Last Updated: 3-2013
Implementing innovations and extending the core business increases both project opportunities and threats. Securing profit margins requires construction companies to redevelop their risk management process to prevent threats and promote opportunities. This research provides a renewed risk management methodology based on theory and practice. The traditional definitions terms involved with risk management are redefined and a framework is proposed using the definitions as restraints. In turn the activities in the framework are used as outline to create a supportive tool composed of the risk analysis and risk management principles. The main activities encompass identification, assessment and development of control and response measures. The assessment is supported by a combined fuzzy logic prediction system and Monte Carlo simulation tool to provide each risk with impact characteristics in terms of money and time. The renewed method provides a verified and validated approach to increase internal implementation and external application of risk management.