Thesis (M. Eng.) - Asian Institute of Technology, 1995

A thesis submitted in paitial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology

A successful project management much depends on an efficient risk management system. Lack of a systematic risk management, is likely to ignore or to miss some unusual and cmcial factors of risks and, therefore, contractors will place them at the danger situation in the competitive constmction industty. In order to avoid the occut1'ence of possible risks inherent in a project or to reduce their adverse influence, this study develops a 1isk management system from contractor's perspective with a systematic procedure for identification, assessment/analysis and response of risks. According to the risk management system, the risks are identified by members of management team using survey questionnaire. The risk assessment is done by using Analytic Hierarchy Process with the aid of the Expert Choice software. The impact analysis focuses on the high risk work packages and is done by conventional project planning combined with some risk analysis tools. Finally, risk response is done according to the results of impact analysis and competence apprai~al by using four basic response fotms which are risk retention, 1i~k avoidance, risk reduction and risk transfer. This system combined with some adequate risk analysis techniques is possible to enhance the efficiency of project management and the accuracy of estimates. The benefits could be substantial. The paper also introduces the application of risk management system on the Hsintien River Tutmel Project in Taiwan.