How do Labor, materials, and equipment involve considerable risks?

The construction industry plays a vital role in the economy of any country, and hence employing a substantial workplace. All the construction companies including government, consultants or contractors faces numerous kinds of risks during construction. Thus, Risk can be defined as the potential for unexpected consequences of an activity such as a combination of construction hazard and exposure. Not only labors, materials and equipment also involve considerable risks in construction industry. So, nowadays, risk management has become an essential tool in construction industry as construction industry faces number of risks which have negative impact on time, cost and quality of construction.

Risk management is basically a system which aims to identify and quantify all the risks which involve in construction, so that a conscious decision can be taken on how to manage the risks. Risk management basically involve study of previous accidents and loss and to find the solution to minimize the risk.