Wrap-Up Risk Management
Risk management is the process of identifying, assessing, and controlling risk. Every business implements some type of risk management procedure that involves prioritizing risk. For construction companies, that procedure can change on a daily basis depending on the projects a contractor encounters. This situation creates challenges for construction risk managers since they not only have to develop appropriate programs that address these constantly changing risks but must also implement those programs and procedures company-wide. Be it contractual, procurement, or operational — it isn’t an easy task for risk professionals.
At TSIB, we feel our unique and extensive experience gives us in-depth understanding and proven abilities in risk management consultation. We operated the risk management department of one of the largest construction companies in the world and developed the most comprehensive CCIP program in the country that placed billions in construction volume annually. This experience involved insurance procurement of over 40 lines of insurance coverage, direct oversight over contractual language affecting owners as well as subcontractors, risk oversight, and operational controls from a claims and safety perspective — all of which had a direct result on the construction company’s bottom line. TSIB’s Risk Management Services consist of three distinct categories:
Program Design:
We can help you evaluate all forms of risk financing options and coverage analysis, from retention and deductible programs to captives that include group and single cell options to excess placements. We specialize in both Corporate and Wrap-Up placements, as well as alternative covers like Professional, Pollution, and Builder’s Risk.
Operational Assessment:
Our knowledgeable construction professionals understand the day-to-day construction industry and the means and methods contractors implement that affect risk. We can use this information to help you evaluate appropriate controls and procedures to address these challenges. From business development and subcontractor procurement to construction operations, we can provide you a third-party assessment that builds the proper risk management controls you need.
Implementation:
We understand the core business of our clients and have experience working with construction firms, real estate developers, hospitals, and higher education groups, as well as public entity clients. Successful risk management programs must be integrated not only with the field staff but with all facets of a construction operation. We can help you evaluate and identify procedures that you can readily apply and monitor. Our unique construction and CIP perspective affords us the ability to seamlessly integrate programs into the day-to-day operations of a construction project without taking the focus away from the project.
Risk Management Service Approach Example
We presented the following program to a large general contractor that wanted to evaluate and maximize their CCIP program and operations. We implemented six measured steps to complete this process: