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

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

Pdf Summary

This document presents an educational overview from Willis Towers Watson (WTW) Architecture & Engineering (A&E) division, focusing on risk identification and client selection in the design and engineering sectors. WTW A&E has served over 600 professionals nationwide for over 40 years, offering specialized risk management, claims expertise, contract review, and negotiation support.<br /><br />The core of the presentation is the risk management process tailored for A&E firms, which involves identifying, analyzing, prioritizing, treating, and monitoring risks. Key learning objectives include evaluating prospective client risks, understanding how firm experience and staff availability affect project outcomes, and using tools like risk registers to prioritize alternatives.<br /><br />Risk is categorized into "pure risk" (accidental loss covered by insurance) and "business risk" (profit/loss possibilities not insurable). Effective risk management involves allocating risk to the party best able to manage it, often through contracts that limit liability and include favorable terms like indemnity clauses, additional insured status, mediation, and waivers of consequential damages. Unfavorable contract terms include broad indemnity without negligence limits, duty to defend, warranties, unreasonable insurance requirements, and clauses that raise the standard of care.<br /><br />Client and project evaluation frameworks assign scores based on contract type, fees, client history, staff experience, and legal risks. Clients are rated from A (profitable, timely payers) to D (high risk, problematic), and project risks by type and element are outlined across civil, structural, and mechanical engineering disciplines.<br /><br />An example DOT soil-nail wall project illustrates practical risk register use, assessing probability and consequences of specific risks such as groundwater conditions, contractor capability, and innovative technology performance, with mitigation strategies documented.<br /><br />The document concludes by emphasizing realistic risk assessment, the importance of strong contracts, and quality control to manage exposed risks, alongside information about WTW A&E’s continuing education webinars and contact information for further inquiries.

Keywords

Willis Towers Watson

Architecture & Engineering

Risk Management

Client Selection

Contract Review

Risk Register

Indemnity Clauses

Project Evaluation

Engineering Disciplines

Risk Mitigation