Page 5 - Deconstructing risk
P. 5

Foreword

W elcome to Willis Towers              younger generations to the industry.           Paul Becker
              Watson’s Construction    Technological changes across all               Global Industry Leader,
              Risk Index, a boardroom  stages of the construction process             Construction
view of the industry as seen by 350    will add operational complexities,             Willis Towers Watson
senior executives from across the      creating both a need for new skills
globe. This report gives a deep look   and an increase in significant risks    global trends are bringing a new
into the concerns and expectations     related to cyber-crime.                 connectivity of risks, requiring
of construction leaders and                                                    a holistic approach to risk
highlights the most significant           But innovation is now driving the    management, and challenging
megatrends that will shape the         emerging changes to productivity        strategic partners to bring better
future of the industry.                in the construction industry.           solutions to the industry.
                                       Technological advances are
   An overarching theme of our         bringing efficiencies, safety benefits     The Construction Risk Index
report is the evolving nature of       and breakthrough design abilities,      has given Willis Towers Watson
risks and how the challenges that      and are ultimately transforming         an enhanced awareness of the
executives will face over the coming   the way we build. A new approach        issues prevalent in the industry and
months and years vary significantly    to talent that focuses on               reinforced our opinion that risk is
from the past. The scale of new        comprehensive reward programs,          a path to growth. We feel ready to
projects, together with a continued    attractive career paths and a           lead the discussion on embracing
need for infrastructure development,   diverse labor pool – and one that       complexity and innovation as the
means construction operations are      incorporates the role of technology     key to success.
increasingly complex. Sourcing         – will become an essential way to
investment, managing a dispersed       carve out competitive advantage
workforce, and using new materials     and drive growth.
and new methods, often in new
countries, are but a few examples         There is great optimism in
of the challenges the industry must    the industry, but it relies on
meet if it is to prosper over the      the balance between risk and
next decade.                           opportunity. Executives are just
                                       as excited by new technologies as
   Insights from the survey results    they are worried about a cyber-
and from the C-suite executives        attack; they see the need to
we interviewed show that the           diversify their geographic reach,
industry overwhelmingly views          but are hesitant to enter unstable
geopolitical and regulatory risks      markets. Given the cyclical nature
as being of greatest concern.          of construction, today’s events
Construction companies operate         will shape the future. Dynamic
in a global business environment,
where sudden cuts to government            There is great optimism
funding are not uncommon and           in the industry, but it relies
unpredictable politics can transform   on the balance between risk
an attractive new region for           and opportunity
investment into a serious threat.

   At an operational level, our index
reveals both the opportunities
and threats posed by the growth
of digital capabilities, as well as
continued concerns surrounding
labor shortages, talent retention
and the difficulties in attracting

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