The Problem Of Risk Management Essay

1104 Words May 23rd, 2016 null Page
Although risk management is broad topic and defining risk depends on the profession, project or industry. For this project, anything that challenges a projects success or obstacles to achieve the set goals (specifically related to defects) can be termed as risk (Gajewska & Ropel 2011). The concept of time, cost and quality is important for project success and defects could impact all of these dimensions if not acted promptly. Quite often projects fail to meet deadlines, cost and quality targets due to the nature of construction industry it suffers from more risk and uncertainty than any other industries (http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.464.8878&rep=rep1&type=pdf
). Typically in construction industry any events that can affect the project goals of achieving cost, time and quality can be considered risk. Construction risk are varied in nature such as some risk are easily predictable and identifiable while others are totally unpredictable. Although project success or failure is much more complex than just controlling or not been able to manage the risk but record shows that companies that have included risk as an integrated part of the project control and quality system have improved project success (http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.464.8878&rep=rep1&type=pdf
). Thus application of risk management can help stakeholders avoid failures in construction industry.
Profit of construction industry can decrease with inefficient and…

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