Risk Identification Process - Revision history

Tkokotas at 19:26, 20 November 2018

2018-11-20T19:26:16Z

← Older revision		Revision as of 19:26, 20 November 2018
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			''Developed by Karlotta Thorhallsdóttir''


	Risk identification involves identifying and classifying sources of a risk to realize what must be managed in a construction project. Risk identification is the first step in [[Risk management process]], as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is also one of the less defined, and often a neglected element.		Risk identification involves identifying and classifying sources of a risk to realize what must be managed in a construction project. Risk identification is the first step in [[Risk management process]], as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is also one of the less defined, and often a neglected element.
	There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. Information gathering is the most common method of identifying risk sources. It involves brainstorming sessions to obtain a comprehensive list of possible risks. It relies on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties. Developing risk checklist, based on historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions. It is also possible to use cause and effect diagrams, flow charts and influence diagrams. These methods for identifying risk sources, are profoundly important for the overall [[Risk assessment]] of project and thus contribution to the success of the project.		There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. Information gathering is the most common method of identifying risk sources. It involves brainstorming sessions to obtain a comprehensive list of possible risks. It relies on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties. Developing risk checklist, based on historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions. It is also possible to use cause and effect diagrams, flow charts and influence diagrams. These methods for identifying risk sources, are profoundly important for the overall [[Risk assessment]] of project and thus contribution to the success of the project.

S162285 at 21:18, 21 June 2017

2017-06-21T21:18:29Z

← Older revision		Revision as of 21:18, 21 June 2017
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	Risk identification involves identifying and classifying sources of a risk to realize what must be managed in a construction project. Risk identification is the first step in [[Risk management process]], as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is also one of the less defined, and often neglected element.		Risk identification involves identifying and classifying sources of a risk to realize what must be managed in a construction project. Risk identification is the first step in [[Risk management process]], as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is also one of the less defined, and often a neglected element.
	There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. Information gathering is the most common method of identifying risk sources ~~and~~ involves brainstorming sessions to obtain a comprehensive list of possible risks. It relies on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties. Developing risk checklist based on historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions. It is also possible to use cause and effect diagrams, flow charts and influence diagrams. These methods for identifying risk sources, are profoundly important for the overall [[Risk assessment]] of project and thus contribution to the success of the project.		There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. Information gathering is the most common method of identifying risk sources. It involves brainstorming sessions to obtain a comprehensive list of possible risks. It relies on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties. Developing risk checklist, based on historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions. It is also possible to use cause and effect diagrams, flow charts and influence diagrams. These methods for identifying risk sources, are profoundly important for the overall [[Risk assessment]] of project and thus contribution to the success of the project.


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	= Risk Identification Process =		= Risk Identification Process =
	[[File:RIP.png\|300px\|thumb\|right\|Risk Identification Process as defined by PMI <ref name=" PMI " />]]		[[File:RIP.png\|300px\|thumb\|right\|Risk Identification Process as defined by PMI <ref name=" PMI " />]]
	Risk identification is the first step in the risk management process and is often defined as the most important aspect <ref name=" winch " /> as ~~it is not possible to deal~~ with ~~risks that have not been identified~~ <ref name=" martin " /> and the effectiveness of risk management is dependent on correct risk identification <ref name=" banaitiene " />. The main aspect of risk identification is identifying possible risk sources, underlying condition, that can generate a risk event and impact the success rate of a construction project. It relies mostly on utilizing experience form past projects. Although risk identification is the first step in the risk management process, it must also be carried out consistent with the project process as over the project life-cycle as further risks might emerge <ref name=" martin " /> .		Risk identification is the first step in the risk management process and is often defined as the most important aspect <ref name=" winch " /> as an unidentified risk cannot be dealt with <ref name=" martin " /> and the effectiveness of risk management is dependent on correct risk identification <ref name=" banaitiene " />. The main aspect of risk identification is identifying possible risk sources, underlying condition that can generate a risk event and impact the success rate of a construction project. It relies mostly on utilizing experience form past projects. Although risk identification is the first step in the risk management process, it must also be carried out consistent with the project process as over the project life-cycle as further risks might emerge <ref name=" martin " /> .
	There are several risk identification processes available, the process defined by the Project Management Institute (PMI) will be discussed in detailed. PMI have developed a widely accepted standard in project management, the PMBOK ® Guide, in which risk identification process, with a three-step data flow <ref name=" PMI " />, is defined. Inputs are information used for the risk identification and the risk register is the product of risk identification.		There are several risk identification processes available, the process defined by the Project Management Institute (PMI) will be discussed in detailed. PMI have developed a widely accepted standard in project management, the PMBOK ® Guide, in which risk identification process, with a three-step data flow <ref name=" PMI " />, is defined. Inputs are information used for the risk identification and the risk register is the product of risk identification.


	== Inputs ==		== Inputs ==
	Inputs to the risk identification process are project information, plans and documentations which are used to realize possible risk sources and ensure are more accurate risk identification process. These inputs (see figure below) consist of plans estimations and assumptions, criteria ~~and~~ requirements, and uncontrollable conditions (i.e environmental conditions) which are sources of risk and uncertainty in construction projects <ref name=" PMI " />.		Inputs to the risk identification process are project information, plans and documentations which are used to realize possible risk sources and ensure are more accurate risk identification process. These inputs (see figure below) consist of plans estimations and assumptions, criteria, requirements, and uncontrollable conditions (i.e environmental conditions) which are sources of risk and uncertainty in construction projects <ref name=" PMI " />.
	[[File:Inputs.PNG\|550px\|thumb\|center\|Inputs to the risk identification and the description of their contents. The table was generated using the content form (PMI, 2013)]]		[[File:Inputs.PNG\|550px\|thumb\|center\|Inputs to the risk identification and the description of their contents. The table was generated using the content form (PMI, 2013)]]

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	==== Brainstorming ====		==== Brainstorming ====
	Brainstorming as a method of identifying ~~risk~~ in a project, is one of the oldest and most commonly used technique <ref name=" baumann " />. It involves a small group of relevant parties, such as the project team, stakeholders and independent experts who ~~generate ideas, in~~ a short period, under the leadership of a facilitator <ref name=" PMI " />. These ideas generated are possible project risks. The time frame is limited to increase productivity during the meetings and uphold concentration <ref name=" baumann " />.		Brainstorming as a method of identifying risks in a project. It is one of the oldest and most commonly used technique <ref name=" baumann " />. The method involves a small group of relevant parties, such as the project team, stakeholders and independent experts who under a short period, generate ideas, under the leadership of a facilitator <ref name=" PMI " />. These ideas generated are possible project risks. The time frame is limited to increase productivity during the meetings and uphold concentration <ref name=" baumann " />.
	Brainstorming has its limitations which effect the applicability of the method. Team members who are directly involved in the project are often chosen for the sessions, as it is more convenient or suitable for organizations. Nevertheless, this direction prevents proposed risks sources from different perspectives and thus, less diverse results. The time pressure set on the brainstorming sessions can hinder creativity as the time for adjusting to the change in working is limited but on the other hand longer time periods lead to less productivity. Also, this new way of working might not suit everyone. It might inhibit their creative thinking or due to the social aspect of it so they might not express their ideas and opinions. Judgment of proposals in the early stage of the process can discourage members from presenting their ideas. Lastly, the facilitator can influence the discussion in a preferable direction and thus, respectively influence the results <ref name=" baumann " />.		Brainstorming has its limitations which effect the applicability of the method. Team members who are directly involved in the project are often chosen for the sessions, as it is more convenient or suitable for organizations. Nevertheless, this direction prevents proposed risks sources from different perspectives and thus, less diverse results. The time pressure set on the brainstorming sessions can hinder creativity as the time for adjusting to the change in working is limited but on the other hand longer time periods lead to less productivity. Also, this new way of working might not suit everyone. It might inhibit their creative thinking or due to the social aspect of it so they might not express their ideas and opinions. Judgment of proposals in the early stage of the process can discourage members from presenting their ideas. Lastly, the facilitator can influence the discussion in a preferable direction and thus, respectively influence the results <ref name=" baumann " />.

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	==== Delphi technique ====		==== Delphi technique ====
	[[The Delphi Technique in Project Management]] involves a panel of project risk experts who offer their expert opinion to identify project risk in a faster and more reliable manner without influences <ref name=" baumann " />. The experts answer questioners anonymously provided by a facilitator. The experts’ responses are summarized and recirculated for further comment until a consensus is reached <ref name=" PMI " />.		[[The Delphi Technique in Project Management]] involves a panel of project risk experts, who offer their expert opinion to identify project risk in a faster and more reliable manner without influences <ref name=" baumann " />. The experts answer questioners anonymously provided by a facilitator. The experts’ responses are summarized and recirculated for further comment until a consensus is reached <ref name=" PMI " />.
	There are some limitations to the method. The interpretation of the results from the questioners and the classification of the risks developed can be challenging, as objectivity and bias thinking must be adapted to achieve a realistic view.		There are some limitations to the method. The interpretation of the results from the questioners and the classification of the risks developed can be challenging, as objectivity and bias thinking must be adapted to achieve a realistic view.

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	== Risk Register ==		== Risk Register ==
	The [[Risk register]] is a document containing all the results from the elements of the risk managements process. The main product of the risk identification is the initial recording in the risk register. Over time, as more results from the risk management process are recorded, the type and level of information contained in the registry increases. The information from the risk identification process registered in the risk register are of two types; identified risk and potential responses. The risk identified must described in a detailed and sensible manner. During risk identification, the cause of ~~the~~ risks might be identified, in that case, they should be recorder so that they may be used for future reference. During the risk identification process, the potential response may be identified, if so, they should be used as inputs for the risk response planning <ref name=" PMI " />.		The [[Risk register]] is a document containing all the results from the elements of the risk managements process. The main product of the risk identification is the initial recording in the risk register. Over time, as more results from the risk management process are recorded, the type and level of information contained in the registry increases. The information from the risk identification process registered in the risk register are of two types; identified risk and potential responses. The risk identified must described in a detailed and sensible manner. During risk identification, the cause of risks might be identified, in that case, they should be recorder so that they may be used for future reference. During the risk identification process, the potential response may be identified, if so, they should be used as inputs for the risk response planning <ref name=" PMI " />.


	= Limitation =		= Limitation =
	Although risk identification is considered a vital part in risk management, the process is still relatively less understood ~~then~~ other elements in risk management and the techniques are less developed. As mentioned before, the most commonly used risk identification methods are checklists, brainstorming, interviewing and SWOT analysis. The other techniques are rarely used as many have doubts and lack knowledge about their applicability <ref name=" Winch2" />. Numerous of these methods rely heavily on historical data, which might not cover all potential risks as each project is unique and consequently has its own specific project related risks that need to be identified and managed <ref name=" Winch2" />. Risk identification needs to be constant over the project life-cycle as new risks may become apparent with the increased level of information. However, even if risk identification has been performed throughout a project life-cycle, there is always a possibility that some risks are overlooked <ref name="chapman"/>.		Although risk identification is considered a vital part in risk management, the process is still relatively less understood than other elements in risk management and the techniques are less developed. As mentioned before, the most commonly used risk identification methods are checklists, brainstorming, interviewing and SWOT analysis. The other techniques are rarely used as many have doubts and lack knowledge about their applicability <ref name=" Winch2" />. Numerous of these methods rely heavily on historical data, which might not cover all potential risks as each project is unique and consequently has its own specific project related risks that need to be identified and managed <ref name=" Winch2" />. Risk identification needs to be constant over the project life-cycle as new risks may become apparent with the increased level of information. However, even if risk identification has been performed throughout a project life-cycle, there is always a possibility that some risks are overlooked <ref name="chapman"/>.
	The inaccuracy of the methods used is due to many various aspects, most of them related to the human activities. The choice of the members of the risk identification teams are of great importance. The lack of experts with varying perspectives could lead to an inaccurate choice of critical risk sources as their opinions are rarely questioned. Consequently, the selection of experts effects the results of the method and can thus be influenced. Despite the importance of the competence and skills of the chosen members, the individuals are working collaboratively and thus, compatibility is important to ensure results of high quality. To control the team effectiveness, individual characteristics can be asses with the [[Myers-Briggs Type Indicator]] in order to evaluate and balance the team’s behavior <ref name="chapman"/>. When interpreting results from interviewing, it’s important to remain objective and bias.		The inaccuracy of the methods used is due to many various aspects, most of them related to the human activities. The choice of the members of the risk identification teams are therefore, of great importance. The lack of experts with varying perspectives could lead to an inaccurate choice of critical risk sources as their opinions are rarely questioned. Consequently, the selection of experts effects the results of the method and can thus be influenced. Despite the importance of the competence and skills of the chosen members, the individuals are working collaboratively and thus, compatibility is important to ensure results of high quality. To control the team effectiveness, individual characteristics can be asses with the [[Myers-Briggs Type Indicator]] in order to evaluate and balance the team’s behavior <ref name="chapman"/>. When interpreting results from interviewing, it’s important to remain objective and bias.

S162285 at 21:06, 21 June 2017

2017-06-21T21:06:50Z

← Older revision		Revision as of 21:06, 21 June 2017
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	Risk identification involves identifying and classifying sources of a risk to realize what must be managed in a construction project. Risk identification is the first step in [[Risk management process]], as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is also one of the less defined, and often neglected element.		Risk identification involves identifying and classifying sources of a risk to realize what must be managed in a construction project. Risk identification is the first step in [[Risk management process]], as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is also one of the less defined, and often neglected element.
	There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. Information gathering is the most common method of identifying risk sources and involves brainstorming sessions to obtain a comprehensive list of possible risks. It relies on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties~~, developing~~ risk checklist based on historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions ~~and using~~ cause and effect diagrams~~. These are diagrams which show how various elements of a system interrelate and the mechanism of causation and graphical representations showing causal influences, time ordering of events~~, and ~~other relationships among variables and outcomes~~. These methods for identifying risk sources, are profoundly important for the overall [[Risk assessment]] of project and thus contribution to the success of the project.		There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. Information gathering is the most common method of identifying risk sources and involves brainstorming sessions to obtain a comprehensive list of possible risks. It relies on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties. Developing risk checklist based on historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions. It is also possible to use cause and effect diagrams, flow charts and influence diagrams. These methods for identifying risk sources, are profoundly important for the overall [[Risk assessment]] of project and thus contribution to the success of the project.

S162285 at 19:19, 21 June 2017

2017-06-21T19:19:36Z

← Older revision		Revision as of 19:19, 21 June 2017
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	= Limitation =		= Limitation =
	Although risk identification is considered a vital part in risk management, the process is still relatively less understood then other elements in risk management and the techniques are less developed. As mentioned before, the most commonly used risk identification methods are checklists, brainstorming, interviewing and SWOT analysis. The other techniques are rarely used as many have doubts and lack knowledge about their applicability <ref name=" Winch2" />. Numerous of these methods rely heavily on historical data, which might not cover all potential risks as each project is unique and consequently has its own specific project related risks that need to be identified and managed <ref name=" Winch2" />. Risk identification needs to be constant over the project life-cycle as new risks may become apparent with the increased level of information. However, even if risk identification has been performed throughout a project life-cycle, there is always a possibility that some risks are overlooked <ref name="chapman"/>.		Although risk identification is considered a vital part in risk management, the process is still relatively less understood then other elements in risk management and the techniques are less developed. As mentioned before, the most commonly used risk identification methods are checklists, brainstorming, interviewing and SWOT analysis. The other techniques are rarely used as many have doubts and lack knowledge about their applicability <ref name=" Winch2" />. Numerous of these methods rely heavily on historical data, which might not cover all potential risks as each project is unique and consequently has its own specific project related risks that need to be identified and managed <ref name=" Winch2" />. Risk identification needs to be constant over the project life-cycle as new risks may become apparent with the increased level of information. However, even if risk identification has been performed throughout a project life-cycle, there is always a possibility that some risks are overlooked <ref name="chapman"/>.
	The inaccuracy of the methods used is due to many various aspects, most of them related to the human activities. The choice of the members of the risk identification teams are of great importance. The lack of experts with varying perspectives could lead to an inaccurate choice of critical risk sources as their opinions are rarely questioned. Consequently, the selection of experts effects the results of the method and can thus be influenced. Despite the importance of the competence and skills of the chosen members, the individuals are working collaboratively and thus, compatibility is important to ensure results of high quality. To control the team effectiveness, individual characteristics can be asses with the Myers-Briggs Type Indicator in order to evaluate and balance the team’s behavior <ref name="chapman"/>. When interpreting results from interviewing, it’s important to remain objective and bias.		The inaccuracy of the methods used is due to many various aspects, most of them related to the human activities. The choice of the members of the risk identification teams are of great importance. The lack of experts with varying perspectives could lead to an inaccurate choice of critical risk sources as their opinions are rarely questioned. Consequently, the selection of experts effects the results of the method and can thus be influenced. Despite the importance of the competence and skills of the chosen members, the individuals are working collaboratively and thus, compatibility is important to ensure results of high quality. To control the team effectiveness, individual characteristics can be asses with the [[Myers-Briggs Type Indicator]] in order to evaluate and balance the team’s behavior <ref name="chapman"/>. When interpreting results from interviewing, it’s important to remain objective and bias.

S162285 at 18:56, 21 June 2017

2017-06-21T18:56:15Z

← Older revision		Revision as of 18:56, 21 June 2017
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	==== Brainstorming ====		==== Brainstorming ====
	Brainstorming as a method of identifying risk in a project, is one of the oldest and most commonly used technique <ref name=" baumann " />. It involves a small group of relevant parties, such as the project team, stakeholders and independent experts who generate ideas, in a short period, under the leadership of a facilitator <ref name=" PMI " />. These ideas generated are possible project risks. The time frame is limited to increase productivity during the meetings and uphold concentration <ref name=" baumann " />.		Brainstorming as a method of identifying risk in a project, is one of the oldest and most commonly used technique <ref name=" baumann " />. It involves a small group of relevant parties, such as the project team, stakeholders and independent experts who generate ideas, in a short period, under the leadership of a facilitator <ref name=" PMI " />. These ideas generated are possible project risks. The time frame is limited to increase productivity during the meetings and uphold concentration <ref name=" baumann " />.
	Brainstorming has its limitations which effect the applicability of the method. Team members who are directly involved in the project are often chosen for the sessions, as it is more convenient or suitable for organizations. Nevertheless, this direction prevents proposed risks sources from different perspectives and thus, less diverse results. The time pressure set on the brainstorming sessions can hinder creativity as the time for adjusting to the change in working is limited but on the other hand longer time periods lead to less productivity. Also, this new way of working might not suit everyone. It might inhibit their creative thinking or due to the social aspect of it so they might not express their ideas and opinions. Judgment of proposals in the early stage of the process can discourage members from presenting their ideas. Lastly, the facilitator can influence the discussion in a preferable direction and thus, respectively influence the results.		Brainstorming has its limitations which effect the applicability of the method. Team members who are directly involved in the project are often chosen for the sessions, as it is more convenient or suitable for organizations. Nevertheless, this direction prevents proposed risks sources from different perspectives and thus, less diverse results. The time pressure set on the brainstorming sessions can hinder creativity as the time for adjusting to the change in working is limited but on the other hand longer time periods lead to less productivity. Also, this new way of working might not suit everyone. It might inhibit their creative thinking or due to the social aspect of it so they might not express their ideas and opinions. Judgment of proposals in the early stage of the process can discourage members from presenting their ideas. Lastly, the facilitator can influence the discussion in a preferable direction and thus, respectively influence the results <ref name=" baumann " />.


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	=== Diagramming Techniques ===		=== Diagramming Techniques ===
	Risk diagramming techniques are quantitative methods. PMBOK® Guide mentions three risk diagram techniques used in risk identifications, described and shown below.		Risk diagramming techniques are quantitative methods. PMBOK® Guide mentions three risk diagram techniques used in risk identifications, described and shown below.
	[[File:DT.PNG\|550px\|thumb\|center\|The three different diagram techniques ~~describes~~ in PIM and their description and example. The table was generated using the content form (PMI, 2013)]]		[[File:DT.PNG\|550px\|thumb\|center\|The three different diagram techniques described in PIM and their description and example. The table was generated using the content form (PMI, 2013)]]


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	<ref name="Winch2"> Maytorena, E., Winch, G. M. & Kiely, T. (2005). Construction risk identification. K. Kähkönen, & M. Sexton, Understanding the Construction Business and Companies in the New Millennium, pp. 304-315. </ref>		<ref name="Winch2"> Maytorena, E., Winch, G. M. & Kiely, T. (2005). Construction risk identification. K. Kähkönen, & M. Sexton, Understanding the Construction Business and Companies in the New Millennium, pp. 304-315. </ref>

	~~<ref name="baumann"> Baumann, S., Erber, I. & Gattringer, M. (2016) Selection of risk identification instruments. ACRN Oxford Journal of Finance and Risk Perspectives 5(2), pp. 27-41. </ref>~~

	<ref name="chapman"> Chapman, R. J. (1998). The effectiveness of working group risk identification and assessment techniques. International Journal of Project Management, 16(6), pp. 333-343. </ref>		<ref name="chapman"> Chapman, R. J. (1998). The effectiveness of working group risk identification and assessment techniques. International Journal of Project Management, 16(6), pp. 333-343. </ref>

	</references>		</references>

S162285 at 18:41, 21 June 2017

2017-06-21T18:41:35Z

← Older revision		Revision as of 18:41, 21 June 2017
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	== Basic Method for Identifying Risks ==		== Basic Method for Identifying Risks ==
	=== Documentation Reviews ===		=== Documentation Reviews ===
	Documentation review consists of collecting project documentations and reviewing them in a structured way, to determine the accuracy, completeness and consistency of the information. These project documentations are plans, assumptions, previous project files, agreements, etc. The purpose is to gain a scheme of possible risk sources in the project. Indicators of risk can be determined form the quality and consistency between the requirements and assumptions of the project information, inaccurate, incomplete or inconsistency project documentation.		Documentation review consists of collecting project documentations and reviewing them in a structured way, to determine the accuracy, completeness and consistency of the information. These project documentations are plans, assumptions, previous project files, agreements, etc. The purpose is to gain a scheme of possible risk sources in the project. Indicators of risk can be determined form the quality and consistency between the requirements and assumptions of the project information, inaccurate, incomplete or inconsistency project documentation <ref name=" PMI " />.

S162285 at 18:31, 21 June 2017

2017-06-21T18:31:26Z

Show changes

S162285 at 11:47, 20 June 2017

2017-06-20T11:47:09Z

← Older revision		Revision as of 11:47, 20 June 2017
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	The article published in the journal of Business Economics and Management introduces risk and risk in construction project and how to manage them. The author proposes six steps of risk management process, the first and one of the most important step being risk identification. The author discusses the benefits of adopting risk management and argues for the importance of it. The author also introduces the tasks of risk management and the risks in the personal sector. The integration of risk management in construction projects is introduced in the article and the importance of integrating the risk management task into the progress of the project life.		The article published in the journal of Business Economics and Management introduces risk and risk in construction project and how to manage them. The author proposes six steps of risk management process, the first and one of the most important step being risk identification. The author discusses the benefits of adopting risk management and argues for the importance of it. The author also introduces the tasks of risk management and the risks in the personal sector. The integration of risk management in construction projects is introduced in the article and the importance of integrating the risk management task into the progress of the project life.


	Banaitiene, N. (2012). Risk management in construction projects. In N. Banaitiene & A. Banaitis. Risk Management - Current Issues and Challenges. INTECH Open Access Publisher. Retrieved from: http://cdn.intechopen.com/pdfs/38973/InTechRisk_management_in_construction_projects.pdf

	The chapter in the book Risk Management – Current Issues and Challenges discusses risk management in a construction project and the four steps in the process defined in the standard publish by the project management institute (PMI). The first step is defined as risk identification and is considered the most important step by the authors. The chapter also introduces a few methods of risk identification in a project and discusses the importance of accurate risk identification for a project success.

S162285 at 11:46, 20 June 2017

2017-06-20T11:46:31Z

← Older revision		Revision as of 11:46, 20 June 2017
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	= Limitation =		= Limitation =
	Although risk identification is considered a vital part in risk management, the process is still relatively less understood then other elements in risk management and the techniques are less developed. As mentioned before, the most commonly used risk identification methods are checklists, brainstorming, interviewing and SWOT analysis. The other techniques are rarely used as many have doubts and lack knowledge about their applicability <ref name=" Winch2" />. Numerous of these methods rely heavily on historical data, which might not cover all potential risks as each project is unique and consequently has its own specific project related risks that need to be identified and managed <ref name=" Winch2" />. Risk identification needs to be constant over the project life-cycle as new risks may become apparent with the increased level of information. However, even if risk identification has been performed throughout a project life-cycle, there is always a possibility that some risks are overlooked <ref name="chapman"/>.		Although risk identification is considered a vital part in risk management, the process is still relatively less understood then other elements in risk management and the techniques are less developed. As mentioned before, the most commonly used risk identification methods are checklists, brainstorming, interviewing and SWOT analysis. The other techniques are rarely used as many have doubts and lack knowledge about their applicability <ref name=" Winch2" />. Numerous of these methods rely heavily on historical data, which might not cover all potential risks as each project is unique and consequently has its own specific project related risks that need to be identified and managed <ref name=" Winch2" />. Risk identification needs to be constant over the project life-cycle as new risks may become apparent with the increased level of information. However, even if risk identification has been performed throughout a project life-cycle, there is always a possibility that some risks are overlooked <ref name="chapman"/>.
	The inaccuracy of the methods used is due to many various aspects, most of them related to the human activities. The choice of the members of the risk identification teams are of great importance. The lack of experts with varying perspectives could lead to an inaccurate choice of critical risk sources as their opinions are rarely questioned. Consequently, the selection of experts effects the results of the method and can thus be influenced. Despite the importance of the competence and skills of the chosen members, the individuals are working collaboratively and thus, compatibility is important to ensure results of high quality. To control the team effectiveness, individual characteristics can be asses with the Myers-Briggs Type Indicator in order to evaluate and balance the team’s behavior <ref name="chapman"/>. When interpreting results from interviewing, it’s important to remain objective and bias.		The inaccuracy of the methods used is due to many various aspects, most of them related to the human activities. The choice of the members of the risk identification teams are of great importance. The lack of experts with varying perspectives could lead to an inaccurate choice of critical risk sources as their opinions are rarely questioned. Consequently, the selection of experts effects the results of the method and can thus be influenced. Despite the importance of the competence and skills of the chosen members, the individuals are working collaboratively and thus, compatibility is important to ensure results of high quality. To control the team effectiveness, individual characteristics can be asses with the [[Myers-Briggs Type Indicator]] in order to evaluate and balance the team’s behavior <ref name="chapman"/>. When interpreting results from interviewing, it’s important to remain objective and bias.


	The difficulty in obtaining accurate result in risk identification as well of the lack of knowledge is one of the primary reasons why risk identification is often a neglected element in risk management process. Thus, further research and development of the tools and techniques is needed as risk identification is the fundamental step in risk management which assessment, respond and control of risks are dependent on.		The difficulty in obtaining accurate result in risk identification as well of the lack of knowledge is one of the primary reasons why risk identification is often a neglected element in risk management process. Thus, further research and development of the tools and techniques is needed as risk identification is the fundamental step in risk management which assessment, respond and control of risks are dependent on.

S162285 at 11:44, 20 June 2017

2017-06-20T11:44:53Z

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