IS15883_Part8_Risk_Management_Visuals (1).pptx

sonukumarsingh7481 1 views 30 slides Oct 16, 2025
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About This Presentation

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Slide Content

Construction project management ▶ Construction Project Management ▶ Part 8: Risk Management ▶ IS 15883:2015

Introduction ▶ Risk management in construction ensures projects are completed on time, within budget, and as per quality standards. ▶ It identifies uncertainties and opportunities throughout the project life cycle.

Scope ▶ This standard applies from project approval to commissioning and handover. ▶ It excludes risk considerations at project formulation and appraisal stages.

Understanding Risk ▶ Risk is not only danger but also opportunity. ▶ In construction, risks can be external (weather, politics) or internal (design errors, resource shortages). ▶ Effective management turns uncertainties into manageable events.

Objectives of Risk Management ▶ 1. Identify project risks early. ▶ 2. Assess their probability and impact. ▶ 3. Develop strategies to reduce or avoid risks. ▶ 4. Ensure timely, cost- effective, and quality project delivery.

Risk Management Process ▶ Steps: ▶ 1. Risk management planning ▶ 2. Risk identification ▶ 3. Risk assessment ▶ 4. Risk response planning ▶ 5. Risk monitoring & control ▶ 6. Feedback and lessons learned. Planning Identification Assessment Response Monitoring Feedback

Pre- Construction Risks ▶ Examples: ▶ - Inadequate DPR & surveys ▶ - Delay in approvals/clearances ▶ - Incomplete drawings & documents ▶ - Unrealistic schedules ▶ - Poor technology adoption decisions.

Construction Stage Risks ▶ Examples: ▶ - Land acquisition problems ▶ - Variations in site conditions ▶ - Resource shortages ▶ - Accidents & safety lapses ▶ - Political, financial, or contractual disputes.

Commissioning Stage Risks ▶ Examples: ▶ - Final payments & settlements ▶ - Documentation issues ▶ - Political interference ▶ - Concessionaire apathy ▶ - Dispute resolution delays.

Organizational Structure ▶ Risk management depends on project size and complexity: ▶ - Small projects: handled by project team ▶ - Large projects: specialized teams or consultants.

Risk Planning ▶ Defines: ▶ - Methodology ▶ - Roles & responsibilities ▶ - Risk categories & budgets ▶ - Monitoring, reporting, and auditing processes.

Required Information ▶ Includes: ▶ - Project scope & activities ▶ - Cost & time management plans ▶ - Procurement, HR, Quality, HSE plans ▶ - Communication systems & stakeholder expectations.

Risk Identification ▶ Goal: Comprehensive identification of risks across project lifecycle. ▶ Outcome: Risk Register containing all risks, their causes, triggers, and owners.

Identification Tools ▶ Methods include: ▶ - Brainstorming ▶ - Delphi technique ▶ - SWOT analysis ▶ - Assumption analysis ▶ - Interviews with experts ▶ - Documentation review of past projects.

Risk Assessment ▶ Evaluation of risk probability & impact. ▶ Types: ▶ - Qualitative: High, medium, low classification ▶ - Quantitative: Numerical values using simulations and analysis.

Qualitative Assessment ▶ Focus on: ▶ - Categorization by sources & impacts ▶ - Root cause analysis ▶ - Prioritization of risks ▶ - Probability- Impact Matrix for ranking risks.

Probability- Impact Matrix ▶ Classifies risks into: ▶ - Extreme ▶ - High ▶ - Moderate ▶ - Low ▶ Helps prioritize management efforts.

Risk Consequence ▶ Calculated using: ▶ RCR = CLF + CIF – (CLF × CIF) ▶ Where CLF = Common Likelihood Factor, CIF = Common Impact Factor.

Risk Response Planning Accept ▶ Negative risks strategies: ▶ - Accept ▶ - Reduce ▶ - Share ▶ - Transfer ▶ - Avoid ▶ Positive risks strategies: ▶ - Exploit ▶ - Enhance ▶ - Share ▶ - Accept Reduce Share Transfer Avoid

Insurance Policies ▶ Examples: ▶ - Contractor All Risks (CAR) ▶ - Erection All Risks (EAR) ▶ - Machinery Breakdown (MB) ▶ - Loss of Profit after MB (MLOP) ▶ - Boiler & Pressure Vessel (BPV) ▶ - Civil Engineering Completed Risk (CECR).

Secondary Risks ▶ New risks generated by responses. ▶ Example: Subcontracting reduces main contractor’s burden but adds coordination risks.

Residual Risks ▶ Risks that remain even after responses. ▶ Example: Material price fluctuations. ▶ Managed using fallback plans.

Risk Monitoring ▶ Continuous process: ▶ - Track risks & responses ▶ - Update risk register ▶ - Conduct review meetings ▶ - Maintain communication between teams. Identify Monitor Control Update

Monitoring Meetings ▶ Types: ▶ - Regular reviews for tracking ▶ - Emergency meetings for high- value risks ▶ Objective: Quick mitigation with minimal extra cost.

Risk Reports ▶ Contents: ▶ - Identified & unidentified risks ▶ - Mitigation actions taken ▶ - Additional expenditures ▶ - Closed risks & status updates.

Feedback & Lessons Learned ▶ Captures experiences, effectiveness of strategies, and helps improve future projects. ▶ Risk knowledge is organizational asset.

Post Construction Review ▶ Analyzing and archiving risk documentation ensures knowledge transfer. ▶ Future projects benefit from past lessons.

References & Standards ▶ IS 15883 series covers: ▶ - Part 1: General ▶ - Part 2: Time ▶ - Part 3: Cost ▶ - Part 4: Quality ▶ - Part 5: Safety ▶ - Part 6: Scope ▶ - Part 7 : Procurement ▶ - Part 8: Risk

Conclusion ▶ Risk management ensures projects are delivered on time, within budget, and to quality standards. ▶ Turning uncertainty into opportunity is the essence of construction risk management.

THANK YOU
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