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The rising risk management challenges facing the construction and infrastructure sectors simply cannot be ignored at the first Infrastructure Intelligence Live event of the year on Friday, January 29, 2021, according to leading industry metrics.

Industry specialists also emphasized that warm words about increased industry-customer collaboration have yet to be put into practice, and that identifying and dealing with potential future risks and communicating clearly with customers and stakeholders are crucial for the industry to achieve a Recovery after Covid can play an important role.

Hosted by Andy Walker, editor of Infrastructure Intelligence, in collaboration with strategic partner for events and communications, BECG, the Risky Business webinar addressed a variety of ancient, new, and emerging risks to the construction and infrastructure sectors.

A panel of experts included Sheena Sood, Senior Partner at international construction and insurance law specialists Beale & Co, Andy Broome, Senior Account Executive at global insurance broker group Howden, Jennifer Riddell-Carpenter, Director at communications and public affairs specialists BECG and Bill Zuurbier, director of risk management consultancy Equib.

Businesses face many risks – financial, operational, regulatory, reputational, and cybersecurity, to name a few. While no construction project or business can ever be risk free, the risk can be managed, minimized, shared, transferred, or accepted. What it can’t be is being ignored, as all panelists pointed out during the 90-minute webinar.

Bill Zuurbier, Founder and Director of Equib, explained the need to identify the main risks at the beginning of a project in order to alert customers to possible pitfalls. He said: “The construction industry – and any other industry on this matter – needs to identify the main risks to which they are exposed and take steps to mitigate any claims. We need to identify the main risks. Ignoring the risk is not acceptable. ”

Sheena Sood, Senior Partner at Beale & Co, emphasized that cooperation, Covid-19 and Brexit are all key issues in the sector. She said: “Despite all the warm words, the industry still needs more collaboration and more open communication with customers in the current climate – unfortunately we haven’t seen much of that.

“We find age-old problems, but with a new focus. General claims focus on Covid-19 and Brexit. We encourage our clients to review their risk management obligations. We have seen too many contracts that have not been updated and that do not address the risks of the current climate. “

Andy Broome, Howden’s Senior Account Executive, emphasized the importance of reading contracts carefully and keeping lines of communication with customers open at all times. He said, “Why do claims arise? Contractual issues, lack of design direction, lack of correlation during design change or mismatch with existing infrastructure, cost overruns and delays, and lack of accurate records can all be factors that lead to disputes or claims.

“The presentation of information needs to be very thorough and brokers need to ask clear questions when arranging coverage. It is really important that your brokers make sure that your contract is as thorough as possible. “

Jennifer Riddell-Carpenter, Director at BECG, emphasized the need for a clear communication strategy and early identification of potential risks for any project from a crisis management and communication perspective.

She said, “From a communications perspective, it’s no surprise that people are more involved in crisis management than they were 12 months ago. Watch out for risks as they evolve – risks that may not be right in front of you. The fire and security risk, for example, does not go away anytime soon. The current cladding debate is centered on high-rise buildings, but will evolve into other buildings, including hospitals and schools. “

Regarding crisis management and establishing a clear communication strategy, Riddell-Carpenter said: “Ask internally whether your company correctly recognizes the risk. Never underestimate the risk of damaging your reputation. Ask difficult internal questions and try to identify potential risks. Are company leaders confident about speaking publicly or are they satisfied with the media? If not, consider exercising – get on early.

“Understand the ever-changing group audience – stakeholders, industry, media, politics – because when a crisis occurs, your answer must be from 0 to 100 immediately. Invest and build trust in good relationships with industry, politics, the media – and build relationships in good time. “

Andy Walker, Editor of Infrastructure Intelligence, said: “All companies in the construction sector need to view risk as part of their daily work and the Covid pandemic has shed light on the risk management process, especially at a time when much of the industry was digital or active work remotely. It was great to see the legal, insurance, risk and issues management experts on our panel sharing their experiences on best practices for minimizing risk in very challenging times. “

Click here to watch a recording of the Risky Business webinar.

The Infrastructure Intelligence LIVE 2021 event series is organized in collaboration with our strategic partner for events and communication, BECG.

Click here for details on the 2021 Infrastructure Intelligence Live event series.