Risk management in the construction industry is one of the most important aspects of all projects. Without appropriate risk management plans in place, you can leave yourself, your staff, and the general public in danger. There is a certain process that you will have to follow and this generally is broken down into two sections, the first step for every project will be risk analysis.
Risk analysis is broken down into two steps –
Step 1 – Identification – this is a base of your risk management plan; in this step, you will have a clear scope in mind and identify all of the risks involved in your project and the risk level. You should also include how frequently you will need to review any risks you have identified.
Step 2 – Once you have identified all of the risks you will then need to move on to the assessment step. You will need to assess the likelihood of a risk happening and the impact on the project if they did happen. You will score each risk either high, medium, or low following assessment based on these factors