MANAGING RISK IN ENGINEERING PROJECTS

Ashiru, M. Ashiru and Jacob, E. Sanni

Civil Engineering Technology Department

The Federal Polytechnic, Nasarawa, Nasarawa state, Nigeria.

E-mail: ashiruashirum@yahoo.com

ABSTRACT: In order to guide management in making better decisions, decorous project decision-making require risk management and risk analysis techniques be applied. As a result of uncertainty as well as hazard there are risks inherent in all engineering projects. Decision making under uncertainty literally encompasses every aspect of engineering projects. No project is risk free. Risk can be managed, minimised, shared, transferred or accepted; it cannot be ignored (Sir Michael Latham, 1994). Risks are assessed against criteria defined before or during risk analysis and ranking. Once ranked, the risks are almost easily displayed on a likelihood impact-matrix that serves as a clear communication tool, allowing everyone to be able to understand the level of risk. Risk management processes described include risk planning, identification, analysis, response and monitoring. If implemented correctly, a successful risk mitigation strategy should reduce negative impacts. The purpose of this paper is to describe the risk management process and why it is important to determine and quantify the risk involved in any project or venture. Such that decisions can be made to counter or mitigate and make allowances for potential detrimental events.