Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction Projects
Risk appetite is a crucial component that plays a key role in the decision-making process of project risk management. Despite rising scholarly interest in project risk management, risk appetite has received little attention thus far. A well-defined risk appetite ensures that all decisions taken thro...
| 發表在: | Buildings |
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| Main Authors: | , , , , , |
| 格式: | Article |
| 語言: | 英语 |
| 出版: |
MDPI AG
2021-12-01
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| 主題: | |
| 在線閱讀: | https://www.mdpi.com/2075-5309/12/1/2 |
| _version_ | 1850336035863527424 |
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| author | Sanna Ullah Nadeem Ahmad Mufti Muhammad Qaiser Saleem Amjad Hussain Rab Nawaz Lodhi Rehan Asad |
| author_facet | Sanna Ullah Nadeem Ahmad Mufti Muhammad Qaiser Saleem Amjad Hussain Rab Nawaz Lodhi Rehan Asad |
| author_sort | Sanna Ullah |
| collection | DOAJ |
| container_title | Buildings |
| description | Risk appetite is a crucial component that plays a key role in the decision-making process of project risk management. Despite rising scholarly interest in project risk management, risk appetite has received little attention thus far. A well-defined risk appetite ensures that all decisions taken throughout the course of a project are consistent with an organization’s ultimate strategic aim. This research aims to identify the factors affecting the risk appetite of megaproject selection in the construction sector. The study adds to the knowledge of risk appetite in mega construction project selection and qualitatively examines the factors affecting risk appetite. Exploratory research design is used to identify these factors. The factors are identified using semi-structured interviews of 30 practitioners from the top and middle management working on mega construction projects. Thematic analysis was performed using NVIVO academic software. The most highlighted factors are financial attributes, board of directors’ agility, political factors, project location and demographics. The proposed conceptual framework identifies the factors affecting the risk appetite of mega construction project selection. These factors may be utilized as a starting point by construction project organizations to evaluate the risk appetite of a mega construction project. Risk appetite-based project selection will decrease chances of failures, delays, and cost overruns in mega-projects. These factors can be used by researchers as a rationale for developing predictive or descriptive models of project selection based on risk appetite. |
| format | Article |
| id | doaj-art-5ba57b3dc6f74f8abd4e4ddd85bfae27 |
| institution | Directory of Open Access Journals |
| issn | 2075-5309 |
| language | English |
| publishDate | 2021-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| spelling | doaj-art-5ba57b3dc6f74f8abd4e4ddd85bfae272025-08-19T23:16:12ZengMDPI AGBuildings2075-53092021-12-01121210.3390/buildings12010002Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction ProjectsSanna Ullah0Nadeem Ahmad Mufti1Muhammad Qaiser Saleem2Amjad Hussain3Rab Nawaz Lodhi4Rehan Asad5Department of Industrial & Manufacturing Engineering, University of Engineering & Technology, Lahore 54890, PakistanDepartment of Industrial & Manufacturing Engineering, University of Engineering & Technology, Lahore 54890, PakistanDepartment of Industrial & Manufacturing Engineering, University of Engineering & Technology, Lahore 54890, PakistanDepartment of Mechanical Engineering, University of Engineering & Technology, Lahore 54890, PakistanUCP Business School, University of Central Punjab, Lahore 54782, PakistanDepartment of Industrial & Manufacturing Engineering, University of Engineering & Technology, Lahore 54890, PakistanRisk appetite is a crucial component that plays a key role in the decision-making process of project risk management. Despite rising scholarly interest in project risk management, risk appetite has received little attention thus far. A well-defined risk appetite ensures that all decisions taken throughout the course of a project are consistent with an organization’s ultimate strategic aim. This research aims to identify the factors affecting the risk appetite of megaproject selection in the construction sector. The study adds to the knowledge of risk appetite in mega construction project selection and qualitatively examines the factors affecting risk appetite. Exploratory research design is used to identify these factors. The factors are identified using semi-structured interviews of 30 practitioners from the top and middle management working on mega construction projects. Thematic analysis was performed using NVIVO academic software. The most highlighted factors are financial attributes, board of directors’ agility, political factors, project location and demographics. The proposed conceptual framework identifies the factors affecting the risk appetite of mega construction project selection. These factors may be utilized as a starting point by construction project organizations to evaluate the risk appetite of a mega construction project. Risk appetite-based project selection will decrease chances of failures, delays, and cost overruns in mega-projects. These factors can be used by researchers as a rationale for developing predictive or descriptive models of project selection based on risk appetite.https://www.mdpi.com/2075-5309/12/1/2project managementproject risk managementrisk appetitemega projectsconstruction projects |
| spellingShingle | Sanna Ullah Nadeem Ahmad Mufti Muhammad Qaiser Saleem Amjad Hussain Rab Nawaz Lodhi Rehan Asad Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction Projects project management project risk management risk appetite mega projects construction projects |
| title | Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction Projects |
| title_full | Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction Projects |
| title_fullStr | Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction Projects |
| title_full_unstemmed | Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction Projects |
| title_short | Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction Projects |
| title_sort | identification of factors affecting risk appetite of organizations in selection of mega construction projects |
| topic | project management project risk management risk appetite mega projects construction projects |
| url | https://www.mdpi.com/2075-5309/12/1/2 |
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