Risk Management and Project Management

 Risks are inevitable outcomes of the project management environment, owing to the

complex and intertwined nature of the construction environment.

Unmanaged risks hinder the success of a project. Risk

management is integral in project initiation, planning, and execution. Well-managed risks

increase the likelihood of project success. Construction projects face several risks which

negatively affect project factors such as time, cost, and quality. Common hazards in the

construction industry include adverse weather conditions, equipment failures, worker

disputes, and fires, among others. These potential risks threaten

the safety of workers, the quality of work, and the construction project’s overall success

There are several benefits of risk management to a construction

project’s success. Risk management reduces the possibility of uncertainties occurrence,

maximizes efficiency, profits, and project goals and objectivesreduce duplication of effort,

and improves a construction firm’s reputation .In addition, risk

management helpsimprove project performance and harvest new knowledge through

documentation.