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You're a construction executive with a big project on the horizon. How can you manage risk effectively?

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As a construction executive, you know that every project comes with its own set of risks. Whether it's budget overruns, safety hazards, design flaws, or environmental impacts, you need to be prepared to handle any potential issues that may arise. But how can you manage risk effectively and ensure the success of your project? Here are some tips to help you plan, monitor, and control risk in your construction project.

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Lucas Mateus da Silva Santos

LinkedIn Creator | Offshore Installation Manager | OIM | Gerente de Instala??o Offshore | Maintenance Superintendent |…

1 Identify the risks

The first step in risk management is to identify the possible sources of risk in your project. You can use various tools and techniques, such as brainstorming, checklists, surveys, interviews, or risk registers, to gather information from your stakeholders, team members, contractors, suppliers, and clients. You should also review the project scope, schedule, budget, quality, and resources to identify any gaps, uncertainties, or dependencies that may affect the project outcomes. By identifying the risks, you can prioritize them and develop appropriate responses.

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Joe Houghton MCIOB

Construction Design Manager/Employers Agent at Balfour Beatty
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Look at digitising the entire project and sequence of works With the above modelling with a healthy level of paranoia look at all the potential risks that may occur and develop plans/mitigation for the eventualities And whilst undertaking the above encourage engagement and contribution by all stakeholders and contractors - more eyes the better!

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Lucas Mateus da Silva Santos

LinkedIn Creator | Offshore Installation Manager | OIM | Gerente de Instala??o Offshore | Maintenance Superintendent | Operations Superintendent | Supervisor de Manuten??o | Supervisor de Opera??es
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● Realize uma análise detalhada do projeto: Entenda todos os aspectos do projeto, desde os objetivos e metas até os recursos necessários e as partes interessadas envolvidas. ● Identifique as partes interessadas: Identifique todas as partes interessadas no projeto. ● Considere as restri??es do projeto: Identifique as restri??es do projeto. ● Realize uma análise de risco: Utilize técnicas como a Matriz SWOT (Strengths, Weaknesses, Opportunities, Threats) ou a Análise dos Modos de Falha e Efeitos (FMEA) para identificar os possíveis riscos no projeto. ● Consulte especialistas e stakeholders: Consulte especialistas no assunto e partes interessadas para obter insights e identificar possíveis riscos.

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2 Analyze the risks

The next step is to analyze the risks and assess their impact and probability. You can use qualitative or quantitative methods, such as risk matrices, scoring systems, simulations, or sensitivity analysis, to measure the level of risk and rank them according to their severity. You should also consider the root causes, triggers, and consequences of each risk, as well as the interrelationships and dependencies among them. By analyzing the risks, you can determine which ones require immediate attention and which ones can be accepted or ignored.

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Lucas Mateus da Silva Santos

LinkedIn Creator | Offshore Installation Manager | OIM | Gerente de Instala??o Offshore | Maintenance Superintendent | Operations Superintendent | Supervisor de Manuten??o | Supervisor de Opera??es
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● Identificar os riscos: Utilize as técnicas mencionadas anteriormente para identificar todas as possíveis fontes de risco no projeto. ● Avaliar a probabilidade de ocorrência: Determine a probabilidade de cada risco identificado ocorrer durante a execu??o do projeto. ● Avaliar o impacto do risco: Analise as potenciais consequências de cada risco caso ele se concretize. ● Priorizar os riscos: Classifique os riscos identificados com base na sua probabilidade de ocorrência e no seu impacto no projeto. ● Monitorar e controlar os riscos: Implemente um plano de monitoramento contínuo dos riscos ao longo do projeto.

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3 Plan the responses

The third step is to plan the responses for the identified risks. You can use various strategies, such as avoidance, mitigation, transfer, or acceptance, to reduce the negative effects or enhance the positive opportunities of the risks. You should also assign roles and responsibilities for each risk response and document them in a risk management plan. The plan should include the objectives, scope, approach, budget, schedule, and resources for risk management, as well as the criteria, tools, and techniques for risk identification, analysis, and response.

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Lucas Mateus da Silva Santos

LinkedIn Creator | Offshore Installation Manager | OIM | Gerente de Instala??o Offshore | Maintenance Superintendent | Operations Superintendent | Supervisor de Manuten??o | Supervisor de Opera??es
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● Analisar e avaliar os riscos: Após identificar os riscos no seu projeto, é importante analisar e avaliar cada um deles, determinando a probabilidade de ocorrência e o impacto no projeto. ● Priorizar os riscos: Classifique os riscos de acordo com a sua criticidade. ● Desenvolver estratégias de resposta: Para cada risco identificado, desenvolva estratégias de resposta adequadas. ● Desenvolver planos de contingência: Para os riscos mais críticos e de maior impacto, é importante desenvolver planos de contingência. ● Implementar as respostas: Coloque em prática as estratégias de resposta e os planos de contingência desenvolvidos. ● Monitorar e controlar os riscos: Acompanhe de perto a evolu??o dos riscos ao longo do projeto.

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James Chizoba Francis

carpentry foreman/ supervisor
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management is to identify the possible sources of risk in your project. You can use various tools and techniques, such as brainstorming, surveys, interviews and also management, as well as the criteria, tools, and techniques for risk identification, analysis, and response

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4 Implement the responses

The fourth step is to implement the responses according to the risk management plan. You should communicate the plan to all the relevant stakeholders and ensure their buy-in and support. You should also monitor the progress and performance of the risk responses and make adjustments as needed. You should also track and document the results and outcomes of the risk responses and report them to the project sponsor and other decision-makers. By implementing the responses, you can control the risk exposure and achieve the project objectives.

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Lucas Mateus da Silva Santos

LinkedIn Creator | Offshore Installation Manager | OIM | Gerente de Instala??o Offshore | Maintenance Superintendent | Operations Superintendent | Supervisor de Manuten??o | Supervisor de Opera??es
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● Designar responsabilidades: Atribua responsabilidades claras a membros da equipe para implementar as respostas aos riscos identificados. ● Comunicar as respostas: Comunique as estratégias de resposta e os planos de contingência desenvolvidos a todas as partes interessadas envolvidas no projeto. ● Monitorar a implementa??o: Acompanhe de perto a implementa??o das respostas aos riscos. ● Realizar treinamentos e capacita??es: Se as respostas aos riscos envolverem novas habilidades ou procedimentos, providencie treinamentos e capacita??es para a equipe. ● Revisar e ajustar o plano de gerenciamento de riscos: à medida que as respostas aos riscos s?o implementadas, é importante revisar periodicamente o plano de gerenciamento de riscos.

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5 Review the risks

The fifth step is to review the risks and evaluate the effectiveness of the risk management process. You should conduct regular audits, inspections, reviews, or lessons learned sessions to identify any new or emerging risks, as well as any changes or deviations in the existing risks. You should also measure and compare the actual impact and probability of the risks with the planned estimates and assumptions. You should also collect and analyze feedback from the stakeholders and team members on the risk management process and identify any areas for improvement. By reviewing the risks, you can learn from your experience and improve your risk management skills.

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Lucas Mateus da Silva Santos

LinkedIn Creator | Offshore Installation Manager | OIM | Gerente de Instala??o Offshore | Maintenance Superintendent | Operations Superintendent | Supervisor de Manuten??o | Supervisor de Opera??es
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● Revis?o contínua dos riscos: Regularmente reveja a lista de riscos identificados inicialmente para garantir que todos os riscos relevantes estejam sendo monitorados e gerenciados adequadamente. ● Avalia??o da probabilidade e impacto: Reavalie a probabilidade de ocorrência e o impacto dos riscos, levando em considera??o as mudan?as no contexto do projeto e as a??es de mitiga??o já implementadas. ● Monitoramento das a??es de resposta: Verifique se as a??es de resposta aos riscos est?o sendo eficazes na mitiga??o dos impactos negativos. ● Análise de tendências: Analise as tendências dos riscos ao longo do tempo para identificar padr?es ou altera??es significativas que possam afetar o projeto.

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6 Update the risks

The sixth and final step is to update the risks and the risk management plan based on the review and evaluation. You should document any changes or updates in the risk register, the risk management plan, and the project management plan. You should also communicate the changes or updates to all the relevant stakeholders and ensure their alignment and agreement. You should also update your risk management tools and techniques and incorporate any best practices or lessons learned. By updating the risks, you can ensure that your risk management process is dynamic and responsive to the changing project environment.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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You're a construction executive with a big project on the horizon. How can you manage risk effectively?

1

2

3

4

5

6

7

1 Identify the risks

2 Analyze the risks

3 Plan the responses

4 Implement the responses

5 Review the risks

6 Update the risks

7 Here’s what else to consider

Construction

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You're a construction executive with a big project on the horizon. How can you manage risk effectively?

1

2

3

4

5

6

7

1 Identify the risks

2 Analyze the risks

3 Plan the responses

4 Implement the responses

5 Review the risks

6 Update the risks

7 Here’s what else to consider

Construction

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