The Four Cornerstones of Risk Management: Risk Identification and Client Selection-The Four Cornerstones of Risk Management Risk Identification and Client Selection Recording

The Four Cornerstones of Risk Management Risk Identification and Client Selection Recording

Video Transcription

Video Summary

Mark Blankenship, Director of Risk Management at WTW A&E, presents "The Four Cornerstones of Risk Management" focusing on risk identification and client selection for architectural and engineering firms. Drawing from 25 years of experience, Mark outlines four essential stages: 1) risk identification and client selection, 2) contracts and subcontract integration, 3) quality assurance/control and documentation, and 4) construction administration and project closeout. Using a real-life structural engineering firm’s experience facing multimillion-dollar claims due to poor project selection, he emphasizes the importance of a rigorous project evaluator tool, which scores projects on contract type, fee, client, staff availability, and firm experience. High-risk projects like condos and renovations receive penalty points due to frequent claims. He stresses the need to evaluate client financial health, claims history, and project type risk, advocating for risk allocation proportional to reward, especially via contract limitations of liability. Mark discusses risk management treatments such as training, mentoring, and proper contract controls. He also presents a risk register example from a DOT soil nail wall project to illustrate identifying, quantifying, and mitigating risks. Concluding, Mark previews the next session on contract negotiations and subcontract integration, promising strategies for negotiating more favorable contracts to better manage professional liability risks in A&E practices.

Keywords

Risk Management

Architectural and Engineering Firms

Risk Identification

Client Selection

Contracts and Subcontract Integration

Quality Assurance and Control

Construction Administration

Project Evaluator Tool

Professional Liability Risk