A Blueprint for Risk Management in Construction
Define risk management in construction, and what would your answer be?
Many would argue that safety and insurance define the term risk management. True, they are cornerstones to any robust risk management function but serve as only a partial definition. “Risk Management: A Blueprint for Success” provides an industry model for clearly defining the key elements of a contractor’s risk management function, beyond safety and insurance, which can be placed in three primary categories: strategic, structural and operational. Formalizing the risk management function creates the benefit of having both defensive and offensive risk strategies. Armed with this model and the ability to derive insight into a contractor’s risk management function, companies can transform risk management from being simply a cost center into one that leverages risk management as a profit center, creating a strategic asset.
As the industry continues to evolve and as executives spend more time managing risk, this model of a best-in-class risk management function should serve as a blueprint for success.
This article was originally published June, 2016.
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