The Quality of Risk Management in the Civil Engineering - PowerPoint Presentation Example

In some cases only money is at stake, but all these concerns must be brought to bear during the planning process and identify so that evaluations of the inherent dangers are efficient. Additional statistics are provided to allow for comparison and evaluation in diverse industries to permit a more thorough understanding of risk calculation strategies as well as the ramifications of inadequate considerations. This investigation categorizes various forms of risk and provides recommendations relating to timetables, and the budgetary constraints that are inherent in any such endeavor.

A brief history of the international construction market has been researched with implications that can be felt around the world. New regulatory paradigms are touched upon, in which project organizers are required to develop a mastery not only of the legal constraints of their own country, but also of the interplay between multinational financing and local laws. Differences which foreign contractors must keep in mind relate to the availability of construction equipment, local labor practices and regulations, and in some cases the actual political stability of the region.

These difficulties must be itemized before scheduling, before the budget is finalized, and before the first shovel touches the construction site. The construction industry itself is expressed in a global sense, and this project describes the implications of international pursuit that is worth over $3 trillion annually. (Bon, 2000) while it is true that most recently the United States has been the largest single market for construction, when the fortunes of a country become favorable that creates a climate of intensified economic activity which in and of itself can encourage foreign investment in both directions.

A stable and profitable country is an excellent place for other investors to set up shop. Furthermore, when a country becomes a good place to do business, financial interests within that country are then more able to find more foreign investments raising the prospects of other countries, such as China, for example. This research provides advice for budgetary planners in the quantification of risk, as well as the awareness of the need for surplus planning, cushioning in terms of money and time that should be included in the initial cost calculations for projects of international importance in civil engineering.

There has been considerable recognition worldwide of the needs of risk management in the civil engineering sphere and a variety of theoretical methodologies have been pioneered by experts in this field. The details of various management and risk evaluation criteria for engineering projects are also discussed. METHODS There is an assumption in this article, and among other researchers that risk can be boiled down in relatively simplistic equation format: Risk equals =likelihood x consequences.

(van Rijn, 2004.) Risk management criteria and various evaluation schemes are described herein. It is important for planners to make the delineation of a risk versus threat the uninformed are likely to identify as threatening even those events which have vanishingly small probability the distinction must be drawn between every possible worst case scenario, and reasonable damages that are predictable for any project involving construction under the relevant circumstances. Accident statistics have been compiled to illustrate the discontinuity between what the public worries about and what is likely to injure the average person.