POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

OPEN UNIVERSITY SYSTEM

SCHOOL OF DISTANCE EDUCATION
MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT
CM 659 CONSTRUCTION RISK MANAGEMENT

ASSIGNMENT NO. 2

SUBMITTED BY:

GERONIMO, EDGARD LAURENZ M.

2017-08199-MN-0
MSCM
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
OPEN UNIVERSITY SYSTEM
SCHOOL OF DISTANCE EDUCATION
MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT
CM 659 CONSTRUCTION RISK MANAGEMENT

Assignment No. 1

1. Discuss the Risk Register

RISK REGISTER

Risk register is used to identify, assess, and manage risks down to acceptable levels through a
review and updating process. The purpose of a risk register is to record the details of all risks that have
been identified along with their analysis and plans for how those risks will be treated. The risk register
database can be viewed by project managers as a management tool for monitoring the risk
management processes within the project

It is the responsibility of the project manager to ensure that the risk register is updated
whenever necessary. The task of updating the risk register is usually delegated to the project control
function. Risks that have been managed, avoided or are no longer relevant can be removed from the risk
register. The associated risk action plans can also be deleted from the risk register.

The list of risks that are identified and recorded in the risk register drives the following risk
management processes specified in the PMBOK Guide:

1. Perform Qualitative Risk Analysis - In the Perform Qualitative Analysis process, details
are added to the existing list of risks in the risk register including the priority of risks, the
urgency of the risks, the categorization of risks and any trends that were noticed while
performing this process.
2. Perform Quantitative Risk Analysis - In the Perform Quantitative Risk Analysis process
the risk register is updated with the probabilities associated with each identified risk and
the probability of meeting the cost and time projections. Additionally risk priorities are
updated and trends that have been observed are also noted.
3. Plan Risk Response - In the Plan Risk Response process, a specific response plan is
created to manage each risk. These risk response plans are updated in the risk register
as an output of this process.
4. Monitor and Control Risk - In the Monitor and Control risks process, plans are re-
assessed and re-evaluated.

WHEN IS A RISK REGISTER CREATED?

As per the PMBOK Guide, the risk register is the output of the Identify Risk process in the Risk
Management knowledge area. The identify risk process is a planning process used to identify the risks,
which could impact the project and understand the nature of those risks.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
OPEN UNIVERSITY SYSTEM
SCHOOL OF DISTANCE EDUCATION
MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT
CM 659 CONSTRUCTION RISK MANAGEMENT

Although the identify risks process is performed early on in the project, risks change overtime
and new risks arise. Therefore it may be necessary to perform the identify risks process multiple times
throughout the project.

COMPONENTS OF RISK REGISTER

There is no standard list of components that should be included in the risk register. PMBOK
Guide and PRINCE2, among other organizations make recommendations for risk register contents;
however these are not the only recommendations that may be used.

The following table displays key components of a risk register that is used in managing risks in
large and complex projects.

1. Date - As the Risk Register is a living document, it is important to record the date that risks are
identified or modified. Optional dates to include are the target and completion dates.
2. Reference Number - Reference Number of the key element.
3. Key Element - A brief description of the key element. Except for very small projects, risk
identification becomes unproductive if we consider the project as a whole. It is much easier and
productive to break up the whole project into sections or key elements for risk identification.
4. Risk Group - This column is used for grouping similar risks as an aid to developing treatment
options and action plans.
5. Unique Identifying Number - A unique identifying number for the risk. It often has the form E.xx
where E is reference number of the key element and xx is a 2 digit identifying number.
6. Risk - A brief description of the risk, its causes and its impact.
7. Existing Controls - A brief description of the controls that are currently in place for the risk. At
an early stage in the life of a project, the controls may be those that are expected to be in place
if normal project management processes are followed.
8. Consequence - The consequence rating for the risk, using scales
9. Likelihood - The likelihood rating for the risk, using scales
10. Agreed Priority - Agreed priority for the risk, based on an initial priority determined from a
matrix, adjusted to reflect the views of the project team in the risk assessment workshop.
11. Inherent Rating - The inherent rating for the risk, if there were a credible failure of controls or
they failed to work as intended, using scales.
12. Action Summary - A cross reference to the action summary for the risk
13. Responsibility - The name of the individual responsible for managing the risk

A risk register is an important component of the overall risk management framework. The risk
register database records all identified risks in the project. It is created in the Identify Risks process as
per the PMBOK Guide. It also drives the other risk processes like Perform Qualitative Risk Analysis,
Perform Quantitative Risk Analysis, Plan Risk Responses, and Monitor and Control Risks.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
OPEN UNIVERSITY SYSTEM
SCHOOL OF DISTANCE EDUCATION
MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT
CM 659 CONSTRUCTION RISK MANAGEMENT

References:

1. Risk register - An important component of overall risk management framework by Chanada

https://www.simplilearn.com/risk-management-framework-article

2. A Guide to the Project Management Body of Knowledge (PMBOK Guide)Fifth Edition by PMI
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
OPEN UNIVERSITY SYSTEM
SCHOOL OF DISTANCE EDUCATION
MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT
CM 659 CONSTRUCTION RISK MANAGEMENT

2. Explain the reason why we identify project risk.

The purpose of risk management is to identify potential problems before they occur so that risk-
handling activities may be planned and invoked as needed across the life of the project to mitigate
adverse impacts that deter any project from achieving its objectives.

Identify risk is the process of determining which risks may affect the project and documenting
their characteristics. The key benefit of this process is the documentation of existing risks and the
knowledge and ability it provides to the project team to anticipate events

When risks are properly identified before they occur, they can be analysed, appropriately
manage and control to mitigate adverse impacts that prevent your projects from achieving its
objectives. The primary output of the risk identification is the initial entry into the risk register thus, all
risk must be identified prior to perform qualitative and quantitative risk analysis, risk response, and risk
monitoring processes.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
OPEN UNIVERSITY SYSTEM
SCHOOL OF DISTANCE EDUCATION
MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT
CM 659 CONSTRUCTION RISK MANAGEMENT

3. Please give me some example of risk statements in the following area:

(a) Design, (b) Environmental, (c) Right of Way and (d) Construction.

RISK STATEMENTS

Design:

1. If the detailed engineering is inaccurate and unreliable then, the project design is for revision.

2. If the plans are not satisfying in the actual field condition then, the projects plans may be re-
designed resulting to delay of the project.

Environmental:

1. The location site of the project is a protected area under Protected Area Management Board
(PAMB) then, endorsement of the PAMB is a must.

2. Unfavourable weather conditions may cause the delay of the project.

Right of Way

1. Due to inaccessible location site of the project, additional right of way and construction of
access road may be required to complete the work resulting in additional cost of the project.

2. If the location site of the project has an ancestral domain, then Free and Prior Informed
Consent from the Tribe is needed.

Construction

1. Shortage of construction aggregates in the location of the project, resulting to additional cost
for hauling in remote areas and may cause delay of the project.

2. If the plans were revised during the actual construction then, variation order is required prior
to the construction of the new design which causes delay of the projects.