Risk Management Essay Example | Topics and Well Written Essays - 500 words - 2

Risk Management - Essay Example These risks are likely to affect the construction of high rise building that may result into delay in completion of the high rise project and overrun of cost allocated for the project. The brand name of the construction company is also likely to be affected by these risk factors. The exposure to the identified risk factors is likely to affect the high rise construction project as it would impact the project cost and schedule of the construction of the high rise building. Thus the prioritization of risk is done based on the anticipated overrun of cost and time of the high rise construction project. The delay in approval from the government, conflict of interest over the proposed construction, etc. may lead to delay in completion of the high rise construction thereby incurring additional expenses for the project. Since the high rise building is being constructed in a commercial district, the schedule of construction is extremely important as the floors are to be sold to the corporate houses which have paid a considerable proportion in advance. The allocated budgetary expenses for construction also need to be met as overrun of cost would lead to financial risk for the construction company. Thus schedule risk and financial risk is the most important in construct ion of the high rise building (Karim, 2012, p.1). Apart from the schedule and financial risk, the technical political and social risks are also important. Technical risk may occur due to lack of communication between the company and its workers due to which the quality of construction may be hampered. Political interventions may crop up on issues like labour wages, safety of the workers, etc. Apart from the political risk, any form of non-cooperation by the labour, injunctions from the people of the community may pose social risk which is considered by the company for building a high rise in the commercial district. After identification of the possible risks, the treatment of these