<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Project processes are affected by risks in many ways, and this is particularly true in today's highly competitive world. Construction projects usually take much longer than typical projects in other sectors. In this sector, it is important to follow some kind of standardised risk management process. There is much literature on different approaches to project risk management, and this paper reviews the most prominent sources that suggest procedures that are widely used in practice. Nevertheless, standard risk management still faces some shortcomings, and professionals call for a more sophisticated solution. This research aims to expand the general risk management process based on the frameworks of the prestigious stand-ardisation institutions and associations (mainly on Project Management Institute's (PMI's) risk management standard considering the approaches of Institute of Risk Management (IRM), National Forum for Risk Management in the Public Sector (ALARM), Association of Insurance and Risk Managers (AIRMIC) and International Organization for Standardization (ISO), as well as Association for Project Management (APM)). The suggested two new processes are justified by in-depth interviews conducted with interviewees working on large and complex construction projects, and are supported by a thorough literature review. The novelty of the research is that these two processes added to the standard processes, namely, risk analysis verification and validation and risk plan experimentation. The research expectedly improves the risk management process in the construction sector and emphasises the need to clearly articulate and communicate the organisation's risk appetite and the necessity for risk management training to employees. Therefore, the research reconfirms the concept of project risk management by the standards, and justifies the proposed new phases.</p>
</abstract>

Project processes are affected by risks in many ways, and this is particularly true in today's highly competitive world. Construction projects usually take much longer than typical projects in other sectors. In this sector, it is important to follow some kind of standardised risk management process. There is much literature on different approaches to project risk management, and this paper reviews the most prominent sources that suggest procedures that are widely used in practice. Nevertheless, standard risk management still faces some shortcomings, and professionals call for a more sophisticated solution. This research aims to expand the general risk management process based on the frameworks of the prestigious stand-ardisation institutions and associations (mainly on Project Management Institute's (PMI's) risk management standard considering the approaches of Institute of Risk Management (IRM), National Forum for Risk Management in the Public Sector (ALARM), Association of Insurance and Risk Managers (AIRMIC) and International Organization for Standardization (ISO), as well as Association for Project Management (APM)). The suggested two new processes are justified by in-depth interviews conducted with interviewees working on large and complex construction projects, and are supported by a thorough literature review. The novelty of the research is that these two processes added to the standard processes, namely, risk analysis verification and validation and risk plan experimentation. The research expectedly improves the risk management process in the construction sector and emphasises the need to clearly articulate and communicate the organisation's risk appetite and the necessity for risk management training to employees. Therefore, the research reconfirms the concept of project risk management by the standards, and justifies the proposed new phases.

A construction–specific extension to a standard project risk management process

Department of Management and Business Economics, Faculty of Economic and Social Sciences

Budapest University of Technology and Economics

Organization, Technology and Management in Construction: an International Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

Project processes are affected by risks in many ways, and this is particularly true in today's highly competitive world. Construction projects usually take...

Classification of risks	Reference
Investor's risk, Contractor's risk, Material supplier's risk, Project manager's risk, Government's risk, Other project stakeholder's risk	Lin et al. (2011)
Preliminary design, Detailed design, Tender, Financing the investment, Construction works	Banaitiene and Banaitis (2012)
Design, Resources, Productivity, Technical, Payment, Managerial, Client, Subcontractors	Dikmen et al. (2007)
Engineering, Project management, Suppliers, Execution	Nieto-Morote and Ruz-Vila (2011)
Construction management, Construction safety-related, Engineering design, Social and economic, Natural hazards	Kuo and Lu (2013)
Environment-related, Quality-related, Time-related, Cost-related, Safety-related	Zou et al. (2007)
Internal (Owner's, Contractor's, Subcontractor's, Designer's, Supplier's), External (Economic, Social and Cultural, Natural, Political, Others)	El-Sayegh (2008)

Standard	Author	Year	Processes
Risk Management Standard	Institute of Risk Management (IRM)/National Forum for Risk Management in the Public Sector (ALARM)/Association of Insurance and Risk Managers (AIRMIC), UK.	2002	Risk Assessment 1.1 Risk Analysis 1.1.1 Risk Identification 1.1.2 Risk Description 1.1.3 Risk Estimation 1.2 Risk Evaluation Risk Reporting Threats and Opportunities Decision Risk Treatment Residual Risk Reporting Monitoring
Project Risk Analysis & Management (PRAM) Guide 2nd edition	Association for Project Management (APM), UK.	2004	Initiate Identify Assess Plan responses Implement responses
Guide to the Project Management Body of Knowledge (PMBoK®)	Project Management Institute, USA.	2016	Plan risk management Risk identification Qualitative risk analysis Quantitative risk analysis Plan risk responses Implement risk responses Monitoring risks
ISO 31000	International Organization for Standardization.	2018	Communication and consultation Scope, context and criteria Risk assessment Risk treatment Monitoring and review Recording and reporting

A construction–specific extension to a standard project risk management process

Article Category: Research Paper

Published Online: Oct 15, 2022

Page range: 2666 - 2674

Received: Dec 11, 2020

Accepted: Jul 28, 2022

DOI: https://doi.org/10.2478/otmcj-2022-0011

Keywords
risk management, risk management standards, risk management process, risk analysis, risk analysis verification and validation, risk plan experimentation, construction project

© 2022 Dina Alfreahat et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Risk identification categories.

Elements of standards.

A construction–specific extension to a standard project risk management process

Article Category: Research Paper

Published Online: Oct 15, 2022

Page range: 2666 - 2674

Received: Dec 11, 2020

Accepted: Jul 28, 2022

DOI: https://doi.org/10.2478/otmcj-2022-0011

Keywordsrisk management, risk management standards, risk management process, risk analysis, risk analysis verification and validation, risk plan experimentation, construction project

© 2022 Dina Alfreahat et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Risk identification categories.

Elements of standards.

Keywords
risk management, risk management standards, risk management process, risk analysis, risk analysis verification and validation, risk plan experimentation, construction project