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Risk Management in Engineering

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Risk management has evolved into a major topic of interest in recent years, particularly in the construction industry.   Increasingly, projects are evolving into undertakings where the effort is shared among multiple parties.   The risk is unavoidable in all industries, but it is particularly pronounced in the undertaking of construction projects. Construction projects, in particular, are noted for their complexity since uncertainty emanates from various sources (Klemetti, 2006).   Projects are large and are getting bigger, tending to become more complex and multidisciplinary (Ali, 2005). Thus, it is imperative that risks be identified and handles in the appropriate manner, in order to reduce the adverse effects brought by such risks. There are a number of risks identified with infrastructure construction, according to Perera, Dhanasinghe, & Rameezdeen (2009).   Because the infrastructure projects involve horizontal construction design and execution, and such projects take a long time, are complicated, and are exposed to the elements, there are more sources of risks in infrastructure in comparison to other sub-sectors such as housing.   These sources of risk include:   acts of God; adverse weather conditions; changes imposed by the engineer; contractor competence; dealing with utility agencies; defective construction work; defective design; delayed payments; dependence on foreign funds; insufficient estimation; inflation; insufficiency of the preliminaries bill; late approvals; late handing over of the site; legislative changes (affecting the infrastructure subject of the construction); low labour and equipment productivity; relations with the neighbourhood; procurement of resources; public security and safety; regulations and difficulty in obtaining permits; scope change; tentative drawings; and unforeseen site ground conditions (Perera, et al. , 2009:93). There are several methodologies that may be employed in risk management.   The RMP (risk management process) methodology has seen the successful application, since it provides more information on risk factors which management must be made aware of, in order to be guided in their decision-making function (Ali, 2005).  

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preview essay on Risk Management in Engineering
  • Pages: 15 (3750 words)
  • Document Type: Essay
  • Subject: Management
  • Level: Undergraduate
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