OPERATIONAL RISK

OPERATIONAL RISK

1. PROCUREMENT

   • BUDGET EXCEEDS
   • INCORRECT INFORMATION FROM THE INVESTOR
   • LACK OF SUCCESSION PLANNING
   • SCHEDULE OVERRUNS
   • OVER-OPTIMISTIC WORKLOAD
   • ACCEPTANCE TOWARDS UNREALISTIC DEADLINE
   • REMUNERATION PROBLEM (LATE SALARY)
   • UNDOCUMENTED CHANGE ORDER
   • DEFECTIVE DESIGN
   • INCOMPLETE QUANTITY ESTIMATE
   • CONTRACTOR INSOLVENCY
   • DIFFICULT TO OBTAIN PERMIT
   • CLAIM SETTLEMENT
   • INADEQUATE LEAD TIME
   • INADEQUATE SUPPLY SOURCE

2. LOGISTICS (SYSTEM)

   • OVERLOADING
   • TRAFFIC CONGESTION
   • PROJECT DELAY
   • ACCIDENT DURING LOADING AND UNLOADING AT SITES
   • ROAD ACCIDENT
   • MATERIAL DELIVERY DELAY
   • PRIME MOVER TYRES EXPLODES
   • SCAFFOLDING FALL DOWN
   • FORKLIFT BREAKDOWN
   • STRUCK BY EQUIPMENT DURING LOADING AND UNLOADING
   • CRANE BREAKDOWN/DEFECTIVE
   • WEATHER CONDITION (FLOOD, EARTHQUAKE)
   • ROAD CONDITION (SLIPPERY, HOLES, DAMAGE)
   • LORRY AND TRUCK BREAKDOWN
   • ACCIDENT ON WORKERS

3. HUMAN RESOURCES

   • WORKERS NOT ABIDE THE REGULAR WORK HOURS
   • WORKERS ARE INJURED IN WORKING HOURS
   • CONFLICT AMONG WORKERS IN CONSTRUCTION SITES
   • CUSTOMER COMPLAIN
   • POOR LEADERSHIP
   • CORRUPTION IN WORKERS
   • POOR ETHICS AMONG WORKERS
   • HIGH ABSENTEEISM AMONG EMPLOYEE
   • WORKER'S STRIKE
   • SHORTAGE SKILLS
   • SHORTAGE LABOR
   • FRAUD
   • HUMAN ERROR
   • WORKERS TURNOVER
   • SABOTAGE

4. RESOURCES

   • WEAR AND TEAR MACHINE
   • WASTE OF RESOURCES
   • MATERIAL SHORTAGE
   • EQUIPMENT NOT PROPERLY HANDLE
   • MACHINERY NOT AVAILABLE
   • LOW OPERATING PRODUCTIVITY
   • WRONG MATERIAL ORDER
   • SKILL GAPS BETWEEN WORKERS
   • INCOMPLETE DESIGN DOCUMENTS
   • INTERRUPTING DURING DELIVERY RESOURCES
   • UNABLE ADAPT WITH NEW TECHNOLOGY
   • NATURAL DISASTER (FLOOD, EARTHQUAKE)
   • MATERIAL/LABOUR AVAILABILITY
   • DEFECT MATERIAL/EQUIPMENT
   • NON-QUALITY MATERIAL

5. CONSTRUCTION

   • POOR AND INADEQUATE LIGHTING
   • NATURAL DISASTER FLOOD AND EARTHQUAKE
   • FALL FROM HEIGHT
   • ABSENTEEISM OF TRAINED MANPOWER AT SITES
   • CHANGES IN PROJECT IS POORLY MANAGED
   • CUTS FROM SHARP OBJECTS
   • INJURY / DEATH AT CONSTRUCTION SITES
   • FALLING OBJECTS
   • LACK OF COMMUNICATION BETWEEN TOP LEVEL, MIDDLE LEVEL AND BOTTOM
   • INEXPERIENCE PERSONNEL ON SITE
   • BUILDING ON FIRE
   • CONFLICT AMONG DESIGNING TEAM
   • UNTRAINED PILING RIG MACHINE
   • FALL DOWN STACKING MATERIAL
   • POOR QUALITY WORKMANSHIP
   • COLLAPSE (NOT SUITABLE)