The quality of risk management in the Civil Engineering Assignment

The quality of risk management in the Civil Engineering - Assignment Example The paper tells that to any engineer, a statement of â€Å"risk† in correlation with a hazard represents the combination of the probability that a hazard will occur and the resulting consequences of that hazard. The possible consequences could range from traumatic injury or death, the cost of rebuilding a structure, the loss of revenue from suspension of economic activity, In addition to environmental damage, and further dangers. To be specific, a hazard can be defined as a set of conditions with the potential to cause adverse or undesirable events. In any case, the safety issue has to be addressed either by the soundness and safety of the design, or by directed measures taken in advance to minimize dangers. Facility construction and civil engineering by necessity involves a wide range of risks. International projects — defined in this case as those where the owner and/or contractor originate from a country other than that of where the project is situated — usual ly require a wider range of issues than purely domestic efforts. There is no doubt that venturing beyond one’s typical business jurisdiction produces many unknowns. Factors concerning owner investment decisions involving international capital facilities can be highly complex and may differ in crucial ways from region to region and between various projects. Contractors are faced with similar challenges when they begin working outside of their country of residency. International projects differ from purely domestic operations in areas such as legal regulations, construction systems/equipment, available technology, and management strategies. The success of a particular venture, and in some cases the viability of the entire organization, can depend upon an understanding of the risks correlating with these projects. International projects that fail in these implicit challenges in terms of scale, budget, and scheduling can result in a variety of undesirable impacts with severe econ omic, social, and political consequences. There is little doubt that construction projects of many eventual purposes going through a process of systematic review for the purpose of risk assessment and managed decision-making will benefit over those that do not. Viewed collectively, construction in a global sense is an essential worldwide industry which by itself accounts for approximately US$3.4 trillion, which constitutes nearly 10% of gross domestic product globally. (Bon, 2000) This sum is distributed among local, regional, or national enterprises, yet an increasing percentage of industry players conduct operations on an international level (Bon 2001). Most recently, the United States has been the largest construction market. With estimates reaching over $800 billion USD—projects completed outside of the domestic market. Construction in a general sense has a history of even greater capital investment in the portfolios of American owners, as well as the work performed by Am erican contractors. The development and operations of multinational corporations serves as a major contributor to the creation of an international market for construction in a way not possible in previous centuries. (United Nations 2001). Most industry experts propose that international business opportunities will continue to attract American foreign investment, while the international construction market will draw U.S. contractors. American Owners are vigorous in searching out international opportunities for new markets or to streamline cost effectiveness in present manufacturing operations. The globalization of the international construction markets allows for considerable profit for contractors to expand into additional foreign markets (Hann and Diekmann 2002). With the expansion of profit potential comes in added need for safety. The effort to minimize safety hazards is not only an issue of public concern, but as the market expands construction hazards pose an increasing threat to the budgetary constraints of many firms. With greater investment also comes greater potential for losses if