Construction

Company’s
Operational Risks
Management
Presenter
Ms. Roxane Grace C. Tagab
Construction Company’s Operational Risks CHARACTERISTI
PRINCIPLES
Management CS

DISADVANTAG
ADVANTAGES

Agenda
ES

APPLICATIONS
Introduction
Construction firm are those
businesses who does actual building of
project and who work with civil
engineers to accomplish it. It needed
heavy equipment, crews working in
precarious situations, safety hazards
and risk factors to manage.
Ex. (housing, non-residential
building, heavy, highway, utility,
and industrial )

Construction Company’s Operational Risks

Management 3
The five Construction Principles
 ENVIRONMENTAL PROTECTION-
construction work should be
environmentally friendly and pollution free.

 SAFETY- should carried out in safety and

comfort, with a method that implements
safety criteria.

 SPEED- completed in the shortest possible

period of time.

 ECONOMY- must be done with an inventive

mind to overcome all constraints at the
lower cost.

 AESTHETICS- must proceed smoothly and

the finished product should portray
cultural and artistic flavor.
 Construction Operational Risk Management
 Construction Risk Management is defined as a process or
system to identify and reduce various risks within a
construction project. (SAFETY RISK, FINANCIAL RISK, LEGAL
RISK, PROJECT RISK, ENVIRONMENTAL RISK)

 Operational risk is the risk of loss resulting from ineffective or

failed internal processes, people, systems, or external events
that can disrupt the flow of business operations.

Presentation Title 5
 • One of the best characteristics of
operational risk management is to help
organizations to assure business
continuity and lower compliance cost.
CHARACTERISTICS OF
CONSTRUCTION
COMPANY Helps project participants, clients,
OPERATIONAL RISK contractor/developer, consultant and
MANAGEMENT supplier to meet their commitments and
minimize negative impacts on
construction project performance in
relation to cost, time and quality
objectives.

Presentation Title 6
 Construction Operational
ADVANTAGES
Risk Management DISADVANTAGES

Create irrecoverable losses

Improved Company Reputation

Requires Strict Adherence to

Increased safety and wellbeing of Procedures
workers

Avoid costs associated with Impossible to Predict Everything

workplace accidents

Prevent damage to machinery,

Financial Risk
property and materials

Presentation Title
 APPLICATION OF OPERATIONAL
RISK MANAGEMENT TO DIFFERENT
INDUSTRIES
ENVIRONMENTAL
PROTECTION
Must go with the process in
having a permit to operate and
must considered the place in
mining area
AESTHETIC
Must maintain smooth
processed to avoid danger
Healthcare industry, manufacturing industry and etc. also uses
operational risk management approach.
ECONOMY
Predictions of value,
foresee area that has lot
SAFETY
of mineral resources.
Mining industry should
issued PPE to ensure
workers wellbeing.
SPEED
Done worked at shortest
time. Mining industries
today incorporates
technology for
convenience.
8
Thank you!
ROXANE GRACE C. TAGAB
Bachelor of Science in Accountancy
2nd Year