Risk assessment versus risk management

The saga involving Binladin Group, its future, its executives, and its staff, is finally coming to an end. Months-long uncertainty within the company came to an end with the royal relief allowing the company to once again bid for government projects and lifting of bans imposed on it after the Grand Mosque’s crane incident.
A senior company official told Reuters last Thursday that the company had been granted permission to submit tenders for government construction projects after a royal decree confirming a report published by the Saudi daily Al-Watan that quoted a civil aviation authority official as saying that several projects involving the group, including the King Abdulaziz International Airport in Jeddah, would resume momentarily.
BBC Arab affairs analyst Sebastian Usher said in a comment on the news: “This is the first good news in months for the company that built much of modern Saudi Arabia.”
This story should not go without learning lessons. The country is passing through a huge transformation and we need to take into account all aspects of management. In order to achieve the Saudi Vision 2030, we need to take necessary steps for quality control and should implement modern management concepts that are applied globally to better equip ourselves to compete with the rest of the world.
The first of those lessons is to always, I mean always, spend time considering and planning for risks. Whether risks involved in projects themselves or environmental risks that include the market in which the company is operating, a company should do its homework and prepare itself to deal with those risks once they occur.
It is one of the most important management functions but companies in our part of the world pay little attention to this important aspect. Yes, it is not easy; it goes beyond merely having a paper with risk analysis written on it.
The importance of this aspect comes to the fore in the event of a disaster or accident. It is only after an unfortunate incident that companies swing into action.
The second important lesson is strategic. Do not put all your eggs in one basket. The giants in the field should diversify their sources of income and should not rely on one or two sectors.
I always wonder why big names in the local market, including Binladin Group, have no powerful presence in overseas. With their huge experience and knowhow, they should have been ready to tackle different challenges in different international markets. Such approach would also help the local economy and create job opportunities. I really wish to see Saudi companies and groups recognized as international icons in constructions, transportation and services sectors.