FOUNDATIONS OF RISK MANAGEMENT
Prevention and Proactivity
Act with preventive techniques, not just react
Develop processes and systems within the firm with risk prevention in mind. Often, early planning can
identify potential sources of risk, and early intervention can mitigate the severity of claims. When risk is
identified, a proactive plan can be developed to change the conditions that lead to that risk or avoid the
risk altogether.
Clearly, some events happen without warning and we must react. Although we cannot plan for the
specifics of each case, identifying where risks may arise and establishing priorities before hand provide
the proper framework with which to deal with unforeseen events. Having a plan allows quick action to
minimize the damage these events may cause. An example of this would be having a plan in place to deal
with an owner who wants to drive down your fee by asking to eliminate construction phase services. Do
you have a plan that will allow you to promptly respond to such a request in a way that minimizes your
risk?
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