Definition of Risk Assessment in Project Management

Risk assessment has become an essential ground to consider in all aspects of life more especially when undertaking project activities. Firstly, risk management or assessment may primarily be understood as the systematic and logical process through which the possible risks that may accrue during the project execution are examined, analysed and evaluated to provide possible remedies of controlling or reducing the level of impact of the risks into the prevalent project. Risk assessment engages the planning of risk responses and most appropriate remedies. According to recommendations by different researchers, project successes are directly correlated to the level of efficiency and effectiveness of the risk planning team. In other words, for effective and successful project execution, there must be well and systematic assessment of the likely risks which consequently permits the mitigation process. In usual cases, the risk mitigation may involve risk transfer, risk avoidance, and risk reduction (Hwang Zhao and Toh, 2014, p. 124)

Looking at the engineering sector, there are series of activities involved which requires a critical review and assessment of the risk, else it endangers the lives of the employees, wastage of resources, increased expenses and generally ineffectiveness of the project being undertaken.

• The roles of risk assessment in achieving better outcomes in engineering related projects.

As noted there are a series of advantages/ importance of conducting risk assessment in engineering related projects as put forth by various researchers. This can be evidenced as explained subsequently;

A research study conducted by Kaiser, Arbi. and Ahlemann (2015) indicated that risk assessment helps in understanding the project deeply which in turn provides allowances of creating more robustise and adoptive plans for the project. Project assessment is important when conducting a feasibility study. In addition, sanctions also require risk assessment to help in the possible adjustments that may arise as a result of client complain (Serpella et al. p.662)

Risk assessment also helps in efficient allocation of available resources. With the help of risk assessment for example, extra resources can be dedicated to particular subproject if the risk is uncontrollable or unavoidable. On assumption that the extra resources were not assigned, it would imply starkness of the project at a certain time due to the unassessed risk. This consequently relates to the time and costs to be evaluated in the project (Serpella et al. p.662)

• Processes to incorporate during risk assessment in order to attain better results

As noted in the definition of risk assessment in the introductuctory section, process of risk assessments involves the systematic and logical flow of activities, one after the other. It is however important to note that there is no one direct and correct way/ process of drawing a risk assessment process due to the fact that different scholars and project managers have recommended various methodologies basing on the type of project, size and sensitivity. Nonetheless, the following general process may be applied in risk assessment;

1. a) Making of assumption;

Advantages of Conducting Risk Assessment in Engineering Projects

 it is important to keep in mind that risk assessments are undertaken “today in order to be executed tomorrow”. This implies that anticipations have to be drawn in order to predict what will happen in the near future as a result of executing the proposed project. It is on the anticipations or rather the assumptions that are based on, to determine the potential risks and consequently the assessments are based on the established and designed assumptions (Serpella et al. p.662). For example, work in the construction industry is most likely to be affected by accidents, sicknesses, weather, resource limitations, legal limitations, and financial limitations among others.

1. b) Formulation of the project constraints;

 the project constraints refer to the limitations imposed on the project by the project stakeholders more especially the project managers as directed by the clients or project owner. The main project constraints include but not limited to; the available time of execution, the proposed budget, quality output, market analysis and analysis of the trending in regard to the project field. It is of very high relevance to relate the project assumptions to the project constraints. This is because they move hand in hand with each other.

1. c) Risk identification;

this is the very first step to undertake when starting a risk assessment process after the assumptions and constraints since it happens before the whole project begins. Before the identification, a plan is supposed to be drawn that highlights a risk management/ assessment plan and must clearly show the way in which the assessment will be done. Basing on the assumption and constraints in the earlier stage, the likely risks are then identified (Hornstei 2015, p.298)

1. d) risk assessment;

after the possible risks have been identified in regard to the established assumptions and constraints, an analysis then conducted. The analysis involves the ways in which the risk will be responded to, basing on is expected impact or influence in the project to be undertaken. (Aven 2016, p. 13)

• Assessment tools and techniques;

Tools and techniques are essential parts for successful project management. These tools are what make managing projects more effective and easier. Tools and techniques are meant to imply the apparatuses and the methods employed when conducting a risk assessment. Based on today’s trend of technology, there is continuous adoption and integration of new techniques as well as new tools. The numerous method of risk assessments may include

quantitative risk assessments; which involve the manipulation and quantification of numerical figures and calculation to anticipate the future of the project. The qualitative risk assessments; this deals with descriptive assessment of the project resources. In other words, it does not require the computation and manipulation of figure. mixed assessments techniques; this assessment techniques involves the use of both qualitative and quantitative methods of analysis. This method can be taken to be the most applicable and appropriate for different project. It is however, important to note that the assessments method chosen is determined by the project type. Looking at the tools of project assessments, there has been relevant significance in relation to the field. This has helped in the use of computer hardware among others. The most common is the combination of factors at different levels of influence in various stages of the cycle of a project. Project behaviour arises from systematic interrelation of certain factors. These interactions seem very important as every single factor stands on its own (Kaiser Arbi and Ahlemann, 2015, p.139)

General Process of Conducting Risk Assessment

in project management, project managers software and various aspects of project management carry their own essential toolbox which contains the necessary apparatuses which helps the project save time and costs. The management software possesses tools and techniques utilised to optimize the running of any project. There are various management techniques which can be utilized to improve and optimize efficiency of project processes (de et al. 2015, p. 1522). The most basic tool is the Gantt chart. It’s a chart devised and designed to plan the sequence of activities of the project on its way to completion which determines its time lag and required resources. According to this technique the optimized work path is calculated automatically for the project plan based on task dependencies, durations, dates and milestones. In case of any changes and something is introduced, the chat will automatically update itself (Takey. and de 2015, p.796)

• stakeholders to be engaged

from the definition of stakeholders, refers to the people who may directly or indirectly be affected by the execution of a project. Additionally, an individual or a group of people who may have an impact in the project. Keeping in mind that we are holding an engineering project management, the involved stakeholders include but not limited to;

• the project owners/ client and their interest is final project outcome
• employees of the construction, their interest is getting wage/ salary for the job delivered
• the contractor, the interest is handing over a complete successful project to the project owner
• the project managers, interest is overseeing the operations of the project (monitoring)
• and the community

• risk communication strategy

it is important to note that there is no unified communication plan/ strategy. However, there are general applications and may vary from project to project depending on the size of project, the types of stakeholders involved, the available resources among others. It is through effective communication that identified issues arising with thin the project can be addressed.

1. defining the objectives of the communication plan
2. identifying the inter and external stakeholders including responsibility and interest

the internal stakeholders are those that have direct influence into the projects operation and may also be directly affected by the project failure or success

The internal stakeholders	Information to be communicated	The method of communication	Timeframe/ timeline
Project sponsor	Seeking feedback regarding project progress and reporting the constraints/ challenges	Face to face and phone calling	Timely communication throughout project execution
Project contractor	Reviewing and supervising all activities	Face to face and phone calls	Before kickstart and timely meeting
Project manager	Supervising and managing all project activities	Face to face and, texting, calling and emailing	Throughout the project execution
Project employees	Assigning responsibility and reporting to the manager	Texting, face t face, phone calls and emailing	Before the project commences and throughout the project
The community	The importance of the project (seeking community consent)	Face to face to address them	Before the project commences

References

Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), pp.1-13.

de Carvalho, M.M., Patah, L.A. and de Souza Bido, D., 2015. Project management and its effects on project success: Cross-country and cross-industry comparisons. International Journal of Project Management, 33(7), pp.1509-1522.

Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), pp.291-298.

Hwang, B.G., Zhao, X. and Toh, L.P., 2014. Risk management in small construction projects in Singapore: Status, barriers and impact. International Journal of Project Management, 32(1), pp.116-124.

Kaiser, M.G., El Arbi, F. and Ahlemann, F., 2015. Successful project portfolio management beyond project selection techniques: Understanding the role of structural alignment. International Journal of Project Management, 33(1), pp.126-139.

Serpella, A.F., Ferrada, X., Howard, R. and Rubio, L., 2014. Risk management in construction projects: a knowledge-based approach. Procedia-Social and Behavioral Sciences, 119, pp.653-662.

Takey, S.M. and de Carvalho, M.M., 2015. Competency mapping in project management: An action research study in an engineering company. International Journal of Project Management, 33(4), pp.784-796.