A Survey on Usage and Diffusion of Project Risk Management Techniques and Software Tools in the Construction Industry
The area of Project Risk Management (PRM) has
been extensively researched, and the utilization of various tools and
techniques for managing risk in several industries has been
sufficiently reported. Formal and systematic PRM practices have
been made available for the construction industry. Based on such
body of knowledge, this paper tries to find out the global picture of
PRM practices and approaches with the help of a survey to look into
the usage of PRM techniques and diffusion of software tools, their
level of maturity, and their usefulness in the construction sector.
Results show that, despite existing techniques and tools, their usage is
limited: software tools are used only by a minority of respondents
and their cost is one of the largest hurdles in adoption. Finally, the
paper provides some important guidelines for future research
regarding quantitative risk analysis techniques and suggestions for
PRM software tools development and improvement.
[1] Royer, P. S. (2000), "Risk management: The undiscovered dimension of
project management", Project Management Journal, Vo. 31 No. 1, pp.
6-13.
[2] Besner, C. and Hobbs, B. (2012), "The paradox of risk management; a
project management practice perspective", International Journal of
Managing Projects in Business, Vol. 5 No. 2, pp.230-247.
[3] Krane, H. P., Rolstadås, A. and Olsson, O. E. (2010), "Categorizing
Risks in Seven Large Projects - Which Risks Do The Projects Focus
On?", Project Management Journal, Vol. 41 No. 1, pp. 81-86.
[4] PMBOK (2008), Project Management Institute.
[5] Baker, S., Ponniah, D. and Smith, S. (1999), "Survey of Risk
Management in major UK companies", Journal of Professional Issues in
Engineering Education and Practice, Vol. 125 No. 3, pp. 94-102.
[6] Di Kalle K├ñhkönen, K. A. (1997), "Managing Risks in Projects", Taylor
& Francis.
[7] Zou, P. X. W., Ying Chen, Y. and Chan, T. Y. (2010), "Understanding
and Improving Your Risk Management Capability: Assessment Model
for Construction Organizations", Journal of Construction Engineering
and Management, Vol. 136 No. 8, pp. 854-863.
[8] Hendrickson C. and Au T. (1989), "Project Management for
Construction: Fundamental Concepts for Owners, Engineers, Architects
and Builders", First Edition, USA: Prentice-Hall.
[9] Abdelgawad, M. and Fayek, A. R. (2010), "Risk management in the
construction industry using combined fuzzy FMEA and fuzzy AHP",
Journal of Construction Engineering and Management, ASCE, Vol. 136
No. 9, pp. 1028-1036.
[10] Artto, K., Eloranta, K. and Kujala, J. (2008), "Subcontractors' business
relationships as risk sources in project networks", International Journal
of Managing Projects in Business, Vol. 1 No. 1, pp.88-105.
[11] Öztaş, A. and Ökmen, Ö. (2004), "Risk analysis in fixed-price designbuild
construction projects", Building and Environment, Vol. 39 No. 2,
pp. 229-237.
[12] Poon, S. W., Chen, H. and Hao, G. L. (2004), "Cost Risk Management
in West Rail Project of Hong Kong" AACE International Transactions,
Vol. 9, pp. 1-5.
[13] Thevendran, V. and Mawdesley, M. J. (2004), "Perception of human
risk factors in construction projects: an exploratory study", International
Journal of Project Management, Vol. 22 No. 2, pp. 131-137.
[14] Griffis, F.H. and Christodoulou, S. (2000), "Construction Risk Analysis
Tool for Determining Liquidated Damages Insurance Premiums: A Case
Study", Journal of Construction Engineering and Management, Vol.
126 No. 6, pp. 407-413.
[15] Kim, S. and Bajaj, D. (2000), "Risk management in construction: an
approach for contractors in South Korea", Cost Engineering, Vol. 42 No.
1, pp. 38-44.
[16] Cooper D. F., Grey S., Raymond G. and Walker P. (2004), "Project Risk
Management Guidelines: Managing Risk in Large Projects and Complex
Procurements", Chichester, UK: J Wiley.
[17] Carr, M. J., Konda, S. L., Monarch, I., Ulrich, F. C. and Walker C. F.
(1993), "Taxonomy-Based Risk Identification", DTIC Document -
CMU/SEI-93-TR-06, Software Engineering Institute, Carnegie Mellon
University.
[18] Turner, J. R. (1999), "The Handbook of Project-Based Management",
McGraw Hill.
[19] Dey, P. K. (1999), "Project time risk analysis through simulation", Cost
Engineering, Vol. 43 No. 7, pp. 24-32.
[20] del Ca├▒o, A. and de la Cruz, M. P. (2002), "Integrated methodology for
project risk management", Journal of Construction Engineering and
Management, Vol. 128 No. 6, pp. 473-485.
[21] Hayes, R.W., Perry, J.G., Thompson, P.A. and Willmer, G. (1986),
"Risk Management in Engineering Construction: Implications for
Project Managers", Thomas Telford, London.
[22] Hillson, D. and Murray-Webster, R. (2007), "Understanding and
Managing Risk Attitude", Gower Technical Press.
[23] Hillson, D. (2004), "Effective Opportunity Management for Projects:
Exploiting Positive Risk", Marcel Dekker Inc.
[24] Hillson, D. (2003), "Using a Risk Breakdown Structure in Project
Management", Journal of Facilities Management, Vol. 2 No. 1, pp. 85-
97.
[25] PMI (2009), Practice Standard for Project Risk Management.
[26] Barkley, B. (2004), "Project Risk Management", McGraw-Hill
Professional.
[27] Kerzner, H. (2003), "Project Management: A Systems Approach to
Planning, Scheduling, and Controlling - 8th Edition", Wiley.
[28] Heldman, K. (2009), "PMP: Project Management Professional Exam
Study Guide", John Wiley and Sons.
[29] Rosqvist, T. (2003), "On the use of expert judgment in the qualification
of risk assessment", Citeseer.
[30] Breierova, L. and Choudhari, M. (1996), "An Introduction to Sensitivity
Analysis", MIT System Dynamics in Education Project, Massachusetts
Institute of Technology.
[31] Ahmet, Ö. and Önder, Ö. (2004), "Risk analysis in fixed-price designbuild
construction projects", Building and environment, Vol. 39 No. 2,
pp. 229-237.
[32] Ricci, P. F. (1985), "Principles of risk assessment", Englewood-Cliffs,-
NJ: Prentice-Hall.
[33] IMA (2007), "Enterprise Risk Management: Tools and Techniques for
Effective Implementation", Statements on Management Accounting,
Enterprise Risk and Control, Institute of Management Accountants,
Montvale, NJ.
[34] Caldwell, F. and Eid, T. (2007), "Magic Quadrant for Finance
Governance, Risk and Compliance Management Software, 2007",
Gartner Inc., available at:
http://ermsco.com/news_info/articles/MagicQuadrant0207.pdf (accessed
10 December 2012).
[35] IT Governance Ltd. (2007), "INFORMATION SECURITY RISK
ASSESSMENT TOOL COMPARISON", available at:
http://www.vigilantsoftware.co.uk/Risk-Assessment-Tool-Comparisonv1.0.
pdf (accessed 10 December 2012).
[36] Diep, A. (2003), "White Paper: Enterprise Risk Management Program
(ERMP)", tmmsi ans Company.
[37] Bartlett, J. E., Kotrlik, J. W. and Higgins, C. C. (2001), "Organizational
Research: Determining Appropriated Sample Size in Survey Research",
Information Technology, Learning, and Performance Journal, Vol. 19,
No. 1, pp. 43-50.
[38] Cochran, W. G. (1977), "Sampling techniques (3rd ed.)", New York:
John Wiley & Sons.
[39] Zhang, H. (2011), "Two Schools of Risk Analysis: A Review of Past
Research on Project Risk", Project Management Journal, Vol. 42 No. 4,
pp. 5-18.
[1] Royer, P. S. (2000), "Risk management: The undiscovered dimension of
project management", Project Management Journal, Vo. 31 No. 1, pp.
6-13.
[2] Besner, C. and Hobbs, B. (2012), "The paradox of risk management; a
project management practice perspective", International Journal of
Managing Projects in Business, Vol. 5 No. 2, pp.230-247.
[3] Krane, H. P., Rolstadås, A. and Olsson, O. E. (2010), "Categorizing
Risks in Seven Large Projects - Which Risks Do The Projects Focus
On?", Project Management Journal, Vol. 41 No. 1, pp. 81-86.
[4] PMBOK (2008), Project Management Institute.
[5] Baker, S., Ponniah, D. and Smith, S. (1999), "Survey of Risk
Management in major UK companies", Journal of Professional Issues in
Engineering Education and Practice, Vol. 125 No. 3, pp. 94-102.
[6] Di Kalle K├ñhkönen, K. A. (1997), "Managing Risks in Projects", Taylor
& Francis.
[7] Zou, P. X. W., Ying Chen, Y. and Chan, T. Y. (2010), "Understanding
and Improving Your Risk Management Capability: Assessment Model
for Construction Organizations", Journal of Construction Engineering
and Management, Vol. 136 No. 8, pp. 854-863.
[8] Hendrickson C. and Au T. (1989), "Project Management for
Construction: Fundamental Concepts for Owners, Engineers, Architects
and Builders", First Edition, USA: Prentice-Hall.
[9] Abdelgawad, M. and Fayek, A. R. (2010), "Risk management in the
construction industry using combined fuzzy FMEA and fuzzy AHP",
Journal of Construction Engineering and Management, ASCE, Vol. 136
No. 9, pp. 1028-1036.
[10] Artto, K., Eloranta, K. and Kujala, J. (2008), "Subcontractors' business
relationships as risk sources in project networks", International Journal
of Managing Projects in Business, Vol. 1 No. 1, pp.88-105.
[11] Öztaş, A. and Ökmen, Ö. (2004), "Risk analysis in fixed-price designbuild
construction projects", Building and Environment, Vol. 39 No. 2,
pp. 229-237.
[12] Poon, S. W., Chen, H. and Hao, G. L. (2004), "Cost Risk Management
in West Rail Project of Hong Kong" AACE International Transactions,
Vol. 9, pp. 1-5.
[13] Thevendran, V. and Mawdesley, M. J. (2004), "Perception of human
risk factors in construction projects: an exploratory study", International
Journal of Project Management, Vol. 22 No. 2, pp. 131-137.
[14] Griffis, F.H. and Christodoulou, S. (2000), "Construction Risk Analysis
Tool for Determining Liquidated Damages Insurance Premiums: A Case
Study", Journal of Construction Engineering and Management, Vol.
126 No. 6, pp. 407-413.
[15] Kim, S. and Bajaj, D. (2000), "Risk management in construction: an
approach for contractors in South Korea", Cost Engineering, Vol. 42 No.
1, pp. 38-44.
[16] Cooper D. F., Grey S., Raymond G. and Walker P. (2004), "Project Risk
Management Guidelines: Managing Risk in Large Projects and Complex
Procurements", Chichester, UK: J Wiley.
[17] Carr, M. J., Konda, S. L., Monarch, I., Ulrich, F. C. and Walker C. F.
(1993), "Taxonomy-Based Risk Identification", DTIC Document -
CMU/SEI-93-TR-06, Software Engineering Institute, Carnegie Mellon
University.
[18] Turner, J. R. (1999), "The Handbook of Project-Based Management",
McGraw Hill.
[19] Dey, P. K. (1999), "Project time risk analysis through simulation", Cost
Engineering, Vol. 43 No. 7, pp. 24-32.
[20] del Ca├▒o, A. and de la Cruz, M. P. (2002), "Integrated methodology for
project risk management", Journal of Construction Engineering and
Management, Vol. 128 No. 6, pp. 473-485.
[21] Hayes, R.W., Perry, J.G., Thompson, P.A. and Willmer, G. (1986),
"Risk Management in Engineering Construction: Implications for
Project Managers", Thomas Telford, London.
[22] Hillson, D. and Murray-Webster, R. (2007), "Understanding and
Managing Risk Attitude", Gower Technical Press.
[23] Hillson, D. (2004), "Effective Opportunity Management for Projects:
Exploiting Positive Risk", Marcel Dekker Inc.
[24] Hillson, D. (2003), "Using a Risk Breakdown Structure in Project
Management", Journal of Facilities Management, Vol. 2 No. 1, pp. 85-
97.
[25] PMI (2009), Practice Standard for Project Risk Management.
[26] Barkley, B. (2004), "Project Risk Management", McGraw-Hill
Professional.
[27] Kerzner, H. (2003), "Project Management: A Systems Approach to
Planning, Scheduling, and Controlling - 8th Edition", Wiley.
[28] Heldman, K. (2009), "PMP: Project Management Professional Exam
Study Guide", John Wiley and Sons.
[29] Rosqvist, T. (2003), "On the use of expert judgment in the qualification
of risk assessment", Citeseer.
[30] Breierova, L. and Choudhari, M. (1996), "An Introduction to Sensitivity
Analysis", MIT System Dynamics in Education Project, Massachusetts
Institute of Technology.
[31] Ahmet, Ö. and Önder, Ö. (2004), "Risk analysis in fixed-price designbuild
construction projects", Building and environment, Vol. 39 No. 2,
pp. 229-237.
[32] Ricci, P. F. (1985), "Principles of risk assessment", Englewood-Cliffs,-
NJ: Prentice-Hall.
[33] IMA (2007), "Enterprise Risk Management: Tools and Techniques for
Effective Implementation", Statements on Management Accounting,
Enterprise Risk and Control, Institute of Management Accountants,
Montvale, NJ.
[34] Caldwell, F. and Eid, T. (2007), "Magic Quadrant for Finance
Governance, Risk and Compliance Management Software, 2007",
Gartner Inc., available at:
http://ermsco.com/news_info/articles/MagicQuadrant0207.pdf (accessed
10 December 2012).
[35] IT Governance Ltd. (2007), "INFORMATION SECURITY RISK
ASSESSMENT TOOL COMPARISON", available at:
http://www.vigilantsoftware.co.uk/Risk-Assessment-Tool-Comparisonv1.0.
pdf (accessed 10 December 2012).
[36] Diep, A. (2003), "White Paper: Enterprise Risk Management Program
(ERMP)", tmmsi ans Company.
[37] Bartlett, J. E., Kotrlik, J. W. and Higgins, C. C. (2001), "Organizational
Research: Determining Appropriated Sample Size in Survey Research",
Information Technology, Learning, and Performance Journal, Vol. 19,
No. 1, pp. 43-50.
[38] Cochran, W. G. (1977), "Sampling techniques (3rd ed.)", New York:
John Wiley & Sons.
[39] Zhang, H. (2011), "Two Schools of Risk Analysis: A Review of Past
Research on Project Risk", Project Management Journal, Vol. 42 No. 4,
pp. 5-18.
@article{"International Journal of Business, Human and Social Sciences:57217", author = "Muhammad Jamaluddin Thaheem and Alberto De Marco", title = "A Survey on Usage and Diffusion of Project Risk Management Techniques and Software Tools in the Construction Industry", abstract = "The area of Project Risk Management (PRM) has
been extensively researched, and the utilization of various tools and
techniques for managing risk in several industries has been
sufficiently reported. Formal and systematic PRM practices have
been made available for the construction industry. Based on such
body of knowledge, this paper tries to find out the global picture of
PRM practices and approaches with the help of a survey to look into
the usage of PRM techniques and diffusion of software tools, their
level of maturity, and their usefulness in the construction sector.
Results show that, despite existing techniques and tools, their usage is
limited: software tools are used only by a minority of respondents
and their cost is one of the largest hurdles in adoption. Finally, the
paper provides some important guidelines for future research
regarding quantitative risk analysis techniques and suggestions for
PRM software tools development and improvement.", keywords = "Construction industry, Project risk management, Software tools, Survey study.", volume = "7", number = "6", pages = "1623-8", }
