Risk management

Risk affects all areas of business activity, from strategy to operations and in specific projects. Civil engineering risks exist at both the project tender stage and throughout the duration of a project’s existence, should the tender be successful. Such risks must be identified as early as possible, allowing the chance to develop an appropriate control strategy which may even include the rejection of a project or bid. The challenge is to identify these risks and plan for their ongoing management to ensure that the company does not take unnecessary risk and that the project is completed successfully.

Why all businesses should manage risk

Risk management is now recognised in its own right as a driver for business improvement, which can enhance a company’s reputation and performance rather than just prevent loss. The Turnbull Report has been particularly influential in raising awareness of best practice. Organisations are now more accountable for managing risk. From board level downwards, it is important to demonstrate to shareholders, clients and partners that its business risks are suitably managed.

Jobs for engineering graduates

In an ever-changing and increasingly regulated world, the field of risk management will continue to grow. Graduates entering this sector will have a hands-on role delivering a wide range of risk management activities, with the aim of embedding a risk culture within the business.

Skills required

A creative yet systematic approach is essential – creativity in risk identification and control implementation, yet systematic in procedural development. The ability to listen is vital to ensure understanding of business processes in order to make sensible risk management interventions. Numeracy and literacy skills are also important.

Highs and lows of a career in civils risk management

Being in an advisory role allows risk managers to innovate when identifying and developing processes to take the business forward, which is the most enjoyable part of the job. The downside is when risk management procedures are not followed and the business is put at unnecessary risk and opportunities are lost.

William Stevenson is the risk manager for infrastructure operations at Jacobs.