Page 21 - Deconstructing risk
P. 21

Geopolitical instability
                                                                              and regulatory change

                                                                          1   Negative changes to                  39  Lack of government/
                                                                              government financing,                    PPP expertise
                                                                              policies and priorities

                                                                          27  Constantly evolving                  41  Reputation risks arising
                                                                              regulatory environment                   from social issues

                                                                          32 Increased political instability       42 National security threats

                                                                          33  Intellectual property and            43 Compliance risk
                                                                              patent breaches

                                                                          37  Environmental regulations/           45  Increasing government
                                                                              lobbying/protests                        requirements

    Workforce management                                                      Risks resulting from digitalization
    and talent optimization                                                   and new technologies

18 Limited workforce diversity        38  Lack of mobility in workforce   5   Overreliance on/failure of           14  Overreliance on technology
                                          due to project location             critical IT systems                      leading to increased human

                                                                                                                       error

23  Difficulty in attracting and      40  Failure to integrate migratory  6   Liabilities arising out of the       17  Cost and operational impact
    retaining key talent                  or transient workforce              widespread use of BIM                    of IT implementations

30  Shortage of qualified,            44  Increasing pension              7   Third-party security vulnerability/  20  Inability to capitalize on
    experienced staff                     fund liability                      Digital supply chain resilience          automation of processes

       Escalating duty of care costs         Constant challenge to               Increased security threat                Inability to keep up with pace
31 and responsibilities to ensure     46 provide competitive and          9 from cyber-attacks and data            25 of change and technological

       workforce security and safety         profitable compensation             privacy breaches                         advancement
       Increasing difficulty under-
34 standing, following and complying  49  Lack of potential               13  Risks emerging from new              29  Increased usage of (own) mobile
       with local employment laws         business leaders                    technologies                             devices (BYOD)/internet of things

    Complex operating models                                                  Business model and
    in a global business landscape                                            strategy challenges

8   Complexity of the labor market:   35  Nat cat exposures               2   Threat from new and                  12  Evolving and increasing
    dependence on subcontractors          and epidemics                       emerging competitors                     supply chain risks
    or contract labor

15 Strikes and industrial action      36 Supply chain vulnerability       3   Capital availability, funding        16  Increasing cost of risk mitigation
                                                                              and liquidity                            and contractual obligation

21  Increasingly narrow operating     47  Project postponement/           4   Macroeconomic environment            19  Challenges to enter new high-
    margins                               delay, cancellation or              uncertainty and inconsistency            growth areas
                                          change of scope

24 Cost and time overruns             48  Workplace safety concerns       10  Necessity for increasingly           22  Increased M&A activity and
                                          and protection of workforce         diversified business models              industry consolidation

28 Design risk exposure               50  Dependence on existing          11 Customer default risk                 26  Changing demand
                                          national infrastructure                                                      impacting cost model

                                                                                                                              The top 50 risks     19
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