Due to the nature of the construction sector, RM is a very important process here. It is most widely used in those projects which include high level of uncertainty. These types of risk investments are characterized by more formal planning, monitor and control processes.. The easiest way to identify risk is to analyze and draw a conclusion from projects which failed in the past. To make sure that the project objectives are met, the portfolio of risks associated with all actors across the project life cycle (PLC) should be considered (Cleland and Gareis, 2006).In the early stages of the project where planning and contracting of work, together with the preliminary capital budget are being drawn, risk management procedures should be initiated. In later stages, RM applied systemically, helps to control those critical elements which can negatively impact project performance. In other words, to keep track of previously
identified threats, will result in early warnings to the project manager if any of the objectives, time, cost or quality, are not being met (Tummala and Burchett, 1999(The risk management process
As mentioned above, an RMP described by Smith et al. (2006) has been chosen for the purpose of this paper. This section will further explain the RMP, its four stages and how it can be used in managing risks