Risk Management Appraisal for Small and Large Construction Projects

Risk management is defined as the process of identification, analysis and eitheracceptance or mitigation of uncertainty in investment decision-making. Essentially,risk management occurs anytime an investor or found manager analyzes and attemptsto quantify the potential for losses in an investment and then takes the appropriateaction (or inaction) given their investment objectives and risk tolerance. Inadequaterisk management can result in severe consequences for companies as well asindividuals.Thus,Risk management and Enterprise risk management (ERM) havebeen the topics of increased media attention in recent years. Many organizations haveimplemented ERM programs, consulting firms have established specialized ERMunits, and universities have developed RM and ERM-related courses and researchcenters. The aim of this paper is to review previous studies on Risk Management andEnterprise Risk Management (ERM). The scopes of the previous studies includeconstruction in different scales and different approaches to risk management. Thefindings can have a valuable impact on identifying, measuring and implementing RMand ERM in different firms and organizations and will lead to better performance.

Keywords:

Risk , Management , Construction , ERM