Rousseau Jooste University of Stellenbosch 2003-03-16
M.Eng Engineering Management
Background: I have experience from vacation work done on RPM of Anglo Platinum Corporation. I have not been directly been involved in project risk management however. I am an Electrical and Electronic B.Ing graduate therefore the assumption can be made that I do not have the same in-depth knowledge of Civil Engineering as the other students.
Project Risk Management E02
Task 1
A description of the nature and characteristics of the areas, which are related and relevant to project risk management. The format of this assignment is as follows:
- The Nature of Civil Engineering Construction Projects
- Body of experience vs. the uniqueness of each project.
- Stages of a project
- Time
- Costs
- Environmental related aspects
- The Risks of Civil Engineering Construction Projects
- Technical
- Project (cost, time, quality)
- Performance requirements under threat
- Procedure to Address the Risks in Civil Engineering Construction
1. The Nature of Civil Engineering Construction Projects
- Body of experience vs. the uniqueness of each project.
- The most valuable tool gained through time spent in a working environment is experience and insight into problems.
- Experience enables one to successfully calculate and make judged decisions when assessing risk factors of projects.
- Through experience one acquires a natural feeling for the riskyness of a project and the viability of solutions.
- Every project is unique; nevertheless it is through experience that one learns the methodology of thinking about problems and the structuring of solutions.
- One who has been in practice has first hand experience at identifying risk factors beforehand and management thereof rather than having to seek a cure for a ramp that has already occurred.
- The motivation of decisions based on experience is sometimes impossible because a gut feel is difficult to put down on paper.
- From the aforementioned it is clear that a fixed method for the quantification of risks is needed for every project.
- A fixed methodology will ensure that the risks of every project are assessed objectively and the quantification is precisely motivated.
- Only through quantification can risk factors be accurately communicated to all parties involved in the project.