Abstract

This paper outlines a risk management method that is based on the use of a standard risk management model and is adapted to the specific nature of infrastructure projects. The standard model can be used to identify and quantify unexpected events in planning and executing a project. The use of a risk map will also be illustrated. A risk map can serve to classify the identified and quantified risk events, depending on the expected loss, to critical risks that call for a more in-depth treatment, and non-critical risks that are normally not monitored, while no measures are foreseen in advance. A risk map is used to determine what the anticipated effects of the measures to mitigate the critical risks will be, and how the anticipated measures enable the transition from a critical risk to a non-critical risk. In this article, the suggested risk management is illustrated using the example of the erection of a reservoir for a hydroelectric power plant. The use of the proposed tools for the identification, assessment, prioritisation, and management of risks proved highly successful. With the use of the proposed risk model, the critical risk events were lowered under the acceptable level of the expected losses.

Highlights

  • Infrastructure projects are one constant in our lives that interfere in our living environment and commonly involve huge investment costs

  • The paper will illustrate the use of the standard risk management model, which includes the identification of risk event drivers, the assessment of probability of a risk event, and the identification of impact drivers caused by a risk event and the probability of its impact

  • Risk management is an important field of knowledge that is an integral part of [any] efficient project management

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Summary

Introduction

Infrastructure projects are one constant in our lives that interfere in our living environment and commonly involve huge investment costs. When managing such projects, the focus is mainly on the management of the content of work, times, resources, and costs. The paper will illustrate the use of the standard risk management model, which includes the identification of risk event drivers, the assessment of probability of a risk event, and the identification of impact drivers caused by a risk event and the probability of its impact. The standard model allows an analysis of the consequences of the measures adopted and designed to eliminate or at least mitigate the expected risks both on the side of risk event drivers and on the side of risk impact drivers (there may be only a single or several drivers in both cases). The advantages and drawbacks of using the standard risk management model in the practical implementation of infrastructural (constructional) projects will be presented

Review of references
Risk management and infrastructure project
An example of infrastructure project risk management
Content and project timeline
Project’s risk analysis
Conclusions
Full Text
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