: The construction industry requires continuous evaluation and  formulation of risk management index, but Nigeria is yet to introduce a risk  rating tool for the industry. This paper therefore assessed risk management  practice in Nigeria construction industry and establishes Risk Management  Index (RMI). Structural questionnaire were administered to the industry  stakeholders, Data collected were analysed and ranked using Relative  Importance Index (RII) which was to establish the Risk management Index  (RMI). Modelled (RMI) was put to validity test using collated data with the RMI  result being 0.53 which is indicative that the Nigeria construction industry is  
exposed to 53.04% risk thereby resulting to high failure rate of construction  projects. RMI opts to assist investors in the industry to making strategic  decisions and to serve as a tool for financial and insurance institutions to carry  out feasibility and viability studies on prospective project for risk investigation.  The industry shareholders should therefore adopt a pragmatic approach to risk  
control on construction projects by implementing RIM in the industry.

Keywords: Risk Management, Construction Industry, Risk Management Index  �