing, between that budgeted in the cell where the cost getting increased that you can able to identify then what is the changes you are made to common say that you need to identify it then you should challenges and limitations so as I said earlier if you whenever you are using computer related models the cost wise it is high initial cost. At the same time you need a trained professional for that what is the train and this is high cost if you are ready to install the set the next one is the software compatibility issue you need to use a proper software tool to and you have to know the experience in that software Then use third BIM models across To improve understanding and the proactive response, so while you are sharing everything it will give the idea to the stackholders It's not only to the challenges and even if you train everything in a proper way, we can be able to identify your conflicts between your campaigns. Then. What is the future for BIM in the risk management so while you are using BIM In risk management, we can able to integrate all the AI and IoT tools okay so the later is you all know about the future is about a and IOT we can able to implement it and we can able to increase your predictive system so even nowadays we are having so many predictive system so it will give the more accurate especially climate related or cost related a time related accuracy will be more than the existing method the then everything will be a cloud-based risk database we no need to keep all the data in a hot copies now everything will be a cloud-based risk database suppose you are having one historical so by using our ai ml2 we can able to predict high risk zones of your bottlenecks and it will give your predictive analytics for early warning system that's it will be very useful for this So from this, trim enables a proactive approach to the risk management which is increase our project success and minimizing you are risk So that's what mainly we are using. Beam based model. For the better understanding related to the BIM, This is a small overview about our beam based risk management because in most of the companies they are or in the starting stage of using this BIM based model, you try to integrate in your companies or in your portfolio in the sense, it will be very useful for the future.So thank you everyone for this wonderful starts to discuss with you. Thank you all.

Key Points

• Discussion on integrating Building Information Modeling (BIM) with risk management practices to enhance risk identification and mitigation.

• Overview of key methods in BIM-based risk management, including the use of 4D and 5D BIM for risk visualization, scenario simulation, and real-time risk monitoring.

• Explanation of Building Information Modeling (BIM) as a digital representation of a building's physical and functional characteristics, aiding in design, construction, and operation stages.

• Description of how 4D BIM simulates construction sequences to identify schedule-related risks and 5D BIM links cost to identify budget-related risks.

• Discussion on using BIM tools like Naviswork and Revit to identify design errors, safety hazards, and coordinate different construction models.

• Identification of types of risks managed by BIM, including design risk, construction safety risk, cost overruns, schedule overruns, and communication gaps.

• Overview of BIM tools used for risk management, such as Autodesk Revit for design risk, Naviswork for clash detection, BIM 360 for collaboration, and Synchro for 4D scheduling.

• Discussion on the benefits of BIM-based risk management, including early detection of issues, enhanced collaboration, reduced rework, improved safety planning, and proactive response to risks.

• Example of using 4D BIM in a hospital project to identify schedule delays and cost overruns, and adjust workforce and safety measures accordingly.

• Discussion on the challenges and limitations of BIM-based risk management, including high initial costs, need for trained professionals, software compatibility issues, and integration of third-party BIM models.