As the project evolves, some risks will be resolved or diminished, while others may surface and thus be added. Of particular note is that the overall risk management process is repetitive and cyclical.
The risk management process is shown in Figure 3. Proper risk management will facilitate agency efforts to avoid, mitigate or better plan for costs that result from identifiable risks during the project development process. The Guidebook provides risk analysis tools and manage- ment practices to help control transportation project costs. The output of a risk-based cost estimate supports identification of critical cost containment issues and helps to effectively inform the design team about risks as proj- ects move through the development phases. However, risk management must be viewed as a comprehen- sive management process, not as simply a tool or set of tools for cost estimating. A cost estimate that directly addresses uncertainty and risk is at the core of a comprehensive risk management program. The chapter concludes with a discussion of risk management policies and performance measures. The chapter focuses on the risk management process and presents each of the five risk manage- ment steps in detail with illustrative examples.
#Word chapter 3 simulation exam free#
Not a MyNAP member yet? Register for a free account to start saving and receiving special member only perks.īelow is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book.