Construction firms urged to embrace risk management solutions

The construction industry has been one of the most severely impacted by the effects of the global economic downturn. Since the recession began, more than 2 million construction jobs have been lost, and while the sector has shown monthly improvements of late, they are largely tepid and unenthusiastic. Because the industry is responsible for such a wide employment base, analysts have been searching for ways to stimulate activity in the sector. Business solutions firm Aon released the results of a study this week that urges construction firms to equip enterprise-wide risk management tactics to help navigate an environment that is increasingly high in supply but low in demand. "The construction industry is expected to grow by 67 percent by 2020," said Mary Ann Krautheim, client strategy officer of Aon Construction Services Group. "Business leaders who use an enterprise-wide approach to identifying and assessing risks today will emerge from the economic storm in a stronger position with a larger market share." While there is variety of factors that contribute to consumer credit risk management, analysts cited political concerns as one of the fastest growing risks, especially as firms spread overseas.