PROJECT RISK MANAGEMENT
CHAPTER 1. INTRODUCTION
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Project risk management is an important aspect of project management. Project risk is defined by PMI
as, "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s
objectives."
Project risk management remains a relatively undeveloped discipline, distinct from the risk
management used by Operational, Financial and Underwriters' risk management. This gulf is due to
several factors: Risk Aversion, especially public understanding and risk in social activities, confusion
in the application of risk management to projects, and the additional sophistication of probability
mechanics above those of accounting, finance and engineering.
With the above disciplines of Operational, Financial and Underwriting risk management, the concepts
of risk, risk management and individual risks are nearly interchangeable; being either personnel or
monetary impacts respectively. Impacts in project risk management are more diverse, overlapping
monetary, schedule, capability, quality and engineering disciplines. For this reason, in project risk
management, it is necessary to specify the differences (paraphrased from the "Department of Defense
Risk, Issue, and Opportunity Management Guide for Defense Acquisition Programs"):

Risk Management: Organizational policy for optimizing investments and (individual) risks to
minimize the possibility of failure.

Risk: The likelihood that a project will fail to meet its objectives.

A risk: A single action, event or hardware component that contributes to an effort's "Risk."
An improvement on the PMBOK definition of risk management is to add a future date to the definition
of a risk. Mathematically, this is expressed as a probability multiplied by an impact, with the inclusion
of a future impact date and critical dates. This addition of future dates allows predictive approaches
Good Project Risk Management depends on supporting organizational factors, having clear roles and
responsibilities, and technical analysis.
Chronologically, Project Risk Management may begin in recognizing a threat, or by examining an
opportunity. For example, these may be competitor developments or novel products. Due to lack of
definition, this is frequently performed qualitatively, or semi-quantitatively, using product or
averaging models. This approach is used to prioritize possible solutions, where necessary.
In some instances it is possible to begin an analysis of alternatives, generating cost and
development estimates for potential solutions.
An example of the Risk Register that includes 4 steps: Identify, Analyze, Plan Response, Monitor and
Control.
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PROJECT RISK MANAGEMENT
Once an approach is selected, more familiar risk management tools and a general project risk
management process may be used for the new projects:

A Planning risk management

Risk identification and monetary identification

Performing qualitative risk analysis

Communicating the risk to stakeholders and the funders of the project

Refining or iterating the risk based on research and new information

Monitoring and controlling risks
Finally, risks must be integrated to provide a complete picture, so projects should be integrated
into enterprise wide risk management, to seize opportunities related to the achievement of their
objectives.
Aim- The basic aim of project risk management is to arrive at the possible quantum of loss and then
take a decision towards avoidance. It also takes a decision to transfer, hedge and insure and further
reinsure or it could be a combination of all these.
Objective1. To identify risks in construction projects so they could be managed while achieving project
objectives.
2. To identify major risk management techniques practiced in managing risks in the construction
industry.
3. To find risk ranking and investigate risk-related responsibilities for clients and contractors in
order to manage risks effectively.
4. To investigate effectiveness of risk management techniques for managers to manage risks
more efficiently.
Scope
Planning: This includes capturing and defining the work that needs to be done

Controlling: This step focuses on scope creep, documenting, tracking and approving/disapproving
of changes

Closing: This includes an audit of the project deliverables and assessing the outcomes of the
original plan
Limitation- Loss of resources, scheduling problems, security issues and interpersonal conflicts.
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PROJECT RISK MANAGEMENT
CHAPTER 2. METHADOLOGY
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PROJECT RISK MANAGEMENT

The origin of risk context

Identify and allocate processes

Analyse information

Analyse the flexibility of results

Risk assessment and evaluation

Treatment

Function or process of risk

Monitoring and communication of risks associated with any activity
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PROJECT RISK MANAGEMENT
CHAPTER 3. LITERATURE STUDY
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PROJECT RISK MANAGEMENT
1. What is project management?
A project is temporary in that it has a defined beginning and end in time, and therefore defined
scope and resources.
And a project is unique in that it is not a routine operation, but a specific set of operations
designed to accomplish a singular goal. So a project team often includes people who don’t
usually work together sometimes from different organizations and across multiple
geographies.
The development of software for an improved business process, the construction of a building
or bridge, the relief effort after a natural disaster, the expansion of sales into a new geographic
market all are projects.And all must be expertly managed to deliver the on-time, on-budget
results, learning and integration that organizations need.
Project management, then, is the application of knowledge, skills, tools, and techniques to
project activities to meet the project requirements.It has always been practiced informally, but
began to emerge as a distinct profession in the mid-20th century. PMI’s A Guide to the Project
Management Body of Knowledge (PMBOK® Guide) identifies its recurring elements:Project
management processes fall into five groups:
Project management knowledge draws on ten areas:
a) Integration
b) Scope
c) Time
d) Cost
e) Quality
f) Procurement
g) Human resources
h) Communications
i)
Risk management
j)
Stakeholder management
All management is concerned with these, of course. But project management brings a
unique focus shaped by the goals, resources and schedule of each project. The value of
that focus is proved by the rapid, worldwide growth of project management:
a. as a recognized and strategic organizational competence
b. as a subject for training and education
c. as a career path
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2. List the 12 principles of project management
Success Principle
Even before you manage a project, you must commit yourself to success in that endeavor.
Your goal as a project manager is the successful completion of the project.This isn’t merely
about keeping the project on schedule and within budget. Many a project has come in on time
and with money to share, but the goal was never fully achieved. That is project failure.
Project Manager Principle
Projects are set to fail if they’re not lead by a project manager. The project manager comes up
with the plan to achieve the goals of the project, and they manage the team assembled to
complete those tasks.You, as a project manager, are responsible for getting the sponsors on
board, communication, risk management, budgeting, scheduling, the whole kit and
caboodle.Therefore, you want to have a skill set that includes technical knowledge,
managerial experience, interpersonal skills and so much more. The most important thing to
remember is never become complacent, always be learning.
Commitment Principle
Are you committed to the project? You better be! But so must every other person involved in
the project.You must have the sponsor and the team on board, too, or else you don’t have a
viable project. This commitment is crucial before the project is even planned, yet alone
executed.By commitment, we mean an agreement on project goals and objectives, scope,
quality and schedule. Once you have these you’re ready to work.
Structure Principle
This is the first thing you’ll have to think about when managing a project. The structure will
basically stand on three pillars: your project goal, resources and time. What you must know
is the reason for the project, which might seem obvious, but this question defines the project
and leads to its structure. The next step is understanding how long it will take to accomplish
that goal, so you’ll want to have a timeline that’s broken up by milestones, marking major
phases in the project.ProjectManager.com takes the principle of structure and adds structure
to it with our online Gantt chart. The Gantt chart offers a spreadsheet to the left and a timeline
populated with that data to the right. There, tasks are points in time, beginning with a start
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data and ending with its deadline. This chart allows you to easily organize your projects and
the tasks within them.Furthering the structure, tasks that are sequentially dependent on one
another can be linked to avoid leaving teams idle by delaying work. The larger project can
also be broken down by milestones, so the major phases of the project are clearly
delineated.It’s easy to link dependencies on Project Manager.com’s online Gantt chart⁠
Definition Principl
You have a structure, but you must move into the definition phase to fully grasp the project.
That’s a principle often passed over at the expense of the project. It’s easier said than done,
however, with many voices offering differing opinions of what the project is. Your job as
project manager is to make it clear what the project is about, which can be problematic when
there are many stakeholders. Defining the project is not a one-time event, but something that
must be revisited throughout the project. You must make sure that everyone, especially your
team, has a clear definition in mind so they can work productively.
Transparency Principle
By transparency, we mean that you must report on the progress of the project to your sponsors
and stakeholders. You can’t hide anything from them, or at least you do at your own risk, for
it’ll inevitably come back to haunt you. Of course, your sponsors and stakeholders don’t need
you to drown them in minutia about the project. They want to see the broad strokes regarding
progress, budget and schedule. Save the details for your team. Yes, you must be transparent
with your team. They need reports too, but you want to have those reports customizable to
create effective reports that hits the target audience for whom they’re intended. When it comes
to transparency, ProjectManager.com has the tools to make that principle a reality. Our realtime dashboard is a window into the project, which is constantly being updated when team
member’s file their status reports. The dashboard’s many project metrics automatically
crunches those numbers and displays them in easy-to-read graphs and charts, which can then
be shared or printed out for reporting and meetings.ProjectManager.com has a real-time
dashboard that supports full transparency
Communication Principle
While reporting to the various participants in the project is key, there must be a primary
communication channel between yourself and the project sponsor. This is the only way to
ensure that project decisions are properly implemented.Without having a singular way to
disseminate what the sponsor wants to the project manager, you’re not being efficient or
effective in administrating the project. Even if there are multiple sponsors, they must speak
with one voice or risk sending the project into chaos.You have the responsibility to set this
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line of communication in place, finding the right person, with the right skills, experience,
authority and commitment in the executive team to facilitate this important task.
Progress Principle
To progress in a project, a project must have well-defined roles, policies and procedures in
place. That means that everyone must know what they’re responsible for and who they answer
to. There needs a delegation of authority for any project to function.It also means that you
must have thought out how you’re going to manage the scope of work, maintain the quality
of the project, define its schedule and cost, etc. Without these things being figured out at first,
you’re putting the project at risk.
Life Cycle Principle
The life cycle of a project are its phases, from planning to initiation, monitoring to closing.
Each phase of the project is dependent on planning it and then doing it.Milestones determine
the start and end of these project life cycles. You can think of them as signposts on the drive
to reach your project’s destination.
Culture Principle
For a project to work, you must have a culture that supports the needs of all those involved.
It might sound like mollycoddling—this is work, after all—but you don’t want anything to
disrupt the effective productivity of your team.A supportive work environment means a
project team that is going to work better. As project manager, you must understand this
dynamic and have it backed by management on all levels. Style is substance in this case, so
make sure the management style is suited to the project.
Risk Principle
Risk is part of life, and it’s certainly a part of any project. What you must do is, before the
project even starts, figure out what are the potential risks inherent in the work ahead.
Identifying them is a not an exact science, of course, but you can use historic data and
knowledge from you, your team and sponsors to uncover where risk lies. Using a risk register
template helps you capture all this information.It’s not enough to just know that risk might
rise at this or that point in a project, you also should put in place a plan in which to resolve
the issue before it becomes a problem. That means giving each risk a specific team member
who is responsible for watching out for it, identifying it and working towards its
resolution.Naturally, you’re not going to foresee every risk, hopefully you’ll have at least
identified the big ones. That’s why you must have an eye out for any irregularities. Have your
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team trained to be your eyes and ears on the project front. The sooner you identify a risk,
whether expected or not, the faster you can resolve it and keep the project on track.
Accountability Principle
As you progress through your project, you’re going to need a metric to measure success. This
is how you can hold your team and yourself accountable. Therefore, you want to have ways
to measure the various aspects of your project and determine if the actual figures reported are
in line with the ones you planned.The great thing about accountability in a project is that it
gives you the means to identify those team members who are top performers. They can then
be rewarded. Everyone likes acknowledgement. While the underachievers can be given the
training or direction they need to get more effective in their performance.
3. What’s the difference between construction management & project management?
While the construction manager oversees on-site operations, such as personnel, materials, and
the construction budget, project managers oversee ALL phases of the project, from marketing
to administrative needs.
If we think about a construction project as a timeline, the project manager is involved from
start to end, whereas the construction manager is only involved during the actual construction
phase.
One key difference to note is that it is not uncommon for Project Managers to step into this
role without much technical construction knowledge, whereas construction managers, almost
without fail, come from a construction background. That being said, when push comes to
shove, the Project Manager is the one who has more authority over the project.
Finally, these two roles are also differentiated by their focus. At the end of the day, the
construction manager’s main responsibility is to make sure that the project is technically
sound. The project manager, on the other hand, is more responsible for the project budget and
the timeline
4. Parameters affecting construction management:
a. Type of the project.
b. Scale of the project.
c. Construction techniques.
5. Role and responsibilities of project manager?
A project manager is a person who is responsible for leading the project. In other words,
project managers are the spearheads of a project. They ensure that the project is completed
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within the specified deadline and gets delivered to the client without any flaws. He/she
handles all the aspects of the project from project initiation to project delivery.To put it
simply, he is the champion of the project. He provides the vision of the project to his team
members and keeps their focus firmly fixed on the same. He/she is that person who ultimately
gets praised for the success of the project or discredited for the failure of it. The project
manager is accountable for the fate of a project.
The responsibilities of a project manager can vary from organization to organization.
Sometimes, they may even change depending on the project need. But across companies, there
are some core responsibilities that most project managers handle. What are those? Read
below:
Planning
‘Plan your work and work your plan’ – Napoleon Hill
As mentioned, the whole purpose of running a project is to achieve a certain goal. Hence,
creating a roadmap or planning beforehand is an essential role of project managers. Further,
your plan is what determines whether you get an approval for a project or not.
So, what exactly does planning involve? Planning addresses each of the following questions:

What tasks need to be completed?

Who is to complete these tasks?

By when should these tasks be completed?
In this phase, the project manager defines the project scope and accordingly develops a project
plan and schedule. He or she develops efficient procedures and policies so that the project is
delivered to the customer. This is done keeping in mind the specified time and the given
budget. Additionally, planning involves determining the resources (human, financial etc.)
available. It also takes into factor the time that is needed to complete the project.
Don’t be under the misunderstanding that planning happens only at the beginning of the
project. Planning is something that goes on throughout the course of the project. In fact, a
good project manager is someone who is dynamic enough to modify the plan according to the
changing circumstances.
Organizing
Once the project manager has a blueprint about how to execute the project, what does he do
next? Implement the plan, of course. First up is the key responsibility of organizing. To put it
simply, it is about giving a structure to the project team. While doing so, the project manager
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takes into account the existing structure followed by the organization.Organizing is about
assigning roles to the team members and setting deadlines to achieve targets. This step also
includes briefing the members about tools that they can use. Let’s say the project involves
outsourcing some requirements. Then, the project manager identifies the services to be
provided, the company that provides these services etc.
Leading
Leading is that broad role which can accommodate all the other roles of a project manager.
Hence, it can be considered the most important responsibility of project managers.The project
manager has to take the lead right from the word go. He/she must coordinate with different
people to ensure that the project goes on in a smooth manner. He/she needs to keep a regular
check on the project developments. Managers ensure that the project team members are
meeting the deadlines and following the guidelines. He/she regularly conducts meetings and
makes that the team members do the follow-up actions.To lead is also to make decisions at
every stage of the project progress. Which tasks are to be given to which team member?
Should the project be terminated as it exceeds certain resource thresholds? A project manager
is responsible to think about such wide-ranging issues and make decisions. Also, the project
manager has to build his knowledge about the technical issues associated with the
project.Apart from the technical aspects, leading also includes interpersonal skills. Project
managers need to demand excellence from their team members and help them in their personal
development. Also, hiccups are quite common in projects. The project manager is expected
to motivate team members during the down phase and keep their morale high. Essentially, a
project manager is the leader who the team members look up to. Therefore, managing people
becomes the key element of project management.
Monitoring
Project managers need to be constantly on their toes and have to ensure that the project is on
the right track. This means they will have to ensure that the resources are being used
efficiently. Also, they have to see to it that the project will be completed within the timeframe. To help this step, many project managers use the following three-step controlling
process

Measure: Keep a strict vigil on the progress of the project

Evaluate: Determine the root causes of deviations

Correct: Make appropriate corrections to address the issue of deviation
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Monitoring in this sense doesn’t have the traditional meaning of imposing decisions from
above. Projects now happen through collaboration between the project manager and the
team members. So, rather than dictating what needs to be done, monitoring is
accomplished by the contribution from the project team members.
Communicating
One cannot emphasize enough the importance of communication in the success of a
project. It is so significant that many surveys show that project managers spend 90 percent
of their time on communicating. How successfully does the project manager perform all
the mentioned roles depends on his ability to communicate? It distinguishes a successful
project manager from an average one.When we talk about communication, it doesn’t
involve just the team members. The project manager also has to interact with various
people. It includes the project sponsors, clients, external vendors and other important
stakeholders. A lot of decisions are made during the course of the project. And, all this
requires the project member to communicate with the key people higher up in the chain
of command.
But, the most part of communication usually happens between the project manager and
the team members. He/she shares the vision and objectives of the project with the team
members. Project managers also give and take regular updates from team members and
conduct status meeting etc,. But, it doesn’t end with his or her communication. He/she
also needs to take on the role of empowering his/her team members to share or exchange
information.
Managing Risk
Projects rarely run smoothly. As such, risk is an inevitable part of a project. So, managing
these uncertain conditions which can have a negative impact on the project is a critical
role of a project manager. It is so important that Project Management Institute's PMBOK
indicates risk management as one of the key knowledge areas. It means a project manager
should show competency in this area to get certified.
6. What is project risk management?
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PROJECT RISK MANAGEMENT
Project risk management is an important aspect of project management. Project risk is defined
by PMI as, "an uncertain event or condition that, if it occurs, has a positive or negative effect
on a project’s objectives." Project risk management remains a relatively undeveloped
discipline,
distinct
from
the risk
management used
by Operational, Financial and Underwriters' risk management. This gulf is due to several
factors: Risk Aversion, especially public understanding and risk in social activities, confusion
in the application of risk management to projects, and the additional sophistication of
probability mechanics above those of accounting, finance and engineering.With the above
disciplines of Operational, Financial and Underwriting risk management, the concepts of risk,
risk management and individual risks are nearly interchangeable; being either personnel or
monetary impacts respectively. Impacts in project risk management are more diverse,
overlapping monetary, schedule, capability, quality and engineering disciplines. For this
reason, in project risk management, it is necessary to specify the differences (paraphrased
from the "Department of Defense Risk, Issue, and Opportunity Management Guide for
Defense Acquisition Programs"):

Risk Management: Organizational policy for optimizing investments and (individual)
risks to minimize the possibility of failure.

Risk: The likelihood that a project will fail to meet its objectives.

A risk: A single action, event or hardware component that contributes to an effort's
"Risk."
An improvement on the PMBOK definition of risk management is to add a future date to
the definition of a risk. Mathematically, this is expressed as a probability multiplied by
an impact, with the inclusion of a future impact date and critical dates. This addition of
future dates allows predictive approaches.Good Project Risk Management depends on
supporting organizational factors, having clear roles and responsibilities, and technical
analysis.
Chronologically, Project Risk Management may begin in recognizing a threat, or by
examining an opportunity. For example, these may be competitor developments or novel
products. Due to lack of definition, this is frequently performed qualitatively, or semiquantitatively, using product or averaging models. This approach is used to prioritize
possible solutions, where necessary.
In some instances it is possible to begin an analysis of alternatives, generating cost and
development estimates for potential solutions.An example of the Risk Register that
includes 4 steps: Identify, Analyze, Plan Response, Monitor and Control.
D Y PATIL COLLEGE OF ARCHITECTURE, AKURDI
SHEETAL VARMA
PROJECT RISK MANAGEMENT
Once an approach is selected, more familiar risk management tools and a general project
risk management process may be used for the new projects:

A Planning risk management

Risk identification and monetary identification

Performing qualitative risk analysis

Communicating the risk to stakeholders and the funders of the project

Refining or iterating the risk based on research and new information

Monitoring and controlling risks
Finally, risks must be integrated to provide a complete picture, so projects should be
integrated into enterprise wide risk management, to seize opportunities related to the
achievement of their objectives.
7. Factors affecting project risk management?

Commitment and support from top management,

Communication,

Culture,

Information technology (IT),

Organization structure,

Training and

Trust.
8. Roles and responsibilities of the project risk manager?

Designing and implementing an overall risk management process for the
organisation, which includes an analysis of the financial impact on the company when
risks occur

Performing a risk assessment: Analysing current risks and identifying potential risks
that are affecting the companyPerforming a risk evaluation: Evaluating the
company’s previous handling of risks, and comparing potential risks with criteria set
out by the company such as costs and legal requirements

Establishing the level of risk the company are willing to take

Preparing risk management and insurance budgets

Risk reporting tailored to the relevant audience. (Educating the board of directors
about the most significant risks to the business; ensuring business heads understand
the risks that might affect their departments; ensuring individuals understand their
own accountability for individual risks)

Explaining the external risk posed by corporate governance to stakeholders
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
Creating business continuity plans to limit risks

Implementing health and safety measures, and purchasing insurance

Conducting policy and compliance audits, which will include liaising with internal
and external auditors

Maintaining records of insurance policies and claims

Reviewing any new major contracts or internal business proposals

Building risk awareness amongst staff by providing support and training within the
company

Provide a methodology to identify and analyze the financial impact of loss to the
organization, employees, the public, and the environment.

Examine the use of realistic and cost-effective opportunities to balance retention
programs with commercial insurance.

Prepare risk management and insurance budgets and allocate claim costs and
premiums to departments and divisions.

Provide for the establishment and maintenance of records including insurance
policies, claim and loss experience.

Assist in the review of major contracts, proposed facilities, and/or new program
activities for loss and insurance implications.

In cooperation with General Counsel, maintain control over the claims process to
assure that claims are being settled fairly, consistently, and in the best interest of the
entity.
9. Key problems by project manager.

Impossible deadlines.

Resource deprivation.

Ambiguous contingency plans.

Lack of accountability.

Scope Creep/Scope changes.

Lack of stakeholder engagement.

Great expectations.
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PROJECT RISK MANAGEMENT
CHAPTER 3. LITERATURE STUDY
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PROJECT RISK MANAGEMENT
What is risk management?
Project risk management is a process to identify, analyze, and minimize potential problems that could
negatively affect the progress of a project. The main objective of risk management in project
management is to take care of anything that might deflect the project from reaching its ultimate goal.
If project risks aren’t identified, avoided or rectified, your project may end up over budget, delayed,
or even brought to a complete standstill.
How to manage risks on projects (in advance)
The ability to foresee risks that might creep up any time in the future is a crucial skill of an effective
project manager. A definite risk management plan helps you to be prepared to deal with uncertainties
and minimize extra costs by saving valuable resources such as time, income, assets, and people.
Here is a six-step plan that can help you identify and manage risk before things get out of hand.
1. Include risk management in your projects
The first and the foremost thing you can do to improve your project management is to embed risk
management in your projects. Nowadays, many companies and organizations are introducing project
risk management to train their staff to detect risks before things get worse. To identify risks, one must
possess expertise and experience to be able to focus on future scenarios.
Besides having experienced project managers and members, you can arrange ‘risk brainstorming
sessions’ to discover various risks that could show up in the future. It’s good to have different risk
identification methods and experiment with them to identify unexpected risks that might take place.
For example, you might identify loss of data as a risk, and research the best backup software for your
business.
A survey by the Project Management Institute (PMI) found that 83% of high performing organizations
in project management regularly practice risk management, compared with only 49% of low
performing organizations who do so. These high performers meet their goals 2.5 times more often and
waste 13 times less money than low performers.
2. Communicate risks to others
Isn’t it great when someone in your team predicts and points out a potential risk in a team meeting and
when that risk actually appears, you already had a backup in mind? This is where risk communication
comes into the picture.
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Often major failures could have been easily tackled with consistent communication. The most realistic
method would be to communicate risks while working on individual tasks so that you can have a Plan
B ready, just in case if things don’t go per the plan.
When communicating risk, explain how it will impact your project, how likely it is to happen, and
what steps you can take to mitigate it occurring. If you are the project manager, be sure to create an
environment where people are comfortable to clearly communicate risk at meetings or one on one
sessions without feeling they will be penalized for bearing bad news.
3. Prioritize risks
There are two types of risks: low-degree risks and high-degree risks. As the name suggests, lowdegree risks are the ones that could affect the outcome but are still manageable. Whereas high-degree
risks could significantly affect the outcome and halt progress in a big way. Thus, it is noteworthy that
some risks have a higher impact than others.
Spend a good chunk of time on prioritizing risks and weighing their impact on the project. You can
either have a set of criteria or prioritize risks entirely on your gut feeling. It’s advisable to opt for a
rather realistic method that lets you make a decision on the likelihood and effects of a risk.
When prioritizing risks, ask yourself questions like:
4. Analyze risks
Risk analysis is an important part of risk management that can actually help you take serious steps for
the benefit of a project. That’s why it is crucial to understand the nature of a risk and the effects
associated with it. Always keep in mind that risk analysis isn’t just one-dimensional but occurs at
different levels.
Sometimes, the risks that seem small and harmless could snowball into something big and have serious
repercussions. This is when the real effectiveness of a project manager comes into the picture. Such
analysis can help you discover the magnitude of impact on budget, deadlines, and product quality of
a project. A useful method is to:
1. Score the risk probability on a scale from low to high or 1-5
2. Score the impact of the risk occurring on a scale from low to high or 1-5
3. Prioritize the risk on a scale from low to high or 1-5
4. Estimate when the risk could impact the project
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5. Implement risk responses as early as possible
The above points enable you to understand and prioritize risks, whereas implementing risk responses
is going to make the actual difference to a project. It includes three options: risk acceptance, risk
avoidance, and risk minimization.
If the effects on a project are minimal or too difficult to influence, it’s best to accept the risk. While
avoiding a risk, you can plan or manipulate the project in such a way that there is the least possibility
to come across a specific risk. To minimize a risk, you must try to influence the causes or strengthen
the favorable factors to compensate for the effect of risks.
According to a 2018 survey conducted by PMI, 29% of respondents indicated that opportunities and
risks not being defined was one of the primary causes of project failure.
6. Track them down regularly
It’s important to track risks on a regular basis as it helps you and the team to figure out the common
risks and their impact on projects. The easiest method would be to make a report after the project has
completed and identify risk tasks, their causes, effects, and analyse them so that you know how to
tackle them just in case you encounter them on another project.
CORPORATE OVER VIEW OF LARSENA & TOUBRO.
Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial
services conglomerate, with global operations. L&T addresses critical needs in key sectors Hydrocarbon, Infrastructure, Power, Process Industries and Defence - for customers in over 30
countries around the world.
L&T is engaged in core, high impact sectors of the economy and our integrated capabilities span the
entire spectrum of 'design to deliver'. With over 7 decades of a strong, customer focused approach and
a continuous quest for world-class quality, we have unmatched expertise across Technology,
Engineering, Construction, Infrastructure Projects and Manufacturing, and maintain a leadership in
all our major lines of business.
Every aspect of L&T's businesses is characterized by professionalism and high standards of corporate
governance. Sustainability is embedded into our long-term strategy for growth.
L&T Construction
L&T Construction, India's largest construction organization and ranked among the world's top 30
contractors, has been over the past seven decades transforming cityscapes and landscapes with
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structures of immense size and grandeur. The company's capabilities span the entire gamut of
construction - civil, mechanical, electrical and instrumentation engineering - and its services extend
to all core sector industries and infrastructure projects.
Several of the country's prized landmarks - edifices, structures, airports, industrial projects, flyovers,
viaducts, water and power infrastructure projects carry L&T's signature of excellence in construction.
Today, more and more structures beyond India's boundaries are standing tall, thanks to L&T
Construction.
L&T Construction straddles six related businesses:

Buildings & Factories

Transportation Infrastructure

Heavy Civil Infrastructure

Power Transmission & Distribution

Renewable Energy

Water & Effluent Treatment

Smart World & Communication
Building landmarks, setting benchmarks

400 high rise towers

11 airports

53 IT parks

17 automobile plants

28 cement plants

45 hospitals

231 km of metro rail corridors

19.5 km of monorail corridor

8315 MW of hydro power projects

8080 MW of nuclear power projects

13500 lane km of highways

7.49 million sq.m of runways

3260 tkm of railway track laying

12510 tkm of railway electrification

585 substations

29380 MW of E-BoP

20600 ckm of transmission lines
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
40000 km of water & waste water networks

3400 MLD of water & waste water treatment plants

400 MW of solar plants
Corporate awards
Mr. A.M. Naik Conferred 'Eminent Engineer Award'
The Engineering Council of India presented our Group Chairman Mr. A.M. Naik the 'Eminent
Engineer Award - 2019' at a function last week in New Delhi.
About project: Rejuive 360-Mulund, Mumbai.
The hustle and bustle of life – office, traffic, school, daily chores – gives us no breather at times.
We constantly look for activities to relax and replenish us, often outside our homes. The pursuit
to seek out avenues that will give us a true sense of wellness is a never-ending one.
Your pursuit comes to a close, as L&T Realty brings to you Rejuve 360, a residential complex
designed around your wellness, focused on rejuvenation of the mind, body and soul. Conveniently
located in the bustling neighbourhood of Mulund West, Rejuve 360 stands tall at a magnificent
57 storeys. This residential project, which has over 500 flats, has been meticulously designed to
ensure that every one of the 2 & 3 BHK flats are spacious and well ventilated. 90% of these flats
are either East or West facing, which complement each apartment with serene views of either the
hills or the creek.
With world-class facilities and amenities inspired by nature, these flats are designed for you to
Relax, Revitalise & Re-energise.
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Location:
L&T Realty Rejuve 360 Sales Gallery,
706-B, L.B.S. Road,
Opp. PVR Cinemas,
Mulund West, Mumbai – 400080.
REJUVE 360 is a project by L&T Asian Realty Project LLP (L&T Realty Ltd. being the
holding company) with land-owning partner Nirmal Lifestyle Developers Pvt. Ltd.
Building Typology: Mixed use High rise
Fig.1. Digital perspective View of 52 storey Building.
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Case 1: The 57storey building being constructed till 23rd floor met with an unforeseen circumstance,
while construction work going on at last floor, few concrete siphorex blocks flew down to due to the
wind pressure at 23rd floor with not so high rise buildings in surrounding. As seen in fig.2 the centre
of the building doesn’t have the net protection while the periphery of the building has. Since it was
early morning time there was no labour working around the building hence no major accident took
place.
Fig.2.Building constructed till 23 floor
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Fig.3.Siphorex blocks stacked at top floor in systematically
Case 2: Though L&T being the best and top leading Construction Company, at times its safety is
questioned since in Construction we have to deal with masons and labours who are uneducated.
Another incident took place in same site at 4th floor where a labour fell down since he was not in his
consciousness state. Also there was no firm barrier at the lift shaft to avoid any human entry.
Fig.4.Lift lobby.
Fig.5.Lift Shaft.
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CHAPTER 5. ANALYSIS
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Case1
The periphery should have been covered in all sides just below the construction floor also it should
be covering large surface area so that any object falling down due to wind pressure doesn’t reaches
the ground. For this thorough wind study should be done with respect to all parameters.
Case2
All the completed floors should not be given entry until and unless required. If any access is given,
the site contractor has to make sure no accident takes place. All the spaces should be free from
human accidental states.
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CHAPTER 7. CONCLUSION
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Having analysed, the quantum of possible loss based on the data, the estimated loss could be
reasonably arrived at a realistic level. Thus we arrive at the quantum of loss on account of acting at
any time under a set of circumstances. Having arrived at the quantum of loss, it is necessary to take
appropriate decisions. Risk management decides the quantum of possible loss, at any plant, the level
of losses, which could be borne, the level to which he can arrange somebody to share and the quantum
to be transferred to the insurance company.
Decision-Making is quite necessary in construction management such as risk assessment results in
construction projects, contractor, supplier selection, etc. Each project manager should have basic
knowledge about risks associated to a project and how to handle them
Risks are being managed every day in the industry but not in such a structured way as the literature
describes it.
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