Risk Assessment
Risk assessment is the systematic process of evaluating the potential risks that may be involved in a proposed project or development.
Risks associated with the construction industry can be broadly categorized into:
- Technical risks
- Logistical risks
- Management related risks
- Environmental risks
- Financial risks
- Socio-political risks
The common sources of risks in construction industry are listed below:
- Changes in project scope and requirements
- Design errors and omissions
- Inadequately defined roles and responsibilities
- Insufficiently skilled staff
- Subcontractors
- Inadequate contractor experience
- Uncertainty about the fundamental relationships between project participants
- New technology
- Unfamiliarity with local conditions
- Force majeure
Risk management involves four processes namely:
- Risk Identification
- Risk quantification
- Risk response development
- Risk response control
There are five categories of classic risk response strategies:
- Accepting the risk
- Risk quantification
- Monitor the risk and prepare contingency plans
- Transfer the risk
- Mitigate the risk
Sterlings understand the process of risk assessment and have assessed building processes to establish the risk profile and then created learning outcomes from those experiences.
