Managing risk within the world of facility management reflects the interface between the built environment and human activities. The built environment can and should be known and managed to meet occupant requirements while minimizing risk. Buildings and infrastructure are designed and developed to accommodate human activity, governed by various building codes, standards, and now environmental goals. Managing facilities and human activity within buildings is the task of the FM Team. Daily routines are structured in response to outdoor and indoor environments, waste/recycling programs, cleaning activities, wayfinding, energy and water use requirements, security, technology, back-up systems and fire safety, etc. - all delivered through communications with occupants, the FM team and service providers.

Managing facility risk begins at the building planning stage ensuring user requirements are fully captured and understood. This knowledge becomes the input for the design stage where material and systems choices should be made considering serviceability and whole life-cycle cost implications.

A portfolio of buildings is not typically all the same age, size or built of the same materials for the same purpose. Regardless the diversity of buildings, it is critical the FM team have an up-to-date record - preferably digital - of major building elements and systems with an Operations & Maintenance and capital replacement plan. The best way to capture and manage these elements is with technology like a Computerized Maintenance Management System (CMMS) tied into a life-cycle capital management software system and other technologies like controls long used in the FM world. Data, digitally accessible, helps to manage risks in FM.

However, not all risks are the same or have the same impact. It is therefore important to have a risk management plan directly reflective of the organization’s strategy and goals. Start with a simple Risk Register where risks are identified within the context of severity and impact linked to organizational objectives.

Risk is uncertainty. Managing risk is about managing uncertainty. Every risk carries a financial implication. The challenge is to identify risks, determine the likelihood of them occurring, estimate the financial implications of each risk and then determine various mitigation measures to protect against risk disruption. Insurance is a risk management tool. Insurance was established in ancient human history to protect people and property against various disasters. Of course, we continue to insure against various risk to this day which typically includes contracted relationships with disaster recovery experts.

Within the 30-year cost horizon of a building, it is clear the building occupants (personnel salaries) are the largest financial implication. Managing risks to minimize impact for occupants is an FM and organizational goal.

However, predicting future occupant trends and the ‘world of work’ is ‘fuzzier’ than planning performance of a physical environment and requires a different risk management approach.

Most recently, risk and impact spiked with the appearance and rapid advance of the COVID virus creating a pandemic and directly impacting occupancies of many different facilities: hospitals, senior care homes, schools, universities, restaurants, shops, factories and offices – virtually every building environment where people typically gather.

Who knew?

Some risks are difficult to plan for, but they become a learning opportunity going forward.

What was learned from the pandemic:

  • Air-handling mechanical equipment and controls may need flexible rates of air flow;

  • Filters may need to be more robust than HEPA filters - like ULPA filters and require more frequent replacement;

  • Surfaces may require more frequent cleaning – more frequent cleaning cycles;

  • Technology servers and power may need to be more robust;

  • Security may need to be more robust;

  • This dramatic change impacted many workplaces and employees who were forced to adopt different styles of work which also kicked-off the ‘great resignation’ and ‘quiet quitting;’

  • Spaces may need to expand or contract readily to accommodate changing occupant serviceability requirements (flexibility);

  • Different workers require different work environments for maximizing productivity;

  • Supply chains were severely disrupted affecting timely service, ordered equipment delivery & supplies delivery - while costs spiked;

  • Classic office and retail spaces are now under-occupied as workers and shoppers adjusted to alternate arrangements – suggesting buildings need to be planned for flexibility in occupancy types – (office space conversion to residential for example);

  • Single-use neighbourhoods may be obsolete;

  • Technology use surged for meeting and interacting in groups big or small – including online music concerts;

  • Reduced commuting reduced the level of air pollution from vehicles – a positive environmental outcome.

This most recent pandemic risk exposure and learning opportunity can help the FM industry advance risk planning to become more resilient to future risks. Current risk planning has a strong focus on sustainability and environmental impact. It also has a focus on technology use and space/building use flexibility. Asset portfolios – age dependent - may need advanced capital renewal to better accommodate system and space changes to become more flexible for varied occupant types and uses and to become more resilient to environmental extremes.

Some organizations are testing the effectiveness of robotics to provide various occupant services such as robotic cleaning machines and security robots. This technology may be in part due to a lack of available workers.

Whatever risk planning and mitigation action an organization undertakes, completing an annual review of the plan and response mitigation is a required step for proactive risk management. Change demands FM organizations become more nimble.