Construction Management Risk System (CMRS) for Construction Management (CM) Firms

Kyungmo Park, Sanghyo Lee and Yonghan Ahn
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Kyungmo Park: Innovation Durable Building and Infrastructure Research Center, Hanyang University ERICA Campus, 55 Hanyangdaehak-ro, Sannok-gu, Ansan-si, Gyeonggi-do 15588, Korea
Sanghyo Lee: Innovation Durable Building and Infrastructure Research Center, Hanyang University ERICA Campus, 55 Hanyangdaehak-ro, Sannok-gu, Ansan-si, Gyeonggi-do 15588, Korea
Yonghan Ahn: School of Architecture and Architectural Engineering, Hanyang University ERICA Campus, 55 Hanyangdaehak-ro, Sangrok-gu, Ansan-si, Gyeonggi-do 15588, Korea

Future Internet, 2017, vol. 9, issue 1, 1-20

Abstract: After the global financial crisis of 2008, the need for risk management arose because it was necessary to minimize the losses in construction management (CM) firms. This was caused by a decreased amount of orders in the Korean CM market, which intensified order competition between companies. However, research results revealed that risks were not being systematically managed owing to the absence of risk management systems. Thus, it was concluded that it was necessary to develop standard operating systems and implement risk management systems in order to manage risks effectively. Therefore, the purpose of this study was to develop a construction risk management system (CRMS) for systematically managing risks. For this purpose, the field operation managers of CM firms were interviewed and surveyed in order to define risk factors. Upon this, a risk assessment priority analysis was performed. Finally, a risk management system that comprised seven modules and 20 sub-modules and was capable of responding systematically to risks was proposed. Furthermore, the effectiveness of this system was verified through on-site inspection. This system allows early response to risks, accountability verification and immediate response to legal disputes with clients by managing risk records.

Keywords: construction risk management system (CRMS); standard operating systems; risk; risk management; construction management (CM) (search for similar items in EconPapers)
JEL-codes: O3 (search for similar items in EconPapers)
Date: 2017
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