'We are a multinational, so we need to have the right people in the right place at the right time'

Two risks stand out for me. The first is people – not everyone has the required expertise, and finding people who have it is not easy. We are a multinational, so we need to have the right people in the right place at the right time.  

The other major risk is design and build, namely the movement of the industry towards new types of projects: normally contractual structure, but not necessarily.

Although we are being asked to build unfamiliar structures more often, the danger is in the way the contract is administered, the way we have to procure materials and the risks we take.  For instance, if you ask me to build you a computer, I can build it with little risk involved, but if  you ask me to design and build a computer, it  requires a different skill set.

Looking ahead, there will be two tiers to risk management: the lower project level and a higher enterprise level. At the lower level, it will concern cultural change and will involve changing processes or procedures.

Bad habits have to change and people should be more humble and admit their failings or lack of knowledge in particular areas.

At a higher level, risk management is about overseeing your business and ensuring it is as fluid as possible. You could have experts in every field, but you may have them spread across different continents and may not know about their existence within the company. This will lead to a focus on expert groups and greater transparency.

This article was first published in StrategicRISK’s Construction Report, published in association with Zurich. To download a copy of the full report, click here