Key Responsibilities and Required Skills for Construction Risk Manager

🎯 Role Definition

The Construction Risk Manager leads the proactive identification, measurement and management of project- and portfolio-level risk across building and infrastructure programs. This role partners with project leadership, legal, procurement, insurance brokers and HSE teams to design risk transfer strategies, manage insurance and claims, implement loss prevention programs, and drive continuous improvement in risk-adjusted project delivery. The ideal candidate combines deep construction industry knowledge, contract and insurance expertise, quantitative analytical skills and strong stakeholder influence to protect project value and reduce volatility.

Optimized keywords: construction risk manager, construction risk management, project risk assessment, construction insurance, claims management, loss control, contract risk, subcontractor risk, HSE compliance, risk register, quantitative risk analysis.

📈 Career Progression

Typical Career Path

Entry Point From:

Senior Construction Risk Analyst or Risk Engineer
Construction Project Manager or Project Controls Manager
Insurance Underwriter / Construction Insurance Broker
Claims Manager or Contract Manager
Health, Safety & Environment (HSE) Lead with risk responsibilities

Advancement To:

Director of Risk Management — Construction & Infrastructure
Head of Enterprise Risk / Global Construction Risk Lead
VP of Project Controls / VP of Construction Operations
Chief Risk Officer (for companies with heavy construction portfolios)

Lateral Moves:

Construction Claims Manager
Contract and Commercial Manager
Project Controls Director
Insurance Placement Specialist or Broker Partner

Core Responsibilities

Primary Functions

Develop and maintain a comprehensive, project- and portfolio-level risk register, including quantitative exposure estimates (frequency, severity, and probability) and prioritized mitigation plans that align to business objectives.
Lead structured risk identification workshops with project teams, commercial, design, procurement and HSE to capture construction, contractual, financial, schedule, environmental and latent defect risks early in the lifecycle.
Evaluate contracts (owner, GC, EPC, JV, subcontract agreements) to identify transfer, retention and allocation of risk; draft or negotiate contract clauses and insurance requirements that reduce company exposure.
Design, negotiate and manage construction insurance programs (CAR/EAR, BCAR, Wrap-ups, GL, Professional Liability, Delay in Start-up, subcontractor controls), collaborating closely with brokers and insurers to optimize coverage and premium.
Manage claims lifecycle from initial notification through investigation, subrogation and resolution; direct claim strategy, reserve recommendations and coordination with external counsel and adjusters.
Perform quantitative risk analysis (QRA) and Monte Carlo modeling for schedule and cost uncertainty, drive contingency setting and support decision-making for change orders and risk-triggered actions.
Implement loss prevention and risk control programs on project sites, including pre-construction risk assessments, site audits, safety integration, vendor/supplier risk assessments and remedial action tracking.
Establish and track key risk indicators (KRIs) and performance metrics (KPIs) to measure risk exposure, mitigation effectiveness, insurance utilization and loss trending across projects.
Advise project leadership on risk allocation and commercial strategy during bidding, procurement and contract formation stages to ensure risk is priced and managed appropriately.
Oversee subcontractor prequalification and ongoing performance/risk reviews, including financial stability checks, past loss history, insurance validation and corrective action plans.
Lead cross-functional response to major incidents (accidents, environmental releases, significant claims) including root cause investigation, mitigation planning and communication to senior management and external stakeholders.
Provide technical risk guidance for complex technical works (tunneling, geotechnical works, heavy civil, modular construction) and incorporate specialist inputs (geotech, structural, MEP) into risk mitigation plans.
Manage captive insurance, self-insurance programs or stop-loss arrangements where applicable, including reserve management, actuarial input and regulatory compliance.
Coordinate with legal and commercial teams to support disputes and claims avoidance, including drafting notices, preserving rights, and preparing robust documentation for arbitration or litigation when required.
Conduct post-project risk reviews and lessons-learned analyses to institutionalize improvements in procurement, contracting, execution and insurance strategy.
Prepare and present concise risk briefings and dashboard summaries for senior leadership, boards and stakeholders, translating technical risk data into actionable business decisions.
Maintain up-to-date knowledge of industry regulations, codes, local statutory requirements, OSHA/ISO standards and evolving insurance market terms to ensure compliance and market-aligned risk placement.
Support budgeting and forecasting for contingencies, insurance premiums and potential claim liabilities; advise finance on adequacy of reserves and project financial risk profiles.
Drive training and capability building for project teams on risk awareness, contract obligations, insurance processes and incident reporting to embed risk-informed decision making.
Lead vendor and consultant selection for specialty risk services (forensic investigators, loss adjusters, construction experts) and oversee their work quality and deliverables.
Maintain thorough documentation and auditable records for insurance placements, claims files, incident reports and contractual risk assessments to support regulatory, tax and audit reviews.
Proactively monitor market insurance conditions and pricing trends; recommend alternative risk financing or transfer solutions (parametric, captive, joint insurance programs) to optimize total cost of risk.
Support emergency preparedness and business continuity planning for project sites, ensuring alignment of insurance and response plans to minimize interruption and financial loss.

Secondary Functions

Support ad-hoc risk data requests, exploratory data analysis and development of risk dashboards using claims, schedule and cost datasets.
Contribute to the organization's enterprise risk framework and roadmap by aligning project-level risk practices with company-wide risk policies and tolerance.
Collaborate with business units, commercial teams and data analytics groups to translate operational risk needs into reporting, system configuration and improvement requirements.
Participate in cross-functional program reviews, governance forums and agile-style risk mitigation sprints to accelerate resolution of high-priority risks.
Coach and mentor junior risk analysts, claims handlers and project team members to build internal capability and succession readiness.

Required Skills & Competencies

Hard Skills (Technical)

Construction contract analysis (AIA, FIDIC, NEC, EPC, IPD) and risk allocation strategies.
Construction insurance program design and placement (CAR/EAR, Builders Risk, Wrap-ups, Delay in Start-up).
Claims handling and management: NOC, investigations, reserves, subrogation and dispute support.
Quantitative risk analysis (Monte Carlo, probabilistic schedule/cost modeling) and contingency estimation.
Loss control and safety risk management, including site audits and corrective action tracking.
Subcontractor prequalification, financial review and risk-based vendor management.
Familiarity with industry standards and regulations (OSHA, ISO 31000, local construction codes).
Proficiency with risk tools and software (@Risk, Primavera/Primavera Risk Analysis, Oracle, MS Project, Power BI, Excel advanced modeling).
Insurance contract wording analysis and broker management skills.
Financial acumen for cost exposure analysis, reserve setting and budgeting for contingencies.
Incident investigation techniques (root cause analysis, RCA) and corrective action implementation.
Knowledge of alternative risk financing: captives, self-insurance, parametric solutions.
Contract negotiation and drafting to protect company interests and allocate risk appropriately.

Soft Skills

Strong stakeholder management and executive-level communication—able to translate technical risk into business impact.
Influencing and negotiation skills to drive contract terms, settlements and cross-functional decisions.
Strategic thinking with the ability to balance commercial outcomes and risk appetite.
High attention to detail and thorough documentation practices.
Analytical mindset with structured problem-solving and ability to synthesize complex information.
Leadership and team development—mentoring junior staff and leading cross-disciplinary teams.
Resilience and calm under pressure when leading incident response or managing escalated claims.
Collaboration and diplomacy when interfacing with operations, legal, procurement and external partners.
Ethical decision-making and strong sense of compliance and governance.
Time management and prioritization across a portfolio of concurrent projects.

Education & Experience

Educational Background

Minimum Education:

Bachelor's degree in Construction Management, Civil Engineering, Risk Management, Insurance, Finance, Business or related field.

Preferred Education:

Master’s degree in Construction Management, Risk Management, MBA, or related advanced degree.
Professional certifications such as CPCU, ARM, RPLU, PMP, PE, CSP or NEBOSH are highly desirable.

Relevant Fields of Study:

Construction Management
Civil / Structural Engineering
Risk Management / Insurance
Business Administration / Finance

Experience Requirements

Typical Experience Range: 5–12 years of progressive construction and risk management experience, with demonstrable exposure to large-scale construction projects (commercial, infrastructure, industrial or energy).

Preferred:

8+ years in a dedicated construction risk, claims, insurance or contract management role on projects > $50M.
Experience managing insurance placements and claims, running risk workshops, and influencing contract negotiations.
Proven track record implementing loss prevention programs, performing quantitative risk analysis and presenting to senior leadership.