Dikmen, I; Birgonul, M T and Arikan, A E (2004) A critical review of risk management support tools. In: Khosrowshahi, F (ed.) Proceedings of 20th Annual ARCOM Conference, 1-3 September 2004, Edinburgh, UK.
Abstract
It has been claimed by many researchers that "a risk driven approach" to project management is necessary to increase the success of construction projects. Literature is very rich in conceptual frameworks to overcome the informality of risk management efforts. However, risk management paradigms exist as methodologies rather than systems which can fully support the risk management process. The existing risk management support tools are usually based on quantitative risk analysis whereas the other phases are carried out external to the software. Risk registers and risk assessment tools are proposed as decision support systems which can only be used at specific stages of a construction project for specific purposes such as time/cost estimation at the bidding stage, country risk assessment during international market selection etc. Moreover, the proposed risk management support tools usually do not foster integration of risk management activities between the parties involved in the construction supply chain, do not consider impact of risks on all of the project success criteria, and can not handle subjectivity. In the recent years, the research has shifted to information and process models in which risks and response strategies may be identified, analysed and managed in a formal way by the use of database and model management systems. The major objective of this paper is to make a critical review of existing risk management support tools and propose development of a risk management corporate memory coupled with a decision support tool for successful management of risk.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | decision support systems; information modelling; risk management |
| Index terms: | international market, quantitative risk analysis, construction supply chain, risk management, methodology, paradigm, integration, construction project, risk assessment, bidding, project management, conceptual framework, project success, management system, decision support, cost estimating, information modelling, database, subjectivity, risk register, strategy |
| Subjects: | production management, development economics, project management theory and practice, digital design, financial risk, management, theoretical framing, education and knowledge transfer, research methods, environmental hazards, organizational analysis, data management, decision analysis, construction logistics, human factors and perception, risk assessment, bidding, financial and cost management |
| Topics: | Risk Management, Sustainability, Procurement, Business Strategy, Cost Management, Research Practice, Project Management, Organizational Design, Digital Applications, Supply Chain Management, International Construction |
| 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