A Study Report of Risk Management in the Construction Industry

Abstract

Risk has a considerable impact on the cost, timeliness, and quality of a construction project. As the scale and complexity of projects have grown, the capacity to take calculated risks throughout the building process has become a critical component in avoiding unintended consequences. Risk management has been recognized as a critical management process in construction projects in order to meet project objectives in terms of cost, quality, safety, and environmental sustainability. Risk management is an important procedure in the construction business because it provides projects with the skills they need to accurately identify and manage potential risks. It is simple to reduce a risk once it has been identified. Furthermore, risk management provides a project with a foundation on which to make sound decisions. When risk management is viewed as a disciplined, continuous process for identifying and resolving issues, risk management structures can be utilized to support other mitigation systems.