PROJECT RISK MANAGEMENT : COMPARISONS BETWEEN CONSTRUCTION INDUSTRY AND INFORMATION TECHNOLOGY INDUSTRY

Abstract

Risk management (RM) is an imperative part in managing a project through its lifecycle. Successful implementation of RM has shown to save time and costs; however, the level of implementation by the local construction industry (CI) remains low and few projects have been completed with the implementation of RM. Thus this dissertation aims to draw attention the lack of RM implementation of the CI, in Singapore, to impress upon the players in the CI the pertinent need to augment. For the purpose of this research, the Information Technology (IT) industry has been selected to serve as a case for the comparison. Literature review and case studies were conducted to develop the survey questionnaire; which investigates the current RM implementation in the two industries to provide background information of this research through the viewpoints of the respondents (employees). The respondents of the IT industry display attitudes which resembled risk takers who are positive about having to be trained and equipped with the skills and knowledge of RM, while respondents from the CI bear resemblance to risk avoiders whom were resistance to likely changes required to implement RM. In exploring the CI, it was found that most of its employees did not have a good understanding of RM involved in their work processes. Finally, recommendations for the CI were made based on the survey results and cases studies, to establish formal system for the purpose of managing risks, educate and train the staff on the importance of and processes involve in performing RM, assign risk responsibilities to each staff to increase their awareness of the importance the company attach to the managing of risk.