Risk management – Getting the balance right
The construction game is a risky one. Probably don’t have to tell you that but it needs saying and it also needs to be proactively managed. On the other hand it can be a very rewarding industry and you can have a great life if done well…..and a bit of luck. No business however is risk-free.
Part of your role as a business owner is to think about the risks in your particular part of the market, prioritise what risks to reduce first and put processes in place to manage those risks. Also decide on what level of risk you are comfortable with and not try to reduce all risks to zero. Here are the seven most important areas of risk for a construction company and some strategies for managing them effectively