Introduction The process of evaluating and implementing procedures to reduce the impact of risks in construction projects. Risk management process involves thorough planning to create a risk management plan that allows project managers to identify, monitor and mitigate risks as they arise.
What is project risk? A project risk is an uncertain event that may or may not occur during a project. Contrary to our everyday idea of what “risk” means, a project risk could have either a negative or a positive effect on progress towards project objectives.
Risk in Construction Delays Documentation errors Change management Subcontractor default Supply chain issues Poor project management Labor shortages Poorly defined scope of work Health and safety hazards Payment disputes
Types of Risks in construction
Process of risk management There are five steps in risk management process:- Risk identification Risk analysis Risk mitigation and planning Risk management implementation Review and tracking
Role and importance Risk management is the process of identifying, measuring and treating property, liability, income, and personnel exposures to loss and the ultimate goal of risk management is the preservation of the physical and human assets of the organization for the successful continuation of its operations.
Benefits of risk management The benefits of the risk management process include identifying and analyzing risks, and improvement of construction project management processes and effective use of resources.
Conclusion Risk management is a vital process in construction projects, and it is necessary to incorporate it from the project's inception to achieves successful outcomes.