Risk Management of Construction Industry (Jacobs)

Running head: PROJECT MANAGEMENT
Risk management of construction industry (Jacobs)
Name of the student:
Name of the university:
Author note:

1
PROJECT MANAGEMENT
DECLARATION OF ORIGINALITY
I hereby declare that the propositions made in the assignment are solely mine. The sources
used are duly acknowledged at the end of the assignment.
Student signature
-_____________________________

2
PROJECT MANAGEMENT
Abstract
Project management is one of the efficient parameters in the current business context, which
is needed for enhancing the efficiency in the processes. Within this, mention can be made of
the risk management process, which is crucial for reducing the intensity. Calculation of the
impact on the overall productivity is assistance for the Jacob Engineering Group in terms of
mapping the areas in which modifications are needed. Risk management strategies are linked
with the corporate strategies for achieving growth and development. On the other hand,
procurement involves contracts, which expands the scope and arena of the supply chain
network. Theories like game theory, decision making theory is relevant in this context for
developing the fairness and transparency in the operations.

3
PROJECT MANAGEMENT
Table of contents
Introduction................................................................................................................................4
Overview of the company..........................................................................................................4
Discussion..................................................................................................................................5
Risk management in Jacobs Engineering Group...................................................................5
Procure management of Jacob Engineering Group................................................................7
Procurement strategy............................................................................................................14
Risk management and procurement theories and models........................................................15
Five step risk management model........................................................................................15
Risk management and decision theory.................................................................................15
Contingency theory of risk management.............................................................................15
Game theory in procurement................................................................................................16
New procurement management thinking theory..................................................................16
Theory and practice of Procurement flexibility...................................................................16
Conclusion................................................................................................................................16
References................................................................................................................................18
Appendices...............................................................................................................................20
Appendix 1...........................................................................................................................20

4
PROJECT MANAGEMENT
Introduction
Management is one of an important aspect for enhancing the efficiency in the
operations. These parameters of management extends to the scope and arena of human
resource, finance, marketing and sales and others. Within this, one of an important areas is
that of risk management and assessment, which is crucial in terms of ensuring the wellbeing
of the clients and the customers (Christopher, Mena & van Hoek, 2018). Risk management
and assessment is a difficult task, which needs rational planning and logical reasoning for
achieving positive outcomes. Diligence is needed for executing the responsibilities in an
efficient and effective manner. This assignment, with the example of Construction Industry
(Jacobs), attempts to shed light on the approaches towards risk management. Theoretical
considerations is used for excavating the means for achieving effective solutions for the
crucial issues.
Overview of the company
Jacob Engineering Group achieves accolades and glory by emerging as one of the
reputed American international technical professional services firms. It is a public sector
company, trading as NYSE: JEC. The firm operates under the construction industry, dealing
with architecture, engineering and construction planning. The operations of firm is globalized
all over the world, which reflects an expanded supply chain network. According to the annual
report of 2018, the total revenue was US$ 14.98 billion (Jacobs.com, 2019). The operating
income was calculated as US$648 million and the net income was US$163.4 million. The
total equity value was US$5854.3 million. The major drive behind this is the skilled efforts of
80000 employees according to the annual report of 2019. KeyW is considered to be a wholly
owned subsidiary of Jacobs. KeyW is an important agent for the firm in terms of receiving
innovative solutions, which enhances the cyber security. The firm aims to engage the clients

5
PROJECT MANAGEMENT
and customers into the mainstream business operations for achieving sustainable
development (Jacobs.com, 2019).
Discussion
Risk management in Jacobs Engineering Group
For Jacobs Group, risk management consists of the experimentation with the tools and
techniques for detecting the risks, which act as an obstacle in executing the business
activities. This experimentation helps in achieving a greater understanding of the measures to
mitigate the intensity of the risks through the means of calculating the utility value. In this
context, mention can be made of cost effective plans, which enhances the efficiency within
the processes of risk assessment and management (Jacobs.com, 2019).
In the past financial years, the firm has practiced objective risk management practices,
which has brought drastic change in the consumption of water resources. Tactical decision
making is used for filling the gaps in the usage of the resources and assets. As a matter of
specification, risk management is done by adhering to a number of steps. At the initial stage,
the risks are identified and scored. These scores are assistance in terms of gaining an insight
into its intensity on the overall productivity. Mostly, the estimation is done through the
consideration of the financial parameters. For example, risk scores of the assets like pumps
and meters, accuracy is developed in the utility value, maintenance of the resource allocation,
maintenance, capital investment and others. These data is further assistance for the firm in
terms of undertaking beneficial decisions (Jacobs.com, 2019). The risk assessment data
includes maintenance expenses, repair and replacement strategies, which are audited and
reviewed in the meetings. These meetings are presided by the board panel, which helps in
formulating essential strategies and action plans for improving the efficiency.
Risks are mainly categorized into four types:
 Asset risks- needs advanced repairing and maintenance strategies