RISK MANAGEMENT TYPES OF RISK STEPS INVOLVE IN RISK Identification of risk Risk management Risk mitigation Risk monitoring ROLE OF RISK MANAGER BENEFITS OF VALUE ENGINEERING SOURCES OF ENERGY

1. ELEMENTS OF RISK MANAGEMENT AND
VALUE ENGINEERING
PREPARED BY:-
AISHWARYA EKNATH PHALKE
UNIT IV

2. RISK
MANAGEMENT

3. INTRODUCTION
 Risk can be defined as the variability of returns.
 The direct meaning of risk is the possibility of exposing to danger,
hazard, loss, injury etc.
 For the easy and successful completion of any construction project
there is need of capital investment and any capital investment decision
involves risk.

4. OBJECTIVE
 All the risks that come in achieving the goal are set properly by risk
management system.
 To identify and prioritise potential risk events
 Help develop risk management strategies and risk management plans
 Use established risk management methods, tools and techniques to assist
 in the analysis and reporting of identified risk events
 Find ways to identify and evaluate risks
 Develop strategies and plans for lasting risk management strategies

5. RISK
CREDIT RISK
INTEREST
RATE RISK
MARKET RISK
LIQUIDITY
RISK
OPERATIONAL
TYPES OF RISK

6. STEPS INVOLVE IN RISK
1. Identification of risk
2. Risk management
3. Risk mitigation
4. Risk monitoring

7. RISK CONTROL
Risk is associated with every project but the extent of risk is different it is vary from
project to project following are various techniques which are used to control the risk.
 Use of early warning system.
 Using efficient project management methodology.
 Reengineering of business processes.
 Training to employee.

8. RISK MANAGEMENT AND INSURANCE
 Risk management is includes insurance coverage which is used to minimize
the cost associate with certain type of risk.
 It deals with pure risk which may cause financial loss.
 Pure risk can again classified as :
Risk
Property
risk
Liability
risk
Personnel
risk

9. ROLE OF RISK MANAGER
 With the help of effective project management tool find out suitable
mitigation techniques
 Train the employee in organisation i.e. provision of safety
 Training program
 Preparation of report which is effective in decision making
 Review of risk throughout the project

10. VALUE
ENGINEERING

11. INTRODUCTION
 Value engineering is defined as the systematic objectives and analytical approach to effectively identify
unnecessary costs in construction.
 Importance of value engineering came into existence in world war 2. Due to shortage of critical
resources there was needed to adopt changes in methods, materials and traditional design methods.
 Now a day due to importance of value engineering it is adopted by many public and private sectors.

12. VALUE ANALYSIS
 Value analysis is one of the most important techniques to control and
reduce the cost.
 It consist of providing best quality product to customer at possible lowest
cost.
 Its function is to identify product function and component and provide
desired function to minimise the cost.

13. BENEFITS OF VALUE
ENGINEERING
 Lowering operating and maintenance cost.
 Improve quality.
 Improve efficiency of resources.
 Helps to simplifying the procedure.
 Minimise the paperwork.
 Improve market position of company.

14. SOURCES OF ENERGY
1. Non-Renewable or conventional energy sources.
Non-renewable sources are those which are not created in short period of time. It is not possible to
replace the non-renewable sources,
a) Timber or wood
b) Fossil fuels like coal, petroleum products and natural gas.
c) Stored water in the reservoir for power generation.
2. Renewable or Non-conventional energy sources.
Renewable energy sources are those which can be created in short period of time this sources are
very costly in short run but cheaper in long run.
a) Solar energy
b) Wind energy
c) Tidal energy
d) Biomass energy

15. Thank You