Published 13th February 2006 by Constructing Excellence
Risk Management helps to identify the things which could have a significant negative impact on your business. It is a process for evaluating the impact of these risks and developing a strategy for minimising their effects.
The strength of Risk Management is that it helps to move you towards a greater certainty over business deliverables. Some companies have been able to build on this greater reliability and improve both their business profile and relationships within the supply chain, which contributes to improved medium-term performance.
Investment in Risk Management is traditionally accepted as being most appropriate for use on projects (or internal company changes) which are perceived to be high risk. However, some commentators will argue that it is an increasingly relevant approach because of the acceleration of innovation within industry generally. Additionally, with growing awareness of the risks associated with construction projects, the industry’s clients are increasingly making use of tools like Risk Management, which give them more certainty. It is accepted that generic approaches to Risk Management are maturing and becoming simpler to apply.
Risk Management is an ongoing management process, which will tune itself to the business approach and culture within an organisation. It is an investment which may not yield returns in the short term and therefore, whole-company commitment to the process is essential, to ensure that its adoption and incorporation are properly supported.
Filed in: Collaborative Working Business Processes