AECPM 51: Techniques for Better Risk Management in the AEC Industry

In this episode, I talk with Noelle Cochran, P.E., F. NSPE, Noelle is the vice president and risk management director at AECOM, and she takes us through some strategies that project managers in the architecture, engineering, and construction space can use to improve their risk management skills. Mastering these techniques will not only help you mitigate risks but also elevate your effectiveness as a project manager. ***The video version of this episode can be viewed here.*** Engineering Quotes: Here Are Some of the Questions I Asked Noelle: What are the key factors that contribute to a successful engineering project, and how does effective risk management enhance these outcomes? How can strategically selecting the right clients help reduce corporate risk in engineering projects? What are some critical red flags to watch for during proposal review and contract negotiation that could signal potential risks? How can you ensure your teams prioritize safety risks during project planning and execution without compromising performance or deadlines? How can you motivate your team members to actively identify and manage risks in their work, rather than relying solely on the project manager? As a project manager in engineering, how can developing expertise in risk management set you apart and help you avoid major project issues? What is one of the biggest challenges project managers face in risk mitigation, and what strategies can help overcome or avoid it? What is one key piece of advice for those looking to advance in their careers and become effective project management leaders? Here Are Some Key Points Discussed in This Episode About Techniques for Better Risk Management in the AEC Industry: Successful engineering projects require more than just technical expertise; managing scope, schedule, budget, and client expectations is crucial, with risk management playing a key role in ensuring project success. Project managers must integrate risk awareness from the initial planning stages through to project closeout to avoid potential pitfalls. Ensuring timely payment is critical for maintaining cash flow and meeting financial obligations, such as paying employees. Identifying and addressing contract red flags early can prevent risks that may disrupt project success and financial stability. It's crucial for project teams to not only understand the contract, but also to share key elements with the entire team to ensure everyone knows how it impacts their work. Clear communication about responsibilities within the contract helps prevent misunderstandings and keeps the project on track. Just like planning a trip, project planning requires anticipating potential challenges, choosing the best route, and preparing for the journey to ensure a smooth execution. Consistently revisiting and adjusting the plan as the project progresses helps address risks and keeps everything on track. It's essential for every team member to actively watch for risks in their work, as risks are often identified by those directly involved in fieldwork, calculations, and client interactions. risk mitigation is a shared responsibility, not just the project manager’s responsibility, and collective vigilance helps ensure project success. To improve at risk management, project managers should seek guidance from experienced colleagues and take advantage of free educational resources available online. Learning from past project failures and understanding risk-related topics can significantly enhance their skills and make them stand out in their organization. One of the biggest pitfalls for project managers is being complacent or naive about risk management, which can lead to significant problems. To avoid this,