Minimizing Risks And Mitigating Losses

INTRODUCTION Previous papers and discussions at this conference have already covered the subjects of identification and nature of risks, allocation of risks and contractual arrangements. In this portion of the conference, in the light of topics already covered, we will consider how to minimize risks and how to mitigate losses. Webster defines mitigate as "to make less severe or painful", an apt definition for our purpose! RISK MANAGEMENT POLICY The first thing that must be said about risks, especially in construction, is that they exist and that they don't necessarily fall alike on the just and the unjust. Some risks, i.e., some kinds of risks, must be recognized as inevitable in engineering and construction and therefore must philosophically and realistically be accepted as part of situations to be dealt with. Dealing with means minimizing, covering, and sharing of risks and doesn't mean merely passing off the risks to someone else. While some risks can be avoided, for example, whether the structure will fall down or the excavation will cave in, risks management primarily deals with: A. minimizing risks---whomever risk it may be B. equitable sharing of those risks among the participants.