ABSTRACT
This chapter provides an overview of basic concepts and practices for construction risk management. Risk management is an advanced construction management topic, but it is one that all team members must be aware of, including project engineers. In the construction industry, individuals and companies expect to be exposed to risks of different magnitudes; some risks will affect a task, others could affect the whole project, and some may affect a company's survival or an individual's reputation. Risk identification is a crucial step, because risks can be classified into known and unknown categories. Contractors perform risk assessments by evaluating the chance each risk may occur and the impacts of its occurrence on the project. The results of risk assessment allow the construction team to recommend the most appropriate method for risk control and mitigation. The transfer or sharing of risks with other organizations is one of the most common methods for mitigating construction risks.
