Risk Management in Architecture

"If you risk nothing, then you risk everything." Geena Davis

Image Courtesy: www.riskintegritymanagement.com

What is Risk?

Risk, in general, can be defined as “uncertainty” of success or failure. In an architectural project, Risks hugely impact the overall project health in terms of cost, time and quality. With growing project scope and complexity, managing and mitigating risks effectively throughout the project has become an inevitable process. By pro-actively identifying risks early on in the project and strategically mitigating its impact, you can easily drive your project to success!

Where there is Opportunity, there is Risk too!

Opportunities knock your door every day; and every new opportunity brings along its own risks. To embrace new opportunities that come your way and capitalize on them vigorously, you need to manage risks, strategically.

Few common strategies to manage risks are:  

• Avoid risks

• Reduce risks

• Transfer risks

Can you avoid risks? 

Well. Risk is a part of life and so a part of every human enterprise. Higher the risk appetite, higher is the growth potential.  So, don’t try to avoid risk, instead try to avoid the root-cause of risk. With a well- defined process for risk assessment early on the project followed by a process to chart out a mitigation plan, you can control the impact of risk to a large extent.

Can your team help keep risks under control?

Yes! Team members... by gaining a panoramic view and a deep understanding of the project, by foreseeing and evaluating new opportunities and risks associated with it, by working collaboratively within the team; can help control risks to a large extent. For example, proactively communicating issues or raising concerns effectively, sharing the right information at the right time, approaching fellow team members with an open mind, building relationships of trust and creating a goodwill-bank are the some of the key factors that spark open discussions and brainstorming about project risks leading to successful risk management.

Who is responsible for the failure of the project? 

Following three principal players are in the building project. 

• Client

• Architect

• Contractor. 

The success and failure of the project also depend on performance of factors like consultants, employees, contract managers, economic conditions, etc. architecture is a team work and in case of failure, it’s not easy to point out a finger at any one of the team members 

What kind of risk architects face in case of failure?

If the project is taken without evaluating the scope, the firm may face any one or all of the following consequences.

• Financial loss

• Disputes

• Claims and compensation

• End of career

• ILL fame

• Imprisonment

Hope you found this blog helpful! 

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