Question

Risk management is a key part of project management. List five key features of a road infrastructure risk management plan. Name three significant risks usually involved in a road project and briefly describe them. (Target length to answer this question is approximately 300 words)

Answer 1

Risk is an event of known uncertainty and it can be measured in terms of probability of occurence. In construction, risk has a wide impact on things like cost, time of completion of a project etc. Therefore it should be studied to reduce its impact. This study of risks and managing it called as Risk Mangement.

In Risk mangement there are some steps through which we can manage risks easily and hence reduce its impact. Following are the steps given:

• Identification of risk factors
• Studying the risk
• designing the solutions to tackle the risks
• Data collection & Data analysis

Now, Following are the major risks factors that involved in road constuction project:

• Delay in payments (Severity index-93%): Payment delays is one of the major risk that should be avoided, because this can cause the time delay in completion of project. What is cause is that there happens an inadequate cash flow for managing expenses in road construction especially by those contractors who are financially good by the time project started.
• Unclear project scope (Severity index-91%): An unclear project scope will also generate risks at some point in project, it can happen due to incomplete drawings or incomplete road plan which must be avoided because it will futher delays the project.
• Lack of workship and leadership quality of project manager (Severity index-88%): Project manager's leadership include ethical behavior and consistent work of integrity. And project's risks and conflicts are project manager's work to find and solving it. But if the manager is not that person who is capable then its bad for project.  
• Bribes and Politics (Severity index-69%)- Bribes and Politics leads to high cost of materials, lack of resources,limitations on material import etc. This results lead to an increase of the total project cost.
• Theft or Equipment breakdown (Severity index-71%)- The equipments are usually rented for road constructon therefore at a time there are many contractors who works in road construction so, theft is very common and also when there are many construction projects,the equipment is short on supply and not well maintained. This leads to failure of the equipment causing the project to be delayed.

other risk factors are:

• Inadequate safety precautions (Severity index-84%)
• Insuffecient quality control (Severity index-78%)
• Owner/Company Bankruptcy (Severity index-89%) etc

---

P.S> If you liked my answer then please give me an up vote. Thank you in advance.