A systematic approach to risk management for construction

TLDR

Systematic risk management is a tool that anticipates the unexpected and helps control risks in construction projects. The paper aims to introduce a simple, practical method for identifying, assessing, monitoring, and managing risk in construction projects, and to review systematic management approaches to risk. It offers guidance for implementing a risk control strategy across all project levels, stresses early risk identification and allocation during procurement, and reviews systematic management approaches. A case study of a small project facing economic challenges demonstrates the effectiveness of systematic risk management.

Abstract

Abstract Systematic risk management is expecting the unexpected – it is a tool which helps control risks in construction projects. Its objective is to introduce a simple, practical method of identifying, assessing, monitoring and managing risk in an informed and structured way. It provides guidance for implementing a risk control strategy that is appropriate to control construction projects at all levels. This paper will review systematic management approaches to risk. It discusses the allocation of risk and suggests that risk needs to be identified and managed early in the procurement process. In addition, a case study of a small project that was affected by difficult economic circumstances is included to demonstrate the effectiveness of systematic risk management.