Adjusting for Realities

It’s Monday morning. You’re faced with a catastrophic nine-figure property damage claim and you’re scrambling to coordinate the early stages of reconstruction. As a risk manager, are you prepared to explain the risk of erroneous contractor billings and the effect on your insurance claim to the board of directors? In the normal course of business, construction projects are a controlled process handled by a procurement or capital projects division within the company. Unfortunately, the unpredictable environment following a loss heightens the risk of construction mistakes and possibly even abuse or fraud.