Identifying Risk Management Challenges in SMEs on a Global Scale

This report critically reviews four journal articles to identify the challenges associated with the adoption of risk management in small and medium-sized enterprises (SMEs) on a global scale, particularly within the construction industry. The reviewed articles highlight the status, barriers, and impact of risk management in construction projects, with findings specific to Singapore, Tanzania, and the UK. The research identifies a gap in the existing literature, as findings are often limited to specific countries, hindering the identification of common factors and standardized solutions for overcoming risk management implementation challenges in SMEs globally. The review covers key aspects such as the importance of risk management, barriers to implementation (e.g., low budget, short timeframe), and critical success factors. The analysis points to the need for further research to devise measures for omitting identified barriers and motivating SMEs to adopt comprehensive risk management practices, considering the dynamic and complex nature of risks in construction projects.

Running head: RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
Name of the Student
Name of the University
Author Note

1RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
Executive Summary:
The discussed paper has critically reviewed four journal articles as part of the research project
and based on the gap identified from the reviews the initial topic proposed for the research is
“Measures to identify challenges associated with adoption of risk management in SMEs on a
global scale.”. The findings from the reviewed articles have revealed that researches have
been conducted on the challenges that are associated with the implementation of risk
management in the small and medium scale industries. However, it should be noted that the
findings from reviewing each paper are limited to the country that the research has been
conducted in. Two of the reviewed article shows findings from the construction industry from
Singapore, one from Tanzania and other from the UK. Hence, the limitation of findings is
limiting the identification of common factors that are common on a global scale and based
upon which a standard solution for to omit the challenges associated with the implementation
of the risk management can be omitted. So, on the identification of the literature gap, the
stated topic has been selected as the research topic of the proposed paper.

2RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
Hwang, B.-G., Zhao, X. & Toh, L., 2014. Risk management in small construction
projects in Singapore: Status, barriers and impact. International Journal of Project
Management, 32(1), pp.116–124.
Purpose
The purpose of the reviewed paper is to evaluate the risk management in the
construction industry of Singapore where the variables are the status, impact and barriers.
The paper has also aimed at evaluating the importance of risk management on small projects
and how can the former enhance the project’s performance. Additionally, the barriers to the
implementation of risk management in the small project are even cited with proper attention
following by their status.
Method
The paper has adopted primary data collection method to collect data that can assist in
achieving the proposed paper. The collection process includes distribution of the of sample
questionnaire to the stakeholders of small projects in the construction industry of Singapore.
The questions for the questionnaire has been devised with assistance from the literary work
that had been conducted in the past over the same subject. Additionally, four project
managers have also been interviewed to collect abstract data before analysing them to
conclude the paper.
Key Concepts
The paper claims that it is not of concern whether a project is small or big, it is
necessary to have a risk management plan to tackle undesired situations. Additionally, it also
claims that a project can be plagued by complexity and dynamic nature of risk at any time.
Findings
The findings from the paper reveal that small projects do not have a risk management
plan in place for undesired circumstances because of the barriers like ‘low budget’, ‘short
timeframe’ and ‘non-economical causes’. The findings also claim that there is a positive
relationship between the risk management and project performance.
Significance/Implications
The findings from the paper can be used in a real-world scenario to motivate project
managers (PMs) to adopt risk management as part of project management and enhance the
performance of small projects. Additionally, identifying the barriers can help in omitting
them.
Limitation
The paper has limited itself to the identification of the barriers, and hence, it has
offered scope for further scholarly work to devise a measure to omit the identified barriers
and in the process motivate projects to adopt risk management.
Reflection
The paper is a well-scripted work. However, it lacks critical thinking along with some
grammatical and spelling errors. The paper also failed to concise the findings to simplify the
understanding. The research work carried out before pursuing the objective is also evident
from the paper.

3RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
Hwang, B., 2015. Addressing risks in green retrofit projects: The case of
Singapore. Project management journal., 46(4), p.76.
Purpose
The reviewed article has aimed at identifying the risks that are associated with the
green retrofit projects of the Singapore construction industry. The focus has also been shifted
to comparing the criticalities of traditional and green projects along with offering remedial
measures for the identified risks.
Method
The paper has adopted primary data collection method where a questionnaire sample
was distributed among thirty project professionals consisting of the questions developed with
assistance from the past research works pursued on the discussed subjects. Following the
collection of the sample qualitative data has been collected to adopt the positivism
philosophy of researching. The collected data are then evaluated to attain the defined
objectives of the paper.
Key Concepts
The paper has claimed that construction industry is a significant contributor to the
GHG (Green House Gas) emissions. The paper has even claimed that the risks associated
with the green projects are more significant and complex than the risks associated with the
traditional construction projects.
Findings
The findings reveal that of all the identified risks that are associated with the green
building projects ‘post-retrofit tenants’ cooperation risk’ was the most crucial. Additionally,
the findings also reveal that 19 risks were more prior in the sustainable construction industry
than the traditional counterparts. The findings of the paper have been analysed further to offer
recommendations to tackle the identified risks in the sustainable projects and achieve
successful project completion.
Significance/Implications
The findings can be implemented in the real-life scenario to omit the risks that are
associated with the green projects. Additionally, the comparative analysis of the green
construction and traditional methods can assist the owners in selecting the mode of
construction they want to pursue.
Limitation
The deemed paper has offered some significant benefits for further implications.
However, the identified risks are not exhaustive and have further chance to devise measures
that can keep the risks exhaustive with time because the measures can offer temporary
solution for the risks and needs further research. Additionally, the findings are relevant to the
Singapore construction industry which can be compared with global data to identify a
solution that is applicable globally.
Reflection
No, faults were identified in the paper as it is well-research and has taken appropriate
care of the ethical issues to achieve the goals of the paper. However, the understanding can be
complicated for non-construction related readers, and the language could have been kept a
little simple.

4RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
Chileshe, N. & John Kikwasi, G., 2014. Critical success factors for implementation of
risk assessment and management practices within the Tanzanian construction
industry. Engineering, Construction and Architectural Management, 21(3), pp.291–319.
Purpose
The paper has pursued the objective of filling up the knowledge gap to change the
perception of the professionals of Tanzanian construction industry over the selection of the
‘risk assessment and management practices (RAMP)’. The critical success factors (CSF) and
its role in the deployment of the RAMP have also pursued in the paper by the authors.
Method
The authors have equipped primary data collection method to pursue the research
objectives and were collected from 67 professionals who were associated with construction
clients. The data were analysed with one-way analysis taking consideration of inferential and
descriptive statistics.
Key Concepts
The authors have claimed that even though the construction industry of Tanzania
follows project plans though their budget tends to double up from the initiation to the
completion of the project and the reason behind it is the incorrect identification of the CSF
associated with the risk.
Findings
The findings reveal there are 10 CSF’s that influenced the perception of the
construction professionals in the Tanzanian construction industry and were viable for the
deployment of RAMP. The most vital of all the identified CSFs were ‘teamwork and
communications’, awareness of risk management’ and ‘management style’. The least vital
CSF’s where identified as the ‘positive human dynamics’ and ‘customer satisfaction’.
Significance/Implications
The findings of the reviewed article are hugely beneficial for the Tanzanian
construction industry. The readers of Tanzanian construction industry will be able to
understand how the identified CSF can assist in successful completion of the construction
projects.
Limitation
The paper has leaved scope for investigating the validity of the identified CSFs in
construction industries other than the Tanzanian construction industry. Additionally, the
paper has accounted the whole construction industry of Tanzania without taking account of
the owners; whether they are local and foreigner because their perception about risk
assessment varies upon it that leaves scope for further research.
Reflection
The paper has used data from the sources that are over a decade old which raises
question over the reliability of the data because the data used in the paper are dynamic and
changes with time. Apart from the reliability of the offered data, the reviewed article cites
some incredible facts about the Tanzanian construction industry.

5RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
Rostami, A. et al., 2015. Risk management implementation in small and medium
enterprises in the UK construction industry. Engineering, Construction and
Architectural Management, 22(1), pp.91–107
Purpose
The purpose of the reviewed paper is to examine the difficulties that the SMEs (small
and medium enterprise) face in implementing the risk management strategies of the United
Kingdom’s (UK) construction industry.
Method
The paper has adopted mixed methodology to pursue the research objective of the
paper. The secondary data collected after reviewing the literary work that had been analysed
to form the base of the questionnaire sample that was distributed different enterprises who
have experience of construction in the past or present. The collected data were then evaluated
to conclude the paper.
Key Concepts
The authors have claimed that the risk offered in the construction industry is due to
the economic crisis and have forced the industries to take consideration of the risk
management. The authors have even discussed the need for risk management in the
construction projects especially those that are UK based. The reason has been laid on the fact
that UK construction projects are challenging, dynamic and risky at the same time.
Findings
The findings reveal that even though the official British body for construction has
cited the importance of risk management though, the scaling of the risk management is
preventing the project owners to include it in their project plan. The authors have even stated
that the participating SMEs claimed that the existing standards were not accurate and failed to
explain the process of applying risk management in the project planning. The deemed risk
further enhances due to lack of expertise and knowledge required for the implementation of
the risk management.
Significance/Implications
The findings from the reviewed paper have great significance in the British
construction industry and can change the course of British construction industry. The findings
can be of great assistance in omitting the challenges that are associated with the
implementation of the risk management.
Limitation
The paper has focused on UK’s construction industry and hence offers excellent scope
of implementing the finding in SMEs outside the UK after verifying the validity of the
findings in the considered geographical region.
Reflection
The paper is well-structured, but the findings do not offer any benefit as similar
findings can be found in the previous literary works and hence can be stated that does not
offer any new findings apart from the fact that it had considered UK and SMEs.

6RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
Theme Article 1 Article 2 Article 3 Article 4
Relationship Positive relation
between risk
management and
small project’s
performance
Relation
between the
CSFs of risk
assessment and
perception of
Tanzanian
construction
professionals
perception.
Lack of
knowledge
and skills
prevents the
adoption of
risk
management
Advanced
Decision
Making
Understanding
the importance of
risk management
can assist the
PMs to devise a
risk management
plan for future
projects.
On the selection of
the mode of mode
of construction
(traditional or
green) based on the
benefits and
associated risks.
Tool &
Techniques
Measures to omit
the associated risks
though they are
exhaustive.
Parameters The parameters
for the paper
were the status,
impact and
barriers to risk
management in
the small projects
Perception of
the construction
professional of
the Tanzanian
construction
industry.
Table 1: Critical Analysis Table
(Source: Created by the Author)

7RISK MANAGEMENT IN CONSTRUCTION INDUSTRY
Based on the above-reviewed papers, my proposed topic for the research is:
“Measures to identify challenges associated with adoption of risk management in SMEs
on a global scale.”