Risk Management
Every construction project comes with an element of risk that could stop the project from achieving its potential. This is why risk management has become a necessity.
The types of risks vary but often relate to safety hazards, financial uncertainties, project delays, legal compliance issues or environmental concerns.
Construction risk management involves identifying the potential problems on-site so that a plan can be devised to minimise their effects.
At Anderton Gables, our team determine the probability of the different risks involved in a construction project. This is part of our vast range of building surveying and project management services.
Get in touch for tailored advice on risk management. In the meantime, here is an overview of what risk management is along with how it can benefit your development project.
Tom Hargreaves
Director
Paul Addison
Director
The Importance of Risk Management
Risk management aims to keep your employees and the general public safe. It is a crucial part of any construction project, and there are various benefits of risk management in the construction industry.
It may be the case that the identified risks in your project threaten health and safety, your business operations and ultimately your objectives. A hazard on site could lead to financial risk, operational risk and market risk later.
An effective risk management plan seeks to minimise the uncertainties on site and hopefully improve your strategic decision making. Risk identification can also place a hard focus on difficult problems for your construction project.
Risk management decisions are all about balancing the inherent risks within projects and excellent management strategies.
For example, we specialise in complex and innovative construction projects. We’re proud to help create outstanding outcomes, but naturally, these projects come with a lot of risks.
Our team identify everything that could make an impact on the project, which allows our team and clients to make the most informed decisions.
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Is a Risk Assessment always necessary?
Yes. As stated by the CDM Regulations, health and safety issues must be thoroughly considered throughout your construction project’s development.
While you don’t always need to carry out a formal risk assessment - the CDM does require employers to manage risks in the workplace. Managing risk on-site could include a general assessment of health and safety risks or a more specific assessment of emerging risks.
It’s crucial to consider the benefits of project risk management. Consider forming a team of risk management professionals who can carry out risk assessments and ensure all identified problems are properly handled.
While formal risk management isn’t always necessary, risk analysis can save your company from experiencing much bigger problems later down the line.
What does the Risk Management Process involve?
A risk management plan outlines how you will avoid, reduce or control the different risks on site.
Here is a quick overview of how we conduct an enterprise risk management plan for construction projects.
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We start by identifying the on-site risks to the general public and your employees. You can either brainstorm these risks with stakeholders or use checklists to find the risks within each project area. These identified risks are the core of your risk management plan.
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Our team will then conduct a risk analysis to determine possible management options. They determine the likelihood of the risk happening and its impact on the project. Both factors will be considered to prioritise the list of potential risks. We also look at when they are likely to happen, referred to as the urgency of the risk.
An effective risk management strategy will prioritise risks based on all the different risk factors. It’s often not as simple as the most urgent risk comes first.
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Once we have identified and prioritised the challenges on-site, we begin to look at mitigating risks.
Enterprise risk management programs can approach risk mitigation in several ways:
You can reduce the impact of the identified risks or make them less likely to happen.
You could transfer the risk to someone better equipped to manage it, like a contractor.
You can accept the risk as it is, and no further action will be taken - which is only appropriate for more minor cases.
You can purchase insurance to protect yourself against the financial consequences of the risk.
Finally, you can reject the risk altogether and either decline the project or negotiate with the client.
Every management action comes with its own risk factors, including cost, effectiveness and associated consequences. You need to consider all aspects to determine whether it's a suitable plan for mitigating risks on site.
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The risk register is the most important document in enterprise risk management programs. We compile a comprehensive list of the significant risks on-site, along with the costs and benefits of them.
Our team find a balance between dangerous risks and ones that are needed to complete the project. For example, working at a height poses a substantial risk, but it’s necessary for most construction work. The risk register outlines the risks on-site and the action plan in place to handle them
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Risk control is the final part of the risk analysis. We will monitor risk metrics to determine when further action is required and assess the effectiveness of these management actions. Risks are constantly emerging on construction sites, and you will need to update the risk management processes as necessary.
A General Risk Assessment
A general risk assessment looks at the hazards on site for employees and members of the public. At Anderton Gables, we’ll dispatch a member of our team who will look at each area of your construction project and the potential risks involved. For instance, it’s working at a height or manual handling. We will consider who is at risk in these areas, such as architects, subcontractors and designers.
A Specific Risk Assessment
Managing risk requires a targeted and thorough approach - particularly when it comes to hazardous substances. A specific risk assessment targets a particular risk on-site to evaluate the hazard fully. A specific risk management program is usually reserved for the more substantial hazards on site.
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Managing Risk for your Construction Project with Anderton Gables
Anderton Gables is based in the North West of the UK with offices in Liverpool, Manchester and Preston.
If you are in search of risk management services for a construction project or planned development works, please get in touch with our team.
Alternatively, give us a call on 0161 696 3119 to find out more.