Risk management framework in the construction project management sector is the solution to a systematic step-by-step management of risks in organizations and projects. The aim is to eventually present a solution in the form of a risk management framework that is balanced for small, medium and large organizations engaged in construction project management in South Africa.
INTRODUCTION
- Prologue
- Statement of the problem
- Objectives
- Significance of study
- Literature Review
- Research Methodology
- Delimitation of Study
This study will be helpful to many companies in developing countries involved in engineering and construction project management. From the sample, the target population consisted mainly of South African companies engaged in civil engineering and construction project management.
LITERATURE REVIEW
Risk Management
Looking at these arguments, it can be concluded that a risk management framework or a formal risk management analysis and process is a main requirement for business in the civil engineering and construction project management environment. According to the Institute for Risk Management, (2002) "A Risk Management Standard", if a proper risk management framework is implemented in organizations, the following are among the many benefits that can be realized in the business: (IRM, 2002) .
Introduction
Risk management involves using the right tools, methods and processes to manage risks and avoid catastrophic consequences. To achieve this, companies need to understand the concepts of the entire process of risk management and its benefits.
Definition of Risk
Galway (2004) is of the opinion that if people could start looking for opportunities while undertaking risky work, it would be satisfying to know that there is an opportunity ready to be seized. This can only be done through the risk management process and therefore it is necessary to understand what this process is all about.
Definition of Risk Management
The Glossary of Risk Management, Guidelines for Use in Standards, ISO/IEC Guidance clearly states that risk management is increasingly recognized as relating to the positive and negative aspects of risk. It can then be concluded that the purpose of risk management is to reduce the threats that may be encountered during the execution of projects or enterprises to acceptable levels and at the same time to maximize opportunities or positive results.
Risk Management Process
What is done with the list of risks will depend on the nature of the risks and the project. Updates to the project management plan occur if any approved changes have an impact on the risk management process.
Risks in Projects
Project management is the discipline of planning, directing, organizing and controlling resources to bring about the successful completion of specific project goals and objectives. Project management can be applied to almost any type of project and is widely used. Project management is the discipline of planning, directing, organizing and controlling resources to bring about the successful completion of specific goals and objectives.
Project management is the discipline of planning, directing, organizing and controlling resources to bring about the successful completion of specific tasks. Phillips, (2003), Cleland and Ireland, (2006) state that the primary challenge of project management is to achieve all project goals and objectives while adhering to predetermined project constraints. Klemetti, (2006), Akintoye & MacLeod, (1997) agree that there are a number of risks that can be encountered in the civil engineering and construction project management environment.
Conclusion
With the above categories of risks, the end result should be a list of probable project risks organized under appropriate category. The list should be the step-by-step guide from analysis and assessment of the effects of these risks and ultimately to the formation of an effective plan and framework for managing risks through effective response and control. In construction and construction project management practice, it is important to make risk management a part of daily operations and include it in meetings and in staff training.
Risks should be prioritized so that the high impact risks are managed accordingly with the necessary resources appropriately allocated to mitigate them. Once the entire project's risk management process has been worked through, the risks must be tracked together with associated tasks so that improvements can be made where necessary. There should also be a measure of effects of the process of risk management efforts so that improvements can be continuous.
RESEARCH METHODOLOGY
- Introduction
- Data Collection Process
- Construction of Questionnaires
- Pilot Study
- Collecting the data
- Recording Data
- Data Analysis
- Limitations
- Ethical Considerations
- Conclusion
This section of the questionnaire enabled the researcher to know the levels of experience and positions of authority that the various individuals held in their firms. The rough notes consisted of the tape-recorded interviews as well as observation notes. The researcher will take note of the job description of the interviewee and add it to the document being transcribed.
Limitations of the research were that it focused on the risks faced by the projects, existing project management frameworks for risk management and also project management skill levels. The entire research methodology consisted of the data collection process, data analysis, and limitations of the data collection process. The data collection process included identification of variables, sample selection and selection of the type of data that would be required, collection methods, pilot study and data collection.
FINDINGS AND DATA ANALYSIS
- Introduction
- Identified risks
- Risk Categories observed
- Conclusion
Only 16% of the interviewed project managers and engineers start the management of their projects with risk management planning. Half of this number – 42%, specifically mentioned that they handle risk management issues at the end of the project. 84% of the respondents pointed out that no budget has been set aside for the risk management activities.
They do not fully appreciate the relevance of risk management activities and therefore go along with the flow of the project which can end up being catastrophic. This has the potential to cause disputes later in the project as reported by 63% of respondents. This may have an impact on the cost of the project due to the fact that there was insufficient funding of risk activities.
PROPOSED RISK MANAGEMENT FRAMEWORK
- Introduction
- The Risk Management Framework
- The Proposed Risk Management Framework Flowchart
- The Proposed Generic Risk Management Framework
- Conclusion
For effective implementation and management of the risk management framework, quality time must be spent on planning and designing the framework. For effective implementation and management of risk management, quality time must be spent on planning and designing the framework. The flow chart shows what constitutes the risk management framework that should be followed when managing risks.
To maintain the risk management framework relevant to the organization's changing needs and other external influences, it is important to regularly monitor risks and the risk management framework, including all those. To maintain the risk management framework relevant to the organization's changing needs and other external influences, it is important to regularly monitor risks and the risk management framework, including all those. The risk management framework is held together and reinforced by a number of principles that should be inherent in the risk management process.
RECOMMENDATIONS & CONCLUSION
Introduction
Information was collected from Engineers and Project Managers currently managing projects or recently completed projects in the construction industry. An analysis of the collected data was carried out using the qualitative method of analysis in chapter 4. Based on the findings and analysis of the data, a proposed risk management framework was discussed and developed in chapter 5.
Recommendations
Several risks have been presented and, as can be seen from the results, the main issues are knowledge and experience in project and risk management and sponsoring risk management activities. Most of the above-mentioned risks depend on the need for knowledge in project management and risk management. Several risks have been presented and, as can be seen from the results, the main issues are knowledge and experience in project and risk management and sponsoring risk management activities.
Other risks are all covered under risk management and project management knowledge and experience as with relevant experience and exposure the project manager should be able to. Training should be implemented for engineers and project managers in the areas of project and risk management and the use of risk management frameworks. Other risks are all covered under risk management and project management knowledge and experience as with relevant experience and exposure the project manager should be able to past.
Contribution Made by this study
Organizations without risk management frameworks and those with a framework in its infancy will need to include detailed and coordinated communication and training to ensure that the risk management process is understood by all risk owners and other stakeholders. interested. The process of the risk management framework that should be implemented first will have to start with the internal environment with the established objectives, the identification of risk events, the assessment of risks, the establishment of responses to the risk, the development of risk control activities, information and communication and ongoing routine monitoring. the whole process. This process is detailed in chapter 5 and the implementation of the processes ultimately culminates with the theory developed being put into practical practical application tailored to each individual enterprise as detailed in chapter 5 under 5.3.
The schema is the methodological risk management framework that can help many organizations with a systematic way to manage and manipulate all risk activities that can be encountered in the engineering and management environment. This framework will encourage enterprise-wide participation in risk management activities, which will promote the participation of all involved from top management down, ensuring the success of the project.
Directions for Future Research
Epilogue
The purpose of this questionnaire is to assist research on risk management as part of my dissertation for my MSc in Project Management for which I am currently studying at the University of Pretoria. The driving force behind this research is to develop a risk management framework for organizations dealing with Civil Engineering and Construction Project Management in a developing country like South Africa. When completing the questions, please refer to the most recent project you were involved in where appropriate.
Project Risk Management: A structured process that allows individual risk events and overall project risk to be proactively understood and managed, optimizing project success by minimizing threats and maximizing opportunities.
