The following essay has been written by analyzing the risks associated from the construction managers/ project managers’ point of view. Citing the possible risks associated while working on international or varied geographical location. Risks are associated with almost all levels of the project life cycle and is mutually shared and mitigated by all parties employed within the construction industry. There are many evidences to state that poor risk mitigation leads to poor performance and hence establish risk management processes and practices are required to be adhered to in order to turn any project’s outcome into a success. The 20 edition of the guide to the project management body of knowledge pmi,20 states that a project risk is. �an uncertain event or condition that, if it occurs, has a positive or negative effect on a project outcome’. Risks can be broadly classified into 2 categories speculative risk and pure risk.

Speculative risks can be both positive and negative whereas pure risks are mostly negative by nature. Risk can be defined as the ‘variability of return from an investment’ risk analysis play an important role in any project. All projects are appraised making certain assumptions and such assumptions are unavoidable since no 2 projects are unique in all respects and hence a new project cannot be compared with an identical project that was executed in the past.

Though there may be similarities in 2 projects, exactly identical projects do not exist. Kinds of risk in a project in the built environment projects face a host of risks such as,  project completion risk completion of the project in time and within the estimated cost is itself a major achievement. A project that is delayed will result in time over run which will subsequently lead to a cost over run. If the project promoters are not able to pump in additional funds required to meet the cost over run, then the project runs the risk of coming to a grinding halt. Also delayed implementation means an increase in interest commitments on the borrowed funds. When the project promoters find it difficult to meet the interest commitment during the implementation phase, the lenders may not be prepared to fund the project additionally to meet the cost over run. There can also be technology failures, which may result in the non completion of the project.

For projects with long gestation periods in the field of fast developing technology, there is a risk of project not being completed due to technological obsolesce during the course of project implementation. 12 p a g e  resource risk raw material, power, fuel, manpower etc are the resources used by a project. Shortage of raw materials may lead to a reduction in capacity utilization and higher cost of production which will make all profitability estimates wrong. Similarly, shortage of power, fuel, and shortage of skilled manpower will also jeopardize the project profitability, calculations and the project may run the risk of not earning the estimated returns. ς� price risk price fluctuations of both inputs and outputs ie, raw material and finished products affect the project. Unforeseen happenings such as government’s intervention in price fixation ability of competitors to offer their product to customers at a comparatively cheaper price etc, are likely to have an adverse impact. A project that is based on unproven technology may have hidden defects which may make the project obsolete in technology due to evolution of latest technology.

ς� political risk political risk is a major risk as it cannot be predicted easily. The government intervenes in many forms such as levying and regulating taxes, regulating monopolistic trade practices, imposing import duties, promoting inputs, price – control, ex proration, nationalization etc. Risk management is the process of identifying vulnerabilities and threats to information resources used by a company in reaching business objectives and deciding what measures to take in reducing risk to an acceptable level.

An effectual risk management process is an essential component of a successful it security program. The paramount goal of an organization's risk management process should be to protect the organization and its ability to perform their mission, not just its it assets. With that in mind, the risk management process should not be treated primarily as a technical function by it experts, but rather as an essential management function of the organization. The objective of performing risk management is to enable the organization to accomplish its mission s 1 by better securing the it systems that store, process, or transmit organizational information 2 by enabling management to make well informed risk management decisions to effective risk management begins with a clear understanding of the organization's appetite for risk2.

This drives all risk management efforts and impacts future investments in technology. Risk management encompasses four key elements: risk identification, risk mitigation, risk acceptance, and risk analysis. When these elements are evaluated, strategies for managing risk can be set and responsibilities can be clarified. Risk identification the first step of a risk management program is to assess threats and vulnerabilities associated with the organization and the probability of their occurrence.

Threats are any circumstances or events with the potential to cause harm to an information resource. Professor james young politics, institutions, and project finance: the dabhol power project. Strayer university 2011 project risk management has been identified as the number one cause of project failure by most if not all organizations. In view of that project risk management is given prominent place in any project undertaken by businesses. Project managers are therefore are under immersed pressure to practice the best risk analysis methods in order to complete projects in time and within budget for the organization to be profitable. We are pleased to announce that risk management now utilises our advance online publication aop workflow.

Aop means that fully typeset, definitive, citable versions of papers complete with digital object identifier, or doi will be made available online ahead of their allocation to a print issue. Please visit our risk management aop page to view the latest research published in this journal. We are excited to announce the appointment of igor lon 269 arski university of ljubljana, slovenia as the new editor of risk management rm , replacing denis and moira fischbacher smith university of glasgow, uk. Lon 269 arski also brings a new international advisory board to rm, built from names taken from academia and industry, who will support the journal's activities and future development. He takes his post with the aim of tightening the journal's focus and steering it into a space concentrating on the rigorous quantitative examination of topics related to financial risk and financial risk management. Lon 269 arski is currently associate professor of finance at the university of ljubljana faculty of economics and program director of a graduate program in quantitative finance and actuarial sciences.

His current research interests are predominantly focused on the use of multi factor asset pricing models, credit and liquidity risk, insider trading and financial scandals. In addition to academic service, he has acted in a consulting capacity for various corporations, agencies and organisations. Palgrave macmillan whole heartedly welcome him to rm! our new editor welcomes suggestions for special issues on key topics and from time to time he may appoint guest editors to manage a special issue. See the full details of the new editorial team, along with the the aims and scope of the re launched risk management. In celebration of risk management receiving its second impact factor from thomson reuters, palgrave macmillan and the editorial team of the journal are proud to present the top ten most cited articles for the journal since 2009. These lively, topical pieces are free to view for a limited time ndash we hope you enjoy them! get closer to the central dynamics of space, place, time and scale in the shaping of risk ndash read denis fischbacher smiths editorial here. You can gain a lot of money if you deal with uncertain project events in a proactive manner.

The result will be that you minimise the impact of project threats and seize the opportunities that occur. This allows you to deliver your project on time, on budget and with the quality results your project sponsor demands. Also your team members will be much happier if they do not enter a fire fighting mode needed to repair the failures that could have been prevented. This article gives you the 10 golden rules to apply risk management successfully in your project.

They are based on personal experiences of the author who has been involved in projects for over 15 years. Also the big pile of literature available on the subject has been condensed in this article. If you don't truly embed risk management in your project, you can not reap the full benefits of this approach. They are either ignorant, running their first project or they are somehow confident that no risks will occur in their project which of course will happen. Some people blindly trust the project manager, especially if he or she looks like a battered army veteran who has been in the trenches for the last two decades.

Professional companies make risk management part of their day to day operations and include it in project meetings and the training of staff. The first step in project risk management is to identify the risks that are present in your project. People are your team members that each bring along their personal experiences and expertise. Other people to talk to are experts outside your project that have a track record with the type of project or work you are facing. They can reveal some booby traps you will encounter or some golden opportunities that may not have crossed your mind. Interviews and team sessions risk brainstorming are the common methods to discover the risks people know.