Abstract
Regardless of the increased number of studies on Risk Management (RM) in several industries, limited studies have strived to reveal the components are driving and obstructing ERM implementation in construction firms. These firms are constantly exposed to business risks, thus requiring not only project risk management (PRM) but also a more integrated, comprehensive focused risk management approach to managing risks on an enterprise basis defined as enterprise risk management (ERM). Therefore, this study aims to identity the drivers and obstacles to ERM implementation. The work methodology included a comprehensive literature search relating to ERM. The review spanned a decade and lustrum between January 2000 and December 2015 and was based on a combination keyword search in three databases namely; Science Direct, Taylor and Francis Online, and Emerald and in Google. Thirty-one quantitative and mixed methods research were justified to be relevant in this study. The study revealed that empirical studies have identified various important drivers for ERM implementation namely; legal and regulatory compliance requirements, non-mandatory reports, credits rating agencies’ requirements, reduced earnings volatility, reduced cost and losses, increased profitability and earnings. The study further revealed that lack of support from top management, management priorities, reluctance to discuss sensitive information, difficulties in quantifying the risks, lack of common risk language, lack of quality data and limited access to data were key obstacles to ERM. The identification of the obstacles enables the management to be clear about the challenges encountered by the ERM program and take corrective actions to reduce their undesirable effect. Furthermore, construction firms can use the drivers and obstacles revealed in this treatise to prepare their customized list of drivers and obstacles. The findings of this study contribute to global knowledge relating to ERM and allow the management to overcome the challenges posed by the significant obstacles.