Abstract
The construction industry is well known as a highly risk prone industry owing to the complexity of its activities and dynamic project environments generating an atmosphere of risks that must be taken into consideration in the decision process. For this reason, we have developed this treatise to elucidate the fundamentals of risk management through a concise new proposal of literature review for risk management in construction. Our explanation of this is venture is that over the years, this area has been acknowledged as a crucial process in the business institutions and the most discussed subject among experts and researchers in the construction sector. We have tried in this report to present the most recent studies considering the impossibility to present all definitions of the concept of risk. This study is mainly a literature review; it looks at the literature relating to the concept of risk, risk management in construction as well as methods used in construction industry.
Highlights
All human ventures bring in uncertainty and risk
According to [5], all construction projects are hazardous by nature due to their configuration, financial and organizational arrangements, and technology and resource demands; RM in construction projects is dynamic rather than stagnant. [6] argue that it is crucial for the industry to minimise these risks and uncertainties so as to unearth the impact thereof to determine which part of the project is more expose to risk and less feasible
While most studies have focused on some aspects of project management, this paper has examined literature relating to risk management with the accomplishment of all project objectives regarding cost, time, quality, environment and safety
Summary
All human ventures bring in uncertainty and risk. It is agreed that risk is extreme in the business sector than other sectors. Every entrepreneurial act and a business decision are associated with risk. The risk is an occurrence that has a degree of obscurity and can either be positive or negative. A positive risk is a convenient opportunity, while a negative risk is a threat and inconvenient [1]. The more convenient and less convenient risks imply progressive and negative outcomes respectively. Concerning risk negative impacts, [3] clarified that individuals dislike risk and that each party in the CI is risk averse; RM becomes significant in eliminating or reducing risk through the various processes of RM.
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