Risk Management in Construction Industry

Construction industry is highly risk prone, with complex and dynamic project environments which create an atmosphere of high uncertainty and risk. The industry is vulnerable to various technical, socio-political and business risks. The track record to cope with these risks has not been very good in construction industry. As a result, the people working in the industry bear various failures, such as failure of abiding by quality and operational requirements, cost overruns and uncertain delays in project completion. Risk management is a process which consists of identification of risks, assessment with qualitatively and quantitatively, responses with a suitable method for handling risks, and then controls the risks by monitoring. This paper covers the concepts of risk management and various risk analysis techniques to be used for the one stop solution for all types of hazards most likely to occur during any construction project lifecycle.