Risk can be regarded as the obverse of Opportunity. As such, they can be dealt with similarly.
If you have a risk of a potential 10 day delay on one activity, you can also have the Opportunity of a ten day saving (on another activity) if you had used a duration that turns out to be longer than you may need.
TRA (time risk allowance) added to durations is one way of building in some potential opportunity for time savings. My preference on a construction project is to add 15% to the durations that are calculated using production rates.
Thus, I am building in a small opportunity for time savings on every activity.
Cheers
Member for
20 years 6 months
Member for20 years6 months
Submitted by Santosh Bhat on Tue, 2018-12-25 10:00
The term risk simply implies an uncertainty of outcome. It can be positive (opportunity) or negative (threat), or even, as is the case with a risk like production rate can be both.
Its simply about the terminology being adopted.
Member for
20 years 6 months
Member for20 years6 months
Submitted by Santosh Bhat on Tue, 2018-12-25 10:00
The term risk simply implies an uncertainty of outcome. It can be positive (opportunity) or negative (threat), or even, as is the case with a risk like production rate can be both.
I'm a layman and for me, entering any business venture (especially Construction) is a "Risk" by itself. Perhaps that's why the "business players" are called "Stakeholders". Risk(s) is real life uncertainties (either negative or positive), and always unpredictable. Maybe similar or has no difference with "Gambling" where "Luck" plays a vital role. However, "business risks" are always identifiable, in other words, the cards and the odds are always known or transparent (unlike gambling). So I guess (literally), there's no such thing as "Luck" in business. Perhaps if any, then I would say that it is an "act of God" (or act of evil if acquired by cheating). Anyway, I for one believe that in Construction or any business, you should always avoid "Short-cuts". At least you will lessen the risks if not totally avoid them.
Member for
6 years 11 months
Member for6 years11 months
Submitted by AlexAntonios on Mon, 2018-12-24 20:07
People do projects for people. By extension, one or more people might collaborate together in the result of an outcome that is targeted to another person or another group of people.
Regarding the classification of risk within practices they can be classified to whichever methodology suits the person: the simpliest examples would be a SWOT (for an organisation / INTERNAL vs EXTERNAL) or SVOR (for a project / POSITIVE vs NEGATIVE).
Example of SVOR (retrieved from Mesly, Olivier (2017). Project feasibility – Tools for uncovering points of vulnerability. New York, NY:Taylor and Francis, CRC Press, 546 pages, 9 ISBN 9781498757911).
ForcesInternalMathematical linkExternalPositiveTotal ForcesTotal Forces given constraints = Infrastructures / OpportunitiesOpportunitiesMathematical linkVulnerabilities given constraints = 1 / Total Forcesconstant kOpportunities given constraints = 1 / RisksNegativeVulnerabilitiesRisks given constraints = k / VulnerabilitiesRisks
In different disciplines, risks and opportunities are the most volatile components in an analysis.
In projects, many variables are highly volatile and risks and opportunities grow in volatility exponentially.
From a practical and professional point of view, in contracts, it is a generality to classify them exclusively in the risk section. In their 'volatile' nature we attempt to integrate risks and opportunities within plans, projects and contracts.
In the conditions of being ethical and professional, it is accepted to classify them as 'risks' to present the existance of those 'volatile events' either they are positive or negative. The 'positive' or 'negative' judgement would come from the audience that can derive from the different people in the project (or contract).
Not everybody perceives 'positive' and 'negative' impacts with the same reception. It is better to classify them as risks from a contracting, operational and financial point of view AND/OR adapt once infront of a certain audience.
Member for
17 years 5 monthsRisk can be regarded as the
Risk can be regarded as the obverse of Opportunity. As such, they can be dealt with similarly.
If you have a risk of a potential 10 day delay on one activity, you can also have the Opportunity of a ten day saving (on another activity) if you had used a duration that turns out to be longer than you may need.
TRA (time risk allowance) added to durations is one way of building in some potential opportunity for time savings. My preference on a construction project is to add 15% to the durations that are calculated using production rates.
Thus, I am building in a small opportunity for time savings on every activity.
Cheers
Member for
20 years 6 monthsThe term risk simply implies
The term risk simply implies an uncertainty of outcome. It can be positive (opportunity) or negative (threat), or even, as is the case with a risk like production rate can be both.
Its simply about the terminology being adopted.
Member for
20 years 6 monthsThe term risk simply implies
The term risk simply implies an uncertainty of outcome. It can be positive (opportunity) or negative (threat), or even, as is the case with a risk like production rate can be both.
Its simply about the terminology being adopted.
Member for
19 years 1 monthI'm a layman and for me,
I'm a layman and for me, entering any business venture (especially Construction) is a "Risk" by itself. Perhaps that's why the "business players" are called "Stakeholders". Risk(s) is real life uncertainties (either negative or positive), and always unpredictable. Maybe similar or has no difference with "Gambling" where "Luck" plays a vital role. However, "business risks" are always identifiable, in other words, the cards and the odds are always known or transparent (unlike gambling). So I guess (literally), there's no such thing as "Luck" in business. Perhaps if any, then I would say that it is an "act of God" (or act of evil if acquired by cheating). Anyway, I for one believe that in Construction or any business, you should always avoid "Short-cuts". At least you will lessen the risks if not totally avoid them.
Member for
6 years 11 monthsHello AV,People do projects
Hello AV,
People do projects for people. By extension, one or more people might collaborate together in the result of an outcome that is targeted to another person or another group of people.
Regarding the classification of risk within practices they can be classified to whichever methodology suits the person: the simpliest examples would be a SWOT (for an organisation / INTERNAL vs EXTERNAL) or SVOR (for a project / POSITIVE vs NEGATIVE).
Example of SVOR (retrieved from Mesly, Olivier (2017). Project feasibility – Tools for uncovering points of vulnerability. New York, NY:Taylor and Francis, CRC Press, 546 pages, 9 ISBN 9781498757911).
ForcesInternalMathematical linkExternalPositiveTotal ForcesTotal Forces given constraints = Infrastructures / OpportunitiesOpportunitiesMathematical linkVulnerabilities given constraints = 1 / Total Forcesconstant kOpportunities given constraints = 1 / RisksNegativeVulnerabilitiesRisks given constraints = k / VulnerabilitiesRisks
In different disciplines, risks and opportunities are the most volatile components in an analysis.
In projects, many variables are highly volatile and risks and opportunities grow in volatility exponentially.
From a practical and professional point of view, in contracts, it is a generality to classify them exclusively in the risk section. In their 'volatile' nature we attempt to integrate risks and opportunities within plans, projects and contracts.
In the conditions of being ethical and professional, it is accepted to classify them as 'risks' to present the existance of those 'volatile events' either they are positive or negative. The 'positive' or 'negative' judgement would come from the audience that can derive from the different people in the project (or contract).
Not everybody perceives 'positive' and 'negative' impacts with the same reception. It is better to classify them as risks from a contracting, operational and financial point of view AND/OR adapt once infront of a certain audience.
I hope this helps,
AA