Risk management – a Quantity Surveyor’s role
The concepts of risk management have been around for hundreds, if not thousands, of years. It all started with gambling. Gambling is based on games of chance, where skill makes little or no difference. Gaming houses are able to make a profit because they can predict the chance of the gambler winning and tilt the balance in their favour. We assess risk in our daily lives from crossing the road, making everyday decisions, taking out insurance policies or even deciding to leave a job for another – we weigh the options. We make judgements on risk in everyday events and where possible use previous judgements to help inform our decisions. Risk is inherent in ALL activities and ALL future events, particularly in the construction industry. The 1994, Sir Michael Latham, who was a British Conservative Member of Parliament wrote an influential joint government and industry report on the UK construction industry titled Constructing the Team that introduced risk management to the construction industry. He stated: “No construction project is risk free. Risk can be managed, minimized, shared, transferred or accepted. It cannot be ignored.”
RISKS IN THE CONSTRUCTION INDUSTRY It is essential that risks are recognized and there are three ways that risks can be dealt with: CLICK HERE to return to Table of Contents
Spring 2020 | www.ciqs.org | CONSTRUCTION ECONOMIST | 25
