Monday, December 23, 2019

Risk Management in Construction Projects Essay - 2356 Words

Risk management is a process used in all industries to reduce the risk. The Risk management tool usage changes from sector to sector and hence each sector has developed their own risk management tools and methodologies to mitigate the risk. But the concept remains the same behind all the tools (Ropel, 2011). The main steps for risk management irrespective of the sector are: 1. Risk Identification 2. Risk Assessment 3. Evaluation of the risk 4. Steps to mitigating the risks 5. Regular monitoring and review of the risks Here we will discuss risk management in the construction sector and in execution of construction project, project risk management is one of the most critical phase for successful completion†¦show more content†¦Key success factors/ key performance indicators are defined on a project and this forms a ground for identifying the risks. Each member in the workshop is asked to identify the risk from their perspective. Once all the risks are identified, the evaluation of the risk is done and then suggestions are taken for mitigating the risks. This is one of the most practiced ways of risk management processes followed by most of the companies (Wang, 2004). Risk Management is one of the most difficult part of project management especially in constructions projects. Let us take a construction project and navigate down the risk management program developed and executed in that project. The key success factors for a construction project would be completion of the work as per schedule , cost and delivering a quality product that meets customer requirements and other statutory and regulatory requirements. Construction projects come across many uncertain situations. 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