A theoretical review of risk identification : perspective of construction industry

Abstract

Abstract: Managing risks in construction projects has been acknowledged as an essential management process in order to accomplish the project objectives in terms of time, cost, quality, safety and environmental sustainability. However, up to now most studies have concentrated on some aspects of construction risk management rather than using a systematic and comprehensive approach to identifying risks and analyse the probability of occurrence and impacts of these risks. Risk management consists of identifying risks, assessing risks either quantitatively or qualitatively, selecting the appropriate method for handling risks, and then monitoring and documenting risks. By identifying risks in an early stage of planning and assessing their comparative significance, project managers can identify techniques employed to reduce risks and allocate the best people to mitigate them. Thus, this research focuses on risk identification, as opposed to other processes of risk management. This research is mainly a literature review and was conducted through accredited academic and Professional journals, books, the internet, theses, and dissertations. The reviewed literature revealed that the entire risk management process is not only limited to solving problem in advance but also for the occurrence of any unexpected future problems. The study further shown that issues with possible threats envisaged in a project are not only a means to reduce losses within the project, but also a means to transfer risks into opportunities, which can lead to economic profitability, environmental and other advantages. This paper is of value to managers and decision makers involved in managing risks where it is intended to boost their knowledge regarding the importance of risk identification as a crucial stage of the process to managing risks