1. Avoidance: It is a negative risk prevention technology. Because the project risk belongs to speculative risk, there will be no risk if the project is not done. Therefore, when the risk assessment shows that the threat of a certain risk is too great, the project should be abandoned voluntarily. This measure is often adopted at the stage of deciding whether to bid. For example, in the bidding process, according to the owner's bid evaluation method, the comprehensive bid price is lower than our budgeted cost. If we win the bid according to this composite bid price, the project will lose money before it comes to power. For such a project, our best way is to take evasive measures and should voluntarily give up the bidding for this project.
2. Slow release: refers to the specific measures taken to deal with risks in order to eliminate or reduce various factors that may cause losses before the occurrence of risk losses. Its purpose is to reduce the lost frequency. Generally speaking, after finding out the risk source and risk trigger point, we try our best to eliminate the risk trigger point and reduce the possibility of risk events. For example, we have to face the risk of foreign exchange when bidding for overseas projects, but with the permission of the owner, we can choose a stable currency and design a variety of currency combinations through exchange rate forecasting. If the quotation currency is specified in the tender documents, measures such as appropriately raising the exchange rate of the risk currency during bidding can be taken to reduce the losses caused by exchange rate risks.
3. Retention: refers to self-commitment or voluntary commitment to the consequences of risk loss. In the risk assessment stage, the risk tolerance of all parties involved in the project and what risks are acceptable have been determined. There is a price to pay for eliminating risks, which may be higher than or equal to the losses caused by risk events. In this case, the risk taker should regard this risk as the necessary cost of the project and accept it voluntarily. For example, for the risk of project cost overrun, unforeseeable expenses should be considered when estimating the project cost. Once the project really overruns, the reserved unforeseeable expenses should be used. The size of unforeseen expenses can be given a percentage by cost experts according to the size of risks. Risks that cannot bear adverse consequences cannot be retained, and should be avoided, mitigated, transferred or dispersed.
4. Transfer: that is, transfer the risk to some entities outside the project. Insuring with an insurance company is a common way of risk transfer. For example, all risks, third party liability insurance, personal safety, property safety and other types of insurance are to transfer the risks in the construction process to the insurance company. For another example, for inflation risk, we can try to write price adjustment clauses in the contract, transfer the risk to the owner, and so on.
5. Decentralization: This means trying to make all relevant units of the project share the risk. For example, organizing a consortium to bid together is a way to spread risks. However, joint bid may also bring many organizational and coordination risks, so it is necessary to formulate a fair, reasonable, detailed and complete cooperation agreement in advance to avoid or reduce organizational and coordination risks.
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