Any large infrastructure project – ranging from buildings to bridges, roads and dams – experience significant risk through its entire life cycle. In the typical planning process, the management of risk isn’t accounted for which leads to significant challenges for all involved entities.
Some of the major challenges experienced range from cost overruns, to delays, failed procurement, or unavailability of private financing. Direct value losses due to undermanagement of risks for today’s pipeline of large-scale projects may exceed $1.5 trillion in the next five years, not to mention the loss in GDP growth, as well as reputational and societal effects.
