What is Construction Risk Management?

Construction risk management is the process of finding ways to identify and manage risk components at the construction site. This includes not only the handling and choice of materials, but also the general safety conditions of the work site as it relates to both workers and anyone else who may be present at the site from time to time. Effective construction risk management involves designing policies and procedures that minimize the risk to everyone involved, as well as obtaining adequate insurance coverage that can be used in the event of some sort of accident or mishap.

Part of the goal of construction risk management is to reduce risk by accurately predicting event probability. This simply means being aware of the dangers inherent in the construction process and developing procedures that help to control or manage those risks to best effect. This may include wearing protective gear such as helmets, gloves, or specially designed footwear when spending time in a given area of the site. In addition, the management of construction risk calls for complying with all local safety regulations and making sure all employees know and observe those regulations.

Along with taking steps to minimize risk at the work site, construction risk management also calls for having a realistic understanding how what can happen in terms of an unfortunate event, even when safety measures and regulations are being followed. To that end, the risk manager will often ensure that some sort of risk insurance is taken out on the project. This helps to protect the construction company from losses generated as the result of some sort of construction accident, while also providing funds to aid in managing any actions taken by clients or other authorized personnel that may sustain some sort of injury while visiting the site. While expensive, securing this type of insurance can make the difference between weathering the repercussions from a serious job-related accident to bankrupting the company.

As with any type of risk management strategy, construction risk management is an ongoing task. Risk managers often use a number of resources to monitor the progress of the project, even using risk management software as a means of accounting for previously unforeseen risks that may emerge as the construction continues. By developing a viable strategy, monitoring the progress of the construction project carefully, and making sure that all reasonable steps are taken to promote safety on the site, there is a good chance of successfully completing the job with no injuries occurring throughout the process.