Risk Management In The Construction Industry

764 Words4 Pages

The construction industry, perhaps more than most, is overwhelmed with risks iterated that it is highly risk prone, with complex and dynamic project environments creating an atmosphere of high uncertainty and risk.The industry is vulnerable to various technical, sociopolitical and business risks. Further stated that too often this risk is not dealt with satisfactorily and industry has suffered poor performance as a result. According to Pritchard, most of the decisions, including the simplest ones, involve risks.Risk is a state of uncertainty where some possible outcomes have an undesired effect or significant loss. Uncertainly is meaning that the lack of certainly due to limited knowledge that it is impossible to state the outcome exactly, …show more content…

Risk management is one of the nine knowledge areas propagated by the Project Management Institute. Companies in all industries are looking to improve business efficiencies, meet regulatory requirements and increase their profitability, and the construction industry is not exempt. There are mainly nine knowledge areas typical of almost all projects. The nine knowledge areas are: 1. Project integration management. 2. Project scope management. 3. Project time management. 4. Project cost management. 5. Project quality management. 6. Project human resource management. 7. Project communications management. 8. Project risk management. 9. Project procurement management. Although these knowledge areas are all equally important from a project manager’s point of view, in practice a project manager might determine the key areas which will have the greatest impact on the outcome of the project. Each PMI knowledge area in itself contains some or all of the project management processes. Problem statement – Time will be the biggest constraint but all effort will be made to get all the relevant information required for this study,I will have an in-depth study on all the parameter related to quality process and improvement measures adopted.But the information that will be provided may not be self sufficient to protect the scope and direction.In respect to other products that

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