Module 1 - Module Based, Bonus Content Test 2-Module_1

Module_1_Slides

Pdf Summary

This module introduces risk management for consulting engineers and outlines the course structure. It explains that risk includes uncertainty and the possibility of loss, with impacts such as economic loss, delays, cost overruns, claims, litigation, damaged relationships, and reduced profitability. Major risk sources include contracts, project delivery methods, scope issues, staffing, communication, quality of services, and enterprise-wide business decisions. A key theme is that many engineering claims stem from non-technical business practices rather than purely technical errors.<br /><br />The module defines risk management as the actions a firm takes to reduce risk from business practices and improve performance. Core principles include selecting clients carefully, using appropriate contracts, defining scope clearly, budgeting and scheduling realistically, understanding standard of care and the Spearin Doctrine, choosing capable personnel and subconsultants, and maintaining proper insurance. Risk should be allocated to the party best able to control it, and risk transferred through contracts should be priced accordingly.<br /><br />The presentation also introduces enterprise risk management (ERM), a broader, strategic approach that addresses not only threats but also opportunities. ERM examines strategic, operational, financial, cybersecurity, compliance, and other risks, and emphasizes proactive planning, leadership oversight, and integration with business strategy. Common ERM tools include risk registers, stakeholder registers, risk assessment matrices, risk breakdown structures, RAID logs, and risk response plans.<br /><br />Finally, the module reviews course logistics: eight modules, quizzes, reading assignments, group discussions, and live sessions. It previews upcoming topics such as contracting, subconsultants, standard of care, insurance, claims, disputes, and alternative project delivery.

Keywords

risk management

consulting engineers

enterprise risk management

contracts

project delivery

standard of care

claims

insurance

risk allocation

risk assessment