Risk management is a critical aspect of construction project management. Construction risk management is the process of identifying potential risks, assessing their impact, and implementing procedures to mitigate their financial and operational impacts. Effective risk management is essential in the construction industry, which has one of the highest rates of accidents and company bankruptcies. We identify, evaluate and manage project uncertainties and help our Clients predict and minimize the likelihood and impact of critical adverse events while maximizing their benefits.
Below is an overview of our construction risk management services:
- Types of construction risks: Common construction risks include safety risks, financial risks, operational risks, project risks, economic risks, legal risks and environmental risks. These risks can have a significant impact on project costs, schedules and performance, leading to delays, disputes and potential business disruption if not managed properly.
- Risk management process: Our risk management process involves identifying risks, assessing their likelihood and impact, developing strategies to eliminate or reduce them (avoid, transfer, mitigate or accept), and continually monitoring and reviewing the risk management plan. Our key steps in the risk management process include conducting team brainstorming sessions, ranking risks based on impact and likelihood, and identifying appropriate risk response strategies. In our risk management process, we include identification, assessment, quantification, mitigation, treatment and monitoring activities. We comply with the Project Management Institute’s “Practice Standard for Project Risk Management”, as well as ISO 31000 “Principles and Guidelines for Risk Management”, where applicable.
- Our risk management tools and resources: Construction companies are using a variety of tools and resources to support their risk management efforts, such as construction management software, financing options, seeking professional advice, and new technologies (e.g., drones, BIM, prefabrication). However, the most important aspect of risk management is the expertise of an experienced team of professionals. To analyze and predict risks, we use the Bow Tie method with a risk diagram display. However, our main proven method is practical risk analysis by our team of Engineers with international experience in project delivery. Foreseeing and anticipating the early potential risks of our Clients, we display them in the risk matrix and present them in our weekly and monthly presentation reports.
- Benefits of effective risk management: As every project has a unique set of risks based on specific details of the works performed, we propose our Clients a comprehensive risk management approach that will provide a framework for managing all possible risks in a systematic, transparent and documented manner. By properly managing risks, we help our Clients result in increased accuracy, cost savings, quality assurance, effective decision making, rigorous project control, resource optimization and consistent support throughout the construction project.
Risk management is therefore a critical aspect of construction project management, involving the identification, assessment and mitigation of various risks to ensure project success, minimize financial and operational impacts and improve overall construction performance.
To find out more, please contact us at info@ek-innovative.com to receive information from experts competent in the respective field.