Description

When embarking on a construction project one of the main areas to plan for and identify is risk. In this episode, Ian details how risk identification should be undertaken and some of the problems you could face during your project. He explains the definition and types of risk and the methods, contingencies, tools and management required to deal with them.

KEY TAKEAWAYS

• A risk can be defined as an uncertain event or circumstance that if it occurs will affect the outcome of the project. Risk is forever present. We need to look at risks in terms of impact on the strategy, detailing what potential impacts could be incurred by going down a particular strategic route.
• There are many different areas of risk; contractual, management, supply chain, technical and design, financial and economic, logistical, physical, quality, environmental or acts of god, health and safety and sociopolitical and legal risk. This should form the basis of your risk log and risk register.
• Our first reaction to risk is often to ignore it or pass on the responsibility. You cannot do this. You must log and acknowledge the risk. You must assess the category of risk as high, medium or low and mitigate them. Compile a risk register with control methods identified.
• Possible mismanagement of risks can include not compiling any sort of risk register and ignoring all risks, getting complacent about the register and not updating, failing to evaluate properly, shifting responsibility or not informing or identifying an appropriate party or method to deal with the potential risk.

BEST MOMENTS

‘We need to look at this in a holistic way as well as in a detailed way. The risk can impact upon the project as a whole but can also impact on individual components.'

‘The owner may have a certain mindset that must be corrected. They may say “if we plan this right there's gonna be no risk”. Well that's not true.'

‘There's a whole range of different risks that a supply chain can throw at a project and these all need to be captured and mitigated wherever possible.'

‘I've experienced cultures where there is virtually no health and safety legislation and yet the amount of health and safety accidents is relatively low because people are aware of that, its in their culture.'

‘It may be that we take out project insurances to mitigate some of the risks, particularly some of the delays and business interruptions and things like that.'

VALUABLE RESOURCES

https://www.ianjrogers.com/

ABOUT THE HOST

Ian Rogers is an entrepreneur running businesses in the Real Estate, Construction and Facilities Management arena. Ian has over 40 years' industry experience, as he was effectively born into construction with his father having his own building company and Ian spending time working on sites from the age of 11!. As a result Ian has seen the industry from a trades person perspective, as a chartered quantity surveyor working on large commercial projects, as a project manager and then working on structured project finance through PFI/PPP deals. This has given Ian a unique whole life approach to any project by considering the end game at the beginning.

CONTACT METHOD

 https://www.ianjrogers.com/

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