Increasing the risk rating of building and construction, Business Law and Ethics

Q. Increasing the risk rating of building and construction?

Stakeholders indicated that there is a significant risk of phoenix activity in the building and construction industry. Some stakeholders felt that the risk was such that the industry should be ascribed a risk rating of high risk. As already described, it was decided to rank the building and construction industry as medium risk in the core modelling due to:

- the concentration of risk in parts of the building and construction industry

- the high levels of employment in the industry meaning that any increase in the risk rating has a significant impact on the results (as shown below).

Sensitivity analysis was conducted of increasing the risk rating to high risk.

Posted Date: 8/5/2013 3:57:02 AM | Location : United States

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