RISK CLASSIFICATION AND BARRIER OF IMPLEMENTING RISK MANAGEMENT IN OIL AND GAS CONSTRUCTION COMPANIES

2015 ◽  
Vol 77 (16) ◽  
Author(s):  
Gholamreza Dehdasht ◽  
Rosli Mohamad Zin ◽  
Ali Keyvanfar
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Financial Risk ◽  
Oil And Gas ◽  
Construction Project ◽  
Risk Groups ◽  
Critical Group ◽  
Construction Companies ◽  
Lack Of Information ◽  
Oil And Gas Companies

Risk management is one of the most essential and significant part of construction projects due to assuring the attainment of project goals. Because of increasing global energy, more attention is needed to be paid towards risk management in oil and gas companies. The aim of this study is to improve the implementation of risk management within contractor companies in the oil and gas construction project through the evaluation of the most import risk groups and the barriers of implementing risk management in this part of industry. The current study is carried out in Iran and the scope of study includes only the construction project in oil and gas companies. A total of 48 questionnaires were distributed to the respondents and only 35 were obtained duly answered. The data was analyzed using  SPSS software during the preliminary stage of this study, a variety of risk groups have been studied, six of it were identified to be the most probable in  oil and gas construction projects which includes financial, technical, contractual, design and construction, policy and political, and weather and environmental risk groups. Among these groups “financial risk” is the most critical group, while “weather and environmental” is the least critical group. The important barriers of implementing risk management are lack of expertise in techniques, lack of familiarity with techniques and lack of information and knowledge.

scholarly journals Realizacja projektów inwestycyjno-budowlanych z wykorzystaniem Big Data

2017 ◽  
Vol 26 (2) ◽  
pp. 241-249 ◽  
Author(s):  
Jarosław Górecki ◽  
Jadwiga Bizon-Górecka ◽  
Karol Michałkiewicz
Keyword(s):  
Risk Management ◽  
Big Data ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Companies ◽  
On Line ◽  
Line Survey ◽  
The Impact

A paper focuses on analyzing the impact of Big Data (BD) on minimizing the risk in investment and construction projects. The work presents the aspects of risk occurring during the execution of the construction project. It presents an on-line survey which was aimed at knowing the opinion of Polish construction companies on the BD, and checking their readiness to implement technologies supporting manipulation of the data. It was underlined that results of the BD analysis provide a powerful tool for risk management, however, it is hardly noticed by the Polish respondents.

scholarly journals RISK MANAGEMENT IN PROJECTS: PECULIARITIES OF LITHUANIAN CONSTRUCTION COMPANIES / RIZIKOS VALDYMAS PROJEKTUOSE: LIETUVOS STATYBOS ĮMONIŲ SAVITUMAI

2011 ◽  
Vol 15 (1) ◽  
pp. 60-73 ◽  
Author(s):  
Nerija Banaitienė ◽  
Audrius Banaitis ◽  
Artūras Norkus
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Construction Projects ◽  
Construction Project ◽  
Critical Factor ◽  
Construction Project Management ◽  
Construction Companies ◽  
Use Of Resources ◽  
Risk Management Process ◽  
Negative Impacts

Risk analysis and management is nowadays a critical factor to successful construction project management, as construction projects tend to be more complex, dynamic, always unique, and competition increasingly tougher. risk management helps the project participants—client, contractor or developer, consultant, and supplier—to meet their commitments and minimize negative impacts on construction project scope, cost, schedule (and quality, as a Result). The benefits of the risk management process include identifying and analyzing risks, and improvement of construction project management processes and effective use of resources. This paper reports the research that aims to discover how construction companies perceive the significance of the construction projects risks they face and the extent to which they employ potential risk responses. Santrauka Šiandien rizikos analizė ir valdymas yra svarbūs sėkmingam statybos projektų valdymui, nes statybos projektai tampa vis sudėtingesni, dinamiškesni, visada unikalūs, o konkurencija tarp statybos bendrovių taip pat didėja. Rizikos valdymas padeda projekto dalyviams—užsakovui, plėtotojui, rangovui, konsultantui ir tiekėjui—vykdyti savo įsipareigojimus ir sumažinti neigiamą taką statybos projekto apimčiai, išlaidoms, tvarkaraščiui ir kokybei kaip rezultatui. Rizikos valdymo proceso metu sistemingai nustatomi, analizuojami ir reaguojama į potencialius rizikos veiksnius, todėl statybos projektai valdomi efektyviau, veiksmingai naudojami ištekliai. Šiame straipsnyje trumpai pristatomas tyrimas, kuriuo siekiama sužinoti, kaip statybos bendrovės suvokia statybos projektų rizikos veiksnius, su kuriais jiems tenka susidurti, ir kokią reagavimo strategiją ir atsakomuosius veiksmus jos renkasi.

scholarly journals Risk Management of Construction Projects

2020 ◽  
Vol 9 (1) ◽  
pp. 15
Author(s):  
Amer Abdullatef Mahmoud al-Mukahal
Keyword(s):  
Risk Management ◽  
Quantitative Analysis ◽  
Qualitative Analysis ◽  
Construction Projects ◽  
Probability Distributions ◽  
Construction Project ◽  
Risk Identification ◽  
Political Factors ◽  
Construction Companies ◽  
Cause And Effect Diagram

This study aims to Analyzing the nature of Construction Projects, Analyzing the Nature of Construction Projects Risk, and Analyzing The mechanism of Risk Management. This Study adopted The Quantitative Method. The Summary Concluded From The Study Lies in the Theoretical Study of construction Project`s Risk. The Construction Project Contains Many Risk Which Related to Different Factors: Legal, Organizational, Technical, Zoning, Financial, Social and Political Factors. The Process of Management of Construction Projects includes: Planning of Risk Management, Risk Identification By (Checklist Analysis, Questionnaire, Personal Interview, Brainstorming Technique, Delphi Technique), Risk Analysis By Qualitative Analysis By (Probability and Impact Assessment, Cause and Effect Diagram, Probability and Impact Matrix) and Quantitative Analysis By (Probability Distributions, interviews , Sensitivity Analysis, Fault tree, Events tree, Munte Carlo Simulation), Planning the Response to Risk By (Strategies for Response to Negative Risk , and Strategies to Positive Risks), and Risk Control and Cheek. Depending on The Conclusions, The Study Recommends the Following: Process of Assessing The Efficiency of Construction Companies. Use Qualitative Analysis and Quantitative Analysis in The Process of diagnosis, and Categorization of Risk in the Process of Risk Management. Studying Types of Contracts of Construction Projects.

Concepts of Risk in Construction Projects

2013 ◽  
Vol 684 ◽  
pp. 644-649
Author(s):  
Alireza Ghaffari
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Projects ◽  
Financial Risk ◽  
Construction Project ◽  
Cost Effective ◽  
Interest Rate Risk ◽  
Market Theory ◽  
Productivity Cost ◽  
Planning Stage

Risk is a part of business endeavours because of uncertainty (Flanagan and Norman 1993; Fischer and Jordan 1996). Portfolio theory and capital market theory stipulate that risk consists of two types, First, systematic risk, which cannot be controlled, emanates from external factors such as acts of God, natural disasters, market risk, interest-rate risk, and purchasing-power risk. Second, unsystematic risk, which can be controlled, relates to organization-specific factors such as business risk and financial risk(Fischer and Jordan 1996). These forms of risk are fundamental to the construction and the insurance industries.( Tah et al. 1993) . The construction project is a complex sector which characterized with low productivity, cost and time overruns and conflicts. The major challenges in construction project risk assessment which may attributed to knowledge requirements for determining the level of uncertainty and development of complex models to predict . To identifies the risk factors that influence the cost-effective management, operation, and maintenance of construction project, as well as how and when in the project life cycle the identified risk factors impact to the associated costs .The web- based tool can be used by decision -makers during the pre-planning stage of construction projects to estimate cost and duration implications of various risk occurrence scenarios, determine contingencies and prepare risk management plans . In this research the author considered all key articles in the related research streams in recent 30 years and analyzed the risk management views in order to identify key risk factors and its impact on the construction projects.

scholarly journals Research for Risk Management of Construction Projects in Taiwan

2021 ◽  
Vol 13 (4) ◽  
pp. 2034
Author(s):  
Chien-Liang Lin ◽  
Bey-Kun Chen
Keyword(s):  
Risk Management ◽  
Risk Analysis ◽  
Structural Equation ◽  
Construction Projects ◽  
Construction Project ◽  
Equation Modeling ◽  
Analysis Model ◽  
Sustainable Operation ◽  
Management Procedure ◽  
Risk Managers

Risks inevitably exist in all stages of a project. In a construction project, which is highly dynamic and complex, risk factors affect the expected achievement rates of the three main performance goals, namely schedule, cost, and quality. A comprehensive risk management procedure requires three crucial steps: risk confirmation, analysis, and treatment. Risk analysis is the core of risk management. Through structural equation modeling, this study developed a risk analysis model that takes a different perspective and considered the occurrence probability of risk events and the extent to which these events affect a project. The contractor dimension was discovered to exert the strongest influence on an overall project, followed by the subcontractor and design dimensions. This paper proposes a novel construction project risk analysis model, which considers the entire project. The proposed model can be used as a reference for risk managers to make decisions about project risks, so as to achieve the ultimate goal of saving resources and the sustainable operation of the construction project.

scholarly journals Measuring the performance of project risk management: a preliminary model

2019 ◽  
Vol 11 (1) ◽  
pp. 1984-1991
Author(s):  
Alfredo Federico Serpell ◽  
Ximena Ferrada ◽  
Larissa Rubio
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Research Literature ◽  
Lessons Learned ◽  
Project Risk Management ◽  
Project Risk ◽  
Know How ◽  
Construction Companies ◽  
Important Concern ◽  
Preliminary Model

Abstract The function of project risk management (PRM) is to understand the uncertainty that surrounds a project and to identify the potential threats than can affect it as well as to know how to handle these risks in an appropriate way. Then, the measurement of the performance of PRM becomes an important concern, an issue that has not yet been addressed in the research literature. It is necessary to know how successful the application of the PRM process is and how capable is the process within the organization. Regarding construction projects, it is essential to know whether the selected responses to mitigate or eliminate identified risks were suitable and well implemented after the execution of the project. This paper presents a critical analysis of the relevance of measuring the performance of PRM and the benefits of doing so. Additionally, it presents a preliminary and pioneering methodology to measure the performance of PRM through the evaluation of the adequacy of responses applied to mitigate risks as well as to evaluate the resulting impacts as indicators of the effectiveness of these actions at the end of the project. This knowledge will allow construction companies to incorporate good practices, generate lessons learned, and thereby to promote a continuous improvement of the whole PRM process.

scholarly journals Risk management system model to improve the reputation of oil and gas companies in the Java island - Indonesia

2019 ◽  
Vol 276 ◽  
pp. 02014
Author(s):  
Nevila Rodhi Nova ◽  
I Putu Artama Wiguna ◽  
Anwar Nadjadji
Keyword(s):  
Sustainable Development ◽  
Risk Management ◽  
Management System ◽  
Oil And Gas ◽  
Negative Impact ◽  
Risk Management System ◽  
Preventive Method ◽  
Iso 31000 ◽  
Social Environmental ◽  
Oil And Gas Companies

Risk management has been widely studied and applied in oil and gas pipeline projects, but the reality is that the impacts still occur. This is due to the ineffectiveness of existing risk management applications, so of course in this case an effective risk management system is needed, in which risk management must pay attention to all aspects that exist, both internal aspects, external aspects, and other aspects that can affect and influenced by existing risks and risk management not only can be used as a preventive method. But it can also support sustainable development targets. This paper presents the application of risk management by oil and gas companies in Indonesia that has been adapted to ISO 31000:2009 as a framework that can integrate various other management processes, including the management of HSE (Health, Safety, and Environment) risk in the hope of that sustainable development can be achieved . But in the reality it can not be denied that the activities that continue to this day still cause negative impact, especially for the environment. International oil and gas companies nowadays place more emphasis on preventive measures than the methods of mitigation. Thus it shows that the concept of sustainable development has not been fully considered in risk management applications. The existence of a continuous negative impact would greatly affect the credibility of oil and gas companies. Based on the results of research conducted with the hybrid method and analyzed with the help of System Dynamics it can be concluded that there are 3 (three) factors that can affect reputation risk, these factors are social, environmental, and economic and the model built in this study shows that it will can help the oil and gas company players to predict and improve the company’s reputation.

Fuzzy Analytic Hierarchy in Project Risk Management - New Stadium Construction Project in Weifang City

2011 ◽  
Vol 243-249 ◽  
pp. 6362-6368
Author(s):  
Yan Zhang ◽  
Chang Jiang Liu
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Construction Projects ◽  
Large Scale ◽  
Construction Project ◽  
Construction Project Management ◽  
Analytic Hierarchy ◽  
Project Risk ◽  
Management Case Study

In the field of engineering and construction, unqualified construction quality, time delays, cost more than expected phenomena to occur. Because of these characteristics such as its large-scale construction projects, long cycle, the production of single and complex, there is greater risk than the production of general products, the risk increases the difficulty of construction project management, operating costs and the possibility of potential losses, therefore, risk management emerged and become an increasingly important integral part of project management. In this paper, fuzzy analytic hierarchy be used to construction project risk assessment, and to order the sort of each risk in order to prevent significant risks. On an actual project - the new stadium construction in Weifang City risk management case study, the reduction of risk of project failure is expected, but also the project is hoped for other industries to provide some reference for risk management.

Integrating Cloud in Engineering, Procurement and Construction Contract

2020 ◽  
Vol 17 (2) ◽  
pp. 893-901
Author(s):  
Naqiyatul Amirah Mohd Said ◽  
Nur Emma Mustaffa ◽  
Hamizah Liyana Tajul Ariffin
Keyword(s):  
Cloud Computing ◽  
Value Chain ◽  
Construction Projects ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Technical Aspect ◽  
Financial Risks ◽  
Gas Industry ◽  
Course Of Action ◽  
Oil And Gas Companies

Engineering, Procurement, and Construction Contract is a project delivery method in the oil and gas industry. However, the complexity of Engineering, Procurement and Construction projects inevitably leads to issues of project management, risk and technical to occur. Therefore, oil and gas players demand a course of action in minimizing the issues arise in this project. Digitalization in the oil and gas trade indeed offers benefits in the upstream value chain of exploration, development, and production, which Engineering, Procurement and Construction projects take place. Oil and gas companies had been focusing too much on digitizing technical work until the non-technical aspect has been abandoned. Therefore, this study presents and discusses the issues in Engineering, Procurement and Construction contract specifically in the Malaysian oil and gas industry. This is a descriptive study and the methodology used is essentially based on the review of the literature in relation to Engineering, Procurement and Construction contract and the findings of a pilot study in relation to Engineering, Procurement and Construction contract and cloud computing. The analysis revealed that the characteristics of cloud computing in relation to the adoption of Engineering, Procurement and Construction contract helps in empowering collaboration among stakeholders, allow oil and gas companies work highly automated, improve the performance of upstream oil and gas industry, improve speed and minimize financial risks, delayed in schedule as well as improving the quality of the project.

Developing a Model for Risk and Responsibility Management Share Amongst Stakeholders Consortium in Construction Projects

2013 ◽  
Vol 684 ◽  
pp. 639-643 ◽  
Author(s):  
Alireza Ghaffari
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Significant Risk ◽  
Interest Rate Risk ◽  
Extensive Literature ◽  
Productivity Cost ◽  
Management Techniques

The construction project is a complex sector which characterized with low productivity, cost and time overruns and conflicts. The major challenges in construction project risk assessment which may attributed to knowledge requirements for determining the level of uncertainty and development of complex models to predict . Portfolio theory and capital market theory stipulate that risk consists of two types, First, systematic risk, which cannot be controlled, emanates from external factors such as acts of God, natural disasters, market risk, interest-rate risk, and purchasing-power risk. Second, unsystematic risk, which can be controlled, relates to organization-specific factors such as business risk and financial risk (Fischer and Jordan 1996).) . To identifies the risk factors that influence the cost-effective management, operation, and maintenance of construction project, as well as how and when in the project life cycle the identified risk factors impact to the associated costs . The identification and design of risk is the first step of risk management. It contain the recognition of potential risk event conditions in a project and the clarification of risk responsibilities. A total of 50 risk factors on construction for stake holders (client , contractor ,consultant ) share projects were identified after conducting an extensive literature survey. A questionnaire survey was conducted from 60 project managers(20 from each category) in all three proficiencies with background experience in buildings ,road and bridges with minimum 15 years experience , to identify the most significant risk factors impact in construction projects . Interviews were conducted face to face, ensuring a 100 percent response rate. The questionnaire was amended by incorporating feedback of the experts to suit the local environments of the construction industry. The weight or rate of each risk factor gained by using a five-point Liker scale from a consolidated conceptual framework of all 50 risk factors identified from the deep literature work . The main aim of these research is to identify ,categorize and ranking common risks, exert management techniques to address those risks , effective risk management and risk status in the construction industry and to help stakeholders to take stock of their ongoing and future projects, with a focus on important risks, their management techniques and barriers to effective implementation of risk management systems.

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