Rethinking Risk: Safer Future for South Africa's Property Sector

Jason Griessel, Head of Cushman & Wakefield | BROLL Strategic Risk Services, advocates for a transformative approach to risk management within South Africa's construction sector. By embracing better practices, the industry can enhance safety and resilience, preventing tragedies and fostering community trust.

• Transformative Risk Management: Embracing better risk practices in construction enhances safety and resilience, preventing tragedies and building community trust
• Critical Need for Awareness: Recent disasters highlight the urgent necessity for comprehensive risk assessments to mitigate escalating dangers in the construction sector.
• Proactive Preparedness: Implementing effective emergency response plans and advanced technologies is essential for ensuring safer construction practices and protecting community well-being.

Addressing Risks in the Property Sector for a Resilient Future

The construction industry significantly impacts the nation, yet it faces escalating risks. Recent disasters, such as the George building collapse and international tragedies like the Grenfell Tower fire, highlight a critical need for better risk awareness. Collectively, these incidents have claimed over 200,000 lives and resulted in nearly $70 billion in damages, underscoring the devastating consequences of overlooked risks.

The vulnerability of construction parallels that of the oil and gas sectors, where the loss of life directly affects shareholder value. As insurers increasingly demand robust risk management, construction companies in South Africa must adapt or face reputational damage and regulatory scrutiny. With extreme weather events becoming more frequent, it’s imperative that the industry develops resilient asset designs to withstand these challenges.

While risk is an inherent part of life, the construction sector often neglects comprehensive risk assessment. Griessel points out that construction professionals frequently regard risk assessments as burdensome, leading to decisions that jeopardise major projects. This mindset must shift; every aspect of construction—from a game lodge to an office building—requires tailored risk evaluations based on specific threats.

Real estate investors typically conduct rigorous risk assessments to safeguard their investments. However, this meticulous approach seldom extends to the construction phase, where risk management is often undervalued. Proper risk management frameworks, such as those implemented by Cushman & Wakefield | BROLL offer accessible and affordable solutions for identifying and mitigating threats effectively.

Enhancing Safety in the Property Sector Through Proactive Risk Management

Successful organisations leverage risk engineering to maximize benefits while minimizing costs. An exposure analysis that incorporates environmental and historical data can significantly enhance disaster preparedness. In today's data-driven landscape, past mistakes can inform better future decisions.

Preparedness involves proactive strategies that address potential hazards before they escalate. Construction sites must prioritize evacuation protocols and ensure that emergency response plans are actionable and integrated with insurance policies. If teams cannot mobilize quickly or if their plans lack coordination, they leave themselves vulnerable to catastrophic events.

The current trajectory of construction risk management is unsustainable. Rising insurance costs could hinder development, impacting both the community and the industry. Griessel emphasises that the time for serious change is now; the status quo is no longer viable.

To ensure safer construction practices, the industry must prioritize well-trained workers and adopt advanced technologies. Implementing building management systems for air quality control and fire safety should be standard practice. As environmental concerns grow, compliance with these systems will become essential to maintain building integrity and occupant safety.

In conclusion, embracing a proactive, risk-aware mindset is crucial for the construction sector's future. By prioritizing safety and resilience, South Africa can build a more secure and sustainable environment for its communities.