The Planning, BIM & Construction Today, Planning & Construction News article entitled “Taking a broader view of construction risk management,” by Frank Malangone, Senior Director at Oracle Construction and Engineering, addresses the critical need for risk assessment in the construction industry. Malangone highlights risk assessment across the total asset lifecycle “…from supply chain issues, unpredictable weather, and labor shortages, to severe cases such as global health and economic crises.”
Identifying the risks and determining a response strategy
Two of the key steps in the risk management process include identifying the risks and determining a response strategy. First, at the start of a capital program or construction project, the management team needs to identify the probability and severity of risks. For example, what is the risk of adverse weather to the project schedule? What is the probability of a wide range of weather events during the project, and what are the respective impacts and hazards? Accordingly, the management team must monitor and manage each of the risk factors.
Specific actions to mitigate high-impact risks such as adverse weather
Second, the management team needs to plan specific actions to mitigate high-impact risks such as adverse weather. The article affirms the benefits of scenario planning techniques and decision support solutions, to assess what-if scenarios and determine cost-benefits for each mitigation strategy. Management teams cannot avoid some risks, such as adverse and extreme weather, but can implement steps to lessen the subsequent impacts through adequate schedule, labor, and supply chain contingencies.
(Source: Malangone, Frank. “Taking a Broader View of Construction Risk Management.” Planning, BIM & Construction Today, 23 Mar. 2021, www.pbctoday.co.uk/news/planning-construction-news/construction-risk-management/90885.)
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