5. Risk management plan
MethodologyDurationResponsibilitiesProcess
BRAINSTORMING
DELPHI
3 DAYSFAHMY,AHMED EZZ-ELDIN
ATTIA,MOHAMED EBRAHIM
KHEDR,GAMAL AHMED
RISK
IDENTIFICATION
PROBABILITY &
IMPACT MATRIX
1 DAYFAHMY,AHMED EZZ-ELDIN
ATTIA,MOHAMED EBRAHIM
KHEDR,GAMAL AHMED
QUALITATIVE
RISK ANALYSIS
EXPECTED
VALUE ANALYSIS
2 DAYSFAHMY,AHMED EZZ-ELDIN
ATTIA,MOHAMED EBRAHIM
KHEDR,GAMAL AHMED
QUANTITATIVE
RISK ANALYSIS
RISK RESPONSE
STRATEGIES
1 DAYSFAHMY,AHMED EZZ-ELDIN
ATTIA,MOHAMED EBRAHIM
KHEDR,GAMAL AHMED
RISK RESPONSE
RISK MONITOR &
CONTROL
2 DAYSFAHMY,AHMED EZZ-ELDIN
ATTIA,MOHAMED EBRAHIM
KHEDR,GAMAL AHMED
RISK MONITOR &
CONTROL
6. RISK IDENTIFICATION
CATEGORYDEFINITIONRISK TITLERISK ID
LocationThere Are Many
Conditions For Soil (Sand,
Clay, Mud)
Soil Conditions ProblemsR-1
LocationGive A Clear Info. For The
Project.
Site LayoutR-2
SafetyChange In Original
Schedule
Late Delivery Of MaterialR-3
SafetySpoils Due To Change In
Climate
Material Spoil Due To
Weather
R-4
SafetyWeakness Of The SoilSoil CollapseR-5
SafetyStolen And Wasted
Material
Lose Of MaterialR-6
Cost And TimeTrial To Transfer RiskEquipment Insurance
Problems
R-7
Cost And TimeUnstable Local Country
Currency
Rise Of CurrencyR-8
Cost And TimeDue To Variety Of
Standard Living
Rise Of SalaryR-9
Cost And TimeDue To Change In Market
Situation
Rise Of Material PriceR-10
Cost And TimeDue To Lack Of MoralLabor StrikesR-11
Cost And TimeDue To The FinancialWage Payment Sys.R-12
7. RISK IDENTIFICATION
Cost And TimeThe Force Vacations Of
Country Calendar
Vacations PoliciesR-13
WeatherDue To Climate ConditionsWind StormR-14
WeatherDue To Seasonal ConditionChange In ClimateR-15
FinancialDue To Bad Financial
Methodology
Company BankruptsR-16
DesignDue To Site ConditionDesign ChangeR-17
DesignDue To Site ConditionLag Of DrawingsR-18
DesignDue To Site ConditionComplicated DrawingsR-19
DesignLack Of ExperienceErrors And Omissions Of
Original Design
R-20
DesignMatching With New
Developments
Change In Clients NeedsR-21
Design
Seeking For Reducing CostContractor Value Engineering
Proposal
R-22
Design
Seeking For Increasing
Safety
Continuous Changes In Legal
Safety And Requirements
R-23
Arch. DesignLack Of ExperienceArch. Lack Of FlexibilityR-24
8. RISK IDENTIFICATION
Arch. DesignLack Of ExperienceArch. Is Not Fit For PurposeR-25
PoliticalDue To Country SituationChange In Government LawsR-26
Project ManagementDue To Lack Of R&DShortage Of Fund.R-27
Project ManagementDue To DemotivationChange Of Labor ProductivityR-28
Project ManagementDue To Type Of FinanceType Of ContractR-29
Project ManagementDue To Inflexibility Of Work
Schedule
Work Over LoadR-30
Project ManagementDue To Inflexibility Of Work
Schedule
Delay Due To Interference With
Other Crews
R-31
Project ManagementDue To Over LoadAbsenteeismR-32
Project ManagementUnbalancing Between Skilled
And Unskilled Persons
Crew CompositionR-33
Project ManagementDue To Project ConditionsLack Of Flexibility ScheduleR-34
Project ManagementDue To Lack Of ExperienceSubcontracting ProblemsR-35
Project ManagementDue To Unexperienced
Management
Failure To Follow MethodologyR-36
CommercialDue To Clients' NeedsProduction Oriented MarketingR-37
9. RISK IDENTIFICATION
CommercialDue To Clients' NeedsProduct Doesn't SellR-38
EnvironmentalDue To Environmental
Conditions
Construction
Environmental Factors
Affect
R-39
CommunicationTo Avoid Unknown
Sources Of
Communications
Visible Communication
Chain
R-40
ExecutiveDue To Personal GoalsStakeholders ConflictsR-41
ScopeDue To Unclear Work
Plan
Activities Are Missing
From Scope
R-42
ResourcesDue To Unexperienced
Workers
Learning CurveR-43
ResourcesDue To The Quality Of
Resource
Resource Performance
Issues
R-44
ExternalDue To Project
Condition
Technical Change
Impact Project
R-45
10. RISK IDENTIFACTION
TechnicalDue To Lack Of
Technology
Technology Components
Are Not Fit For Purpose
R-46
TechnicalDue To Lack Of Trained
Persons
Components Aren't
Maintainable
R-47
IntegrationDelays To Infrastructure
Such As Hardware Or
Software.
Delay To Required IFailure
To Integrate With Business
Process
nfrastructure
R-48
IntegrationThe Risk That Your Product
Will Fail To Fit Into The
Existing Business.
R-49
ProcurementInability To Negotiate A
Reasonable Price For
Contracts.
Failure To Negotiation A
Reasonable Price For
Contractor
R-50
ProcurementYour Vendors Develop
Conflict With Each Other And
Cooperation Breaks Down.
Conflicts Between Vendors
Leads To Project Issues
R-51
StakeholdersDue To Unprofessional
Planning
User Interface Isn't
Accessible
R-52
11. Qualitative Risk analysis
PROBABILITY
IMPACT
Very Low Low Moderate High Very High
Very Low
Low 48 19,20,31,36
,47,49
13,23,50
Moderate 1,5,22,29,4
4,45,46
4,7,18,34 24,43
High 11,16,30,32
,41,52
9,10,40,42,
51
2,3,8,25,26
,28,39
14,15,38
Very High 12,17,21,2
7,35
6,37
12. learning curve:-
- Input: have the same
person perform a task
several times with
additional repetitions.
Sensitivity analysis
Output: cost and time to
complete the task will decrease
when executing activities or any
work of repetitive processes.
*This happens because:-
-workers become more familiar with the
project characteristics and working
conditions.
- the arrangement and distribution of
workers, materials and equipment are
improved compared to the past.
13. Errors And Omissions
Of Original Design:-
Sensitivity analysis
Input: choose a good
disgn firm.
Output: designs without
any lags, changes or
mistakes and with clear
view.
15. SCENARIO ANALYSIS
We have made our Bid
for the tender and
ours is the most
suitable one, so they
choosed our company
for the project.
We start
with”collecting
preliminary
information” for the
site.
Then, we made “ a
site visit” to
investigate the
neighbors and the
permanent condition
for the site.
Making a quick “site
investigation” to determine
the type of soil, we found
it’s a very bad type.
We found a lot of obstacles
such as : -lack of
infrastructure
(roads,electricity and
water)
While construction phase
we faced a problem with
near neighbor
“stakeholder”.
16. SCENARIO ANALYSIS
The climate condition wasn’t
good and made a lot of waste in
resources such as cement which
had a big weight of material
cost due to its high price at this
period of time.
After two months of construction
we faced a financial problem
which forced us to make a loan.
Due to the lack of money for the
salaries, many labors given up
working for the project.
During working ,clients had a new
change for the design which forced
us to change the project design which
made an adverse such as *changes in
original schedule*change in resources
requirements*the parallel execution
of activities which planned to be
executed in serial*the lack of labors
moral due to the rework
The project had delayed for one
more month due to design changes.
We brought new crews of labors to
perform the remaining activities.
We had to work in “over time”
method to make up for the delays
occurred.
We had contracted with more than
one subcontractor for some works.
We finished the project with delays
in time and more than expected cost.
17. Expected Value analysis
EVCOSTPROBABILIT
Y %
CATEGORYRISK TITLERISK ID
20,000100,00020LocationSoil Conditions
Problems
R-1
100,000250,00040LocationSite LayoutR-2
42,000120,00035SafetyLate Delivery Of
Material
R-3
175,000700,00025SafetyMaterial Spoil Due To
Weather
R-4
90,000200,00045SafetySoil CollapseR-5
70,000100,00070SafetyLose Of MaterialR-6
200,000500,00040Cost And TimeEquipment Insurance
Problems
R-7
63,00090,00070Cost And TimeRise Of CurrencyR-8
70,000100,00070Cost And TimeRise Of SalaryR-9
350,000500,00070Cost And TimeRise Of Material PriceR-10
20,000100,00020Cost And TimeLabor StrikesR-11
45,000180,00025Cost And TimeWage Payment Sys.R-12
18. Expected Value analysis
72,00090,00080Cost And TimeVacations PoliciesR-13
2,00010,00020WeatherWind StormR-14
14,00020,00070WeatherChange In ClimateR-15
100,0001,000,00010FinancialCompany BankruptsR-16
35,00070,00050DesignDesign ChangeR-17
225,000750,00030DesignLag Of DrawingsR-18
30,000120,00025DesignComplicated DrawingsR-19
160,0001,600,00010DesignErrors And Omissions Of
Original Design
R-20
300,000500,00060DesignChange In Clients NeedsR-21
36,00045,00080
Design
Contractor Value
Engineering Proposal
R-22
120,000200,00060
Design
Continuous Changes In
Legal Safety And
Requirements
R-23
60,000150,00040Arch. DesignArch. Lack Of FlexibilityR-24
40,000200,00020Arch. DesignArch. Is Not Fit For
Purpose
R-25
19. Expected Value analysis
5,00050,00010PoliticalChange In Government
Laws
R-26
350,000500,00070Project ManagementShortage Of Fund.R-27
18,00030,00060Project ManagementChange Of Labor
Productivity
R-28
120,000400,00030Project ManagementType Of ContractR-29
480,0060,00080Project ManagementWork Over LoadR-30
56,00070,00080Project ManagementDelay Due To
Interference With Other
Crews
R-31
3,60012,00030Project ManagementAbsenteeismR-32
21,00030,00070Project ManagementCrew CompositionR-33
14,00040,00035Project ManagementLack Of Flexibility
Schedule
R-34
160,000400,00040Project ManagementSubcontracting ProblemsR-35
260,0001,300,00020Project ManagementFailure To Follow
Methodology
R-36
120,000200,00060CommercialProduction Oriented
Marketing
R-37
200,0001,000,00020CommercialProduct Doesn't SellR-38
210,000350,00060EnvironmentalConstruction
Environmental Factors
Affect
R-39
20. Expected Value analysis
14,00020,00070CommunicationVisible Communication
Chain
R-40
32,00080,00040ExecutiveStakeholders ConflictsR-41
90,000450,00020ScopeActivities Are Missing From
Scope
R-42
120,000200,00060ResourcesLearning CurveR-43
372,000465,00080ResourcesResource Performance
Issues
R-44
39,600132,00030ExternalTechnical Change Impact
Project
R-45
52,500175,00030TechnicalTechnology Components
Are Not Fit For Purpose
R-46
24,150241,50010TechnicalComponents Aren't
Maintainable
R-47
40,000100,00040IntegrationDelay To Required
Infrastructure
R-48
140,000700,00020IntegrationFailure To Integrate With
Business Process
R-49
72,000120,00060ProcurementFailure To Negotiation A
Reasonable Price For
Contractor
R-50
76,000190,00040ProcurementConflicts Between Vendors
Leads To Project Issues
R-51
15,00050,00030StakeholdersUser Interface Isn't
Accessible
R-52
21. Risk response
SOLUTIONEVRESPONSERISK TITLERISK ID
Replacement Of Soil0AvoidSoil Conditions
Problems
R-1
Improve Infra Structure80,000MitigateSite LayoutR-2
Earlier Order Of The
Material
30,000MitigateLate Delivery Of MaterialR-3
Provide The Material
With A Good Shelter
175,000AcceptMaterial Spoil Due To
Weather
R-4
Support Aspects Of
Drilling
0AvoidSoil CollapseR-5
Hire A Security0AvoidLose Of MaterialR-6
Calculate The Impact Of
Risk And Compare It
With The Cost Of The
Insurance
150,000MitigateEquipment Insurance
Problems
R-7
-63.000AcceptRise Of CurrencyR-8
Use A Fixed Salary50,000MitigateRise Of SalaryR-9
Buy A Material For One
Year On The Beginning
Of The Project
250,000MitigateRise Of Material PriceR-10
Motivate The Workers20,000AcceptLabor StrikesR-11
Good Financial Method0AvoidWage Payment Sys.R-12
22. Risk response
-72,000AcceptVacations PoliciesR-13
-2,000AcceptWind StormR-14
-14,000AcceptChange In ClimateR-15
Good Financial Planning70,000MitigateCompany BankruptsR-16
Choose The Perfect
Design
15,000MitigateDesign ChangeR-17
Choose A Good Design
Firm
0AvoidLag Of DrawingsR-18
Choose A Simple
Drawing
0AvoidComplicated DrawingsR-19
Choose A Good Design
Firm
100,000MitigateErrors And Omissions Of
Original Design
R-20
Matching The Design
With The Client Needs
200,000MitigateChange In Clients NeedsR-21
Take The Step Of The Ve
At The Early Start Of The
Project
30,000MitigateContractor Value
Engineering Proposal
R-22
-120,000AcceptContinuous Changes In
Legal Safety And
Requirements
R-23
Choose A Good Design
Firm
0AvoidArch. Lack Of FlexibilityR-24
Choose A Good Design
Firm
0AvoidArch. Is Not Fit For
Purpose
R-25
-5,000AcceptChange In Government LawsR-26
23. Risk response
Good Marketing For The
Product
290,000MitigateShortage Of Fund.R-27
Motivate The Labors10,000MitigateChange Of Labor
Productivity
R-28
Good Study For The
Contract Types
0AvoidType Of ContractR-29
Flexibility In Work Schedule400,000MitigateWork Over LoadR-30
Flexibility In Work Schedule42,000MitigateDelay Due To Interference
With Other Crews
R-31
Flexibility In Work Schedule3,000MitigateAbsenteeismR-32
Balance The Skilled And
Craftsman Persons
0AvoidCrew CompositionR-33
Improve The Project
Planning
9,000MitigateLack Of Flexibility ScheduleR-34
Choose A Qualified
Subcontractor
0AvoidSubcontracting ProblemsR-35
Good Planning0AvoidFailure To Follow
Methodology
R-36
Dispose Production Oriented
To Market Oriented
0AvoidProduction Oriented
Marketing
R-37
Make The Product Salable160,000MitigateProduct Doesn't SellR-38
-210,000AcceptConstruction Environmental
Factors Affect
R-39
Good Communication With
The Project Members
0AvoidInvisible Communication
Chain
R-40
24. Risk response
Achieve All The
Stakeholder Goals
29,000MitigateStakeholders ConflictsR-41
Good Scheduling For The
Project With Clear Vision
60,000MitigateActivities Are Missing
From Scope
R-42
Choose A Workers Which
Done The Work Before For
Many Times
0AvoidLearning CurveR-43
Use A High Quality
Resources
295,000MitigateResource Performance
Issues
R-44
Use The Same Technique30,000MitigateTechnical Change Impact
Project
R-45
Choose Fit Technology39,210MitigateTechnology Components
Are Not Fit For Purpose
R-46
Use A Suitable
Components For Our
Country
20,000MitigateComponents Aren't
Maintainable
R-47
Improve Infrastructure36,000MitigateDelay To Required
Infrastructure
R-48
-100,000AcceptFailure To Integrate With
Business Process
R-49
Choose A Good Contract65,000MitigateFailure To Negotiation A
Reasonable Price For
Contractor
R-50
Choose The Best Vendor50,000MitigateConflicts Between Vendors
Leads To Project Issues
R-51
Achieve The User15,000MitigateUser Interface Isn'tR-52
