In the construction industry, as in business generally, risk management involves identifying risks, assessing them and then developing strategies to manage them. Organizations that manage risk well enjoy financial savings, greater productivity and service quality, improved success rates of new projects and better decision making. It is clear that, in today's complex business environment, risk factors are wide reaching, and are intrinsically linked to achieving organizational objectives.
Over the past three years there has been a sharp rise in the number of mega projects in boom markets such as the Middle East, and Asia. This has presented the opportunity for US firms to play a leading role in some of the most ambitious construction developments ever undertaken.
It's a common scenario in the mining and oil & gas industries: the project has been approved to proceed and the pressure is on to get multiple parties – partners, consultants, contractors and suppliers – working together efficiently to meet an aggressive schedule. This challenge is often exacerbated by globalization and by the vast volume of data that flows between the project team.