Construction Risk Management Quiz

What is the primary goal of risk management in construction?

• To determine the risk present and minimize impact

• To increase project costs

• To avoid all risks completely

• To ignore safety standards

What does a contingency plan provide?

• A method to avoid all risks

• An alternative method for finishing a project despite risks

• A way to increase project costs

• A strategy to ignore project deadlines

Which of the following is a source of financial risk?

• Poor management of resources

• Unexpected cost increases

• Natural disasters

• Worker accidents

What is the first step in managing project risk?

• Accept the risk

• Mitigate the risk

• Transfer the risk

• Identify the risk

What does it mean to mitigate a risk?

• To avoid the project entirely

• To create plans to keep the risk as low as possible

• To transfer the risk to another party

• To accept the risk without any changes

Which of the following is NOT a type of insurance an architect needs?

• Auto Insurance

• Health Insurance

• Construction Equipment Insurance

• Professional Liability Insurance

What is the purpose of an indemnity clause in insurance?

• To increase project costs

• To protect the architect from liability for damages

• To avoid all risks

• To ensure project completion

What is a key benefit of effective risk management?

• More disputes among team members

• Lower safety standards

• Higher confidence in projects

• Increased project delays

What should project managers promote to prevent conflicts?

• Open communication

• Avoiding team meetings

• Strict hierarchy

• Limited discussions

What is the role of mediation in project management?

• To escalate conflicts

• To increase project costs

• To resolve conflicts between team members

• To ignore team dynamics