Construction is a risky business, more so than most, yet many builders don’t spend enough time really understanding their risk environment and putting in place strategies to manage, avoid or transfer that risk.  In this second article in our Understanding Risk series, we focus on the area that is probably best understood; protecting assets from damage or loss.

Life used to be simple. It was about survival, finding enough to eat and avoiding being eaten by a sabre-toothed tiger. Modern life is much more complicated, especially if you’re a builder and run a business. There’s a lot to think about and one of the most fundamental is how to minimise risk.

Do you know if your company is solvent? If it’s insolvent and you continue to trade you could be in breach of the Companies Act. If the company can’t pay its bills, creditors could seek recovery directly from you personally.