The application of risk management principles to crisis management in construction

A prayer by St. Francis reads "Give us the strength to change the things we can, to accept the things we cannot change, and the wisdom to know the difference". The first part (and, to an extent, the third part) of this message is embodied within the practices of Risk Management. The second, an acceptance of some possible occurrences, lies more in the area of Crisis Management. Crisis Management does not mean a blind reaction to situations, but involves some proactive preparation for unwelcome and unpredictable disasters which are an occasional part of the construction process. The literature on Crisis Management goes back over 20 years, and uses definitions of Crisis Management along the lines of "any incident that can focus negative attention on a business or project and that can have an adverse effect upon its overall financial condition, its relationships or its reputation". Any proactive organization should emphasize the importance of identifying risks and take appropriate measures to minimize the likelihood of crises developing. Crisis Management planning requires a blend of skills with an effective team approach. Designated back-up may also be needed. Staff must be trained and regular scenario planning will develop an ability to reduce the effects of any crisis. In construction, the most likely crises will be safety- related, but litigation, environmental problems and damage to public services are also very common. Applying techniques of Risk Management to Crisis Management planning is a logical development. This paper will make recommendations as to how the construction industry might become more effective in preparing for and managing the crises which may arise.