Abstract
Though the construction industry is project-based, risk management should address risks at both projects, and enterprise levels
as an overemphasis on project risk management would lead to some limitations. As a comprehensive and strategy-focused
risk management discipline, enterprise risk management (ERM), which agrees with the modern portfolio theory, manages the
whole risk portfolio of a firm and has been recommended in the construction industry. This study provides an understanding
of ERM and investigates an ERM process for construction firms. The work methodology included a comprehensive literature
search relating to ERM. The literature review was conducted through accredited academic and Professional journals, books,
the internet, theses, and dissertations. Literature revealed environment and strategy, risk identification, risk assessment and
prioritising, risk mitigation and control, information and communication and monitoring, reporting and continuous
improvement as the essentials of ERM. The investigated process could be used as a guide for ERM process in construction
firms. As few studies have attempted to investigate ERM in construction firms, it is believed that this study expands the
existing literature relating to ERM.