**8. Conclusions**


**197**

provided the original work is properly cited.

*Process of Risk Management*

events.

**Author details**

K. Srinivas

India

*DOI: http://dx.doi.org/10.5772/intechopen.80804*

impact on project performance.

characterises risk management in such projects.

• Given its complexity, risk management is a very important process in construction projects. It is most widely used in those projects which exhibits high level of uncertainty. Formal planning, assessment and monitoring/control process

• Risk management procedures should be initiated in the early stages of the

project where planning and contracting of work, together with the preliminary capital budget are being chalked out. In later stages, Risk management applied systemically, helps to control those critical elements which can have negative

• Keeping track of identified threats, will result in early warnings to the project manager if any of the objectives, time, cost or quality, is being met or not.

• Risks in complex construction projects can be mitigated by entering into vari-

• Proper risk strategy formulation and research is necessary based on real life experiences so that identification of potential risks and providing solutions can produce effective and efficient risk strategies to overcome impacts of risk

• Risk identification is the first step in the risk management process. It means that the identification of risks which is informal relies mostly on past experience of similar executed projects and that of advice from experts. There are a good number of methods for identifying the risks in a project and a combina-

tion of methods may be used for identification of risks in a project.

benefits subsequent to commissioning of project

\*Address all correspondence to: ksrinivasap@gmail.com

• Handling potential threats is not only a way to minimise losses within the project, but also a way to transform risks into opportunities, which can lead to economical profitability and finally, .it is suggested that if risks are given due care at all stages of the project, stakeholders will be showered with manifold

ous agreements like execution, operation/maintenance, etc.

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

National Institute of Construction Management and Research, Pune, Maharashtra,

#### *Process of Risk Management DOI: http://dx.doi.org/10.5772/intechopen.80804*

*Perspectives on Risk, Assessment and Management Paradigms*

larger the number of potential risks that may be faced.

have substantial bearing on the outcome of a project.

• The fact that there are manifold risks which can be identified in any construction project is explained by their size and complexity. Bigger the project is, the

• Occurrence of risk is stimulated by several factors. Most often the risks faced in any project are financial, environmental (surrounding location of project and overall regulations), time, design and quality. The technology used for construction and the internal environment also contributes to risk which can

• Risks are directly proportional to complexity of a project. Bigger and more complex a project is, the more resources are required to complete it. In spite of identifying all potential risks, there might be more potential threats. Therefore, the project team should not solely focus on management of those identified risks but also be alert for any new potential risks which may arise

• Risk management is a tool for managing risks in a project and a project manager should be prepared for managing uncertainties not included in a risk

• Effective management of risky project demands rapid and realistic predictions of alternative courses of action and positive decision making and requires flex-

• Insurance is just one aspect of risk mitigation and it cannot absorb all the risks. Insurance is project specific and it should be taken as per the needs of client/

• Perception of severity and frequency of occurrence of risk is to be done in tandem between the stakeholders. This will eliminate lot of unnecessary correspondence as well as misunderstanding and friction between the stakeholders

• Adoption of good project management practices like proper planning and implementation, willingness of stake holders to share the risks in the project is

• Executing a complex project requires meticulous planning, i.e. planning to the smallest details, and this can be achieved through concerted dedication from

• Risks are to be thoroughly studied and understood before bidding for the project.

• Special care should be taken regarding the seasonal variation of labourers, so that the construction activities does not get delayed due to shortfall in manpower resources during execution, which can have adverse effects on cost and

• Proper risk allocation techniques should be framed between the stakeholders so that in the event of occurrence of a risk, this will eliminate doubts as to which

contractor. Other ways of risk mitigation needs to be explored.

**8. Conclusions**

during execution.

management plan.

ible attitudes and procedures.

essential for success of a project

the concerned stakeholders.

stakeholder should address the risk

**196**

time

