The risk management framework for organisations dealing with construction project management in South Africa

Consequence: This is the outcome of an event -There may be one or more consequences from an event.Consequences may range from positive to negative.Consequences may be expressed qualitatively or quantitatively.Event: This is an occurrence of a particular set of circumstances.The event may be certain or uncertain and can be singular or multiple.Interested parties: Persons or groups having an interest in the performance of an organization or project.Examples are customers, owners, employees, suppliers, bankers, unions, partners or society and end users.A group may be an organization, part thereof, or more than one organization.Mitigation: Limitation of any negative consequence of a particular event.Probability: The extent to which an event is likely to occur.The mathematical definition of probability is a real number in the scale 0 to 1 attached to a random event.Residual risk: The risk remaining after risk treatment.Risk: Combination of the probability of an event and its consequence.In some situations, risk is a deviation from the expected. Risk acceptance: A decision to accept a risk. Risk analysis:A systematic use of information to identify sources and to estimate the risk. Risk analysis:This provides a basis for risk evaluation, risk treatment, and risk acceptance.Risk assessment: Overall process of risk analysis and risk evaluation.