Managing risk is vital for organisation’s survival

Abstract

Hazard means ‘what can go wrong’ and risk is the combination of ‘how often’ and ‘how bad it will be’. Risk Assessment is the process of evaluating risks, arising from hazards, taking into account the adequacy of any existing controls, and deciding whether or not risks are acceptable, where as whole process is the risk management. Risk Management is paramount in running a business or a project. Although Structural Engineer or Construction Manager of a project is aware of hazards and related risks, unless they are assessed, identified, analysed, evaluated, treated, communicated, monitored and reviewed, there might be consequences, including leading to business risks with financial implications. Business risks could emanate at Design, Construction and Management Processes. See Figure 1 Risk Management starts at the conceptual design stage to final design, and then through to Construction and Management Processes. Structural Engineers’ main responsibility is to ensure that the structure he designs is ‘Fit for Use’. At the outset of a project, Structural Engineer should plan to determine hazards and related risks that could arise at Construction, Maintenance and demolition stages and needs to take actions for eliminating and or designing out risks. Information, regarding residual risks- cannot be eliminated by design actions must be informed to all parties concerned in a project. In oil and gas industry, design integrity checks and HAZOPS are carried out to eliminate risks. There should be an effective risk management process to determine and manage risks arising from Health and Safety, environment aspects, quality, waste, wastage and most importantly in 2 maintaining the Technical Integrity- ensure that construction is performed in accordance with design specification and drawings. Waste Plan and Lean Constructions could be useful tools for managing risks during the construction phase. Lack of a system for controlling management of change would bring disastrous results. This paper illustrates the importance of establishing a robust risk management system, embracing- P-D-C-A Methodology with particular reference to good practices implemented in London 2012 Olympic Park and Hull UK Gas distribution projects. See figure 2