Aon 2017 Global Risk Management Survey: Construction Industry Report Highlights
The Aon 2017 Global Risk Management Survey represents the responses of risk decision-makers in 33 industry sectors across more than 60 countries.
The robust representation of the 2017 survey has enabled Aon to provide insight into risk management practices by industry. Highlighted below are some key challenges facing the construction industry today.
Major project failure
Major project failure has become an ever increasing risk, appearing in the top five. With the Federal Government committing $75 billion in critical infrastructure funding and financing over the next ten years, we are likely to see more competition from large overseas construction firms, the development of aggressive infrastructure timelines, and a competitive bidding process where the margin for error is minimal.
Economic slowdown/slow recovery
It was a surprise that economic slowdown/recovery was so impactful, ranking as the number one risk for construction companies. However, with slow economic growth and uncertainties worldwide, the global economy still remains a risk today and continues to be a concern for the future.
Cyber purchasing patterns
Overall, 62% of the construction industry has plans to purchase cyber insurance, indicating that cyber purchasing is gaining momentum. However, to keep pace with the pervasive and fast evolving cyber threats, much more progress is needed in the area or risk and control mitigation.
For help with developing and refining your businesses' risk management and risk financing strategies, please contact Alister Burley, National Construction Practice Leader.