20 Scientific Bulletin of the Politehnica University of Timisoara, Romania TRANSACTIONS on ENGINEERING AND MANAGEMENT Volume 4, Number 2, 2018 Risk Management Planning in a Construction Project Andreea – Mariana MANTA 1 , Cristina DIMA 2 , Marius Nicolae PĂCURARI 3 Abstract – This paper presents an example of a risk management plan for a construction project to be developed in difficult environmental conditions. This Risk Management Plan defines how risks associated with the construction project in a desert zone will be identified, analyzed, and managed. It outlines how risk management activities will be performed, recorded, and monitored throughout the lifecycle of the project and provides templates and practices for recording and prioritizing risks by the Risk Manager. Based on our studies, risk management is an essential part of construction project management and should be always applied using appropriate tools. Keywords: Risk Management, Construction, Plan I. INTRODUCTION This paper is based on a real construction project which was implemented in very difficult conditions being in a desert zone from Africa. Every construction project must have a specific Risk Management Plan and a Risk Manager. The Risk Manager working with the project team ensures that risks are actively identified, analyzed, and managed throughout the life of the project. Risks shall be identified as early as possible in the project to minimize their impact. The steps for accomplishing this are outlined in the following sections. The risk management process is presented as a list of coordinated activities [3]: - “Recognition or identification of risks; - Ranking or evaluation of risks; - Responding to significant risks; - Tolerate and treat; - Transfer; - Terminate; - Resourcing controls; - Reaction planning; - Reporting and monitoring risk performance; - Reviewing the risk management framework”. 1 The Bucharest University of Economic Studies, Romania, andreeam.manta@gmail.com 2 The Bucharest University of Economic Studies, Romania, dima.cristina5@gmail.com 3 Intesa SanPaolo Bank, Bucharest, Romania, mpacurari@yahoo.com ISO 31000 gives a list in order of preference on how to deal with risk: a) Avoiding the risk by deciding not to start or continue with the activity that gives rise to the risk; b) Accepting or increasing the risk in order to pursue an opportunity; c) Removing the risk source; d) Changing the likelihood; e) Changing the consequences; f) Sharing the risk with another party or parties (including contracts and risk financing); g) Retaining the risk by informed decision. There are alternative descriptions of this process, but the components listed above are usually present. II. MANAGING RISK IN THE PROJECT “Risk management requires a reporting and review structure to ensure that risks are effectively identified and assessed, and that appropriate controls and responses are in place” [4]. In order to improve risk management process there will be carried out frequent verifications of specific standard and rules compliance. Potential changes on the construction site or in the environment must be observed and appropriate changes must be implemented. The monitoring process should prove that the procedures are understood and obeyed. Any monitoring and review process should also determine whether: - Measures adopted achieved the intended result; - Procedures adopted were efficient; - Enough information was available for the risk assessments; - Improved knowledge would have helped to reach better decisions; - Lessons can be learned for future assessments and controls. According to the standard ISO 31000 Risk management – Principles and guidelines on implementation the BUPT