RISK MANAGEMENT PROJECT

Abstract : A project has a set of risks to achieve goals. For

construction projects, the risk is an interesting thing, especially for the
expansion started out as a national participation in a multi-national in a
project. Problems frequent occurrence of natural disasters floods, as
one of the risk analysis project management. Specifically limits the risk
of a project is the variability of income as a result of variations in cash
flow and output during umurinvestasi concerned. Risk management
strategies are very important to establish at the beginning of the project
and risk aimed at the entire project life cycle basis. Risk management
includes several activities: estimating the risks, analyze risks, handle
risks, learn from experience. Phase determination in all parts is to
indicate the actual risk of the project. Participant management and
overall project management should give priority to in order to handle
risk and the approach that creates: a variety of ideas to find a solution to
the most minimal impact, contract administration are balanced, the
completion of the project risks early on, based on the content of the
problem, using a technique ADR (Alternative Dispute Resolution )

Keyword : risk management, construction project

INTRODUCTION

A project has a set of risks to achieve goals. for construction projects, risk is an interesting thing,
especially for the expansion came out as a national participants in a project one needs only be
seen as the boundary line seen from the intent of the issues that is certainly capable of increase
the risk faced by the a project are:
- Floods, hurricanes, the storm, and others
- Failure to pay the debt, the financial instability in countries where the project is a fruit or a
participant countries.
- Labor is not productive, politically unstable.
- Change the owner or primary user
- Failure tropic as consumers during construction or start-wake, or its ability
Some risk here is real relativity, but day to day and within a couple of hours to clock problems, a
project that does face for all activities or issues that do not comply with the ability to achieve the
objectives of a project. In general, we define the following as a project risk: Some activities,
invented or activities that may lead to a negative impact on the project plan, quality, performance
is, provision of time or cost.
The same applied to particle project also has a risk of a kind, as the project owner anticipate with
accuracy time project on schedule, desired quality and on budget. Some disaster or another issue
can hinder smoothness this project. Examples of almost every interesting events on a project
tends to delay the project. As queuing delay, can reduce the expected revenues or project
completion marketing major. In fact, Peter often wore specially affected, because the plan has to
be decided or training has been carried out on the project before the project is completed.
In a risk set, it had to be identified. Early identification, a normal way of expanding the options
that can be used to reduce or eliminate the risk or the impact of the project objectives. When
risks are identified and evaluated BIH arm before done or contracted, identification can be
played a part to allocate and divide more balanced task in the context of the contract of
employment or improve her attention during the planning decree was made.
Identification can also be focused on the management attention that is often the key to the risks
of risking one. First identified, the technical management of revenues (owners, contractors,
financial agents and users) can determine the hiring of employees to:
Monitoring changes in the risks:
Evaluation of options that can be applied in determining the risk set changes in planning
decisions. Can monitor the actual decision (latest) and be successful in lowering / removing risi-
ko project.
The end result is a greater likelihood that the techniques of management from planning through
contract administration and supervision of the actual (latest) can be achieved on a project that
will find the purpose of the project as a whole and for the individual project participants.

The problem often faced by PE is the project managing things the unplanned / unforeseen in a
project activity and pose a risk of harm as a one-management risk analysis project.

DISCUSSION

Risk is generally defined as the possibility of external events in the expected. The more likely the
low profits or even losses ma- say the greater the business risk.
Specifically limits the risk of the project is the husband variability of revenues as a result of
variations in cash flow over the life of the investment and k concerned. This variation is closely
related to the inaccuracy in taking forecasts regarding, for example, future technological
advancements in absorption over the product, the quantity of materials and equipment needed.
Kind of project risks can be grouped into two:
- The risk of a single project
- The risk of a combination of multi-project
Risk management is an organization that identifies and measures the risk and development,
selection and election activities in dealing with risk.
Risk management is to Section / integral of an AK project that has been set, but it is one aspect
of The technical program management.
According to the Project Management Body of Knowledge (PMBOK) there are three definitions
of risk management:
- Risk management is a formal process by a system of risk factor identification, assessment and
determination.
- Risk management is a formal systematic method of management which concentrates on the
identification of and control or activities that have the potential to cause change.
- Risk management in the context of the project is the art and science knowledge to identify and
respond to risk factors as a whole life of a project.
Examples of making a product, or geographic relationships smoothness associated with the
transport network. Many projects and many participants in a project requires certainty of funding
or financial support from the business only. The delay resulted in a project restored the ability to
cause problems for the lending and financial agent, who had previously helped finance.
Architect / Civil contracted to prepare detailed plans and projects, there may encounter conflicts
or priorities change / user and require the cause of the problems in the implementation of the
project will "price" that has been agreed
In fact Architect / Civil can needs of scope / quality and cost the owner desired. Risk on each
participation and scope or impact on their business loan interest them, but also borrowing
another project into a single unit.
Problems that occur in materials due transition can impact not only to the contractor who
installed the material. Perhaps, but also the contractor on the job continued. Their work may not
be implemented more slowly than the anticipation of time with conditions that result in the level
of low productivity. A direct efforts of the seller / sales in developing countries, which produce
materials of materials or equipment for a project that will delay the project work as a whole, the
impact on the other two parties involved. So the risk is very real, and his being part of a project
that requires attention and management.
Very important risk management strategy are set at the beginning of the project and is aimed at
the entire risk of the project life cycle is continuous. Risk management includes several out
activities.
- Estimating the risk
- Analyze risks
- Dealing with risk
- Learning from experience

estimating Risk
Experience shows that
many risks to achieving the goal of a project happening at the same spot a problem occurs
between the meeting including: the physical part of the project: the relationship between the
components of the structure on the interior wall, coordinating with the electrical part of the
plumbing system, found tolerance to make a door or window window when the wall was a
perfect construct.
Part of the Contract: The meeting between the contract and the contract as co-ordinating
responsibility for the same job by different sub-contractors, with a note that was different wills of
a contract. The conflict between the standard contract terms and conditions of the general or
special contract.
Part Participants: The meeting between several parties, such as requests from different financial
agencies for different parts of the same project, the desired time to decide between job the scope
of work of the different parties, the coordination of the activities of consultants de- sign.
Expert Part: Meeting between multiple vendors or employees in deciding work of art. Part
Documentation: Meeting between plans and details, such as demands for civil foundation
drawings, which do not confirm with the placement of the electrical and the mechanical or
structural components Participants Multinational: cultural encounters between different
participants work on projects nal different cultural backgrounds with the differences in
management, administration, and ways of doing business, including the foundation's Experience,
practice and the commercial sector in the management approach supervision of art or source
material used.
example:
Identification of risk were noted at the beginning of the project
- Aims and Methods of Construction
- Design-need permanent job
- Adequacy of Design-employment incidence dentil
- Construction-Design documents
- Data Development and Climate Science Science Hiro
- River Watershed Management
- Identification of the material side of a large amount
- The management issue that developed during the project period con- struction.
- In addition, the key pan like particle involved with a practice should identify a risk.
Parties involved / participants and project
- General Contractor
- Civil
- Government Agencies
- Transportation
- Water / Electricity

- Environmental Protection
- The neighborhood surrounding communities
- Sub Contractor
- Blasting

First on the list is known, potential or emerging risks has been unknown, and should be evaluated
to be established where the type of impact that would occur if a symptom occurs on the project
risk.
The data source is the type of information that can generally be used to control the project
reports and reporting

example:
Impact may be a risk of emergence of Issues
- Supervision of more than one party
- Increased Critical delay of a job
- Experts who used her schedule increase plan
- Inability to cope with dentil work incidence Flow river floods.
- The quantity of work increased under / behind the plan
- The pattern of re-work order
- Delay bill on permanent employment documents Design
- Rising demand information from the field project
- The slow process of billing or payment delays

Risk analysis
The purpose of risk analysis for his
reduce the risk that actions performed on the repair of a project, scheduling, budget, price rises /
quality of the project. Reduction risk analysis requires the reservation for deciding influence over
the project will. The influence of risk = likelihood x due to risk of risk.
The identification of project risks is just a sign of the fruit to a potential or real risk of risk
apparent that the project objectives will not be achieved. Then the difficulties that arise
depending on the tool, as a manager or consultant who first considered risk management must
have a relationship with the related parties and as there is in the contract documents. A repetition
and visit periodically over the understanding of the working relationship is very helpful. Such
repetition if not immediately is not happen, it can cause risks to each party or a group on an
understanding of the responsibility. More focused and balanced approach with regard to this risk
is allocated form if possible. For example, the sequence of work, repetition, and the use of
detailed design queues as well as for construction drawings are distinguished depending on the
work that has relationships. Details blasting to move to an old building structure requires, Uncle
safety, environmental and other government agencies. The final picture wills not tilt the
elementary obtained as well as the requirement that participant' relationships and responsibilities
and the sequence repetition will be different on the two image construction. That no agreement
wills punctuality is one of risk management which led to delays in a project of a series of
activities that have been sequenced, as a manager it is a decision that should be taken step-by-
step completion of work in accordance with a list of jobs that have been sorted.
Defining a project risk can be withdrawn before it is decided to be a failure, when the risk is
expressed generally as a potential project and the desired quality within budget cost plan and
schedule. Potential risks may be mentioned the following numbers: high risk to zero, the average
no.2, no.3 low, then in table 2 project participants and responsibilities of each project can be
with numbers as follows: The main responsibility of no.1, second No. 2, do not have no. 3 For a
specific project risk when multiplied by the value of the potential risk and responsibility of the
outcome 1 and 2 shown in Figure 1. More detailed repetition in the project contract is right or
profession in a profit-sharing contract. The equation on project risks that arise are listed in Table
3 a second matrix can be determined. Figure 2 shows the potential issues or problems that have
occurred and repetition project control reports that can happen. The problem can be sorted based
on the potential risk that happening. For example, a value for the most likely case, a value of 2 if
it is less the case and the value of 3 is not likely to happen. Same as above on the potential
impact of a project or project participants responsibility can be withdrawn or sorted for example,
a value of 1 if the striking impact, if the average 2 and 3 if small. As in Figure 1 when the two
values was multiplied result is one or 2 is the area of a project that requires attention and
evaluation of the risk manager.

The possibility of the occurrence of natural resources

- War embargo
- Blasting import restrictions
- Restrictions port
- Lack of future transportation and mass communication
- Operations of war
- Announced the hindrance for executing the work
- Not announced job

- Attack on industrial issues

- Breaking deed restriction or covenant overseas supply weapons fraud.
- Civil War
- Rebellion of infectious diseases
- Revolution quarantine
- Rebellion Consider natural occurrences plague many draft contracts tend to give priority to
civil and structural elements of a project such as the type of soil, concrete and steel elements
none of the events have a major impact for the job risk ME and also to work instrument and
controls.
Type and towing the impact of natural disasters
- Type interesting area impact
- Delays in the implementation of small / no, average and large
- Increasing direct costs on the contract, the same average and large
- Increase the time and costs:
small, average and large
- Decrease in Usage
- Ability or execution: a small or none, some, very prominent
The draft of the project agreement must state regulations and allocation of risk on each project
participant. To build a useful rule in the project must be detailed and defined.
Draft participants on power projects. To create a draft cooperation agreement with regard or
natural disasters in the list of the main participants in a general rule or is responsible in the
project.
example:
Rules and project participants
- Participants; general project
- Local governments; government functions

- Benefits; owners and implementers

- The consortium of banks; financial agent
- Engineer; representing the project will benefit
- Design and build
- Consortium shape design
- National contractors manager
Contractors and site
- Seller major European equipment
Supplier of equipment
- Engineer the design details and conditions
- Implementation of the method of local contractors, suppliers of materials, transportation.

Information obtained on several projects can be used to analyze the occurrence of natural
disasters and issues that occur directly in the contract and cooperation treaty between the
consortium and benefits.

example:
List of Risks During Decision Pro-yek Lasts
- Project Risk
- Previously found no hazardous materials
- Access Location / achievement
- Changes in Design Work
Permanently
- Design Work Incidental
- Sequence of work
- Flood control and river flow

handling Risk
There are a number of management activities
specific that can be done to assist management when evaluating the risk of the current project
had decided on the field. These activities are:
- When carrying a completion issues must be made or done, risk management is often called on
all parties to consider the initial BIH arm, then lower the potential of impact and generally can
reduce the cost of particle.

- Note the beginning of the restrictions of the harbor can be a clue be a problem in the transport
vessel, using a ship get lowering costs when there is an increase in the cost of handling at the
port can result in a decrease in the cost for installation of steel, the contractor steel mounting use
the method of installation plans when they are often will Installation method when their plans are
often spent. The owner can eliminate or lower the claim on conditions that are not mentioned or
considered as a natural disaster. Financial agents would continue to earn revenues to return
- The balance of the contract administration role is to obtain balance looking for a way out.
- choose employees as a form of development is the case facts and solutions on actual cases and
responsibilities that can be on an agreement.
- When the contract for the amount or volume wholesale prices bookkeeping wisdom be
conducive to lower the risk of achieving a project goal.
- The use of a data base system and the general schedule and schedule tabulation of the sources
of the material can be used to determine a schedule fruit
- Always try to look for PE settlement of the issue of the risk and impact of the pattern and the
model on which most management downstairs.
- Using a risk-management approach is very effective in use in the field.

Not all risks can be identified or be managed to a minimum or eliminate its impact. Studying the
process work more effectively. Phase determination in all section is to indicate the actual risk of
the project. Participant management and overall project management should give priority to the
goals and approaches to handle the risk it creates.
- Various thoughts to resolving the most minimal impact
- Contract administration balanced (mutually beneficial) are the main objectives for the
participants' (the parties involved)

- Completion of project risks early on, based on the existing problems and issues management
can determine the productivity and costs.
- Using ADR techniques (alter- native Dispute Resolution) with a view to lowering the
environmental contention and strife to create benefits for all parties.

REFERENCES

Imam Suharto, 1997, Management

Project. Erland, Jakarta.
Kazner Harold, 1995, Project Management, New York, fith edition, VNR
Kris R. Nielsen, 1994, Force Majeure,
ACI, Singapore