A risk management plan for your construction company is an essential element of loss prevention and a key ingredient of financial success. Establishing a risk management plan embraced by leadership and integrated your company’s culture and financial and project management processes will have a significantly positive impact on business performance.
The goals of risk management are to
- Protect the assets, financial well-being and reputation of the company.
- Minimize the impact and cost of risk through proactive project management, staff training and organizational accountability.
- Maintain appropriate levels and types of insurance, with the understanding that not all risks are insurable.
We recommend the development of supportive project and business management policies and procedures appropriately scaled for the character and size of your company and projects.
To read about the components of a successful risk management plan written by Andrew D. Mendelson, FAIA, senior vice president and chief risk management officer of Berkley Alliance Managers, for AIA Contract Documents, click here.