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Abstract
Risk management is a critical component of the construction industry, where uncertainties related to financial stability, safety, regulatory compliance, and project execution can significantly impact outcomes. This research provides a comprehensive analysis of risk management practices in construction through a literature review, case study, and survey. The study explores key components of effective risk management, including risk identification, assessment, mitigation, monitoring, and contingency planning. The case study of Waffle Construction highlights the implementation of a structured Subcontractor Risk Management Program (SRMP), demonstrating the benefits of proactive risk mitigation strategies. Survey results reveal a disparity in risk management practices between large firms with structured methodologies and smaller contractors that primarily adopt compliance-driven approaches. Findings emphasize the necessity of integrating technology, leadership commitment, and strategic planning to enhance risk management effectiveness. The analysis reveals that while larger firms often adopt structured, technology-driven approaches to managing risk, smaller contractors tend to rely on minimal compliance, resulting in significant gaps in preparedness and response. The proposed standard advocates for a proactive, cyclical approach to risk management that leverages technology, fosters a culture of accountability, and promotes continuous improvement. By implementing these strategies, construction firms can reduce project disruptions, enhance safety, and improve overall project outcomes, positioning themselves as resilient and forward-thinking leaders in a dynamic industry. The study concludes that a proactive and standardized approach to risk management is essential for minimizing project disruptions, ensuring financial stability, and improving overall construction industry resilience.