The information needs for part 1 needs to be pulled from the foll

Generally, it can be concluded that the contractors are more aware of and sophisticated in applying risk identification output to a range of options. Use of risk management at the time of estimating and tendering is the goal, so integration of information generated at different stages of the process i.e., estimating, tendering, and construction, is important, especially if the contractor wins the project. This will influence the profitability of the project and the company as a whole. It will stop repetition of estimating once the contract is awarded, as is normally the case when the project manager does the estimate for the job with little reference to the initial pre-tender estimate prepared by estimator of company. The better way would be to use prior knowledge to the maximum. Use of prior efforts requires coordination and getting it right the first time, with input from the potential construction stage leader/team. (Bickerstaff & Walker, 2002).

Avoidance is the best strategy to address negative risks. 

Transfer works in the automotive business due to the fact that test drivers usually have insurance once the car is taken off the lot. However, it does come at a cost--the cost associated with insuring the negative risk. Insurance and contractual agreements are ways to transfer negative risks in risk management strategies.

Risk acceptance is the common response strategy. The common bond is that both types of risks is ensuring that risk identification and response are recurring processes.

The risk strategy to reduce the liabilities within the automotive industry would be to reducing the likelihood of events that are progressing throughout the various stages of planning the launch event of the Tesla 3.

The responses listed below help address the positive and negative risks associated with the project.

Responses to negative risks associate with the Tesla Launch

Negotiate with client on price of risk

Taking risk as it may be associated with more profits

Share risk with sub-contractors

By use of partnering process with all major parties

Transferring risk to insurance company

Reponses to positive risks associated with the Tesla launch:

Accept opportunities simply fall on your lap and you choose to accept them.

Exploit by examining new techniques and conducting a SWOT analysis.

Share ideas and collaborate among team members

Creating partnerships with relevant parties (stakeholders, contractors and customers)

Enhance can be addressed by identifying the root cause of a positive risk it can influence it for a greater likelihood of the opportunity occurring for the benefit of the project at hand.

Importance of the Methods of Allowing for Contingency

The definition of contingency risk strategy is as follows is developed in advance and designed to be used only if the risk event occurs. As with any back up plan, the contingent response strategy is a critical communication tool to ensure that all team members know what actions to take when the specified risk event occurs. (Bozeman & Kingsley, 1998).

Identifying specific risks and allocating contingencies to those risks

Reference of historical project cost data bases and correlation, with current input pricing.

Building and using a project risk model by software.

Cover high risk by high contingency

Estimating manuals containing risk check lists with contingency ranges defined.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Bickerstaff, K., & Walker, G. (2002). Risk, responsibility, and blame: An analysis of vocabularies of motive in air pollution(ing) discourses. Environment and Planning A, 34: 2175–2192

Bozeman, B., & Kingsley, G. (1998). Risk culture in public and private organizations. Public Administration Review, 58: 109–118.

 

 

 

 

 

 

 

 

 

owing documents. Part 2 is filling out section u05a1.

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