Risk Management in Construction: A Detailed Analysis

This report delves into the critical aspects of risk management within the construction industry. It begins by highlighting the inherent risks in construction projects, particularly those related to time, cost, and disputes. The report then outlines the importance of risk management in planning, monitoring, and controlling measures to prevent exposure to risk. Key components discussed include hazard identification, risk assessment, and the implementation of risk control measures. The creation of risk logs, addressing residual risks, and the importance of health and safety risk assessments are also covered. Finally, the report emphasizes the significance of contingency plans for residual risks and the need for a thorough review and revision of the entire risk management plan. The report references key literature in the field, including works by Walker (2015), Kelly, Male, and Graham (2014), to support its analysis and recommendations.

Running head: RISK MANAGEMENT
Risk Management
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1RISK MANAGEMENT
Construction is inherently risky which is less complex technically complicated than the
projects which involve the software, the defence as well as the engineering procedures. This
might be due to the reason that specialists are utilised in the fields of construction and design in
order to generate project in a specific span of time.
The construction projects specifically those of houses are risky for a variety of reasons.
This is due to bad record of the completion in a specific price and time. Really high levels of
disputes and litigation, the high work competition, low profit margins and risks, records related
to the nature of health occupation as well as low amount of safety the pressure to produce a high
return on the invested funds, the pressure on health, safety provision as well as a high return on
the funds invested (Walker 2015).
The risk management in the erection process is basically designed to plan, monitor and
control the measures which are required for prevention of exposure to risk. It is crucial to
identify the hazard, and also the risk assessment and its extent and ultimately provide the
measures for risk control and also help in the management of any sort of residual risks (Kelly,
Male and Graham 2014).
The risk logs need to be constructed which include the actions on the residual risks and
the identification of risks involves generic risks applicable to all projects. Risk assessments are
also important for the health and safety risks which evaluate all sorts of hazards. Finally the
contingency plans should be made for the residual risks and final review and revision should be
done of the entire plan.

2RISK MANAGEMENT
References:
Walker, A., 2015. Project management in construction. John Wiley & Sons.
Kelly, J., Male, S. and Graham, D., 2014. Value management of construction projects. John
Wiley & Sons.