Almaty Management University

PhD, Senior lecturer, Aiman M. Kazybayeva

The content of the risk management process in the realization of investment construction projects

Considered methodological approaches present risk management mechanism as a set of activities, organized into the process, that is to say, at the modern stage of development, risk management is a systematic preventive continuously repeating complex of targeted actions, organized into the process. Thus, the risk management process during the implementation of investment construction projects means a series of successive targeted actions, called the functions of management, oriented to regulating the probability of successful implementation of the investment construction project, that is to say, the completion of construction within the budget, schedule and adequate quality.

The risk management functions are the kinds of relatively isolated activity in the management cycle, and their combination determines the content of the risk management process. Modern approaches to the devision of the risk management process of the project into single functions, contribute to the understanding of global trends in the development of risk management mechanism, but do not give a clear answer to questions about the aims and tasks of the risk management functions.

Relative certainty exists only for the planning functions of risk management and risk identification. Regarding other functions, today there is the main problem in the process of risk management – it is a continuing debate about the conceptual framework of risk management, that is to say, the absence of generally accepted names and definitions. Comprehensive comparative analysis of the whole complex all the known methodological approaches to risk management revealed commonalities in content and structure of the risk management process, based on which the following assumptions are put forward.

1. The risk management process begins with the planning of the whole complex of its constituent activities. In other words, planning is initial function of the management process, performing a major role in it. Planning defines a sequence of objectives to be achieved by a specific time (Vasiljev V.М., 2001).

2. The next function after the planning in the risk management process of realization of investment construction projects is the identification of risks, i.e. the identification of situations at the occurrence of which the process of the realization of investment construction project has a negative impact. After the general planning of activities, in the risk management process the management object is determined, and its characteristics are considered, as originally the possibility of negative situations is only supposed, but there is no exact information. And herein lies the complexity and uniqueness of the risk management process. Thus, in the understanding of the initial functions of risk management (planning and risk identification) there are no contradictions among all these approaches.

After the identification of the management object, that is to say, risks, there is a need to assess their main characteristics: the probability of occurrence and the amount of potential losses. Then it is supposed to implement the selecting of the most suitable measures for the particular situation that would decrease the degree of the impact of risk to an acceptable level. All actions must be maintained in accordance with the original plan of risk management, and the main results need to be documented (Lesnych V. V., 1999).

3. Next after identification in the risk management process their assessment is carried out. In some methods of the risk management this management function is defined as "risk analysis" (Project Management Institute, 2000). It is rather inaccurate, since analysis suggests the dismemberment of the whole into parts and comprehensive study of the parts. The key moment in the process of risk management still is the assessment of the probability of negative situations and their consequences from their manifestation. That is why it is correct to call this function of risk management as "risk assessment".

Identification and assessment of risks are usually performed at the same time, because after identifying the risks, it is necessary to assess the probability of their occurrence, the amount of potential losses from their manifestation, and also to rank the degree of impact on the progress of realization of the investment construction project (Kozunko D. B., 2001). But still identification and assessment of risks are different risk management functions with different aims and tasks, though they are closely related to each other. Moreover, data from the identification and assessment of risks, allow making an assumption about the level of each risk, which is the basis for the choice: to act or inact in situations, involving risk.

4. Currently, different names of the complex of targeted actions are offered to establish an acceptable level of risk. The guide PMBoK (Project Management Institute, 2000), these steps are called "planning responses (reactions) to the risk", and in the recommendations of NASA (NASA Program and Project Management Processes and Requirements, 2002) two management functions are offered: firstly responses to risk manifestation are planned, and then the progress of execution of the response is controlled and consequently the functions are called "planning" and "monitoring". However, in the most considered methodical approaches the next after risk assessment management function is called "risk handling". Risk handling thus includes steps for selection and implementation of various measures to establish an acceptable level for each identified risk.

5. To ensure the correctness of all the action in the process of risk management control function is introduced (Djurabaeva G. К.,2000). The implementation of controlling actions to measures for handling risks simultaneously allows to provide feedback risk to management system that assumes the transfer of information about the state of the management object, and this is the basis for repeat identifications and risk assessments, as well as the revision of methods of risk handling (Titov V. v.,1999).

6. It is also possible to recognize clearly established function of documentation. Documentation of the results of all the main actions is now a standard function of any management process, including risk management in the process of realization of investment construction projects.

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