Risk statements are a useful tool to identify, analyze, and compare risks.
Key Component of a Risk Statement:
- Event
- Date of Occurrence
- Impact (Quantify the impact, such as delay in days or $ cost)
- Probability (Not in the classic risk statement but it is needed)
Look at impact and probability together to get the priority ranking.
Setup of Risk Statement
If “event” occurs by… “date” it will result in… “impact” to (build/cost/quality)
Example
Low-quality IFC’s issued prior to construction results in many questions, RFI’s, and delays to the project.
Risk statements are a useful tool for the identification and analysis of project risk. Identify the risk events, dates when the risk events become an issue, the impact on the project build, cost, or quality, and then estimate a probability that the risk will occur.
Create a table of these risks and review and monitor this table of risks at each project management meeting.
Risk MP
The analysis can be done with software that allows you to develop risks fully, creates easy to read reports, and tracks information such as ownership of the problem.
By using software such as RiskMP, the amount of admin work is minimized. The RiskMP software produces reports, tracks latest updates, and leads you through the whole process of creating risk statements.
Watch this session of the Construction and Risk Management series:
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