5 Steps to Manage Your Risk and Improve Best Practices

5 Steps to Manage Your Risk and Improve Best Practices

When thinking of the best practices your business functions with, can you remember if your company developed those practices after conducting a hazard analysis?

Risk is a general concept but a hazard is a specific point or moment of risk. Hazard analysis is an important part of managing and reducing your company’s risk. Many best practices in the construction industry have come about without the necessary hazard-analysis methods. Often times (through word of mouth) people suggest practices to their colleagues and these practices become the norm. Though this can be helpful at times, it can also be harmful as these practices may not be foolproof.

In an article in the Engineering News-Record (ENR), Deron Cowan, a national portfolio executive for Zurich Services Corp., explains the importance of hazard analysis and provides a methodology to carry out this disciplinary measure.

“An actual best practice eliminates, reduces or manages any risks. But hazard analysis is a discipline that must be learned, practiced and executed on a consistent basis. All construction companies should be fully engaged in correctly executing and accomplishing risk analysis to meet the demands of the dynamic world that is construction risk.”

The 5 steps to manage and reduce your risk include:

  1. Identification
  2. Analysis
  3. Solution
  4. Execution communication
  5. Follow-up

Read the detailed methodology here.