Interactive Teaching of Risk Management in the Russian Construction Industry

Abstract

As one of the strategic sectors of the Russian economy, the construction industry plays a special role in the economy of the state. The industry is sensitive to a variety of systemic and project-based risks. The construction industry as a whole bears the risk of painful responses to global or local economic conditions such as inflation, constriction of capital, financial system collapse, changes in tax law, etc. Construction managers and engineers can benefit from familiarity with globally tested methodologies of enterprise risk management (ERM) so they can apply these principles and techniques to the companies and projects they manage, as well as contribute to the health of the construction sector and the economy. Research and practice in industries and professions across many developed economies have demonstrated the enhanced effectiveness of experiential, interactive teaching techniques generally, and specifically in the development of risk management insights and skills. This paper will (i) review ERM as a recognized discipline, describing techniques for identifying and quantifying the impact of various categories of risk; (ii) show that ERM is a critical skillset in the Russian construction industry; and (iii) provide illustrations of and theoretical support for various interactive teaching techniques which enhance the development of insights and skills in risk managers and industry leaders. These interactive pedagogical techniques can be effective in either academic settings or within professional training programs.