Every substantial infrastructure endeavor, whether it involves structures such as buildings, bridges, roads, or dams, encounters substantial risk throughout its entire duration. Unfortunately, in the usual planning processes, risk management tends to be overlooked, resulting in noteworthy predicaments for all parties involved.
Among the notable challenges encountered are cost escalations, project delays, unsuccessful procurement attempts, and inadequacy of private funding. The direct monetary losses stemming from insufficient risk management in today’s array of extensive projects might surpass $1.5 trillion over the upcoming five years. This is not to mention the additional impact on GDP growth, alongside reputational and societal ramifications.