Abstract—Risk and uncertainty have continuously troubled the construction industry compared to other industries due to its complexity, magnitude and time consuming characteristic. As the process of risk management involves predicting the unpredictable, it can be expressed as the most vital management tool to cope with project uncertainties. Risk management can be treated as an essential element for creating value to a project and improving project performance in terms of cost, time and quality. However, systematic risk management is not implemented in most of construction companies in Malaysia. Consequently, this situation can ultimately lead to project failure in terms of cost overruns, schedule delays and poor quality performances. Therefore, this research aims to investigate the current practice of risk management in the Malaysian construction industry and attempts to assess the process and various tools/techniques currently used and applied to handle the projects. The data have been obtained through a series of semi-structures interviews from industrial practitioners. Findings conclude that the level of risk management practices in Malaysian construction companies are relatively low and lacks in knowledge on the subject. In addition, only simple tools and techniques are used to identify, analyze, respond, and monitor the risks. Furthermore, the frequency of use of these tools is also found to be very low. Possible cooperation between the academia and industry might improve risk management practice in the Malaysia construction industry.
 

Index Terms—risk, management, process, tools, techniques, construction

Cite: Byung Gyoo Kang, Mohamed Ashfaaq Fazlie, Boon Hoe Goh, Myung Kyu Song, and Cheng Zhang, "Current Practice of Risk Management in the Malaysia Construction Industry–The Process and Tools/Techniques," International Journal of Structural and Civil Engineering Research, Vol. 4, No. 4, pp. 371-377, November 2015. doi: 10.18178/ijscer.4.4.371-377