Structured risk management in hospital construction helps to minimise cost increases and unforeseen delays, and to cope with changing legal requirements. Photo: Mark Wohlrab

Structured risk management in hospital construction helps to minimise cost increases and unforeseen delays, and to cope with changing legal requirements. Photo: Mark Wohlrab

At a time when construction projects are becoming increasingly complex, effective risk management is essential to project success. Project developers and financiers face many challenges if they are to ensure the success and sustainability of their projects.

Proactive risk management in projects

From unforeseen cost increases and delays to changing legal requirements, risks can have a considerable impact. Structured risk management enables all stakeholders to identify and assess these risks at an early stage, and to take steps to minimise or control them. A systematic approach enables potential pitfalls to be identified early and remedied before they have a negative impact on the project.

The importance of strategic risk management

Philippe Schleifenbaum, senior project manager at , emphasises: “Until now, risk management applications have focused heavily on the precise determination of the cost of risk--a simple figure, which can be both probable and improbable. But it’s more about actually acting with the knowledge gained from risk management: getting the big picture, identifying potential risks, assessing the consequences, making decisions and developing and implementing appropriate prevention measures.”

The importance of risk management in hospital construction

In hospital construction, for example, conversion and construction projects are often carried out as part of major programmes spanning 15 to 30 years, broken down into more than 100 detailed projects. The major challenges in this context are the imponderables that are inevitable in such long-term programmes. Risk management is a decisive tool for dealing with these uncertainties.

It is needed both for cost planning, so that the costs imposed can be adhered to with certainty, and as a steering and management tool, so that the necessary decisions can be taken quickly and purposefully by the various decision-making bodies.

Until now, risk management applications have focused on the cost of risk. It’s more a question of taking action: identifying risks, assessing the consequences, taking decisions and implementing appropriate preventive measures.
Philippe Schleifenbaum

Philippe Schleifenbaumsenior project managerDrees & Sommer Luxembourg

Drees & Sommer Luxembourg offers comprehensive advice and support for successful projects in real estate, infrastructure and industry. Their experts have in-depth knowledge of risk management and help clients to identify risks, assess them and take appropriate action. They take a proactive approach to minimising uncertainties and bringing projects to a successful conclusion.

Once again this year, Drees & Sommer will be present at Healthcare Week Luxembourg.

For more information, visit:

This promotional article was written as part of Drees & Sommer's membership within the Paperjam Club. If you would like to join the Club, please contact us at .