Managing Project Risk at the Enterprise Level: Exploratory Case Studies in China

Enterprise Risk Management in International Construction Operations

2015

“…Both ERM and PRM are approaches to dealing with risks that a firm faces, but at different levels (Liu et al , 2013. Hence, ERM and PRM do not contradict each other.…”

Section: Erm In Construction Firmsmentioning

confidence: 92%

Section: Erm In Construction Firmsmentioning

confidence: 98%

Risk Management and Enterprise Risk Management

Enterprise Risk Management in International Construction Operations

2015

“…By contrast, it was difficult for the SM CCFs to find an ERM case based on a SM firm because most case studies in the existing literature focussed on large firms (e.g. Liu et al, 2013) and there have been few ERM cases focussed on construction firms.…”

Section: Ecam 223mentioning

confidence: 99%

“…Compared with the traditional silo-based approach, ERM enables firms to shift the focus of the risk management function from primarily defensive to increasingly offensive and strategic (Liebenberg and Hoyt, 2003) and provides a new way to improve project risk management in the construction firm (Liu et al, 2013). Thus, ERM has been advocated in the construction industry and construction firms have been seen as prime candidates for ERM adoption (Druml, 2009;Zhao et al, 2013a).…”

Section: Introductionmentioning

confidence: 99%

Enterprise risk management in international construction firms: drivers and hindrances

Engineering, Construction and Architectural Management

2015

Purpose – The specific purposes of this paper are: to identify the critical drivers for and hindrances to enterprise risk management (ERM) implementation; and to compare the influence of these factors on ERM implementation between large and small-medium (SM) Chinese construction firms (CCFs) in Singapore. Design/methodology/approach – A questionnaire survey was conducted and responses were received from 35 experienced managers in CCFs operating in Singapore. Findings – A total of 13 drivers and 22 hindrances were found critical to ERM implementation in Singapore-based CCFs. “Improved decision making” were the top influential driver, while “insufficient resources (e.g. time, money, people, etc.)” were the most significant hindrances. Additionally, despite significant differences in the mean scores of seven drivers and four hindrances, the large and SM CCFs agreed on the rankings of drivers and hindrances, respectively. Research limitations/implications – As the survey was performed with the Singapore-based CCFs, there may be geographical limitation on the identification of the critical drivers for and hindrances to ERM implementation. The sample size was still small, despite a relatively high response rate. Practical implications – The findings of this study allow the management to strengthen the positive influence from the drivers and overcome the challenges posed by the significant hindrances. Originality/value – Despite studies on ERM in various industries, few studies have attempted to disclose the factors driving and hindering ERM implementation in construction firms. Thus, this study expands the existing literature relating to ERM. An understanding of the drivers for ERM implementation enables the management to obtain sufficient support for the ERM program and strengthen the positive influence from the drivers. The identification of the hindrances allows the management to be clear about the challenges faced by the ERM program and take measures to diminish their negative influence and overcome them. Additionally, other construction firms can use the drivers and hindrances identified in this study to prepare their customized list of drivers and hindrances.

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“…Effective PRM practices, which properly deal with project risks, can contribute to ERM effectiveness throughout a company. In turn, ERM provides a new way to improve PRM in construction firms (Liu et al 2013) because ERM implementation could help management to make better informed decisions (Kleffner et al 2003;KPMG 2010) and deal with project risks more effectively. ERM maturity reflects the sophistication of ERM implementation.…”

Section: Introductionmentioning

confidence: 98%

Understanding Enterprise Risk Management Maturity in Construction Firms

Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate

2015