Building resilience using a risk register

In construction, businesses face a unique mix of risks—some shared across the industry, others specific to each role in the supply chain. Whether you’re a developer, main contractor, subcontractor, or professional consultant (like an architect, structural engineer, or quantity surveyor), understanding and managing risk is crucial for ensuring long-term resilience. 

In this blog, we break down how to build an effective risk register, use a risk matrix, and consider industry-wide threats that all construction businesses should watch. Plus, we’ll look at how clients can manage risk through the stages of the RIBA Plan of Work. 

What is a Risk Register? 

A risk register is a structured tool used by businesses to identify, assess, and manage risks.

It includes: 

• Risk Description – What might go wrong. 

• Impact Score (1-3) – How severe the consequences are. 

• Likelihood Score (1-3) – How likely the risk is to happen. 

• Risk Score – Impact x Likelihood. 

• Mitigation Measures – How you reduce or manage the risk. 

Sample Risk Register Table 

Risk Description	Impact (1-3)	Likelihood (1-3)	Mitigation Measures
Loss of Key Staff	3	2	Succession planning and staff training
Project Delay	2	3	Robust scheduling and contingency planning
Cost Overrun	3	2	Detailed cost reviews and tight budget management
Client Insolvency	3	1	Credit checks, staged payments, and retention clauses

How to Use a Risk Matrix 

A Risk Matrix visually represents risk severity by combining Impact and Likelihood. Each cell shows the risk score (Impact x Likelihood), helping teams prioritize which risks need immediate attention. 

Risk Matrix Example: 

Impact		Likelihood
	Low	Medium	High
High	3	6	9
Medium	2	4	6
Low	1	2	3

• Green (1–2): Low Risk – Monitor. 

• Yellow (3–6): Moderate Risk – Mitigate. 

• Red (6–9): High Risk – Act urgently. 

Common Risks by Role 

Developer: 

• Market Demand Risk – poor sales/letting 

• Planning Approval Risk – delays or refusals 

• Funding Risk – lack of finance 

• Exit Strategy Risk – unsold assets 

• Land Acquisition Risk – legal issues, overpaying 

Main Contractor: 

• Estimating Errors – leading to profit issues  

• Programme Overrun – delays on site 

• Subcontractor Performance – poor quality, delays 

• Design Errors (D&B) – liability for design flaws 

• Payment Delays – client non-payment 

• Site Logistics/Access – difficult site conditions 

Subcontractor: 

• Reliance on Main Contractor – payment exposure 

• Limited Legal Resources – poor contract negotiation 

• Payment Certainty – delayed payments, retention 

• Labour and Material Availability – supply shortages 

• Site Safety – compliance with site rules 

Professional Consultants: 

• PI Claims – professional liability 

• Scope Creep – unpaid additional work 

• Design Liability – errors and omissions 

• Fee Collection – delayed or unpaid fees 

• Data Loss – loss of project files, software issues 

Construction Industry-Wide Risks 

All construction businesses face some external threats, including: 

• Interest Rate Changes – impact on financing costs, client demand 

• Material Price Volatility – steel, concrete, timber cost fluctuations 

• Labour Availability – skills shortages, wage inflation 

• Planning System Delays – local authority constraints, appeals 

• Sustainability/Net Zero Pressures – regulatory and client demands 

• Insurance Premium Increases – especially PI and construction all risks 

• Technology Adoption Lag – BIM, digital tools uptake 

• Economic Cycles – recession, boom-bust exposure 

• Public Sector Policy Changes – funding shifts, regulatory change 

• Carbon Taxes/Levies – increased operational costs 

• Regulation changes 

General Business Risks (All Industries) 

Beyond construction-specific issues, businesses also face: 

• Pandemic/Health Crises – site shutdowns, supply chain disruption 

• Geopolitical Events – wars, sanctions, trade restrictions 

• Climate Change Events – floods, extreme weather, site delays 

• Cybersecurity Threats – ransomware, data breaches 

• Legislative Changes – employment law, tax changes, ESG reporting 

• Interest Rates & Inflation – operational cost impacts 

• Financial Market Volatility – access to credit, investment delays 

• Energy Cost Volatility – site and office running cost increases 

• Transport/Logistics Disruptions – port delays, fuel issues 

• Social Movements – labour disputes, protests affecting sites 

For Clients: Managing Risk through RIBA Plan of Work 

Clients can de-risk projects by taking proactive steps through the RIBA Stages: 

RIBA Stage	Risk Mitigation Focus
0–1	Define objectives, appoint advisors, undertake feasibility.
2–3	Obtain planning, manage design risk, cost plans.
4–5	Tendering, contractor due diligence, insurance, contracts.
6–7	Monitor works, snagging, ensure O&M handover, post-occupancy.

Risks reduce over time as more certainty is introduced and responsibilities shift to contractors and consultants. 

Conclusion 

By maintaining a robust risk register and using tools like the risk matrix, construction businesses can identify weak points early, devise mitigation measures, and build resilience in a volatile environment. 

If you would like help setting up a risk register please contact us Peter.Searle@ba4cs.co.uk.