How should problems with risk identification be resolved if there exist differences of opinion between the customer and the contractors?

Risk is largely subjective. If it wasn’t subjective, it would be possible to accurately identify the risk and account for its effect, or even take the appropriate measures for eliminating the risk. To successfully perform a risk assessment one needs to quantify the known risks. Not all risks are created equal.

Risk quantification is the process of evaluating and determining the effect a risk has on your project. By quantifying the risk you can, to the best of your ability, prepare for unwanted circumstances. In order to fulfill the company’s responsibility of prudent decision making, an earnest attempt must be made to project/calculate the potential perils of various decisions. This will help to reduce differences of opinion between the customer and the contractors.

Regardless of who discovers the risk, both teams need to acknowledge the potential problem. If one team disagrees with the risk stated by the other team, it is ultimately the customer’s choice on what decision to make. The best a contractor can do is offer their data and recommendation and hope the customer takes their advice.

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