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The construction industry is risk prone, with complex project environments creating an atmosphere of uncertainty. The industry is vulnerable to various technical, socio-political and business risks. Businesses increasingly need to manage their projects in a turbulent environment. A systematic approach helps to ensure that risks are effectively identified, analysed and controlled, and that emerging risks can be spotted while there is still time to manage them.
The benefits of effective risk management include: avoidance of wasted work, consideration of opportunities as well as threats, improvement of the credibility of the business case for the project – aiming to achieve better financial returns, and improve the consequences of projects for the wider community.