Risk Management: A Real Challenge For The Construction Sector

  Knowledge Shelf  

Construction sectors all over the world are facing many internal and external challenges in the current volatile global economic atmosphere. Indian construction industries, particularly infrastructure and the real estate industry, are experiencing high growth despite the economic crisis all over the world. The relative success of the Indian construction sector can be attributed to the inherent strength of the Indian economy. It can also be due to the sound risk management exhibited by this sector, because it is exposed to more considerable risk and uncertainty than many other industries.

Of the nine knowledge areas of project management, risk management is the most challenging domain for construction professionals due to the shortage of qualified manpower, limited resourceful contracting agencies (technical and commercial), and the scarcity of resources. At times, risks are managed purely from experience; therefore, to enhance the efficiency and effectiveness of the project, a structured study of the phenomenon called “risk” could be of immense help.

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