How is risk management applied in construction projects?

Construction risk management process: (1) Risk identification - brainstorm threats (design, weather, labor, materials, permits) using checklists, interviews, historical data, (2) Risk analysis - qualitative (probability-impact matrix) or quantitative (Monte Carlo simulation), (3) Risk response planning - avoid, transfer (insurance, contracts), mitigate (reduce probability or impact), accept (contingency), (4) Risk monitoring - track identified risks, identify new risks throughout project. Risk register documents risks, responses, owners, and status. Proactive risk management prevents surprises and protects project objectives.