Integrated Risk Management Practice in the Construction Industry General Contractors’ Perspective

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Date

2016-05

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Addis Ababa University

Abstract

Much important as construction is to the nation, it‘s a very risky industry. Risks in the construction industry are not limited to construction projects as it is largely presumed. Construction enterprises face all kinds of risks and risks are prevalent across the respective construction enterprises with the way these risks are managed greatly influencing the performance and competitiveness of such enterprises. The study investigated integrated risk management practice in the construction industry of Ethiopian, particularly by general contractors. Results of a survey conducted on a sample of such contractors established that formal risk management is not well practiced in the industry with only 28.6% of them implementing formal risk management with risk management policy approved by the board of directors signifying absence of a structured approach to deal with the risks that greatly affect the performance and competitiveness of the enterprises. The study has also found out that the major drivers as well as the major hindrances to risk management implementation in construction enterprises are mainly internal to the enterprises indicating that change in respect of risk management implementation in the construction industry has to come mainly from within the construction enterprises.

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Risk Management Practice

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