Construction Risk Management Strategies: A Literature Review Report

This report presents a literature review on construction risk management strategies, focusing on the context of building and civil engineering projects. The review synthesizes insights from over ten scholarly sources to address key questions such as how risk is defined, the importance of risk management, common risks encountered, their potential impacts, and effective risk management approaches. The analysis covers various aspects, including the application of project management from the outset, risk modeling, and the use of tools like Adaptive Neuro-Fuzzy Inference Systems (ANFS) for risk assessment. It highlights the significance of proactive and reactive treatments, process modeling, and the use of dynamic risk insurance to mitigate project delays. Furthermore, the report explores the role of risk management in financial issues, insurance, and the application of systematic risk management systems. The findings underscore the need for continuous research and the implementation of formal risk management techniques to minimize losses and enhance project success.

CONSTRACTION RISK MANAGEMENT
STRATEGIES

Introduction
Risk management is the crucial factor to consider in any business regardless of
size, and It’s an essential factor if profit maximization is to be achieved. Failure to
evaluate risk results in significant losses of the company. Thus risk management is
a way of avoiding future losses
Literature review
Alfredo Federico et al.,(2014): project management should be applied
immediately at the beginning of the project and project manager to undertake all
responsibilities concerning risk management. The author applied knowledge-
based approach and he proposed a three-fold methodology which includes;
 Risk management modeling
 Evaluation modeling
 Availability of the good model to present risk management
Amita Pawar et al.,(2017): The following factors are considered when identifying
the risk:
 gaps and being differences in the knowledge
 control of the project risk
This paper present the basis of survey questionnaire carried out in Pune by
general constructor and management practices. The perception of risk
depends on how the industry uses a risk analysis and the management
technique they applied. They conclude that risk management is a critical
factor in maximizing profit is to be achieved.
C.Borysowich(2008): Risk is an event that cannot be seen or measured. The only
solution is to seek a tool that simulates risk scenarios and their related impact on
the organization. The objective of this study is to;

 Understand how risk affects the performances of a business
 Acquired information on how to differentiate risk retention and risk
management
Mehdi Ebrat et al.,(2013): The author shows that identification of the risk and
determining its priorities in every step of the construction process is a key
guideline of every manager to avoid risk. Therefore giving much priority to risk via
risk factor can accelerate the reliability of the success. In this research, the
evaluation of the risk was done by using Adaptive Neuro-Fuzzy interference
system(ANFS) . The results found shows that the ANFS model is a useful tool for
assessing construction project risk
Shahid Igbal et al.,(2015): Construction projects have undergone some risks
which have results in negative impacts on the project. There are some techniques
for risk management. e.g. preventive technique which manages the project during
the time of execution and also a remedial technique which is used during the
phase of execution. It’s found that there are some risks that might occur, such as
accidents and defective designs. Updating data of the project and also guidance
from other past project is effective risk management technique. Proper schedule
and even proper coordination when Implementing is essential and should be
recommended.
Terry Lyons et al.,(2004): This paper presents results of a survey carried out in
Queen land engineering construction industry by senior management, concerning
management technique applied in construction. The author shows that;
 The frequently used risk management elements are; identification
and assessment of the project risk
 Qualitative method of assessment is most used
 Project teams are mostly frequent group used for risk analysis
Nakhon Kokkaew et.al.,(2014): Financial of the project is negatively affected by
completion delay.in this paper, the author reveals how to deal with completion
delay risk in a novel way through "dynamic risk insurance". The new model
present in this paper is going to improve risk management technique in the
construction field.

Samer Ezeldin et.al.,(2006)The methodology presented here is mainly for the
developing country.it mainly concerns large constructors who use the
domestically or internationally. The investigation is mostly concerned on risks
faced by the constructors in the Egyptian construction industry. Based on data
achieved data and results of statistical analysis, the construction sector is majorly
faced by the following risk.
 Financial issues
 Insurance
 Consultants use risk analysis in project teams
Wael sharmak et.al.(2008): construction sectors are majorly faced by a risk which
results in a negative impact on management plans. Risk management requires
reactive and proactive treatment. Process modelling is used to come up with
configurable treatment templates. By providing risk-related data as a response to
critical events is a part of a reference respiratory.
Al_Bahar, J.F.and Crandall,k.c.,(1990): Risks are prone to all construction projects. This risk
makes construction projects fail their achievement and goals. Individual bodies have been
introduced to the construction sector to guide constructors to analyze and mange project risks
systematically. This body is a construction risk management system (CRMS) .Project analyzing
and evaluation are mostly done using diagramming technique.
Akintoye, A.S and Macload M.J.,(1997): The paper present a question survey of construction
project management.it simply concludes that risk management is the minimization of the losses
and enhancement of profit gain. Construction risk has impacts on cost, time and quality of the
objective of the project. Formal risk management is not commonly used due to ignorance on
suitability of the technique in construction industry.
Conclusion
There need of urgent research in construction risk management field
REFERENCES
Al-Bahar, J.F. and Crandall, K.C., 1990. Systematic risk management approach for construction
projects. Journal of Construction Engineering and Management, 116(3), pp.533-546.
Akintoye, A.S. and MacLeod, M.J., 1997. Risk analysis and management in construction.
International journal of project management, 15(1), pp.31-38.
Schatteman, D., Herroelen, W., Van de Vonder, S. and Boone, A., 2008. Methodology for
integrated risk management and proactive scheduling of construction projects. Journal of
construction engineering and management, 134(11), pp.885-893.

Scherer, R.J. and Sharmak, W., 2008. Generic process template description for the effect of risks
on project schedule. In CIB W78 International Conference on Information Technology in
Construction, Santiago, Chile.
Lyons, T. and Skitmore, M., 2004. Project risk management in the Queensland engineering
construction industry: a survey. International journal of project management, 22(1), pp.51-61.
Iqbal, S., Choudhry, R.M., Holschemacher, K., Ali, A. and Tamošaitienė, J., 2015. Risk
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Sivagami, M.M. and IP, M.S., 2018. RISK MANAGEMENT IN CONSTRUCTION: A
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