Implementation of Risk Management in the Malaysian Construction Industry

Siang, Lee Chun; Ali, Azlan Shah

doi:10.22452/jscp.vol3no1.2

Cited by 14 publications

(14 citation statements)

References 24 publications

(18 reference statements)

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“…However, despite being widely practised in Malaysia, as the nature of supply chain becomes more complex and the significant risks shift from one phase to another, it is difficult for the associated risks to be mitigated by individual participants in the supply chain. Most research in the (Goh and Abdul-Rahman, 2013;Siang and Ali, 2012) seems to focus on the risk management process at the pre-disruption stage, and there seems to be a paucity of literature on the supply chain's response following "actual disruptions" in construction. Hence, the supply chain's ability to learn from existing disruptions and use their current capabilities to overcome such problems have not received much attention in literature, which this study intends to address.…”

Section: Supply Chain Disruptions In Construction Projectsmentioning

confidence: 99%

The dynamics of vulnerabilities and capabilities in improving resilience within Malaysian construction supply chain

Abidin

Ingirige

2018

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Purpose The dynamics and effects of interconnected risks among construction organisations tend to be overlooked across the Malaysian public project supply chains, making them highly vulnerable to supply chain disruptions. This study aims to investigate this dynamism by assessing the supply chain’s critical vulnerabilities and capabilities that formulate the level of resilience in handling disruptive events in construction projects. Design/methodology/approach A comprehensive questionnaire survey was conducted with 105 construction professionals from two groups of respondents, the public and private organisations that work in public projects to identify their current vulnerabilities and capabilities. Data were analysed and compared using the Mann–Whitney U and Kruskal–Wallis tests. Findings The findings revealed that the top five critical vulnerability factors of the supply chain include political or regulatory changes, market pressures, management, financial and strategic vulnerability. Further comparisons highlighted that the public organisations faced significantly higher political threats compared to the private organisations whilst the private organisations faced significant market pressures. The survey also shows that despite the private organisations’ high capability in financial strength, the public organisations’ financial vulnerability has destabilised the entire supply chain. Originality/value This study presents the construction supply chain’s vulnerabilities in a layered framework approach that can provide managers a new perspective on the dynamics of the cascading impacts of these vulnerabilities when observed through several layers of supply chains.

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Section: Supply Chain Disruptions In Construction Projectsmentioning

confidence: 99%

The dynamics of vulnerabilities and capabilities in improving resilience within Malaysian construction supply chain

Abidin

Ingirige

2018

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“…The factors of type, size, duration, diversity, players, and location would contribute to such differences which are the reasons for construction industry being exposed to many risks. In Malaysia, risk management has been implemented since early 1990s [16]. However, not all companies have established their own risk management departments.…”

Section: Introductionmentioning

confidence: 99%

Implementation of Risk Management in Malaysian Construction Industry: Case Studies

Abdul‐Rahman

Chen

Mohamad

2015

Journal of Construction Engineering

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Construction industries are exposed to wide array of risks, such as financial, design, and contractual ones, which might have a direct impact on their performance toward achieving the desired objectives. Risk Management is a proactive decision-making process used to minimize and manage the risks in the most efficient and appropriate manner. However, most construction firms in Malaysia do not apply formal risk management in their projects. Thus, this study aims to identify the actual process of risk management that is being applied in the construction projects and to determine the effects of risk management implementation on the performance of the construction projects in terms of time and cost. The data were obtained from four case studies in Kuala Lumpur, Malaysia, through semistructured interviews. It was found that the implementation of risk management process in Malaysian construction industry is still at a low level, mainly due to the fact that most of the construction employees involved in risk management are not fully aware of the available risk management techniques that can be applied in construction projects.

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“…Risks in the construction industry have been identified by numerous studies in different countries [9,[43][44][45][46][47][48][49][50][51][52]. While there are several books on risk management, there is scant data available on its use in practice [53].…”

Section: Literature Reviewmentioning

confidence: 99%

The Current Risk Management Practices and Knowledge in the Construction Industry

et al. 2022

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Construction is a critical sector of any economy in terms of value production, labor, and contributing to the gross national product. Managing risk is a relatively young area in Yemen’s construction sector, but it is gaining traction as building activity and competition rise. Construction firms mitigate risk by using a variety of risk management methods. Therefore, there is a need to assess these procedures in order to detect shortcomings. This research aims to establish the existing risk management strategies used in Yemeni building projects. Survey questionnaires were used to collect data. Respondents were drawn from Yemeni construction businesses. Risk management is not executed systematically, intentionally, or continuously, and most firms’ risk management procedures are reactive, semipermanent, informal, and unstructured, with no or few dedicated resources to address risks. This strategy is inconsistent with generally accepted risk management principles. Nonetheless, the findings suggest a general understanding of risk management and a willingness to learn from previous errors. The study of the findings suggests that risk identification approaches such as judgment and historical data are employed for risk analysis, and that the industry typically attempts to avoid or transfer risks in Yemeni building projects. The results shed light on the shortcomings of Yemen’s project management practices. To guarantee that construction projects obtain maximum value for money, project managers of big construction businesses in Yemen need a strong understanding of and training in globally accepted systematic risk management procedures. Finally, this study can help future stakeholders determine how to work together to manage risk.

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Implementation of Risk Management in the Malaysian Construction Industry

Cited by 14 publications

References 24 publications

The dynamics of vulnerabilities and capabilities in improving resilience within Malaysian construction supply chain

The dynamics of vulnerabilities and capabilities in improving resilience within Malaysian construction supply chain

Implementation of Risk Management in Malaysian Construction Industry: Case Studies

The Current Risk Management Practices and Knowledge in the Construction Industry

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