Study Of The Cost And Benefit Analysis Of Project Risk Management

Risk management is an essential method to ensure the Achievement of the goal of construction project. It is important to consider the cost of risk management, because the risk control measures need to put resources. If the benefit of risk management can not compensate for its cost, then it is necessary to consider whether it is worth to invest resources in risk management. Therefore, a cost and benefit trade-off analysis (CBA) is needed to reduce risk to a reasonable and acceptable level. But the complete concept and identification and measurement of project risk cost and project risk benefit is still not established and needed further study.The research object of this paper is project risk cost and project risk benefit. Based on a third-party perspective and use the concepts of risk cost and risk benefit in the areas of finance, insurance, security and disaster for reference, this paper discusses the concept, identification and measurement methods of the cost and benefit of construction project risk management.The risk cost of the project can be divided into two parts:risk management cost and risk loss cost. The Work-Risk-Input Breakdown Structure (WBS-RBS-IBS) method was given to identify the risk cost, and with the perspective of engineering cost, a kind of method to measure the project risk cost was discussed in this paper.Risk benefit of project risk management can be divided into three parts:excess income, essentially gain and losses reduction benefit. Based on the result status of the project and income level, a prediction model of losses reduction benefit was given. In the view of RFMEA, an indirect way to indicate benefit of risk management was proposed.Based on risk-criteria, this article analyzed the applicable conditions of CBA of risk management. The personnel detract benefit, property impairment benefit and social impairment benefit of risk management can not be equated, three-dimensional variable weight analysis was established and a comprehensive analysis of them was given.