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Assessing risk management maturity : a framework for the construction companies

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2009
Öngel, Begüm
Due to its complex nature, risk and uncertainty are more widespread in construction industry than many other industries. Aiming to ensure that all project objectives are met, risk management is considered as a critical success factor for construction projects. The core elements of risk management are now known and used by many organizations. On the other hand, as declared by Project Management Institute (PMI), the ability to measure the effectiveness in managing risk is one of the most important areas that risk management needs to be developed in. Designed to assess the capability of a project or an organization in a particular area, a maturity model aids in determining strengths and weaknesses, and to target improvement strategies accordingly. Several maturity models have been developed for the area of risk management and furthermore, an attempt to adapt a generic risk management maturity model to the construction industry was specified from the literature. All in all, when examined, it was seen that most of these models outline the topics to be investigated in a maturity assessment and provide guidance in terms of content. It was believed that a practical approach was needed and the diagnostic characteristics of these models should be enhanced. Therefore, the aim of this study was to propose a construction risk management maturity framework, together with an easily applicable and effective questionnaire. To achieve this aim, six outstanding risk management maturity models were examined, and the proposed model was further supported with construction-specific attributes such as construction supply chain issues. The applicability of the model was tested through case studies conducted with five large scale Turkish construction companies. The results were evaluated and interpreted for each company and the gathered data were further investigated through statistical tests for certain comparisons. Finally, the questionnaire was revised with respect to the feedback received from the case studies.