Skip to main content
SpringerLink
Log in

Introduction

  • Chapter
  • First Online:
Enterprise Risk Management in International Construction Operations

  • 1679 Accesses

Abstract

There are numerous opportunities in the international construction market. According to the Engineering News Record (ENR), the top 250 international contractors as a group generated US$511.05 billion from overseas projects in 2012 (ENR in Eng News Record 271(8):9–13, 2013a). However, construction businesses, especially those conducted outside home countries, are risky ventures. Cost and time overruns were found to be frequent in international construction projects (Flyvbjerg et al. in Megaprojects and risk: an anatomy of ambition. Cambridge University Press, Cambridge, 2003). Contracting in overseas construction markets involves not only the typical risks at home, but also the complex and diverse risks peculiar to international transactions (Deng et al. in Project Manage J 45(2):20–33, 2014b; Han and Diekmann in J Constr Eng Manage 127(4):300–308, 2001). Inadequate overseas environmental information and construction experience contribute to a higher risk exposure and possibility of losses in the international market than that in the domestic market (Zhi in Int J Project Manage 13(4):231–237).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Adibi S (2007) Industry should embrace risk management tools. New York Construction News, New York. http://newyork.construction.com/opinions/bottomline/archive/2007/06.asp. Retrieved 12 Feb 2012

  • Alas R, Sharifi S (2002) Organizational learning and resistance to change in Estonian companies. Hum Resour Dev Int 5(3):313–331

    Article  Google Scholar 

  • AON (2010) Global risk management survey 2010. AON plc, Chicago

    Google Scholar 

  • BCA (2013) Public sector projects to boost construction demand in 2013. Building and Construction Authority, Singapore. http://www.bca.gov.sg/newsroom/others/pr16012013_CP.pdf. Retrieved 4 March 2013

  • Beasley MS, Pagach DP, Warr RS (2008) Information conveyed in hiring announcements of senior executives overseeing enterprise-wide risk management processes. J Acc Auditing and Finan 23(3):311–332

    Google Scholar 

  • Beasley MS, Branson BC, Hancock BV (2010) Report on the current state of enterprise risk oversight, 2nd edn. The ERM Initiative at North Carolina State University, Raleigh

    Google Scholar 

  • Bowling DM, Rieger LA (2005) Success factors for implementing enterprise risk management. Bank Acc Finan 18(3):21–26

    Google Scholar 

  • Burtonshaw-Gunn SA (2009) Risk and financial management in construction. Gower, Burlington

    Google Scholar 

  • CAS (2003) Overview of enterprise risk management. Casualty Actuarial Society, Arlington

    Google Scholar 

  • CFO/Crowe (2008) The changing landscape of risk management. CFO Research Services and Crowe, Boston

    Google Scholar 

  • Ciorciari M, Blattner P (2008) Enterprise risk management maturity-level assessment tool. 2008 enterprise risk management symposium, Chicago, 14–16 April

    Google Scholar 

  • COSO (2004) Enterprise risk management—integrated framework: executive summary & framework. Committee of Sponsoring Organizations of the Treadway Commission, Jersey City

    Google Scholar 

  • Deloitte (2010) Enterprise risk management (ERM): success through intelligent risk taking. Deloitte Touche Tohmatsu Limited, Beirut, Lebanon. http://www.deloitte.com/assets/Dcom-Lebanon/Local%20Assets/Documents/ERS/me_ers_erm_09.pdf. Retrieved 3 March 2011

  • Deng X, Low SP, Zhao X (2014a) Project system vulnerability to political risks in international construction projects: the case of Chinese contractors. Project Manage J 45(2):20–33

    Article  Google Scholar 

  • Deng X, Low SP, Li Q, Zhao X (2014b) Developing competitive advantages in political risk management for international construction enterprises. J Constr Eng Manage 140(9):04014040

    Article  Google Scholar 

  • Druml D (2009) Contractors: are you adopting ERM or still stuck in the mud? Druml Group, Foster City, CA. http://www.druml.com/about/articles2009/04/contractors-enterprise-risk-management-adoption-construction-risk-management/. Retrieved 3 June 2011

  • Dubois A, Gadde L-E (2000) Supply strategy and network effects: purchasing behaviour in the construction industry. Eur J Purchasing Supply Manage 6(3):207–215

    Article  Google Scholar 

  • Dubois A, Gadde L-E (2002) The construction industry as a loosely coupled system: implications for productivity and innovation. Constr Manage Econ 20(7):621–631

    Article  Google Scholar 

  • ENR (2013a) The top 250 international contractors. Eng News-Record 271(8):9–13

    Google Scholar 

  • ENR (2013b) The top 250 global contractors. Eng News-Rec 271(8):15–19

    Google Scholar 

  • Fang D, Li M, Fong P, Shen L (2004) Risks in Chinese construction market-contractors’ perspective. J Constr Eng Manage 130(6):853–861

    Article  Google Scholar 

  • Flyvbjerg B, Bruzelius N, Rothengatter W (2003) Megaprojects and risk: an anatomy of ambition. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Frame JD (2003) Managing risk in organizations: a guide for managers. Jossey-Bass, New York

    Google Scholar 

  • Gordon LA, Loeb MP, Tseng CY (2009) Enterprise risk management and firm performance: a contingency perspective. J Acc Public Policy 28(4):301–327

    Article  Google Scholar 

  • Hallowell MR, Molenaar KR, Fortunato BR (2013) Enterprise risk management strategies for state departments of transportation. J Manage Eng 29(2):114–121

    Article  Google Scholar 

  • Han SH, Diekmann JE (2001) Approaches for making risk-based go/no-go decision for international projects. J Constr Eng Manage 127(4):300–308

    Article  Google Scholar 

  • Hwang BG, Zhao X, Toh LP (2014) Risk management in small construction projects in Singapore: status, barriers and impact. Int J Proj Manage 32(1):116–124

    Article  Google Scholar 

  • IMA (2007) Enterprise risk management: tools and techniques for effective implementation. Institute of Management Accountants, Montvale

    Google Scholar 

  • ISO (2009) ISO 31000:2009 risk management—principles and guidelines. International Organization for Standardization, Geneva

    Google Scholar 

  • KPMG (2010) Charting a safe and sustainable growth journey: Singapore enterprise risk management survey 2010. KPMG in Singapore, Singapore

    Google Scholar 

  • Lam J (2003) Enterprise risk management: from incentives to controls. Wiley, Hoboken

    Google Scholar 

  • Lehtiranta L (2013) Risk perceptions and approaches in multi-organizations: a research review 2000–2012. Int J Project Manage. doi:10.1016/j.ijproman.2013.09.002

    Google Scholar 

  • Liebenberg AP, Hoyt RE (2003) The determinants of enterprise risk management: evidence from the appointment of chief risk officers. Risk Manage Insur Rev 6(1):37–52

    Article  Google Scholar 

  • Ling FYY, Lim SH (2010) Improving export performance of contractors from China. Eng Constr Architect Manage 17(6):581–597

    Article  Google Scholar 

  • Liu JY, Li BG, Lin BS, Nguyen V (2007) Key issues and challenges of risk management and insurance in China’s construction industry-an empirical study. Ind Manage Data Syst 107(3):382–396

    Article  Google Scholar 

  • Liu JY, Zou PXW, Gong W (2013) Managing project risk at enterprise level: exploratory case studies in China. J Constr Eng Manage 139(9):1268–1274

    Article  Google Scholar 

  • Loosemore M (2006) Risk management in projects, 2nd edn. Tayor & Francis, New York

    Google Scholar 

  • Low SP, Liu JY, He SQ (2008) Management of external risks: case study of a Chinese construction firm at infancy stage in Singapore. Int J Constr Manage 8(2):1–15

    Google Scholar 

  • Low SP, Liu JY, He SQ (2009) External risk management practices of Chinese construction firms in Singapore. KSCE J Civ Eng 13(2):85–95

    Article  Google Scholar 

  • Lu W, Li H, Shen L, Huang T (2009) Strengths, weaknesses, opportunities, and threats analysis of Chinese construction companies in the global market. J Manage Eng 25(4):166–176

    Article  Google Scholar 

  • McGeorge D, Zou PXW (2013) Construction management: new directions, 3rd edn. Willey-Blackwell, Chichester

    Google Scholar 

  • NBSC (2013) China statistical yearbook 2013. China Statistics Press, Beijing

    Google Scholar 

  • Orr RJ, Scott WR (2008) Institutional exceptions on global projects: a process model. J Int Bus Stud 39(4):562–588

    Article  Google Scholar 

  • RIMS (2008) RIMS State of ERM Report 2008. Risk and Insurance Management Society, New York

    Google Scholar 

  • Santori L, Bevan K, Myers C (2007) Summary of standard & poor’s enterprise risk management evaluation process for insurers. Standard & Poor’s, New York

    Google Scholar 

  • Schaufelberger J (2009) Construction business management. Pearson Prentice Hall, Upper Saddle River

    Google Scholar 

  • Senior B, Fleming J (2006) Organizational change, 3rd edn. Financial Times Prentice Hall, Harlow

    Google Scholar 

  • Tserng HP, Yin SYL, Dzeng R, Wou B, Tsai M, Chen W (2009) A study of ontology-based risk management framework of construction projects through project life cycle. Autom Constr 18(7):994–1008

    Article  Google Scholar 

  • UC (2009) UC ERM maturity level framework. University of California, Oakland

    Google Scholar 

  • Zhao ZY, Shen LY, Zuo J (2009) Performance and strategy of Chinese contractors in the international market. J Constr Eng Manage 135(2):108–118

    Article  Google Scholar 

  • Zhao X, Hwang BG, Phng W (2014) Construction project risk management in Singapore: resources, effectiveness, impact, and understanding. KSCE J Civ Eng 18(1):27–36

    Article  Google Scholar 

  • Zhi H (1995) Risk management for overseas construction projects. Int J Project Manage 13(4):231–237

    Article  MathSciNet  Google Scholar 

  • Zou PXW, Zhang G, Wang J (2007) Understanding the key risks in construction projects in China. Int J Proj Manage 25(6):601–614

    Article  Google Scholar 

  • Zou PXW, Chen Y, Chan TY (2010) Understanding and improving your risk management capability: assessment model for construction organizations. J Constr Eng Manage 136(8):854–863

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Engineering and Technology, Central Queensland University, Sydney, NSW, Australia

    Xianbo Zhao

  2. Department of Building, National University of Singapore, Singapore, Singapore

    Bon-Gang Hwang & Sui Pheng Low

Authors
  1. Xianbo Zhao
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Bon-Gang Hwang
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Sui Pheng Low
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Xianbo Zhao .

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer Science+Business Media Singapore

About this chapter

Cite this chapter

Zhao, X., Hwang, BG., Low, S.P. (2015). Introduction. In: Enterprise Risk Management in International Construction Operations. Springer, Singapore. https://doi.org/10.1007/978-981-287-549-5_1

Download citation

  • DOI: https://doi.org/10.1007/978-981-287-549-5_1

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-287-548-8

  • Online ISBN: 978-981-287-549-5

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation