How Does Risk Monitoring Track Residual Risks and Evaluate Response Effectiveness?

What Is the Main Purpose of Risk Monitoring and Controlling in Construction Projects?

Learn the primary purpose of risk monitoring and controlling: tracking identified risks, monitoring residuals, and evaluating response plans to keep construction projects on schedule and budget.

Question

You are managing a large construction project, and the team has identified several potential risks. As the project progresses, you continuously assess and track these risks to ensure the project stays on schedule and within budget. In this scenario, what is the primary purpose of the risk monitoring and controlling process?

A. To identify new risks and assess their impact
B. To eliminate all risks associated with the project
C. To track identified risks, monitor residual risks, and evaluate the effectiveness of risk response plans

Answer

C. To track identified risks, monitor residual risks, and evaluate the effectiveness of risk response plans

Explanation

The primary purpose of the risk monitoring and controlling process is to ensure ongoing vigilance over the project’s risk profile by systematically tracking the status of previously identified risks, monitoring any remaining residual risks after responses have been implemented, and evaluating whether the chosen risk strategies are working as intended or need adjustment.

This iterative process also involves auditing risk response effectiveness, identifying new risks that emerge as the project evolves, and updating the risk register and project management plan accordingly to keep the project on track for schedule and budget goals. Unlike initial risk identification (which focuses on discovery), it emphasizes execution oversight and adaptive management rather than attempting the impossible task of eliminating all risks.