Importance of Risk Management
The plan of risk management ties together all the necessary components of risk management such as analysis, risk identification and mitigation into a functional whole. The plan is an integral part of the project plan, which informs the team members, and their supervisors of the risks that their project is at and how the risks can be managed. One of the most important things that a business should always have in mind is that they cannot survive in a competitive business environment without enough customers thus a business should consider all possible ways of getting more customers for it to continue operating and this is where risk management plans comes in (Charles, 2008).
It is obvious that all firms in the modern world have to keep working hard in order to sustain themselves and succeed in the market because the rate of competition is very high meaning chances that a firm could go at a loss are very high (David, 2009). When it comes to business, there are some factors that should not be assumed and one of these is considering how one’s business can grow with minimum losses attached to it. Most times entrepreneurs focus on improving their industry and forget about improving their products through risk management (Stefano, 2008).
Focusing on the growth of the industry is a positive thing because one is able to tell the benefits that they have been making also know the future of the organization. In an organization where everybody focuses on the improvement of the products offered, there are high chances that they will grow both physically and financially (Ken, 2009).
Through improving the products offered, an organization ends up offering better and improved services to their clients and this is very important in any business market environment (Tan, 2010). One of the ways of reducing chances a company to fail is through ensuring that it has implemented effective risk management plans on the company’s projects and this can be done through advertising the products and other projects of the company.
There are many benefits of advertising on the internet because it has very many users with all types of professions and this is because everyone who uses social networking sites is very eager to learn new things and wants to be informed on what is happening in other parts of the world (Hughes, 2008).
There are several advantages of effective risk management on a given project and this can be felt when an organization decides to build more offices and so on. One of the most common projects that an organization spends a lot of money on is building and construction of properties such as offices for the company to use and this is where risk management plans are highly required (Nelson, 2002).
Importance of Risk Management in a Building Construction Project
A project does not just require a simple maintenance plan in order to manage fire safety. Project managers who want to be effective in their work in the society should ensure that the strategy that they have taken is good enough to control and manage any forms of risks that they might encounter. Risk management is very important especially when it comes to building and construction of an organization’s property and one of the examples is when an organization has decided to build more offices for operation. The design team should also be in a position to come up with a very effective documentation that will help them make effective decisions that will help in maintaining ignition prevention and fuel limitation (Gustin, 2008).
One of the steps towards ensuring there is fire safety in a building is through installing fire extinguishers in the building and also positioning the rooms in that room in a way that fire disasters can be detected before they actually happen. Such strategy also extends the considerations of fire prevention to include fire safety management while including communication, containment, escape and extinguishment (Fred, 2009).
Conclusion
Finally, risk management of projects is very important because it helps an organization grow effectively. When there are challenges that an organization s facing then it is easy to reduce them through risk management of its important projects. Building and construction projects tend to have more chances of having risks in an organization and thus it is important to focus on risks associated to these kind of projects in an organization.
References
Armpriest, D (2009). Building Construction: Principles, Materials, and Systems 2009. New York, Prentice Hall
Charles, J (2008). Sustainable construction: green building design and delivery. New York, John Wiley and Sons
Fred, H (2009). Building Services Handbook: Incorporating Current Building & Construction Regulations. Frankfurt, Butterworth-Heinemann
Ken, W (2009). Fundamental Building Materials: Fourth Edition. University of Indiana, Universal-Publishers
Stefano, T (2008). Industrial Project Management: Planning, Design, and Construction. New York, Springer
Hughes, W (2008). Construction Contracts: Law and Management. New York, Routledge
Nelson, P (2002). Discourse analysis: investigating processes of social construction. SAGE Publication
David, S. (2009). The Social Network Business Plan: 18 Strategies That Will Create Great Wealth. New York: John Wiley & Sons.
Tan, J. (2010). Adaptive Wealth Management Information Systems: Concepts, Cases & Practicals. London: Jones & Barlett.
