**Abstract**

This paper outlines a risk management method that is based on the use of a standard risk management model and is adapted to the specific nature of infrastructure projects. The standard model can be used to identify and quantify unexpected events in planning and executing a project. The use of a risk map will also be illustrated. A risk map can serve to classify the identified and quantified risk events, depending on the expected loss, to critical risks that call for a more in-depth treatment, and non-critical risks that are normally not monitored, while no measures are foreseen in advance. A risk map is used to determine what the anticipated effects of the measures to mitigate the critical risks will be, and how the anticipated measures enable the transition from a critical risk to a non-critical risk. In this article, the suggested risk management is illustrated using the example of the erection of a reservoir for a hydroelectric power plant. The use of the proposed tools for the identification, assessment, prioritisation, and management of risks proved highly successful. With the use of the proposed risk model, the critical risk events were lowered under the acceptable level of the expected losses.

**Keywords:** risk management, standard model, risk map, risk control, hydroelectric power plant

## **1. Introduction**

Infrastructure projects are one constant in our lives that interfere in our living environment and commonly involve huge investment costs. When managing such projects, the focus is mainly on the management of the content of work, times, resources, and costs. Risk management, however, is often neglected. Most frequently, the most important risks of the entire project are identified, and the measures to mitigate their consequences are prepared. Yet a project team lacks the time and motivation to prepare a more profound assessment of risks of individual components associated with the project.

The paper will illustrate the use of the standard risk management model, which includes the identification of risk event drivers, the assessment of probability of a risk event, and the identification of impact drivers caused by a risk event and the probability of its impact. The identified probability of the occurrence of a risk event and the probability of its impact serve as a basis for calculating the expected loss, most often in terms of time, money, or quality. The calculated losses can be represented in a so-called risk map, into which losses are plotted on the x-axis, while the

product of the risk likelihood occurrence and its impact is plotted on the y-axis. A threshold line of expected losses divides the risks into critical risks (positioned above the threshold line of anticipated losses in the risk map) and less critical risks (positioned below the threshold line).

The standard model also allows an analysis of the consequences of the measures adopted and designed to eliminate or at least mitigate the expected risks both on the side of risk event drivers and on the side of risk impact drivers (there may be only a single or several drivers in both cases). In the risk map, the adopted measures represent a change in the risk position, the final goal being a shift of all critical risks below the threshold line of expected losses, i.e., below the limit of a still acceptable loss, by using the adopted measures in both risk factors.

The use of the suggested model will be illustrated using the example of an infrastructure project for the erection of a reservoir for a hydroelectric power plant on the Lower Sava River. The advantages and drawbacks of using the standard risk management model in the practical implementation of infrastructural (constructional) projects will be presented.
