Enterprise risk management and the performance of local contractors in Singapore

Abstract

Enterprise risk management has been creating value in many industries around the world. However, there is still lack of study about its influence on the Singaporean construction industry. This study is to investigate the nexus between ERM and the performance of Singaporean contractors, and to identify the main hindrances that impede ERM implementation. Questionnaire-based survey is conducted with Singaporean contractors to test their awareness and implementation of ERM, and to what extent ERM has affected different aspects of their performance. The result shows that, apart from health, 10 selected performance indicators have benefited from ERM. The main factors impeding the implementation of ERM are: inadequate time for implementation, lack of experienced staff, and inadequate resources. The study clarifies the reasons why ERM has not fully performed as anticipated. Suggestions to further tap the benefit of ERM are also given.