Study On The Methods Of Risk Management In Engineering Project

In recent years, many scholars and experts do a large number of efforts on risk management evaluation method to reduce the loss or the probability of the risk events with the number and size of the construction project gradually increased. The risk assessment as a key element of risk management, its evaluation results will have a direct effect to the final level of risk management, even the economic benefits of the whole project. Therefore, the evaluation method of risk management in engineering project and its improvements is particularly important. The reasons above are the theoretical and practical significance of writing this paper.In this paper, the risk management theory is the theoretical background; the current risk evaluation methods are the breakthrough. I study the risk evaluation methods deeply and systematically on the basis of reading and analyzing a large number of literatures for finding the research purpose: the evaluation methods of project risk management.Firstly, this paper reviews the knowledge of project risk management on the basis of the literature, and introduces the concept and theory of risk and risk management. There are four stages in the risk management: risk identification,risk evaluate,risk treatment and risk monitoring.Secondly, after studying the risk evaluation methods, I compare and analysis these risk evaluation methods, and gain the conclusions that is these risk evaluation methods just study and evaluate the risk independently, they ignore the correlation between the risk variables of the project and ignore its effect to the whole project.Finally, this paper improves the input variables of Monte Carlo simulation using the Crystal Ball software; hat can use the correlation between the risk variables of the project and consider its effect .This paper verifies the feasibility and superiority of the improvement about the Monte Carlo simulation at last.