Risk Management in the Development and Construction Industry

This guide discusses risk management as it pertains to the development and construction industry. It begins by defining risk management and differentiating it from insurance, emphasizing that insurance is merely a component of a broader risk management strategy. The guide outlines the process of identifying potential risks, which includes direct property losses, indirect property losses, liability losses, and employee injuries. Following identification, the risks must be analyzed to determine their likelihood and potential costs. The guide then details the development of a comprehensive risk management plan, which may involve procuring insurance, implementing risk control measures, or transferring risk contractually. It provides examples of how organizations can manage risks, such as installing safety measures or negotiating contract provisions. Finally, the guide stresses the importance of periodically reviewing the risk management plan to ensure its effectiveness and adaptability to changing circumstances within the organization.