scholarly journals Centralization of Risk Management in Business Companies: A Case Study on the Role of Specialist Departments

2015 ◽  
Vol 2 (1) ◽  
pp. 31
Author(s):  
Michael Schwandt
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Construction Company ◽  
International Construction ◽  
Advantages And Disadvantages ◽  
Active Player ◽  
Project Controlling ◽  
The One ◽  
Centralization And Decentralization

As part of his Ph.D. studies, the author researches risk management in project business and focuses on the construction industry. This paper deals with the intra-company organization of risk management. In particular, it examines advantages and disadvantages of centralization and decentralization of risk management. First, the paper deals with various aspects of risk management on theoretical level, ways of organizing risk management structures and relating decision criteria as well as the relevant tasks of specialist departments. Methodology of further research is based on a case study that explores details of centralization and decentralization in business practice. In the center of the case study is the company Bilfinger Berger Civil, a large, international construction company, which is an active player in the project business and has already carried out a variety of construction projects successfully. On the one hand, the company units and persons involved in Bilfinger’s risk management are introduced; on the other hand the tasks of the Group’s centralized departments are illuminated in detail. This includes the Corporate Legal, Internal Auditing, Corporate Treasury, Group Controlling and Project Controlling departments. The risk management of Bilfinger Berger Civil is finally assessed in form of a summary. As a main result the reader gains information about theories on structuring risk management within business companies and numerous impressions on the practical application in a real construction company.

A stakeholder-based risk assessment and intervention framework for international construction projects

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tao Wang ◽  
Shangde Gao ◽  
Pinchao Liao ◽  
Tsenguun Ganbat ◽  
Junhua Chen
Keyword(s):  
Risk Factors ◽  
Risk Assessment ◽  
Risk Management ◽  
Construction Projects ◽  
Management Practices ◽  
Intervention Strategies ◽  
The Body ◽  
Content Type ◽  
International Construction ◽  
Project Objectives

Purpose The purpose of this paper is to construct a two-stage risk management framework for international construction projects based on the meta-network analysis (MNA) approach. A plethora of international construction studies seems to assume risks as independent and therefore, risk intervention strategies are usually critiqued as ineffective. Design/methodology/approach In the risk assessment stage, a multi-tiered risk network structure was developed with the project objectives, risk events, risk factors and stakeholders, and critical risk factors were selected based on a series of calculations. In the risk intervention stage, targeted risk intervention strategies were proposed for stakeholders based on the results of the first stage. A highway construction project in Eastern Europe was selected as a case study. Findings The results showed that 17 risk factors in three categories – external, stakeholder-related and internal – are critical, and the project manager, construction management department, supplier and contract department are the most critical stakeholders that affect the entire project performance. Based on the critical risk factors and project stakeholders, targeted risk intervention strategies were proposed. The risk assessment results of MNA were found to be more reliable and consistent with the project conditions than the risk matrix method; the risk intervention strategies of MNA can effectively address project objectives. Originality/value This study modeled risk priorities based on risk associations and put forward a new method for risk management, supplementing the body of knowledge of international construction. The results of this study are of critical importance in management practices.

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.

scholarly journals The Influence of Risk Management on Construction Project Performance: A Case Study.

2018 ◽  
pp. 936-942
Author(s):  
Mazurina Mohd Ali ◽  
Sakinah Zahra Norman ◽  
Erlane K. Ghani ◽  
Noor Hasniza Haron
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Practices ◽  
Management Practice ◽  
Methodological Approach ◽  
Construction Project ◽  
Project Performance ◽  
Time Cost ◽  
Schedule Delay

Risk Management is recognized as an important exercise that creates value to a project and improves project performance. Time, cost and quality are the primary measures of a project performance in this industry. The success or failure in any construction project can be monitored through the attainment of these primary measures. Notably, Malaysian construction industry is considered as one of the important industries that positively contribute to the increase of Gross Domestic Product and subsequently the growth of the country’s economic development. Unfortunately, this industry suffers poor performance in which it leads to failure in accomplishing effective time, cost and quality performance. Most construction projects face a schedule delay, cost overrun and are poor in product quality. Thus, the aim of this study is to determine the influence of risk management on construction project performance of Malaysian companies based on these three primary measures. The degree of diffusion of risk management practice in the chosen construction project in Malaysia is also examined. The methodological approach exploited in this study is a case study approach involving analysis of documented data and face-to-face interviews with key players that hold different roles and responsibilities. They include a director, project managers, finance managers, contract managers and quantity surveyor managers. The results demonstrate that adopting effective risk management practices positively impacts project performance thus leading to project success. Nevertheless, the lack of knowledge and poor communication of risk management practices in construction projects contribute to the weak implementation of an effective and systematic risk management practices in Malaysia.

Identification of critical risks in international engineering procurement construction projects of Chinese contractors from the network perspective

2020 ◽  
Vol 47 (12) ◽  
pp. 1359-1371
Author(s):  
Tsenguun Ganbat ◽  
Heap-yih Chong ◽  
Pin-Chao Liao ◽  
Jeremy Leroy
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Risk Transfer ◽  
International Construction ◽  
Managerial Strategies ◽  
Risk Mitigation Strategies ◽  
Network Metrics ◽  
Theoretical Risk

International engineering procurement construction (IEPC) is a complex subject interconnected with risk transfer. In-depth understanding of risks in IEPC projects is essential for effective risk management and managerial strategies. Most related studies focus on the critical risks based on the perceptions of stakeholders or their direct “contribution” to the project loss. This study aims to investigate risk interconnection in IEPC projects through social network analysis, with a focus on the critical risks, risk interactions, and risk mitigation strategies. Three approaches were employed. First, the risk register and interconnection between IEPC projects were identified through a literature review. Second, the risk register and interrelationships were investigated using a questionnaire to formulate theoretical risk-interdependent networks. Third, practical IEPC projects were analyzed using network metrics to identify mitigation strategies for the associated critical risks. From the obtained results, we concluded that controlling security and contract risks in project management can reduce the occurrence or impact of other risks. Moreover, environmental issues related to contractors are also critical in international construction projects. Investigating relationships between risks has uncovered different risk-propagation mechanics within IEPC projects, thus extending the theoretical knowledge for international construction and risk management.

A META ANALYSIS OF DECISION MAKING PROBLEMS IN CONSTRUCTION RISK MANAGEMENT

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Kerim Koc ◽  
Asli Pelin Gurgun
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Construction Projects ◽  
Meta Analysis ◽  
Multiple Criteria Decision Making ◽  
Extensive Literature ◽  
Factors Affecting ◽  
Advantages And Disadvantages ◽  
Construction Risk ◽  
Pros And Cons

Various Multiple Criteria Decision Making (MCDM) methods are being commonly used in the area of construction risk management to deal with decisions that are subjected to several factors affecting the selection of the best possible choice in the projects. There are many techniques developed to provide assistance to decision-makers during decision-making process, each having different advantages and disadvantages. This study discusses some of the most frequently applied MCDM methods in construction risk management such as: AHP, ANP, TOPSIS, VIKOR, and DEMATEL, with their own application principles. It aims to introduce a meta-analysis about the use of MCDM methods within the last two decades and provide an extensive literature review study about construction risk management. It is expected to assist practitioners and researchers to suggest effective methods for specific type of risks to be addressed in construction projects. The discussion of pros and cons of each method will also provide some insights to get use of multiple MCDM methods rather than a single means to enhance the analysis outputs.

scholarly journals Identifying Political Risk Management Strategies in International Construction Projects

2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Tengyuan Chang ◽  
Bon-Gang Hwang ◽  
Xiaopeng Deng ◽  
Xianbo Zhao
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Strategies ◽  
Political Risk ◽  
Implementation Phase ◽  
Construction Enterprises ◽  
International Construction ◽  
Political Risks ◽  
Risk Management Strategies ◽  
International Experts

International construction projects are plagued with political risk, and international construction enterprises (ICEs) must manage this risk to survive. However, little attention has been devoted to political risk management strategies in international construction projects. To fill this research gap, a total of 27 possible strategies were identified through a comprehensive literature review and validated by a pilot survey with 10 international experts. Appraisals of these 27 strategies by relevant professionals were collected using questionnaires, 155 of which were returned. Exploratory factor analysis was conducted to explore the interrelationships among these 27 strategies. The results show that all of the 27 strategies are important for political risk management in international construction projects. Moreover, these 27 strategies were clustered into six components, namely, (1) making correct decisions, (2) conducting favorable negotiations, (3) completing full preparations, (4) shaping a good environment, (5) reducing unnecessary mistakes, and (6) obtaining a reasonable response. The 6 components can be regarded as 6 typical management techniques that contribute to political risk management in the preproject phase, project implementation phase, and postevent phases. The findings may help practitioners gain an in-depth understanding of political risk management strategies in international construction projects and provide a useful reference for ICEs to manage political risks when venturing outside their home countries.

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