Module 1 - Module Based, Bonus Content Test 2-ACEC M1 P2

Video Transcription

Video Summary

The speaker introduces basic concepts in general risk management for consulting engineers. He defines risk as uncertainty and potential harm, and emphasizes that poor risk management can cause economic loss, project delays, cost overruns, damaged client relationships, reputational harm, claims, disputes, and litigation. The course focuses on practical risk sources such as contracts, subcontracts, changes, claims, standard of care, project delivery methods, and enterprise risks like pandemics. Data from industry studies show most claims stem from non-technical issues such as communication, staffing, project management, and business practices, not just technical errors. Risk management is described as the systems and procedures used to reduce business losses and improve performance, profitability, and reputation. Key principles include selecting the right clients, using fair contracts, maintaining good communication and documentation, and allocating risk to the party best able to control it. Insurance is important, but not the primary tool.

Keywords

risk management

consulting engineers

contract risk

project claims

business practices

insurance