Ten steps to managing strategic risk—a holistic approach

This paper presents insights and guidance for senior construction managers based on a three-year construction industry research programme called STRATrisk. The aim was to improve the way boards manage the risks that cause failure or significant loss of shareholder value. The research found a strong emphasis on behaviours and culture as the root cause of organisational complexity and investigated appropriate measures to mitigate the consequent failures. Some key principles were identified that should be applied to the management of strategic risk within the context of the relevant organisation. To assist implementation, a ten-step process has been developed from the research to help the boards and senior management of construction businesses introduce a more effective approach to managing their strategic risks.