Liu, J; Low, S P and Zhang, Q (2018) Enterprise risk management practices of top ENR international contractors. International Journal of Construction Management, 18(5), pp. 364-374. ISSN 1562-3599
Abstract
Confronted with increasingly complex and severe risk situations, more and more international contractors have advocated enterprise risk management (ERM) – recognizing its integrated capacity to control risks effectively. In particular, top construction firms have benefited greatly from ERM practices by establishing their own risk management philosophies and systems. The aim of this study is to explore current ERM practices of top international contractors, as ranked by the Engineering News Record (ENR), and to identify an ERM practice model adopted by top ENR international contractors. An archival research method was employed for this study, combining a coding framework and thematic analysis, using the 2013 annual reports of the top ENR international contractors. The research proposes an integrated ERM model for analysis which combines ERM process, ERM operations and an ERM control environment. In addition, the research investigates the home location, main overseas market and main industry sector as being the external driving factors of ERM practices adopted by top ENR international contractors. The study concludes that ERM practice is a proactive and continuing process for the international contractors, driven by their internal enterprise culture and risk management desires as well as other external requirements.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | archival research; enterprise risk management; global construction; international contractors |
| Index terms: | archival research, enterprise risk management, risk management, global construction, industry sector, philosophy, construction firm, annual report, thematic analysis |
| Subjects: | methods and analysis, financial risk, industry analysis, philosophical studies, risk assessment, strategic management, organization, research design and methodology, business |
| Topics: | International Construction, Research Practice, Business Strategy, Cost Management, Governance, Risk Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here