Cognitive risk management in construction projects - Revision history

Tkokotas at 19:27, 20 November 2018

2018-11-20T19:27:28Z

← Older revision		Revision as of 19:27, 20 November 2018
Line 1:		Line 1:
			''Developed by David Baldursson''


	[[File:bli.PNG\|400px\|thumb\|right\|Use of risk management in construction projects<ref name="Martin" />]]		[[File:bli.PNG\|400px\|thumb\|right\|Use of risk management in construction projects<ref name="Martin" />]]
	Cognitive risk management in construction projects will be this article main topic. There is a difference in definition of risk and uncertainty, as uncertainty is the absence of information required to make a decision. With the cognitive approach to risks the risk management becomes three dimensional, the risk source, the risk event and the extent of how a decision maker can respond, as the probability of a future event is a property of the decision maker. As risks are from definition deviation from expected value, positive or negative. Decisions are made to eliminate risks and with sufficient knowledge of possible risks turn them into chances, thus introducing risk management. With early realization of possible risk sources it is possible to mitigate high costs that other wise can threaten the project.		Cognitive risk management in construction projects will be this article main topic. There is a difference in definition of risk and uncertainty, as uncertainty is the absence of information required to make a decision. With the cognitive approach to risks the risk management becomes three dimensional, the risk source, the risk event and the extent of how a decision maker can respond, as the probability of a future event is a property of the decision maker. As risks are from definition deviation from expected value, positive or negative. Decisions are made to eliminate risks and with sufficient knowledge of possible risks turn them into chances, thus introducing risk management. With early realization of possible risk sources it is possible to mitigate high costs that other wise can threaten the project.

S162284 at 22:33, 21 June 2017

2017-06-21T22:33:26Z

← Older revision		Revision as of 22:33, 21 June 2017
Line 3:		Line 3:
	In order to manage risk and uncertainty it is important to understand four elements of the risk management process of identifying, assess, respond and control of the risk events and their sources.		In order to manage risk and uncertainty it is important to understand four elements of the risk management process of identifying, assess, respond and control of the risk events and their sources.
	The cognitive model of risk and uncertainty on projects is introduced and the four standpoints of knowns and unknowns, assessment of the risk with the use of tools as the probability/impact matrix.		The cognitive model of risk and uncertainty on projects is introduced and the four standpoints of knowns and unknowns, assessment of the risk with the use of tools as the probability/impact matrix.
	Risks is the decisions makers perception of information, biases can cloud our judgement and it is important to understand them to make a well informed ~~decisions~~.		Risks is the decisions makers perception of information, biases can cloud our judgement and it is important to understand them to make a well informed decision.

	== Risk and uncertainty ==		== Risk and uncertainty ==

S162284 at 22:33, 21 June 2017

2017-06-21T22:33:09Z

← Older revision		Revision as of 22:33, 21 June 2017
Line 3:		Line 3:
	In order to manage risk and uncertainty it is important to understand four elements of the risk management process of identifying, assess, respond and control of the risk events and their sources.		In order to manage risk and uncertainty it is important to understand four elements of the risk management process of identifying, assess, respond and control of the risk events and their sources.
	The cognitive model of risk and uncertainty on projects is introduced and the four standpoints of knowns and unknowns, assessment of the risk with the use of tools as the probability/impact matrix.		The cognitive model of risk and uncertainty on projects is introduced and the four standpoints of knowns and unknowns, assessment of the risk with the use of tools as the probability/impact matrix.
	Risks ~~are~~ the decisions makers perception of information, biases can cloud our judgement and it is important to understand them to make a well informed decisions.		Risks is the decisions makers perception of information, biases can cloud our judgement and it is important to understand them to make a well informed decisions.

	== Risk and uncertainty ==		== Risk and uncertainty ==

S162284 at 22:32, 21 June 2017

2017-06-21T22:32:49Z

← Older revision		Revision as of 22:32, 21 June 2017
Line 3:		Line 3:
	In order to manage risk and uncertainty it is important to understand four elements of the risk management process of identifying, assess, respond and control of the risk events and their sources.		In order to manage risk and uncertainty it is important to understand four elements of the risk management process of identifying, assess, respond and control of the risk events and their sources.
	The cognitive model of risk and uncertainty on projects is introduced and the four standpoints of knowns and unknowns, assessment of the risk with the use of tools as the probability/impact matrix.		The cognitive model of risk and uncertainty on projects is introduced and the four standpoints of knowns and unknowns, assessment of the risk with the use of tools as the probability/impact matrix.
			Risks are the decisions makers perception of information, biases can cloud our judgement and it is important to understand them to make a well informed decisions.

	== Risk and uncertainty ==		== Risk and uncertainty ==

S162284 at 22:30, 21 June 2017

2017-06-21T22:30:15Z

← Older revision		Revision as of 22:30, 21 June 2017
Line 1:		Line 1:
	[[File:bli.PNG\|400px\|thumb\|right\|Use of risk management in construction projects<ref name="Martin" />]]		[[File:bli.PNG\|400px\|thumb\|right\|Use of risk management in construction projects<ref name="Martin" />]]
	Cognitive risk management in construction projects will be this article main topic. There is a difference in definition of risk and uncertainty, as uncertainty is the absence of information required to make a decision. With a cognitive approach to risks the risk management becomes three dimensional, the risk source, the risk event and the extent of how a decision maker can respond ~~to the risk source and event~~ as the probability of a future event is a property of the decision maker. As risks are from definition deviation from expected value, positive or negative. Decisions are made to eliminate risks and with sufficient knowledge of possible risks turn them into chances, thus introducing risk management.		Cognitive risk management in construction projects will be this article main topic. There is a difference in definition of risk and uncertainty, as uncertainty is the absence of information required to make a decision. With the cognitive approach to risks the risk management becomes three dimensional, the risk source, the risk event and the extent of how a decision maker can respond, as the probability of a future event is a property of the decision maker. As risks are from definition deviation from expected value, positive or negative. Decisions are made to eliminate risks and with sufficient knowledge of possible risks turn them into chances, thus introducing risk management. With early realization of possible risk sources it is possible to mitigate high costs that other wise can threaten the project.
	In order to manage risk and uncertainty it is important to understand four elements of the risk management process of identifying, assess, respond and control of the risk events and their sources.		In order to manage risk and uncertainty it is important to understand four elements of the risk management process of identifying, assess, respond and control of the risk events and their sources.
			The cognitive model of risk and uncertainty on projects is introduced and the four standpoints of knowns and unknowns, assessment of the risk with the use of tools as the probability/impact matrix.
	The cognitive model of risk and uncertainty on projects ~~will be~~ introduced and the four standpoints of knowns and unknowns~~, identifications in the modern construction industry~~, assessment of the risk with the use of tools as the probability/impact matrix ~~and with the classification of the risk source and risk event the consequences can be mitigated or avoided altogether with the proper approach to risk management in construction~~.

	== Risk and uncertainty ==		== Risk and uncertainty ==

S162284: /* Further reading */

2017-06-21T22:05:42Z

Further reading

← Older revision		Revision as of 22:05, 21 June 2017
Line 88:		Line 88:

	This text provides a balance of theory, technique and facilitation. The emphasis is on providing a practical and proven framework for risk management on real projects.		This text provides a balance of theory, technique and facilitation. The emphasis is on providing a practical and proven framework for risk management on real projects.

			* '' Chatzipanos, P. A. & Giotis, T. (2014)'' Cognitive biases as project & program complexity enhancers: the Astypalea project.

			This paper tries to illustrate the role of cognitive biases as complexity enhancers in programs and projects.

	=References=		=References=

S162284: /* References */

2017-06-21T22:05:01Z

References

← Older revision		Revision as of 22:05, 21 June 2017
Line 110:		Line 110:
	<ref name="Ehsan"> Ehsan, N., Alam, M., Mirza, E., Ishaque, A., (No year). Risk Management in construction industry. Retrieved from http://www.meeting.edu.cn/meeting/UploadPapers/1282726331593.pdf </ref>		<ref name="Ehsan"> Ehsan, N., Alam, M., Mirza, E., Ishaque, A., (No year). Risk Management in construction industry. Retrieved from http://www.meeting.edu.cn/meeting/UploadPapers/1282726331593.pdf </ref>

	<ref name="PMI3"> Chatzipanos, P. A. & Giotis, T. (2014). Cognitive biases as project & program complexity enhancers: the Astypalea project. Paper presented at PMI® Global Congress 2014—EMEA, Dubai, United Arab Emirates. Newtown Square, PA: Project Management Institute.</ref>		<ref name="PMI3"> Chatzipanos, P. A. & Giotis, T. (2014). Cognitive biases as project & program complexity enhancers: the Astypalea project. Paper presented at PMI® Global Congress 2014—EMEA, Dubai, United Arab Emirates. Newtown Square, PA: Project Management Institute. Available at http://www.pmi.org/learning/library/cognitive-biases-complexity-enhancers-projects-1454 </ref>

	<ref name="pm"> Ashari, A. (2016). Cognitive Biases in Project Management. Retrieved from https://project-management.com/cognitive-biases-in-project-management/ </ref>		<ref name="pm"> Ashari, A. (2016). Cognitive Biases in Project Management. Retrieved from https://project-management.com/cognitive-biases-in-project-management/ </ref>

S162284: /* Further reading */

2017-06-21T21:57:02Z

Further reading

← Older revision		Revision as of 21:57, 21 June 2017
Line 71:		Line 71:

	== Further reading ==		== Further reading ==
	''Winch, G.M. (2010)'' Managing Construction Projects: An Information Processing Approach, Second Edition. Oxford: Wiley-Blackwell Publishing.		* ''Winch, G.M. (2010)'' Managing Construction Projects: An Information Processing Approach, Second Edition. Oxford: Wiley-Blackwell Publishing.

	Chapter 13 handles the practice of managing risk and uncertainty in a construction project. The article is inspired and based on this chapter.		Chapter 13 handles the practice of managing risk and uncertainty in a construction project. The article is inspired and based on this chapter.

	''Vick, S. G. (2002)'' Degrees of Belief: Subjective Probability and Engineering Judgment. Reston, VA, ASCE Press.		* ''Vick, S. G. (2002)'' Degrees of Belief: Subjective Probability and Engineering Judgment. Reston, VA, ASCE Press.

	A profound and stimulating reflection on risk and uncertainty in construction projects which argues for the role of judgement rather than calculation in effective engineering.		A profound and stimulating reflection on risk and uncertainty in construction projects which argues for the role of judgement rather than calculation in effective engineering.

	''Project Management Institute (2009)'' Practice standard for project risk management. Project Management Institute, Inc.		* ''Project Management Institute (2009)'' Practice standard for project risk management. Project Management Institute, Inc.

	Project Management Institute practice standards are guides to the use of a tool, technique, or process		Project Management Institute practice standards are guides to the use of a tool, technique, or process
Line 85:		Line 85:
	other PMI standards.		other PMI standards.

	''Cretu, O., Stewart, R. and Berends, T. (2011)'' Risk Management for Design and Construction, John Wiley & Sons, Inc.		* ''Cretu, O., Stewart, R. and Berends, T. (2011)'' Risk Management for Design and Construction, John Wiley & Sons, Inc.

	This text provides a balance of theory, technique and facilitation. The emphasis is on providing a practical and proven framework for risk management on real projects.		This text provides a balance of theory, technique and facilitation. The emphasis is on providing a practical and proven framework for risk management on real projects.

S162284: /* Further reading */

2017-06-21T21:55:56Z

Further reading

← Older revision		Revision as of 21:55, 21 June 2017
Line 71:		Line 71:

	== Further reading ==		== Further reading ==
	''Winch, G.M. (2010) Managing Construction Projects: An Information Processing Approach, Second Edition. Oxford: Wiley-Blackwell Publishing.''		''Winch, G.M. (2010)'' Managing Construction Projects: An Information Processing Approach, Second Edition. Oxford: Wiley-Blackwell Publishing.

	Chapter 13 handles the practice of managing risk and uncertainty in a construction project. The article is inspired and based on this chapter.		Chapter 13 handles the practice of managing risk and uncertainty in a construction project. The article is inspired and based on this chapter.
	''Vick, S. G. (2002) Degrees of Belief: Subjective Probability and Engineering Judgment. Reston, VA, ASCE Press.''
			''Vick, S. G. (2002)'' Degrees of Belief: Subjective Probability and Engineering Judgment. Reston, VA, ASCE Press.

	A profound and stimulating ~~refl ection~~ on risk and uncertainty in construction projects which		A profound and stimulating reflection on risk and uncertainty in construction projects which argues for the role of judgement rather than calculation in effective engineering.
	argues for the role of judgement rather than calculation in effective engineering.

	''Project Management Institute (2009) Practice standard for project risk management. Project Management Institute, Inc.''		''Project Management Institute (2009)'' Practice standard for project risk management. Project Management Institute, Inc.

	Project Management Institute ~~(PMI)~~ practice standards are guides to the use of a tool, technique, or process		Project Management Institute practice standards are guides to the use of a tool, technique, or process
	~~identifi ed~~ in ~~A Guide to the~~ Project Management Body of Knowledge ( PMBOK ® Guide – Fourth Edition) or		identified in Project Management Body of Knowledge ( PMBOK ® Guide – Fourth Edition) or
	other PMI standards~~. Practice standards are targeted at audiences who participate in the management of~~		other PMI standards.
	~~projects. This includes project managers, project personnel, contract personnel, supervisors, and other project~~
	~~stakeholders.~~
	~~A PMI practice standard describes processes, activities, inputs, and outputs for a specifi c Knowledge Area.~~
	~~It provides information on what the signifi cant process, tool, or technique is, what it does, why it is signifi cant,~~
	~~when it should be performed or executed, and, if necessary for further clarifi cation, who should perform the~~
	~~process. A practice standard does not prescribe how the process is to be implemented, leaving that subject for~~
	~~other forums such as handbooks, manuals, and courses~~.

	''Cretu, O., Stewart, R. and Berends, T. (2011) Risk Management for Design and Construction, John Wiley & Sons, Inc.''		''Cretu, O., Stewart, R. and Berends, T. (2011)'' Risk Management for Design and Construction, John Wiley & Sons, Inc.

	This text provides a balance of theory, technique and facilitation. The emphasis is on providing a practical and proven framework for risk management on real projects ~~with a clear, concise description of the complex topic of risk for professionals~~		This text provides a balance of theory, technique and facilitation. The emphasis is on providing a practical and proven framework for risk management on real projects.

	=References=		=References=

S162284: /* Further reading */

2017-06-21T21:46:24Z

Further reading

@@ Line 71: / Line 71: @@
 == Further reading ==
-'''Will be included in the final article'''
+''Winch, G.M. (2010) Managing Construction Projects: An Information Processing Approach, Second Edition. Oxford: Wiley-Blackwell Publishing.''
 =References=