Risk Response

The followings are the four risk response strategies that provide a range of options for managing risks, EXCEPT

• Risk Avoidance

• Risk Retention

• Risk Seeker

• Risk Transfer

The followings are the relevant RISK RESPONSE approaches in construction project EXCEPT

• Residual risk is the level of risk that remains after all risk response measures have been implemented. It represents the risk that remains even after risk reduction and risk transfer strategies have been applied.

• Retained risk occurs when a project team consciously decides to accept and bear the potential consequences of a risk. Instead of transferring the risk to another party or taking active measures to reduce it, the project team retains the risk and assumes responsibility for managing and mitigating it internally.

• Transferred risk involves shifting the responsibility for managing a risk to another party or entity.

  •This is typically done through contractual arrangements or insurance policies.

• Risk attitudes vary depending on the context and specific circumstances of construction projects.

RISK ATTITUDES are influenced by personal factors, cultural norms, past experiences, and the magnitude of potential risks and rewards involved.

• True

• False

RISK RETENTION, also known as RISK ACCEPTANCE involves accepting and absorbing the potential consequences of a risk.

• False

• True

For RISK RETENTION, you will need to take any specific action to address the risk to minimize the impact if the risk materializes.

• True

• False

RISK REDUCTION involves implementing preventive measures or controls to minimize the probability of the risk event occurring, or to mitigate the severity of its impact if it does happen

• False

• True

The followings are some the common RISK REDUCTION strategies EXCEPT

• implementing safety protocols

• backup systems

• training programme

• conducting regular maintenance

• purchasing insurance

RISK AVOIDANCE refers to steering clear of activities, situations, or decisions that could potentially expose you to risks.

• True

• False

The followings are the statement related to RISK AVOIDANCE,

EXCEPT

• employed when the potential consequences are severe, and the risk cannot be effectively managed through other strategies.

• may not always be feasible or practical, as certain risks may be inherent in specific endeavors or industries.

• essentially avoid the financial burden or potential losses associated with the risk to another entity.

• Involves identifying and assessing risks and making a deliberate choice not to engage in activities that could pose significant threats or harm.

By willing to accept a higher level of risk in exchange for the potential for greater rewards or gains, you are a ....

• Risk Seeker

• Risk Averse

• Risk Neutral