Drivers for and obstacles to enterprise risk management in construction firms: A literature review
- Renault, Berenger, Y., Agumba, Justus N., Balogun, O.A.
- Authors: Renault, Berenger, Y. , Agumba, Justus N. , Balogun, O.A.
- Date: 2016
- Subjects: Construction firms , Entreprise Risk Management (ERM) , Obstacles
- Language: English
- Type: Conference proceedings
- Identifier: http://ujcontent.uj.ac.za8080/10210/386555 , http://hdl.handle.net/10210/93988 , uj:20416 , Citation: Renault, B.Y, Agumba, J.N. & Balogun, O.A. 2016. Drivers for and obstacles to enterprise risk management in construction firms: A literature review.
- Description: 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.
- Full Text:
- Authors: Renault, Berenger, Y. , Agumba, Justus N. , Balogun, O.A.
- Date: 2016
- Subjects: Construction firms , Entreprise Risk Management (ERM) , Obstacles
- Language: English
- Type: Conference proceedings
- Identifier: http://ujcontent.uj.ac.za8080/10210/386555 , http://hdl.handle.net/10210/93988 , uj:20416 , Citation: Renault, B.Y, Agumba, J.N. & Balogun, O.A. 2016. Drivers for and obstacles to enterprise risk management in construction firms: A literature review.
- Description: 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.
- Full Text:
Obstacles to risk management implementation in construction small and medium enterprises in South African
- Renault, Berenger Y., Agumba, Justus N., Ansary, N.
- Authors: Renault, Berenger Y. , Agumba, Justus N. , Ansary, N.
- Date: 2017
- Subjects: Obstacles , RMI , Construction SMEs
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/248136 , uj:25786 , Citation: Renault, B.Y., Agumba, J.N. & Ansary, N. 2017. Obstacles to risk management implementation in construction small and medium enterprises in South African.
- Description: Abstract: Risk management implementation (RMI) in construction projects is often affected by several obstacles which can endanger the achievement of project objectives. Regrettably, there is a paucity of empirical studies investigating these obstacles in the South African construction industry (SACI), especially in the small and medium enterprises (SMEs) sector. Hence, the current study sought to investigate the major obstacles hindering the IRMP at project level of SMEs. A structured questionnaire consisting of eighteen factors was used to collect data from SMEs who were conveniently sampled. The data was analysed using the Statistical Package for the Social Sciences (SPSS) version 23, computing descriptive statistics. The results indicated that: unsupportive organisation culture, lack of qualified personnel and inadequate training were the major obstacles hindering the IRMP. The results of the study could provide professionals in the CI with information on factors that hinder the IRMP in construction projects of SMEs. This will enable construction SMEs to conscientiously incorporate RM in their professional work and that would result in better project performance.
- Full Text:
- Authors: Renault, Berenger Y. , Agumba, Justus N. , Ansary, N.
- Date: 2017
- Subjects: Obstacles , RMI , Construction SMEs
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/248136 , uj:25786 , Citation: Renault, B.Y., Agumba, J.N. & Ansary, N. 2017. Obstacles to risk management implementation in construction small and medium enterprises in South African.
- Description: Abstract: Risk management implementation (RMI) in construction projects is often affected by several obstacles which can endanger the achievement of project objectives. Regrettably, there is a paucity of empirical studies investigating these obstacles in the South African construction industry (SACI), especially in the small and medium enterprises (SMEs) sector. Hence, the current study sought to investigate the major obstacles hindering the IRMP at project level of SMEs. A structured questionnaire consisting of eighteen factors was used to collect data from SMEs who were conveniently sampled. The data was analysed using the Statistical Package for the Social Sciences (SPSS) version 23, computing descriptive statistics. The results indicated that: unsupportive organisation culture, lack of qualified personnel and inadequate training were the major obstacles hindering the IRMP. The results of the study could provide professionals in the CI with information on factors that hinder the IRMP in construction projects of SMEs. This will enable construction SMEs to conscientiously incorporate RM in their professional work and that would result in better project performance.
- Full Text:
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