Schedule Risk Management - Construction Project Scheduling and Control - page 375

to the project. Network logic risks include any risks that predominately relate to the
schedule network, such as activities that occur at a “hub” or convergence point. A sin-
gle activity that controls multiple activities of subsequent work, such as environmental
controls, dry-in, above-ceiling inspections, or temporary traffic relocation, will cause
serious delays and disruption if that activity is not completed on time.
Activities that require the same resource and have tight sequencing predictions
are at a much higher risk of failure if resources are not as available as the schedule
predicted, and failure in one activity will likely be reflected in all other activities
that require that same resource. These network logic risks are often discovered only
through a technical analysis of the schedule's components. A good review of the
schedule should identify these risks if the reviewer is knowledgeable and is provided
direction in the risk management plan.
Once the types of risk are understood, a good risk management plan should be
prepared, which should include a brainstorming meeting with the project's major
stakeholders. A master risk register is an invaluable tool for facilitating the brainstorm-
ing session, which is often called a risk workshop . This register is a logical place to collect
any lessons that have been learned on a corporate level resulting from many project
experiences. With a good risk register, organized by industry and type of risk, the pro-
cess of brainstorming moves more quickly and focuses on a more comprehensive list
of risks.
Just as a schedule development session should be a dedicated meeting with the
project management team, the risk workshop should be treated as a stand-alone pro-
cess, requiring the participation of the project's major stakeholders.. At a minimum,
the project management team should participate, but the involvement of others pro-
vides valuable insights because of their views and experiences. The output of the risk
workshop should be a fully developed risk register that identifies all potential risks to
the project, no matter who carries the responsibility for the resolution of those risks.
DEFINITION OF RISK TERMS
The Project Management Institute (PMI) defines project risk in its Project Manage-
ment Body of Knowledge (the PMBOK TM ) (PMI, 2013) as “an uncertain event or
condition that, if it occurs, has a positive or negative effect on at least one project
objective, such as time, cost, scope, or quality. A risk may have one or more causes
and, if it occurs, one or more impacts.” The PMBOK adds the following: “Risk con-
ditions could include aspects of the project's or organization's environment that may
contribute to project risk, such as poor project management practices, or dependency
on external participants who cannot be controlled.”
Risk management : A process designed to examine uncertainties occurring during
project delivery and to implement actions dealing with those uncertainties in order
to achieve project objectives.
The definition of risk management in PMBOK (PMI, 2013) is: “systematic
process of identifying, analyzing, and responding to project risk.”