Using Interpretive Structural Modelling on Barriers to Implementation of Enterprise Risk Management in Construction Projects

Volume 13 Issue 3 December - February 2019

Research Paper

Using Interpretive Structural Modelling on Barriers to Implementation of Enterprise Risk Management in Construction Projects

Harish Kumar Singla*

National Institute of Construction Management and Research, Pune, Maharashtra, India.

Singla, H. K. (2019). Using Interpretive Structural Modelling on Barriers to Implementation of Enterprise Risk Management in Construction Projects. i-manager's Journal on Management, 13(3), 22 - 29. https://doi.org/10.26634/jmgt.13.3.14779

Abstract

The purpose of this paper is to identify critical barriers to implementation of Enterprise Risk Management (ERM) in construction projects. The paper also proposes a model for construction sector based on the interrelationship among critical barriers to implementation of ERM and further attempts to find out the driving and dependent barriers to implementation of ERM in construction projects. Based on literature review and expert opinion, several barriers to implementation of ERM are identified and then based on Interpretive Structural Modelling, a theoretical model is proposed showing inter-linkages of barriers. Along with that driving and dependent barriers are identified using MICMAC analysis. Lack of internal knowledge, skills and expertise; lack of top management support and commitment; lack of perceived benefit of ERM; unsupportive organizational culture; insufficient resources (time, money, and people) and lack of a risk management tools and techniques are the most critical barriers to implementation of ERM. The paper proposes a model, which can be put to test and further modified. The paper serves as a base to researchers for further research in the field of ERM.