Beyond the Ledger: Leading Risk Management in Construction - Articles

In today’s complex, fast-moving construction environment, the role of the construction financial professional extends well beyond closing the books and building budgets.

As projects grow larger, riskier, and more regulated, construction financial professionals are uniquely positioned to lead risk management. Our financial acumen, analytical rigor, and enterprise view make us essential in identifying, assessing, and mitigating risks that can derail projects and threaten company stability.

From Forecasting to Foresight

As many of us close out a busy summer season and turn to budgeting and business planning for the year ahead, we’re not only forecasting results — we’re scanning the horizon for external forces that will impact our companies.

I spend much more of my time as a risk manager than I used to: watching for potholes before we hit them and seeking out tools, partners, and processes that reduce exposure and improve outcomes. This issue of CFMA Building Profits digs into high-impact risk areas — cash flow, technology, contracts, tax strategy, and more.

While project managers typically focus on operational challenges, financial professionals are increasingly expected to assess broader organizational risks in finance, contracts, compliance, operations, and strategy.

That work starts early with preconstruction planning and due diligence and continues through contract review and negotiation, securing appropriate insurance and bonding, and establishing meaningful KPIs and reporting to monitor project health in real time.

In recent years, there has been increased emphasis on contingency planning and budget reserves to address material-price volatility, schedule uncertainty, and weather-related delays.

People Risk Is Business Risk

Much of the risk mitigation we lead is designed to keep our companies profitable and resilient; just as critical is safeguarding the well-being of our people.

September was Suicide Prevention Month, a critical time to reflect on how suicide impacts construction at an extremely high rate.

Operational and financial excellence won’t matter if our workforce isn’t healthy.

As leaders, we must normalize the conversation, equip our teams with resources, and foster a culture where asking for help is a strength.

CFMA’s Resources

CFMA offers robust support for these responsibilities. You can find practical, timely content in our education portfolio, in this and other issues of CFMA Building Profits, with our partners at the Construction Industry Alliance for Suicide Prevention (CIASP), and through many Associate Members and companies that specialize in key risk disciplines.

Make sure to utilize all CFMA has to offer as you lead risk management in your organization. You will find that it helps you Find Endless Possibilities — protecting today’s projects while positioning your company for what’s next.