Risk-Response Strategy Optimization Considering Limited Risk-Related Resource Allocation and Scheduling

Zuo, Fei; Zio, Enrico; Yuan, Yuan

doi:10.1061/(asce)co.1943-7862.0002392

Cited by 10 publications

(8 citation statements)

References 63 publications

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“…Hence, significant resources should be allocated to risk-based activities and projects to ensure a sound risk management framework. Project risk management includes the efficient handling of project risks, according to the findings by Zuo, Zio, and Yuan (2022). Hence, it is necessary to identify the best combination of risk-response actions (RRAs) to reduce project risks (Zuo et al, 2022).…”

Section: Causes Of Variations and Trends In Resource Allocation Towar...mentioning

confidence: 99%

“…Project risk management includes the efficient handling of project risks, according to the findings by Zuo, Zio, and Yuan (2022). Hence, it is necessary to identify the best combination of risk-response actions (RRAs) to reduce project risks (Zuo et al, 2022). In certain situations, project managers should avoid RR resource consumption and cost increases caused by excessive risk response (Zuo et al, 2022).…”

Section: Causes Of Variations and Trends In Resource Allocation Towar...mentioning

confidence: 99%

“…Hence, it is necessary to identify the best combination of risk-response actions (RRAs) to reduce project risks (Zuo et al, 2022). In certain situations, project managers should avoid RR resource consumption and cost increases caused by excessive risk response (Zuo et al, 2022). Yaakov, Wang, Meyer and An ( 2019) study showed that intuitive user decisions to invest resources in risk management are likely to be suboptimal.…”

Section: Causes Of Variations and Trends In Resource Allocation Towar...mentioning

confidence: 99%

“…The two variables have to be tested for strength of association and statistical significance. The two variables have the endogenous determination of a cause-effect relationship (Jonek-Kowalska, 2022; Zuo et al, 2022;Yaakov, Wang, Meyer & An, 2019). The research hypothesis is stated below with the null and alternative suppositions:…”

Section: Research Hypothesismentioning

confidence: 99%

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Allocation of resources for risk management activities by business organisations in developing countries: Evidence from Zambia

Silwimba¹,

Fadun

2023

BRSS

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This study evaluates resources allocated for risk management by business organisations (financial and non-financial firms) in developing countries, using Zambia as a case study. Primary data collected from 158 organisations were analysed using MegaStat. The findings revealed that the majority (54.5%) of organisations, especially non-financial institutions, only commit resources to risk mitigation on an Adhoc or post-event basis, while 45.5% showed a budgeted approach. A significant part of the budgeted 45.5% was used for risk management activities, and 54.5% was used for regular daily operations. Despite this variation, all organisations engaged reported a significant expenditure on risk management, at least on Adhoc. At 4 degrees of freedom (df), which was one less than the total number of possible outcomes, a non-parametric test for significance yielded a scientific P-value of 1.57e-0.7, (a numerical magnitude of 0.0014, P< 0.05). This suggests that the correlation and pattern of the findings were not random or by chance, but they carried a statistical significance. The study's main findings demonstrate that some business organisations in Zambia and other developing countries incur significant expenditure with a higher portion of their budgets to respond to risk management needs. Business organisations which do not have formal risk structures do so informally due to pressure from emerging business risks. The findings also indicated that financial institutions in developing countries allocate more resources towards risk management than non-financial institutions. The Phi coefficient (degree of association) was 0.486, showing a moderately significant relationship between the variables (risk management and resource allocation). Business organisations in Zambia and other developing nations must develop sound risk mitigation plans and allocate resources for risk management.

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Section: Causes Of Variations and Trends In Resource Allocation Towar...mentioning

confidence: 99%

Section: Causes Of Variations and Trends In Resource Allocation Towar...mentioning

confidence: 99%

Section: Causes Of Variations and Trends In Resource Allocation Towar...mentioning

confidence: 99%

Section: Research Hypothesismentioning

confidence: 99%

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Allocation of resources for risk management activities by business organisations in developing countries: Evidence from Zambia

Silwimba¹,

Fadun

2023

BRSS

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“…For example, Milat et al [27] proposed surrogate measure that considers appropriate time distribution of floats through the structure of a schedule. Zuo et al [28] presented a method for allocating the limited risk-related resources as an effective project risk-response strategy. Schatteman et al [29] worked out a heuristic procedure to develop a stable proactive baseline schedule of network modeled construction projects, while Cao et al [30] a multiobjective robust optimization model of line-of-balance schedules to minimize the project cost and maximize the schedule robustness.…”

Section: Risk-aware Scheduling Conceptsmentioning

confidence: 99%

Proactive-reactive repetitive project scheduling method – the concept of risk consideration at the project planning and execution stage

2023

Archives of Civil Engineering

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The construction contractor is concerned with reducing the cost of the project, including reducing unnecessary downtime. This is achieved when resources are fully utilized; this means the crews work continuously moving without interruption from one location to the other. However, any disturbance in the optimally scheduled workflow caused by random events is likely to result in delays, interruptions in the crews work, and productivity losses. There is therefore a need for scheduling methods that allow plans to be more resilient to disruptions and ensure a reduction in downtime and implementation costs. The authors put forward a proactive-reactive approach to the schedule risk management. Proposed method makes it possible to protect schedule deadlines from the impact of risk factors by allocating time buffers (proactive approach). It also takes into account the measures that managers take during execution in response to delays that occur, such as changing construction methods, employing extra resources, or working overtime (reactive approach). It combines both ideas and is based on project simulation technique. The merits of the proposed approach are illustrated by a case of a repetitive project to erect a number of buildings. The presented example proves that the proposed method enables the planner to estimate the scale of delays of processes' start and consider the impact of measures to reduce duration of processes in particular locations taken in reaction to delays. Thus, it is possible to determine the optimal schedule, at which the costs of losses associated with delays and downtime are minimal.

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Dynamic selection of risk response strategies with resource allocation for construction project portfolios

Bai,

Xie,

Lin

et al. 2024

Computers & Industrial Engineering

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Risk-Response Strategy Optimization Considering Limited Risk-Related Resource Allocation and Scheduling

Cited by 10 publications

References 63 publications

Allocation of resources for risk management activities by business organisations in developing countries: Evidence from Zambia

Allocation of resources for risk management activities by business organisations in developing countries: Evidence from Zambia

Proactive-reactive repetitive project scheduling method – the concept of risk consideration at the project planning and execution stage

Dynamic selection of risk response strategies with resource allocation for construction project portfolios

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