QUESTION 3

Risk in construction industry is an important part of the project planning and management. Various risks associated with construction projects such as financial risks, environmental risks, socio-economic and construction related risks are studied and dealt in risk management. The volatility and capriciousness of the environment in the construction industry was never hidden from anyone. Its easily influenced by external factors such as technical, design, logistics, physical, operating, environmental, sociopolitical, force majeure et cetera which are capable of not only derailing projects but can also create an irreparable aberration.

Risk management therefore, becomes a pivotal instrument that helps us deal with the culling out of various risks, their analyses, and the remedial steps that could be taken to avert them in a particular project. In the beginning of a project, the advancement of technical developments or the response to threats presented by a competitors projects, may cause a risk or threat assessment and subsequent evaluation of alternatives.

Based on the statement above, develop the steps of the risk management for construction industry?