Academia.eduAcademia.edu

Outline

Title
Abstract
Introduction
Literature Review
Error, Possibility and Influence Analysis
Risk Team Analysis
Abc Analysis
Conclusions
References
All Topics
Business and Management
Strategy and Management

THE EFFECT OF MANAGING RISK PROCESS IN CONSTRUCTION PROJECTS

Profile image of INTERNATIONAL JOURNAL OF ENGINEERING TECHNOLOGIES AND MANAGEMENT RESEARCH I J E T M R JOURNALINTERNATIONAL JOURNAL OF ENGINEERING TECHNOLOGIES AND MANAGEMENT RESEARCH I J E T M R JOURNAL
https://doi.org/10.5281/ZENODO.1250513
visibility

…

description

13 pages

link

1 file

Abstract

The aim of this study is to get a better understanding for the effect of the set of the risks in the construction projects, in addition to how mitigating these risks in those projects. Indeed risks are frequently playing the same rules, but the nature of project defines the specific risks of the project. The first step in process of risks assessment is identification them. Once risk identification is complete, risk analysis is used to identify the likelihood the risks that have been identified will happen. Thus by using evidence from other research in the area, this study showed the impact of the set of the stages in the risk management process in the construction projects, which were discussed in greater detail in the theoretical aspect of the current study. The findings of the study were revealed the fact that the comprehension of risk and its management has the direct effect of understanding specific issues that involve to the project. In addition to that, the integration of a risk management process at each stage of its stages in construction projects must be oriented to the progress of the project and permeate all areas, functions and processes of the project. In this regard, the most successful project managers maintain open lines of communication throughout their organizations to stay in touch with constituent's needs.

Related papers

Project Risk Management Impact on the Project Success
International Research Journal Commerce arts science

In this article the principle center is accentuated around management under risk i.e. Risk-management. This specific branch of management has an indispensable part at show on the planet, Risk management is the request of the everyday in each management system. Because of quickly developing financial advancement, management is confronting extraordinary difficulties to battle the request circumstance proficiently. My region of point under risk management, manages construction task; and how it is mongered effectively. Construction venture is becoming quickly in this time of quick improvement Never in the historical backdrop of construction has ever observed such a tremendous size of construction which is amazing and without a doubt testing. It has accordingly, turned out to be basically imperative to reduce or moderate risk particularly in the construction undertaking or task. The Risk-word for the most part discuss a Bad outcome or adverse to somebody's wellbeing or to cause stress over because of some reason. In reality any business wander contains on component of risk. In this manner it is trusted that any undertaking has a risk or a mix of risk and opportunity it is inescapable actuality. In our theme of risk management in connection to construction extend, risk is plausible or prone to happen, might be amid construction or significantly from that point. Risk, despite the most imperative factor to center, for it includes lives of individuals cash and notoriety of the management Right choice skill. furthermore, material utilized as a part of the construction is very conspicuous factor. Its quality and strength are exceedingly requested.

View PDFchevron_right
STUDY OF RISK MANAGEMENT IN CONSTRUCTION PROJECTS
Dr Amit B Dutta, M. Kolhatkar

INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)

Risk management (RM) is a concept which is used in all industries, from IT related business, automobile or pharmaceutical industry, to the construction sector. One concept which is widely used within the field of RM is called a risk management process (RMP) and consists of four main steps: identification, assessment, taking action and monitoring the risks (Cooper et al., 2005). The overall aim is to let everyone know what risk management is. Realize the procedure of risk management in the construction project and have a deeper study on the application of risk management in the construction industry during the entire phase of construction from the Estimate to the execution state. The topics studied are application of risk management techniques, barriers to risk management, data cost management.

View PDFchevron_right
EVALUATION AND MANAGEMENT OF RISKS IN CONSTRUCTION PROJECTS
Editor IJERMS

Construction field is majorly a risk prone area with complexity in its internal environment which creates an environment of ambiguity and risk. It is exposed to several different types of risk factors such as socioeconomic, political, environmental, management and financial risks. As a result the project gets effected with delays and quality aspects. This ultimately leads to cost overruns and poor quality construction. In view of this, an effective assessment and management of risks must be followed by industry practitioners. The paper aims to investigate and identify risks in construction projects and suggest remedial measures. This was achieved by questionnaire survey collected from local contractors and managers through mail and some by personnel meeting. Some interview was conducted with industrial practitioners for effectiveness of the collected questionnaire. The major risk observed from the experts opinion is the lack of skilled workers that most companies are facing.

View PDFchevron_right
The impact of risk management on construction projects success from the employees perspective
Haitham Alshibly

The main objective of this research was to study the impact of risk management on construction projects success. The survey which was directed to the participants was developed according the research design, approach, and data. This survey includes two major sections. The first section asked about the procedure followed in the organization to manage the risk. In section two, the survey attempts to specify if the project they experienced achieved the success criteria, this was according 7 criteria factors were defined for construction project success listed in the questionnaire. The distributed questionnaires were 230 questionnaires and got 200 questioners back with percentage of 87.4%. The results of the current study indicate that there is an impact exists between both Risk identification and Risk assessment on project success, scheduled time, planned budget, and the ability to comply with technical specifications. While there is no impact between Risk assessment and avoiding lawsu...

View PDFchevron_right
Risk Management for a Construction Project -A Case Study
Sowmyashree T.

IJSRD, 2017

All categories of any organizations may face few internal and external factors that may make it uncertain to achieve their objectives or goals. This uncertainty is called Risk. A guide to the project management body of knowledge (PMBOK guide) defines project risk management as "The process of conducting risk management planning, identification, analysis, response planning, and monitoring and control on a project". The main objective of this study is to illustrate application of risk management process in construction project. To achieve this, a case study is chosen in Bangalore which is a residential villa project. A review of literature and experts advice gave opportunity to prepare a risk breakdown structure which has 9 risk categories that result from 39 risk factors which are generally faced in construction projects. Further questionnaire survey played important role in identifying and analysing the risks faced in the case study. And the results of case study conclude with list of risk factors which were majorly affecting the project and their analysis. And a proper recommendation is suggested for the research work carried out.

View PDFchevron_right
Risk Management in Construction Industry - A Case Study
Dr. Suchith Reddy Arukala

The Study investigated to acquire an overall idea about risk and its consequences in construction field and the process required for its management. The effect of risk on assessment of a project is discussed along with the tools and methods adopted to manage risk in construction industry. The objective of the research topic " Risk Management in Construction Industry " is to explore the effective way for implementation of risk management in construction industry, to consider the different types of risk management techniques applied to alleviate risk, to identify the use of implementation of the risk management, to determine the factors that can influence the applications of risk management in the project life cycle, wherein to categorize the principles adopted in Risk Management. I have conducted a survey on the following aspects of it, a) Identify, characterize, and assess threats involved in the construction industry b) Assess the vulnerability of critical assets to specific threats. c) Determine the risk (i.e. the expected consequences of specific types of attacks on specific assets). d) identifies ways to reduce those risks. e) Prioritize risk reduction measures based on a strategy.

View PDFchevron_right
Scrutiny of Risks Factors in Construction Projects
IJRASET Publication

International Journal for Research in Applied Science and Engineering Technology -IJRASET, 2020

The construction industry is widely associated with a high risk and uncertainty due to the nature of its operating environment. This study aims to identify and evaluate key risk factors and their frequency and severity and then their impact in different types of construction projects in India. A questionnaire survey was conducted and a total of sixty five critical factors were identified and categorized into eight groups. These are: Financial related risk, Legal related risk, Management risk, Market related risk, Political and security related risk, Technical related risk, Environmental related risk, and Social related risk.. The results are presented on the basis of their frequency, severity and importance. I. INTRODUCTION The aim of this study is to conclude the prospect factors in industry, allotment of these factors, strategies used to traumatize risks and thus the techniques adopted in analysing these risks. the development project is exposed to a high degree of risk from the start of the project till the highest of the project. Risk is printed as any event or prevalence which could have an impact on the action of project goals. Risk management in construction comes is to deal effectively with uncertainty and sudden events that might have an impact on palmy and timely completion of the project. If risks don't seem to be known early throughout a project, it creates tons of exposure and uncertainties to the project life cycle, thereby touching such aspects as value, schedule and quality of the project. additionally, it'd additionally produce exposures within the space of Health, safety and surroundings. Hence, risk management permits project managers to identify, analyze, respond and manage the risks of the project. this will be the rationale why risk management is extremely necessary for the palmy action for a project. In drafting the contract, the getting strategy need to clearly outline the responsibilities of the consumer and therefore the contractor and such need to be specific and graspable. this will be to make positive that the prospect is clear for every the contractor and shopper thereby avoid future dispute. The importance of risk management in construction comes are reportable by many authors. It had been completed that risk management is crucial to construction activities in minimizing losses and enhancing profitableness. It had been explicit that risk management might be a way that need to be applied in associate trade to achieve the goals of the trade, thus it is necessary to unfold awareness and build interest amongst individuals to use risk management techniques within the trade. the prospect might be a measurable a neighborhood of uncertainty and is assumed as a deviation from the specified level, thus the prospect analysis is thus necessary for project choice and coordination of construction work.

View PDFchevron_right
Effective Risk Management in Construction Projects
Swati Dhurve

SSRG International Journal of Civil Engineering, 2022

The construction industry is one of the most dynamic, risky, and challenging businesses. Due to the construction project's complexity and uniqueness, the number of risks present invariably goes behind those found in other industries. This project aims to investigate the risk management process in construction projects and aims to make a basis for future studies for developing a risk management framework to be adopted by prospective investors, developers, and contractors. A questionnaire was designed and circulated to collect responses about various risks occurring on construction sites. As a result, the people working on the projects face various risks such as operational requirements, cost overruns, and various types of accidents during a project. The risks were analyzed using the risk matrix method with the help of assessment forms, and further solutions were given to minimize the risks in a construction project.

View PDFchevron_right
Risk Management implementation and presenting the applicable methodology for its implementation in construction projects
Sharif Akbari

E3S Web of Conferences, 2020

The main task of the project manager is risk management. However, this task can be very complicated and inefficient if risk management is not considered from the beginning of the project. An effective risk management approach requires a systematic and appropriate approach, knowledge and experience. Studies of many projects have shown that both the owner and the contractor do not regularly implement risk management practices, which can have negative consequences on project performance. Because of the above-mentioned issues in this study, it is attempted to first evaluate the concepts of project risk management based on different and valid standards, to evaluate risk management in construction projects. Then, an attempt has been made to present an implementation approach for implementing six stages of risk management in projects. For this purpose, based on the experiences of the project “Lala Residential Complex” in Kabul, as a case study, the experimental application of the proposed ...

View PDFchevron_right
Risk Management in Construction Projects
Ehab Bairam
View PDFchevron_right

References (64)

  1. Adams, D. B., & Sheridan, A. D. (2008). Specifying the risks to animal welfare associated with livestock slaughter without induced insensibility. Animal Welfare Branch, Australian Government Department of Agriculture, Fisheries and Forestry, 1-55.
  2. Allen, G. (2014). Leadership practices for innovation in high-technology organisations (Doctoral dissertation).
  3. Bannerman, P. L. (2008). Risk and risk management in software projects: A reassessment. Journal of Systems and Software, 81(12), 2118-2133.
  4. Britzelmaier, B., Häberle, M., &Landwehr, M. (2015). Risk management in German small and medium-sized enterprises. International Journal of Entrepreneurship and Small Business, 24(4), 548-571.
  5. Buertey, J. I. T., Abeere-Inga, F., &Kumi, T. A. (2012). Practical application of risk management techniques in infrastructural delivery: a case study of Ghanaian construction industry. Journal of Construction Project Management and Innovation, 2(1), 225-244.
  6. Cervone, H. F. (2006). Project risk management. OCLC Systems & Services: International digital library perspectives, 22(4), 256-262.
  7. Chan, T. C. (2012). Implementation of risk management in medical device companies: A survey analysis of current practices. University of Southern California.
  8. Chang, S. E., Shinozuka, M., & Moore, J. E. (2000). Probabilistic earthquake scenarios: extending risk analysis methodologies to spatially distributed systems. Earthquake Spectra, 16(3), 557-572.
  9. Chapman, C., & Ward, S. (2003). Project risk management: processes, techniques, and insights. Wiley.
  10. Cleden, D. (2011). Bid Writing for Project Managers. Gower Publishing, Ltd..
  11. De Bakker, K., Boonstra, A., &Wortmann, H. (2010). Does risk management contribute to IT project success? A meta-analysis of empirical evidence. International Journal of Project Management, 28(5), 493-503.
  12. Del Cano, A., & de la Cruz, M. P. (2002).Integrated methodology for project risk management. Journal of Construction Engineering and Management, 128(6), 473-485.
  13. Harris, F., &McCaffer, R. (2013). Modern construction management.John Wiley & Sons.
  14. Helmus, F. P. (2008). Process plant design: project management from inquiry to acceptance. John Wiley & Sons.
  15. Holmqvist, M., &Maravelias, C. (2010). Managing healthy organizations: Worksite health promotion and the new self-management paradigm. Routledge.
  16. Kenett, R. S., &Raanan, Y. (Eds.). (2011). Operational Risk Management: a practical approach to intelligent data analysis(Vol. 106). John Wiley & Sons.
  17. Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
  18. Loch, C. H., DeMeyer, A., &Pich, M. (2011). Managing the unknown: A new approach to managing high uncertainty and risk in projects.John Wiley & Sons.
  19. Loch, C. H., Solt, M. E., & Bailey, E. M. (2008).Diagnosing unforeseeable uncertainty in a new venture. Journal of product innovation management, 25(1), 28-46.
  20. Loosemore, M., &Raftery, J. (2006). Risk management in projects.Taylor & Francis.
  21. Lundgren, R. E., &McMakin, A. H. (2013). Risk communication: A handbook for communicating environmental, safety, and health risks. John Wiley & Sons.
  22. Makombo, H. M. (2012). The risk management framework for organisations dealing with construction project management in South Africa.
  23. McManus, J. (2012). Risk management in software development projects.Routledge.
  24. McMichael, P. (2011). Development and Social Change: A Global Perspective: A Global Perspective. Sage Publications.
  25. McNeil, A. J., Frey, R., &Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press.
  26. Mees, H., Suykens, C. B. R., Beyers, J. C., Crabbé, A., Delvaux, B., &Deketelaere, K. (2016). Analysing and evaluating flood risk governance in Belgium: dealing with flood risks in an urbanised and institutionally complex country. STAR-FLOOD Consortium.
  27. Meredith, J. R., & Mantel Jr, S. J. (2011). Project management: a managerial approach. John Wiley & Sons.
  28. Merna, T., & Al-Thani, F. F. (2011). Corporate risk management.John Wiley & Sons.
  29. Millot, P. (Ed.). (2014). Risk Management in Life Critical Systems.John Wiley & Sons.
  30. Moraru, R. I. (2012). Current trends and future developments in occupational health and safety risk management. In Risk Management for the Future-Theory and Cases.InTech.
  31. Mosey, D. (2009). Early contractor involvement in building procurement: contracts, partnering and project management. John Wiley & Sons.
  32. Nelson, M. (2013). The development of tropical lands: Policy issues in Latin America. Routledge.
  33. Newbold, R. C. (1998). Project management in the fast lane: applying the theory of constraints. CRC Press.
  34. Nicholas, J. M., &Steyn, H. (2017). Project management for engineering, business and technology. Taylor & Francis.
  35. Nocco, B. W., &Stulz, R. M. (2006). Enterprise risk management: Theory and practice. Journal of Applied Corporate Finance, 18(4), 8-20.
  36. Patil, R., Grantham, K., & Steele, D. (2012). Business risk in early design: A business risk assessment approach. Engineering Management Journal, 24(1), 35-46.
  37. Paton, R. A., &McCalman, J. (2008). Change management: A guide to effective implementation. Sage. [HamaAttar *, Vol.5 (Iss.4): April 2018] ISSN: 2454-1907 DOI: 10.5281/zenodo.1250513
  38. Http://www.ijetmr.com©International Journal of Engineering Technologies and Management Research [113]
  39. PMP, L. R. (2011). Improving your project management skills.AMACOM Div American Mgmt Assn.
  40. Pritchard, C. L., & PMP, P. R. (2014). Risk management: concepts and guidance. CRC Press.
  41. Raftery, J. (2003). Risk analysis in project management.Routledge.
  42. Rausand, M. (2013). Risk assessment: theory, methods, and applications (Vol. 115). John Wiley & Sons.
  43. Reason, J. (2016). Managing the risks of organizational accidents.Routledge.
  44. Richardson, K., Steffen, W., Schellnhuber, H. J., Alcamo, J., Barker, T., Kammen, D. M., ...& Stern, N. (2009). Climate change-global risks, challenges & decisions: synthesis report. Museum Tusculanum.
  45. Rose, K. H. (2007). Linking project management to business strategy.
  46. Sadgrove, K. (2016). The complete guide to business risk management.Routledge.
  47. Schieg, M. (2006).Risk management in construction project management. Journal of Business Economics and Management, 7(2), 77-83.
  48. Schieg, M. W. (2010). Multiple Criteria Analysis Of Construction Project Management (Doctoral dissertation, Vilnius Gediminas Technical University).
  49. Schwalbe, K. (2015). Information technology project management.Cengage Learning.
  50. Smith, N. J., Merna, T., &Jobling, P. (2009). Managing risk: in construction projects. John Wiley & Sons.
  51. Sparrow, M. K. (2011). The regulatory craft: controlling risks, solving problems, and managing compliance. Brookings Institution Press.
  52. Stoneburner, G., Goguen, A. Y., &Feringa, A. (2002).Sp 800-30.risk management guide for information technology systems.
  53. Sveiby, K. E. (1997). The new organizational wealth: Managing & measuring knowledge-based assets. Berrett-Koehler Publishers.
  54. Thamhain, H. (2013). Managing risks in complex projects. Project Management Journal, 44(2), 20- 35.
  55. Vyas, N. D., &Raol, J. D. (2017). Risk Management of Housing Projects. Imperial Journal of Interdisciplinary Research (IJIR), 3(2), 1788-1793.
  56. Wackermann, F. (2010). Individual Risk and Innovative Behavior: A Neo-Schumpeterian Agent- Based Analysis.
  57. Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership.Springer.
  58. Wargborn, C. (2008). Managing motivation in organizations. Why employee relationship management matters (Doctoral dissertation).
  59. Wieczorek, M., Naujoks, U., & Bartlett, B. (Eds.). (2012). Business continuity: it risk management for international corporations. Springer Science & Business Media.
  60. Winch, G. M. (2010). Managing construction projects.John Wiley & Sons.
  61. Yeo, K. T., &Ren, Y. (2009).Risk management capability maturity model for complex product systems (CoPS) projects. Systems Engineering, 12(4), 275-294.
  62. Zeng, J., An, M., & Smith, N. J. (2007). Application of a fuzzy based decision making methodology to construction project risk assessment. International journal of project management, 25(6), 589- 600.
  63. Zou, P. X., Zhang, G., & Wang, J. (2007). Understanding the key risks in construction projects in China. International Journal of Project Management, 25(6), 601-614.
  64. *Corresponding author.

Related papers

Critical Factors Influencing to Management Risk in Construction Projects
The Ijes The Ijes

Project management, over the last three decades has developed into a systematic way of dealing with all aspects of construction projects. The objective of this study is to identify the risks that are caused in various construction projects and calculating the risks severity to personal and property. The general methodology of this study relies largely on the survey questionnaire which was collected from various sources. T horo ugh literature review has b een co nd ucted to identify the risk factors that affect the performance of the construction industry as a whole. The questionnaire prepared for the pilot survey was formulated based on the relevant literatures in the area of construction risk management. The questionnaire has been sent to three hundred and twelve companies. One hundred and fifty responded. Thus the response rate is 48% which is considered good in this type of survey. This research seeks to identify and assess the risk and to develop a management framework which the investors/developers/contractors can adopt when contracting construction works. The data were analyzed by Descriptive Statistics and ANOVA.

View PDFchevron_right
AN OVERVIEW OF RISK MANAGEMENT IN THE CONSTRUCTION PROJECTS
mohammad abazid

Academic Research International, 2018

The study was carried out in order to obtain a comprehensive conceptualization on risk and the consequences it has in the fields of construction and the required management operation. Along with the utilities and techniques adopted to control risk in the construction industry, the effect of risk on the project assessment is also discussed. The aspiration of the topic of research is to be able to enquire into the productive method of implementing risk management in construction industry, to be able to respect the various types of managing techniques manipulated to reduce risk, to define the utility of implementation of the risk management, to resolve the components that affect the execution of risk management in the life cycle of projects. The following study discloses the research which focuses on distinguishing the practices of risk management and construction projects in the Arab region.

View PDFchevron_right
Risk Management Practices in a Construction Project - a case study
lidya erstu

2011

Risk management is a concept which becomes very popular in a number of businesses. Many companies often establish a risk management procedure in their projects for improving the performance and increase the profits. Projects undertaken in the construction sector are widely complex and have often significant budgets, and thus reducing risks associated should be a priority for each project manager. This master thesis presents an application of risk management in the early stage of a project life cycle of a construction project. In order to examine how risk and risk management process is perceived a case study of a school project was chosen. Moreover, based on the conducted interviews, the research presents how risks change during a project life cycle. All analyses are based on a theoretical background regarding risk, risk management process and project life cycle approach in the construction sector.

View PDFchevron_right
Risk management and its effect on reducing the project risks
Ahmed Khatatbeh

Civil and environmental research, 2016

A successful risk management process enhances the construction project to recognize and measure risks and to believe risk repression and risk reduction rule. This study identifies the Risk management and its role in reducing the project risks. The sample of the study was 50 managers of construction projects in Jordan. The researcher used descriptive method and develop questionnaire to collect data. The results of the study showed that there is a statistically significant effect of the impact of risk management to reduce the risk of the project, there is a statistically significant effect of the impact of risk management to reduce the risk of the project related on time, there is a statistically significant effect of the impact of risk management to reduce the risk of the project related on cost, and there is a statistically significant the impact of risk management to reduce the risk of the project related on quality. This study recommended the Establishment of training courses on ...

View PDFchevron_right
Assessment of risk management and evaluate the level of risk in construction project: Case Study
Ali Majdi

Technium: Romanian Journal of Applied Sciences and Technology

This study illustrates the risk assessment and analysis which was made as a requirement in the beginning of the project of a stadium.Risks at project are classified into ten items so that it is easy to manage and monitor them. Simple model is adopted in assessing risks such that it is easy to be understood and modified in contrast with the complex models that produce misleading. Sharing, mitigation and accepting risk are strategies adopted in the final assessment. In the case of sharing risks, it is shown that contracting strategy must be based on risk allocation. Inplanning for risk, purpose must be clear as well as responsibilities and this can be shown precisely in a form of Risk Plan. The objective that this study serves is to identify the cost needed for the whole project from the stage of design to the finishing works.This includes all facilities in the stadium like the concrete frames, buildings and so. The study was very important to provide information to the contractor (a...

View PDFchevron_right

Related topics

  • Maturity Stage
  • Creep-Recovery
    • 580 California St., Suite 400
    San Francisco, CA, 94104
    © 2025 Academia. All rights reserved