No.

Risk events Likelihood Consequence

1 occupational health safety
2 project management risk
3 limited materials
4 operational risk
5 weather issues
6 environmental issues
7 economic crisis
8 delay in project
9 exchange rate fluctuations
10 cost increase
11 change of scope
12 security
13 legislative changes
14 reputatuion of the company
15 social risks
A Almost Certain 5 Catastrophic
A Almost Certain 5 Catastrophic
C Moderate 2 Minor
B Likely 3 Moderate
C Moderate 2 Minor
C Moderate 2 Minor
E Rare 1 Insignificant
C Moderate 4 Major
B Likely 3 Moderate
B Likely 5 Catastrophic
D Unlikely 4 Major
B Likely 4 Major
E Rare 1 Insignificant
E Rare 1 Insignificant
E Rare 1 Insignificant
Severity
Extreme
Extreme
Moderate
High
Moderate
Moderate
Low
Extreme
High
Extreme
High
Extreme
Low
Low
Low
 Risk Events
Note: Risk no. 1 is only the example how we are going to do our work individually and calculation changes acc
No. Risk event Likelihood
Cost overrun resulting from changed labor safety
1 C Moderate
laws and regulations
2 Changed orders resulting from legislative changes E rare

3 Cost overrun resulting from inflation B likely

Suspension of work in adverse weather events

4 C Moderate
such as typhoon or rainstorm

Schedule or cost overrun owing to site

5 C Moderate
discrepancy on geology or topography

6 Requests for contributions to local community E rare

7 Property or equipment losses owing to theft B Likely

Changed material orders from client's demand

8 D Unlikely
changes

Schedule delay due to difference between design

9 C Moderate
and actual construction

Underestimation of construction costs due to lack

10 A Almost Certain
of information and insufficient detail designs.

Construction accidents resulting from operating

11 B Likely
errors or carelessness of workers
 Excessive use material of by subcontractor with
12 C Moderate
poor technique or working habits

Schedule delay because supplier was unable to

13 C Moderate
deliver materials on schedule

Schedule delay caused by substandard quality of

14 B Likely
material and services.

Machinery / Equipment breakdowns suspending

15 C Moderate
construction activities

Swinburne University of Technology, Hawthorn

idually and calculation changes accordingly, its just rough work.
Consequence Severity
3 Moderate High

1 insignificant Low

5 Catastrophic Extreme

2 Minor Moderate

2 Minor Moderate

insignificant Low
1

4 Major Extreme

4 Major High

4 Major Extreme

5 Catastrophic Extreme

3 Moderate High
2 Minor Moderate

2 Minor Moderate

3 Moderate High

3 Moderate High
 Risk Treatment Likelihood
C

E
The cost estimators must estimate in such a way that the cost
output after the completion of the project must result in profit.
C

Project managers must be able to manage to complete

the project on time by increasing resources and also
by proper time management. C

structural engineering before designing must

investigate the site properly and then provide design
depending on the practical site condition. D

E
Proper security in each sections of the project is to be
provided. Also the material stored should be secured
prorperly D

Project manager must agree to the client for the

change of scope only if it produces a very little effect
on the project else the project manager must be able
to convince the client about the after effects of such E
change.

Changes due to this must be minimised. Site engineers

must scrutnise everything that effects or delays the
project from a design point of view. C

The client must ensure the cost estimators involved

are well experienced with such projects and cost
estimators must inform the project managers if the C
design provided is improper or insufficient.

Have a safety officer in the site. The safety officer

must also ensure that each workers have undergone C
safety induction before commencing their work in the
site.
Site engineer must keep an account of the material
delivered to the subcontractor for a particular work
and the percentage of the work completed. The sub-
contractor must be informed for excessive use of
B
material may result in the decrease in their final
payment.

Project manager to make sure that the materials are

sourced properly before the project start and also D
should ensure that there is enough material for the
project.
Quality manager must be appointed and he must take
good care of the quality of the materials used for the
construction C

Site engineers must ensure each equipment before

being used in the site that it is properly maintained or B
not.
hood Consequence Severity
Moderate 3 Moderate High

rare 1 insignificant Low

Moderate 3 Moderate High

Moderate 1 insignificant Low

Unlikely 2 Minor Low

rare 1 insignificant Low

Unlikely 3 Moderate Moderate

rare 3 Moderate Moderate

Moderate 3 Moderate High

Moderate 3 Moderate High

Moderate 2 Minor Moderate

 Likely 1 insignificant Moderate

Unlikely 2 Minor Low

Moderate 2 Minor Moderate

Likely 1 insignificant Moderate

 Consequence
Insignificant Minor
Risk Map before Treatment
1 2
Upto $ 150,000 Upto $ 1,500,000
L A Almost certain 95%
i
k B Likely 80%
e
l C Moderate 50%
i 4,5,12,13
h D Unlikely 20%
o
o E Rare 5%
d 2,6

Consequence
Insignificant Minor
Risk Map after Treatment
1 2
Upto $ 150,000 Upto $ 1,500,000
L A Almost certain
95%
i
k B Likely 80%
e 12,15
l C Moderate 50%
i 4 11,14
h D Unlikely 20% 5,13
o
o E Rare 5%
d 2,6
 Consequence
Moderate Major Catastrophic
3 4 5
Upto $ 15,000,000 Upto $ 150,000,000 Over $ 150,000,000
10

3
11,14
7
1,15
9
8

Moderate Major Catastrophic

3 4 5
Upto $ 15,000,000 Upto $ 150,000,000 Over $ 150,000,000

1,3,9,10