Innovation, Strategy and Risk in Construction: Turning Serendipity into Capability

Economic downturns force organizations in the private and public sectors to review the way they manage risk. Ineffective corporate governance, risk contagion and risk interconnectivity are shown to be dangers and the value of a more consultative multi-stakeholder response to risk management is seen. Information technology and the internet are connecting consumers in new ways which are not fully understood, and are making them highly informed about the economic, health, social and environmental risks associated with the products and services they use. More than this, increasing threats from terrorism, climate change and health pandemics are deeply unsettling, with fears being just as contagious and paralyzing as the threats themselves. Since the interrelationship between the public#xE2;#xAC;"s health, wealth and security and the business, governmental and regulatory institutions that govern their lives has never been clearer, governments are introducing stringent risk-related legislation to regulate and control the business community. Increasingly, businesses are driven to consultation and collaboration, embodied in corporate social responsibility and stakeholder engagement, even if these notions are somewhat woolly. Yet organizations in the construction and engineering industry and elsewhere need to act. Otherwise they face disruption, legal costs, and damage to their reputations. Their solution is to communicate openly about risks and to recognize the legitimate interests, roles and contributions which stakeholders can make.