Risk Monitoring & Control

1. Mid-West University
Graduate School Of Engineering
Central Department of Civil Engineering
Birendranagar-10, Surkhet
A
Presentation on
RISK MONITORING AND CONTROLLING
Subject: Project Management
Presented By:
Dilip Kumar Mahato
Roll No: 13
Semester: 6th Semester Date: Sep 9th , 2023

2. Table of Content
• Introduction
• Risk Triangle
• Risk Assesment Level
• Risk Level Characteristics
• Risk Identification Technique
• Example of Risk in a Project
• Risk Response Strategies
• Response Mechanism (Dual Nature of Risk)
• Process of Risk Monitor and Control
• Risk Management Process
• Method of Risk Control (PDCA Cycle)
• Conclusion

3. Introduction
• Risk is the probability of occurrence of negative events during
the progress of work in a project.
• Risk monitoring and control refers to the process of
continuously identifying the risks and establishing the best
methods of dealing with those risks or minimizing the effects
of risk during the project’s duration.
• It includes the execution of following tasks during the project:
 risk response plans
 tracking the identified risks
 monitoring residual risks and
 evaluating risk process effectiveness

4. Risk Triangle
• Risk Triangle represents impacts of project risk and
issues on project’s schedule.
SCHEDULE
Fig: Risk Triangle
RISK ISSUE

5. Risk Assessment Level
There are three levels of project risk assessments:
• Level 1: Identification of risks
• Level 2: Qualitative or deterministic risk assessment
• Level 3: Quantitative or probablistic risk assessment
Fig: Risk Level Assessment

6. Risk Level Characteristics
This methodology is based on best practices from internationally
recognised risk management procedures and consists of five Risk
Levels: Low, Moderate, Medium, High and Extreme. In general,
each Risk Level has the following characteristics:
Fig: Risk Level Characteristics

7. Risk Level Examples
Fig: Examples of Risk Level in Business
1. Retail Industries has less risk on their stability on market
while large industries has high risk for their market stability
and growth of business.
2. While Petroleum business/Fuel industry depends on the
human needs and price variation, hence falls under medium
level.

8. Risk Identification Technique ( Important Topic for Exam)
• SWOT analysis is a framework for identifying and analyzing an organization's
strengths, weaknesses, opportunities and threats. These words make up the SWOT
acronym.
• Primary goal of SWOT analysis is to increase awareness of the factors that goes
for making a business decision or establishing a business strategy.

9. Example of Risk in a Project
Risk in
Road
Project
Inefficient Designs
and Drawings
Cost Overrun
and Failed
Estimates
Site Accidents,
Hazards and
Damages
Errors in Site
Investigation
and Data
Evaluation

10. Risk Response Strategies (Important)
Positive Risk Negative Risk

11. Fig: Balancing of Risk (Response Mechanism)

12. Fig: Process of Risk Monitor and Control
• Identify risks – What could go wrong during the project?
• Measure the response and their impacts – How likely will that risk become a
problem, and what will be its impact over the project?
• Make a decision – Given the risks, do we accept them and continue with the project?
• Come up with potential solutions – Knowing and accepting the risks, how can we
mitigate them in our project?
• Keep an eye on the risk’s growth – Which risks are increasing, and is our plan
ready to tackle that risk updates?
Process of Risk Monitoring and Control ( Important)

14. Method of Risk Control ( P-D-C-A cycle = VVI for Exam)
The overall method to ensure a good risk control includes the following:
1. Plan ahead for risk assessment, control and mitigation methods
2. Do and apply the mitigation measures chosen
3. Check and monitor the risks throughout the project
4. Act if the mitigation process shows a necessity
1 2
4 3

15. Conclusion
• Each of the project/organization will have a level of
tolerance to risk, as it is not possible to operate/run
without any risk whatsoever.
• This level of tolerance may be defined by head/Director
and/or shareholders and other parties, but it is necessary
to observe the effects of risk from starting point for
assessing the level of risk.
• Hence, Monitoring and Control is key task for
analyzing the risks in every project/organization and is
done by the responsible personnel of the project.

16. Thank You!