Quantitative Risk Analysis Of The Giza Pyramid Project
Risk management of the Giza Pyramid project is undeniably critical given the nature and scope of the project. Starting from the extensive supply chain to the construction site, quarries and workshops, risk management is necessary to control the possible dangers. The risk to this project mainly lies on the project workforce mainly because there are huge quantities of materials being moved over long distances and heights. Consequently, there is a high risk of site accidents and there is a poor reputation of pyramid projects to address most of these problems. The result is the inability of the projects to meet deadlines and costs. As seen in previous pyramid construction projects, the risk of failure to meet deadlines and …show more content…
The quantitative risk analysis will be done using the Failure Mode Effect Analysis (FMEA) tabular tool that ranks every risk item on a scale of 1 to 5. The following table summarizes the quantitative risk analysis of the Giza Pyramid project using the FMEA tool:
Risk Failure mode Effect on the project Chance Severity Detection difficulty Total ranking
Financial risk – inflation Inflation increases Increased costs 2 3 1 6
Financial risk – funding The sponsor failing to provide funds Unpaid salaries and suppliers. Stalling of the project 1 5 1 7
Physical and environmental risks – Flooding and recurring desert storms Flooding of the construction site, quarry Destruction of construction materials. Workers accidents. Collapse of the structures 1 5 2 8
Construction risks – workers and site safety Workers and site accidents Personal injuries, construction delays 3 4 3 10
Construction risks – delayed deliveries and disruptions, unsuitable construction materials Inability to access the site, inadequate funding, contract problems Construction delays 1 3 1 …show more content…
Quantitative Risk Analysis
The risk responses to the identified risk will be based on the qualitative and quantitative analysis of the risks. Since most of the risks are threats to the quality of the Giza Pyramid project, the responses to these threats will be avoiding, mitigating, transferring and accepting.
a. Avoiding – The risks with high or very high cost and time impact will be avoided by reducing the probability of occurring. Risks that will be avoided include construction risks and financial risks.
b. Mitigating – Risks that have moderate or low risk of occurring will be mitigated by reducing the probability of the risk as well as its impact. Risks that will be mitigated include technical risks, performance risks and organizational risks.
c. Transferring – Some of the moderate risks like financial risks will be transferred to third parties in order to reduce their probability and impact.
d. Accepting – The risks that have a very low chance of occurring will be accepted.