Management School

www.kmutt.ac.th/gmi

Risk Management

. PMP. CMC.

Graduate School of Management and Innovation

Pasit.lor@gmail.com

Major Risks
Management School
www.kmutt.ac.th/gmi

Project Manager is an Accidental Profession

(pasit.lor@gmail.com)

GMI

Management School
www.kmutt.ac.th/gmi

(pasit.lor@gmail.com)

GMI

Management School
www.kmutt.ac.th/gmi

Project Management
Promotion Organizations
Netherland

U.S.A.

United Kingdom

Association for Project Management

Australian Institute of Project Management

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GMI

Project Management as a
Profession

Management School
www.kmutt.ac.th/gmi

www.pmi.org

More than 500,000 members world wide

Over 200 Chapters in 170 countries including Thailand
Over 300,000 PMP Certified

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GMI

PM Body Of Knowledge
Management School
www.kmutt.ac.th/gmi

TOOLS AND TECHNIQUES

SCOPE

TIME

COST

QUALITY

Mgmnt.

Mgmnt.

Mgmnt.

Mgmnt.

INTEGRATION MANAGEMENT
NEEDS &

RISK

HUMAN

PROCURE

COMMUN

EXPECTATIONS

Mgmnt.

Mgmnt.

Mgmnt.

Mgmnt.

PROJECT
SUCCESS

TOOLS AND TECHNIQUES

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GMI

Management School
www.kmutt.ac.th/gmi

Risk Areas
Management School
www.kmutt.ac.th/gmi

Risk due to political issues and/or government

policy (either new or existing).
Risks relating to noncompliance with legal obligation
and/or internal policies and
processes.

Political

Legal &
Commercial

Risks relating to financial

issues, cost, revenues,
Exchanges

Market
Company

Financial
Environmental

Risks relating to Acts of God

Hazard, waste, toxic

Risks relating to satisfaction

of companys customers,
students and/or other
stakeholders

Human
Resources

Risks relating to the

safety, occupational health
and management of
company staff

Operational

Technological

Risks relating to management

practices, policies and
processes,

Risks relating to the use of technology

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GMI

Any Business can be RISKY

Management School
www.kmutt.ac.th/gmi

Project development often involves

new customers & suppliers

new technologies
new products
new standards and regulations
new ideas or concepts
new personnel
changing situations and priorities
unrealistic plans
unexpected events
etc..

(pasit.lor@gmail.com)

GMI

 (Risk)
Management School
www.kmutt.ac.th/gmi

(pasit.lor@gmail.com)

10

GMI

It all comes down to ..

Management School
www.kmutt.ac.th/gmi

(pasit.lor@gmail.com)

11

GMI

Project Risk
Management School
www.kmutt.ac.th/gmi

Project risk is defined as an

uncertain event or circumstance
that has a chance of occurring
and that may prevent a project
from meeting its objectives.

(pasit.lor@gmail.com)

12

GMI

Risk Vs. Opportunities

Management School
www.kmutt.ac.th/gmi

Risk is a possibility that an event

will occur and adversely affect the
achievement of objectives

Opportunity is the possibility that an

No Risk

event will occur and positively affect

the achievement of the
organizations objectives and
creation of value

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13

No Gain!

GMI

Challenge of Construction Projects

Management School
www.kmutt.ac.th/gmi

Low to Medium Technology

Many trades/Parties (Local & international)
Labor Intensive
Long Period
Financial Intensity
Less Educated Workforce
Outdoor
Sit on the ground
Lowest Bidder

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14

GMI

Risks in Construction
Management School
www.kmutt.ac.th/gmi

Economic Factors

Supplier

Contractor

Quantity
Survey

Architect

Project
Manager

Engineer

Environmental Factors

Social Factors

Client

Inspector`

Political Factors

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15

GMI

Project Risk Management

Management School
www.kmutt.ac.th/gmi

Includes all processes concerned with conducting risk

management on the projects

Risk Management
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Manage and Control Risks

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16

GMI

Risk Management Process

Management School
www.kmutt.ac.th/gmi

Risk
Identification
Risk
Monitoring

Risk
Analysis
Risk Response
Planning

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17

GMI

Types of Risks in Construction

Management School
www.kmutt.ac.th/gmi

Physical
Financial
&
Economic

Acts
of
God

Risks
Political
&
Environ.

Const.
Related
Design

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18

GMI

WBS
Management School
www.kmutt.ac.th/gmi

Sheet pile
wall

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19

GMI

P x I Matrix

Management School
www.kmutt.ac.th/gmi

Risk Analysis Framework

Probability

5
Translate Score to Risk
Rank

4
3
2
1

Score

Risk

Impact

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20

GMI

Risk Register
Management School
www.kmutt.ac.th/gmi

(pasit.lor@gmail.com)

21

GMI

Response Planning
Management School
www.kmutt.ac.th/gmi

1) Avoid - seeking to eliminate uncertainty

2) Transfer - seeking to transfer ownership
3) Mitigate - seeking to reduce the size of
the risk exposure to below acceptable threshold
4) Accept - control & monitor

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22

GMI

Examples of Response
Measures

Management School
www.kmutt.ac.th/gmi

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23

GMI