RISK MANAGEMENT

Risk Management on Systems Building Process

ABSTRACT

The design, use and maintenance of buildings and building service systems have become more and more complex, in the sense of management of information and knowledge. The systematical risk management methods and applications are sophisticated ways to evaluate and manage the risks. This paper presents also have a case study for risk management. The case describes the management of risks, and success factors in building service lifecycle project, and this is application for the design phase.

Risk Management on Systems Building Process

Introduction

Risk Management

Risk management encompasses the activities dealing with risks after they are identified and evaluated. Risk management, as well as risk assessment and risk communication, are part of the comprehensive term of risk governance, which is a systematic approach toward coping with risks under participation of all relevant actors (government, companies, the scientific community, nongovernmental organizations, and the general public). Risk management starts as soon as there is sufficient evidence, for hazards identified and evaluated by risk assessment (Kammen, and Hassenzahl, 2001, 101-110).

Risk management concerns how people deal with risks. Risk reduction (making risks smaller, as by changing a technology or altering how people behave) and risk prevention (banning a potentially hazardous technology or activity) are methods most people can imagine, because they are widely discussed. Risk acceptance is probably at least as common. This often entails deciding that the benefits of a hazardous activity or technology far outweigh its harms, but not always. For example, individuals might engage in “risky” recreation, like skydiving or rock climbing, without explicitly weighing its personal benefits or costs; institutions and nations might also accept certain risks because to do otherwise would violate conceptions of their social roles or identities. Among other risk management approaches are risk spreading (as in insurance) and risk shifting (as in automobile safety, in which vehicle design, highway design, or driver behaviour have been at one time the favoured focus, each with its own implications for patterns of risk and responsibility). Each approach entails some consideration of what kinds or levels of risk are ultimately tolerable. Claims of “risk acceptability” can be controversial, especially when someone else is deciding for you or in cases where the benefits of an activity that produces hazard go to different people than those who suffer the risks (Slovic and Peters, 2009, 1473-1488).

If a general method such as risk reduction is selected, then the issue of how to reduce risk arises. There are many ways of reducing the risk (engineered solutions, technology bans, or changing individuals' behaviour), and many methods of getting that way adopted (whether through direct regulation, monetary incentives, or persuasion). These decisions might entail formal analysis of the benefits, costs, risks, and constraints on implementation of each option under consideration, including such factors as who harmed or helped, cost-effectiveness, and others. Such analysis is not always done, and the choices of which options and factors to analyze may be limited—or controversial. Risk management also includes the process of implementation of risk management methods and evaluation ...