Zhao, X; Hwang, B G and Low, S P (2013) Developing fuzzy enterprise risk management maturity model for construction firms. Journal of Construction Engineering and Management, 139(9), pp. 1179-1189. ISSN 0733-9364
Abstract
Construction firms have been seen as prime candidates for enterprise risk management (ERM) adoption. The ERM maturity assessment helps them to identify weak areas of their ERM implementation and to prioritize resources to improve these areas. The objectives of this paper are to identify the ERM best practices and important ERM maturity criteria in Chinese construction firms (CCFs) and to develop an ERM maturity model for CCFs. Through an in-depth literature review and a questionnaire survey conducted with 89 professionals, a total of 66 applicable ERM best practices and 16 important maturity criteria were identified and thus used in the proposed model. The results indicated that commitment of the board and senior management; risk identification, analysis, and response; and objective setting were the top three most important criteria. In addition, this model adopts the fuzzy set theory to quantify the implementation levels of the best practices. Moreover, this model was applied in a CCF based in Singapore and the output result was consistent with its current ERM practice. Although this paper focuses on CCFs, it helps other construction firms to prepare their customized model using the best practices and criteria identified in this paper, contributing to the global body of knowledge relating to ERM.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | best practices; construction firms; enterprise risk management; fuzzy; maturity; project planning and design |
| Index terms: | literature review, commitment, construction firm, survey, risk identification, body of knowledge, project planning, questionnaire, fuzzy set theory, enterprise risk management, Singapore, maturity model, implementation, best practice |
| Subjects: | psychology, contractual arrangements, knowledge management, data analysis and analytics, business, organization, data collection methods, control systems, decision-making and optimization, financial risk, evaluation, Geography |
| Topics: | Geographical Context, Project Management, Research Practice, Information Management, Cost Management, Business Strategy, Procurement, Organizational Design |
| Descriptive scope: | 5 PCTEA |
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