Write 6 pages with APA style on Risk Management in Construction Industry. Construction industry faces various types of critical risks, which need to be handled carefully in order to keep the companies

Write 6 pages with APA style on Risk Management in Construction Industry. Construction industry faces various types of critical risks, which need to be handled carefully in order to keep the companies away from the hazardous effects of risks. “Risks need to be properly identified, evaluated and addressed” (Sharp, 2009). The managers of the construction companies focus properly on identifying and assessing the risks, which the companies are likely to face at some point in future, with their operational, financial and, contractual activities. Lyons and Skitmore (2004) state, “Risk identification and risk assessment are the most often used risk management elements ahead of risk response and risk documentation”. An effective and well-organized mechanism is required in order to analyze the risks associated with the companies while achieving the balance between identified risks and the operational necessities of the construction companies. Edwards (1995, p. 4) asserts, “Risk analysis is the identification and assessment of the likelihood of hazards”. Some companies try to eliminate the possibility of risks whereas some companies focus on reducing the chances of occurrence of risks. A well-organized, cost-effective, and reliable risk management system should be implemented in any construction company not only to identify the associated risks but also to take proper measures to reduce the occurrence of all sorts of risks.

There are various types of risks associated with the construction industry. The risk management department of any construction company can never overlook these risks because these risks have the ability to destroy company’s image in the market. Let us discuss some of the most critical risks related to the environment, safety, and structural engineering departments of a construction company. These risks include design assumption risk, structural development procedures, fire risk, and environment uncertainty risks.&nbsp.