Comparison of Trends in Risk Management Theory and Practices Within the Construction Industry

Abstract

This study considered the problem of understanding and use of risk management methods in construction projects and their representation in the literature and their practical application. Research of trends in risk management was conducted using studies from the EBSCO database that were published in the period from 1999 to 2015. The focus included the development of two terms, namely traditional and holistic approach to risk management as well as to uncertainty and opportunity management. The trend of leading standards in the field of project management, PMBoK and ISO 31000 indicated full support for the modernization of risk management that focused on the risks as well as potential opportunities in the project. The findings also revealed that the global practices continued to lack awareness of risk management and its benefits for project goals. A similar situation was found in Croatia by observing project management practices in two case studies, namely Project Zagrebačka obala in Rijeka and a Project of SEECEL Zagreb. Primarily, the lack of education and communication between experts are important issues requiring attention in practice and academics. It is necessary to gradually introduce standards over time to prepare for progress in managing uncertainties and adopting more holistic approaches.Keywords: risk management, literature review, traditional approach, holistic approach, trends USPOREDBA TRENDOVA IZ UPRAVLJANJA RIZICIMA U TEORIJI I PRAKSI U GRAĐEVINARSTVU Sažetak: U ovom radu razmotrena je problematika razumijevanja i korištenja metoda upravljanja rizicima u građevinskim projektima te njihova zastupljenost u literaturi i praktičnoj primjeni. Istraživanje trendova provedeno je koristeći radove iz EBSCO baze podataka, objavljene u razdoblju od 1999. do 2015. godine. Pri tome se najviše pažnje obratilo na razvoj pojmova tradicionalnog i holističkog pristupa upravljanju rizicima te upravljanja neizvjesnostima i prilikama. Stav vodećih standarda s područja upravljanja projektima, PMBoK-a i ISO 31000, u potpunosti podržava modernizaciju upravljanja rizicima, usmjeravajući pažnju ne samo na rizike, već i potencijalne prilike u projektu. S druge strane, istraživanje je pokazala kako je svjetska praksa još uvijek slabo upoznata s osnovnim koracima upravljanja rizicima. Sličnu situaciju u Hrvatskoj potvrdile su dvije studije slučaja, provedene na projektu Zagrebačke obale u Rijeci te projektu SEECEL na Kajzerici. Primarno bi trebalo poraditi na edukaciji, zatim na komunikaciji stručnjaka i akademske zajednice te postepenom uvođenju standarda kako bi, kroz određeno vrijeme, bili spremni napredovati prema području upravljanja neizvjesnostima i holističkom pristupu.

The Impact of Risk Management Practices on the Performance of Construction Projects

“…As mentioned earlier, risk management process is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities (Crnković & Vukomanović, 2016).…”

Risk Management in Software Development Projects: A Systematic Literature Review

“…Risk is an integral part of every project, and risk management is an essential part of the decision-making process at every stage of the project. The success or failure of a project is highly dependent on the approach to the potential emergence of risks that can affect the productivity, quality, timeliness, and or cost of the project [6].…”

Software Project Risk Management Practice in Oman

“…In contrast, it is impossible to proactively plan for an Unknown risk. Thus, such risks should be anticipated, and provide a risk reserve becomes needful and vital [2].Each risk should have an appropriate response like reduce, manage, transfer, or accepted but cannot be condoned [3].From the project's perspective, risks are the actions, events, situations, or conditions that happen suddenly without previous planning. Their constructive or damaging impact, if they occur, affects one or all of the project objectives such as work range, timeline, budget, and excellence.…”