Risk management strategies for facilities manager’s in Sri Lanka

Abstract

Value is a function of risk and return. Every decision either increases, preserves, or erodes value (COSO, 2004). Given that risk is integral to the pursuit of value, strategic-minded enterprises do not strive to eliminate risk or even to minimize it, a perspective that represents a critical change from the traditional view of risk as something to avoid. Rather, these enterprises seek to manage risk exposures across all parts of their organizations so that, at any given time, they incur just enough of the right kinds of risk-no more, no less-to effectively pursue strategic goals. The Facilities Management (FM) industry delivers a range of services and products through the spectrum of the facility life cycle, all of which carry varying degrees of risk, identifying risks and being prepared to manage them will minimise any negative impact they may have. Effective Risk Management (RM) planning and practice is an essential component of the practice of FM. Delivering on strategies that enable the organisation to realise the opportunities in their activities while appropriately managing risk is the central to successful management of Facilities. The purpose of this paper is to provide leadership to manage risks within Sri Lankan FM context with an overview of risk assessment approaches and techniques that have emerged as the most useful and sustainable for decision-making.