Applied Risk Management Techniques

0 Comment

The risk factors lead to the occurrence of some huge risks related to construction. It is the responsibility of the administration and supervisory staff to make sure whether all issues related to construction are going in the right way or not. If any fault is found somewhere, the management staff should take appropriate steps to correct the fault at the earliest. Mr. Mark James, the chief operations manager of the Bluestar Company, believes that the risk factors like shortage of capital and inefficient labor result in creating critical problems for a company. Not only capital and labor-related risk factors are hazardous for a company but also some other factors such as low quality construction and inefficient administration also prove to be harmful for any construction company. Therefore, special care and attention should be given to all aspects of a business in order to reduce the possibility of occurrence of risks.
The effects of the above-mentioned risk factors are very harmful for the success of the business of construction. If there will be shortage of required resources for the construction of houses, the houses will not be constructed within time, which will result in making the customers, dissatisfied with the company. Customer dissatisfaction with the company results in decreasing the level of profitability for the company. A company must maintain a good amount of capital in order to run all business activities successfully. Inefficient labor is also one of biggest problems associated with the construction companies. Some companies do not have a skilled and proficient labor for the construction of houses and it adversely affects the finishing touch that is given to the houses. Low quality construction and unattractive finishing also result in customer dissatisfaction with the products and services of a company.&nbsp.&nbsp.