Risk Management Analytic Hierarchy Process

Question: Discuss about the term for Risk Management for Analytic Hierarchy Process. Answer: Introduction The research study focuses on the effect of the various impact of implementing the risk management strategy in the residential construction project. The project also focuses on the identification of the risks that an offsite industry could face. In the residential construction project, risk management acts as the systematic and comprehensive way of determining, analyzing and implicating appropriate action plans for the effective use of the resources and improvement of the residential construction project management. The uncertainty and risk could act as the factors that could potentially have a damaging consequences related to the residential construction project. Thus, the risk analysis and management could be acting as the major feature of the project management related to the construction process. Risk management can be referred to an attempt to deal with the unexpected and uncertainty events in an effective way such that to achieve the success of a project (Walker 2015). The residential construction project is unique which raises a number of different sources of risks related to the project which are dynamic and complex and involves the multiple feedback processes. The residential construction project involves a lot of participants including the individuals and organizations which actively participate in the project (Kerzner 2013). The interest of the participants can be negative or positively affected on the basis of the project experiences that are having different expectations and interests. Aim of the research The aim of the research project is to evaluate the importance of integrating the risk management within the residential construction project. The research study also helps in identifying the risks and factors that could involve in the offsite construction. Scope The risk management helps the project team members including the clients, suppliers, consultant, contractor or developer and enables them in minimizing the negative impact on the residential construction project in India. The uncertainty and risk could act as the factors that could potentially have a damaging consequences related to the residential construction project. Thus, the risk analysis and management could be acting as the major feature of the project management related to the construction process in India. Purpose The purpose of the research is to analyze the impact of implementing the risk management strategy in the residential construction project in India. The project also focuses on the identification of the risks that an offsite industry could face. Method The research approach could be primarily depending on the research variables related to the research topic (Billig and Waterman 2014). The most valuable approaches would be the deductive research approach and inductive research approach. It should be noted that the deductive research approach is dependent on the theories and models. Thus, the research is required to illustrate in the different theorizes, models and concepts that are available as the form of the secondary source. After the collection of the information, the researcher needs to co-relate that data with the theories and initial conceits in order to sustain the relevancy. In this way, the researcher would be able to gather the most accurate information and execute the research outcome in an appropriate way. Figure 1: Research approach for the Costruction Project Source: Created by author Objectives The main objectives of the research proposal are: To understand the importance of the risk management in the residential construction project in India To identify the risk variables that are involved with the residential construction project To evaluate the risks being identified in the research To analyze the impact of the risk management in the residential construction projects To analyze the risks involved with the offsite manufacturing relating to the residential construction project in India Research questions What are the risks present in the residential construction project in India? What are the risks present in the offsite residential construction project? Do the risks involved with the residential construction project have an impact on the implementation of the same? How the better understanding of the risks can helps in the proper conduction of the residential construction project? Hypothesis Hypothesis: Risk management adds value to the residential construction project Null hypothesis: Risk management does not add value to the residential construction project Justification The researcher should be implementing the Deductive research approach which could enable him to reduce down the resource consumption. The implementation of the inductive research approach could be costing the researcher with more investment in time and budget in the conduction of the research process as the approach requires the inclusion of the new models and theories (Mackey and Gass 2015). Thus, in order to reduce the amount of money and time involved with the research process, the researcher needs to implement the deductive research approach which could also help him to acquire useful information and framework that are available in the online journals, libraries and books. Review of literature Risk management and analysis can be considered as a maker feature of the project management related to the residential construction project. According to Walker (2015), the risk management can be referred to an attempt to deal with the unexpected and uncertainty eats in an effective way such that to achieve the success of a project. The residential construction project are unique which raises a number of different sources of risks related to the project which are dynamic and complex and involves the multiple feedback processes. The residential construction project involves a lot of participants including the individuals and organizations which actively participate in the project. The interest of the participants can be negative or positively affected on the basis of the project experiences that are having different expectations and interests. According to Taylan et al (2014), these differences in the experiences and interests among the participants creates confusion and problems for even the most experienced managers in contract related to the residential construction project. The cost of the risks can be considered as a concept related to construction companies which is one of the largest expense items and should be considered while implementing the project (Aminbakhsh, Gunduz and Sonmez 2013). The risk management would help the primary participants including the contractors, clients, consultants, developers and suppliers for meeting their commitments and enabling in the management of resources by minimizi ng the negative impacts related to the residential construction project performance in respective of the time, cost and quality objectives. According to Kelly, Male and Graham (2014), the current economic challenges and downtown related to the construction sector is highly competitive as it requires the contractors to manage the risks on their own. Offsite construction industry The offsite construction techniques use the state of the art manufacturing techniques for building automatic factories. According to Aminbakhsh, Gunduz and Sonmez (2013), the benefits of the offsite construction influence the quality assurance, predictability, faster constructive time, less noise, less fees, and lower accident rates together with improve health and safety of the employees and the individuals. Besides, the construction reduces the quality of the waste generated on site by eliminating the waste materials and insulating the complete elimination of the waste being produced in the process (Vernikos et al 2013). Risks occurring in the Residential Construction Project In India, the construction industry has been labor intensive as the labor is easily available and cheap. The manpower involved with the construction industry consist of the managerial level, supervisory level and the artisan level. The construction industry is very complex and heterogeneous the residential construction project can be comprised of several classifications that differ from one another including the housing, non residential building, utilities, highway and industrial. According to Hwang and Ng (2013), the residential construction projects includes the renovation, new construction and demolition for both non residential and residential projects including the Public Work projects, roads, highways, street, plants, bridges, overpasses and tunnels. Successful construction project can be referred to as the project which could be completed within the specified, time, budget and with the requested performance. The risk factor for the achievement of the residential construction p rojects includes the size of the project as the uncertainty in the project is directly proportional with the size of the same. According to Sears et al (2015), the larger residential construction project, the more exposed will be its uncertainty because of the factors including the design, planning, construction, complexity, presence of various interest groups and resources including the economic, political, environmental factors and statutory regulations. Project risk management Residential construction projects are unpredictable such that the management of the risks involved in this process can be recognized as a very important process for achieving the objectives of the project in terms of costs, quality, time, environment, sustainability and safety. According to Fewings (2013), the project management can be referred to as the iterative process which benefits an organization when implemented in a systematic way throughout the life cycle of the residential construction project including the planning stage till the completion of the project. The risk management and analysis techniques can be implemented by the key steps including the risk identification, assessment, and mitigation and monitoring. According to Goulding et al (2012), the risks can be classified on the basis of nature into 2 categories including external and internal risks (Hwang and Ng 2013). The classification of risks to the projects which can be local or International. The international pro jects are subjected to external risks including the on awareness for social condition, social, political, economic, governing authority, and regulatory framework. According to Sha'ar et al (2016), the various risk management tools are available for mitigating the risk factors associated with the construction organization Industries projects. However, according to Mohd Nawi et al (2016), the organizations today in the residential construction project are unable to exploit on the risk management strategies owing to the lack of knowledge of selecting the appropriate and suitable risk management strategies for the residential construction projects. Risks Causes Costs Inefficient estimation of the ability to control the construction project Time Inappropriate estimation of project schedule Environment Negligence in the incorporation of the CSR (Corporate Social Responsibility) Safety Slackness in the consideration of the health and safety hazards related to the workers in the construction site Table 1: Risk table for the Constuction project Source: Created by author Problems in risk handling The construction industry faces some serious challenges and problems. In developing countries like India, the problems in handling the risk involved with the construction project includes the chronic resource shortages, socio-economic stress, genral inability and institutional weaknesses as well. According to Laskar and Murty (2016), the main challenge of the Indian Construction industry is that it has a poor record on innovation as compared to the other manufacturing industries including the electronics and aerospace. Research Methodology Research process The research process needs to identify the several techniques and tools for conducting the research which requires being highly accurate for the conduction of the research process. For conducting the research process, the researcher needs to select the positivism research approach, descriptive research approach and deductive research approach (Roberts 2013). The research also needs to select the primary and secondary research approach for the allocation of the information. The two methods related to the primary data methods includes the qualitative data collection technique and the quantitative data collection technique. The incorporation of the various tools and techniques would enable the researcher to provide justification for the selection of the required process. The research tool is required to support the conduction of the most accurate response as achieved from the respondents (Pierre 2012). The accuracy of data as relevant to the research questionnaires being set in the research process can be described by the following table: Question types Definition Relevant Questions Multiple choice Questions allowing single choices QIII Descriptive Open questions QI, QII, QIV Quantitative Responses that could be measured such as the types of risks involved with the construction QI, QII, QIV Qualitative Responses could not be measured QIII Dependent Questions are influenced by other variables QII, QIV Independent Questions are not influenced by any variables QI, QIII Table 2: Categorization of data collection process Source: Created by author Research philosophy The research philosophy helps in defining the procedure with which the researcher needs to conduct the research. The procedure should be helping the researcher in allocating and gathering the information that is relevant to the research topic. The researcher also needs to undertake the authentic and valid data collection in the research philosophy. According to Robson and McCartan (2016), research philosophy can be comprised of three different types of research philosophy including the realism philosophy, Interpretivism philosophy, and the positivism philosophy related to the research process. The Interpretivism philosophy would be helping the researcher in identifying the data that are required to be constricted socially on the basic of the reality. The socially constructed information should be taking the construction of a lot of the respondents which could not be possible provided the budget in the research process. Realism philosophy can be comprised of tow facts including the realty based and social based facts. Thus, the Realism philosophy can be considered as the mixed variety of the research philosophies which could be helpful in conducting the research process (Ward and Bailey 2013). In the form of the philosophy, the information should be castrated and gathered from the secondary sources and the society respectively. This should be resulting in increasing the costs for conducting the research and as a result most of the researchers do not implement the philosophy. The positivism research philosophy should be oriented on the knowledge gathering which should be indicating that the information should be connecting in an effective way that must be existing and should be real (Mackey and Gass 2015). The data should be collected in a trustworthy and detailed procedure that should be influencing the research outcome. This also includes the data collected will be unbiased in nature and would be having practical relevance. Research approach The appropriate research approach would be helping the researcher to acquire useful information and knowledge for executing the research and gathering most authentic information. The research approach could be mainly depending on the research variables related to the research topic (Billig and Waterman 2014). The most useful approaches would be the deductive research approach and inductive research approach. It should be noted that the deductive research approach is dependent on the theories and models. Thus, the research is required to illustrate in the different theorizes, models and concepts that are available as the form of the secondary source (Groenewold and Lessard-Phillips 2012). After the collection of the information, the researcher needs to co-relate that data with the theories and initial conceits in order to sustain the relevancy. In this way, the researcher would be able to gather the most accurate information and execute the research outcome in an appropriate way. Pick ard (2012) also points out that the implementation of the inductive research approach, the researcher would be able to develop the new concepts of theories and models related to the risks management in the construction industry that would be helpful for meeting with the outcome of the research study. Justification The researcher should be implementing the Positivism research approach. The approach would be helping the researcher to acquire useful information from the sources based on the reality and authenticity. The researcher needs to acquire the most accurate information which should be useful for the research study. The Positivism research approach would help the researcher to gain the most accurate data. Moreover, as the amount of the time and budget is limited, the researcher is required to collect relevant data within the short rime. In this way, the researcher would be gathering the useful and relevant information while conducting the research which/needs to be biased and unbiased on realty. The deductive research approach would be helping the researcher to conduct the research study within the stipulated timeline. For successful intervention of the research topic, the researcher needs to implement the deductive approach for the conduction of the research. In addition, the implementation of the quantitative analysis would help the researcher to emphasize on the views of the respondents which could be gathered during the data collection process. On the other hand, the qualitative analysis would be helping in acquiring relavant information related to the operations and the risks involved with the building construction process. Research purpose The researcher should be implementing the Descriptive research purpose which covers a vast area of risk management and mitigation actions considering the construction business influencing the process. Thus, the researcher is required to implement several theories models and concepts with practical scenarios of a construction business (Green, Camilli and Elmore 2012). The research topic would be helping the researcher to frame questions, objectives and theories related to the research topic. With the help of descriptive research process, the researcher could be able to describe and express the aspects of the various risk management strategies that could be implied during the construction process. Research Techniques Methods Reasons Research process Deductive research approach For successful intervention of the research topic Descriptive research process To describe and express the aspects of the various risk management strategies Research philosophy Positivism research philosophy To ensure that the data collection process is unbiased and has practical relevamce Data Analysis Quantitative analysis To emphasize on the views of the respondents to be gathered during the data collection process Qualitative analysis To acquire relavant information related to the operations and the risks involved with the building construction process Table 3: Research methods to be implemented in the risk management research study related to the construction project Source: Created by author Conclusion An efficient risk management strategy would help the construction companies to encourage the identification and quantification of the risks and to consider the risk reduction policies in order to reduce the risks related to the residential construction project. The construction companies needs to manage the risks effectively in order to enjoy greater productivity, financial savings, improved success rates and better decision making. The risk management related to the construction is systematic and comprehensive way of identifying, responding and analyzing the risk associated with the residential construction project. The construction companies significantly differ from each other depending on the option of the risk management practices. In order to manage the risks effectively, the company should be able to understand the risk responsibility, risk management capabilities and conditions as well. In the residential construction project, risk management acts as the systematic and comprehensive way of determining, analyzing and implicating appropriate action plans for the effective use of the resources and improvement of the residential construction project management. The uncertainty and risk could act as the factors that could potentially have a damaging consequences related to the residential construction project. The lack of experience in construction companies makes it very difficult to change the attitude towards the risk management. The construction companies thus, need to include the risk to be the integral part of the residential construction project management. The use of the risk management in the Indian construction company is low with a little difference between the sizes, types and risk tolerance of the organization. The risks can be mitigated by improving the combination of the quantitative as well as a qualitative methodology to analyzing the risks related to re sidential construction project to ensure the risk tolerance related to the construction company. Ethical consideration In order to conduct the research process in a successful manner, the researcher requires following the ethical consideration. The researcher must take permission from the respondents for taking responses during the execution of the data collection process. The researcher must not force or hurt the respondents for giving responses. According to Hantrais and Mangen (2013), the respondents should be allowed to quit after the registration process is over. Moreover, the respondents are required provided with the willingness in the participation process.. Pickard (2012), believes that the ethical consideration in the research process would be signifying the result of the research process could be utilized in the commercial purpose. The main reason of the ethical consideration is that both the quantitative research method and the qualitative research method is perceptive to the organization. Moreover, Gioia and Hamilton (2013), also pointed out that the researcher should not influence or ac t in the way where the respondents would be providing personal viewpoint which could lead to biased information if the there are influenced. In the research process, the researcher follows each of the ethical consideration as mentioned above in order to prove that the research has been conducted in the most ethical manner. While conducting the research survey, the professional code of conduct should be implemented while conducting the research process. Integrity: In the research process, the integrity of the information related to the respondents needs to be maintained. Moreover, the information being acquired in the data collection process needs to be destroyed after meeting with all the objectives of the research process. Privacy: The researcher also needs to conduct the research process such that the privacy of the confidential information as acquired from the respondents needs to be kept secured and should be prevented from exposing to the outside environment. Confidentiality: The confidential information from the respondents needs to be kept secret from the outside environment in order to prevent the information from any misuse. References Aminbakhsh, S., Gunduz, M. and Sonmez, R., 2013. Safety risk assessment using analytic hierarchy process (AHP) during planning and budgeting of construction projects. Journal of safety research, 46, pp.99-105. Billig, S.H. and Waterman, A.S. eds., 2014.Studying service-learning: Innovations in education research methodology. Routledge. Fewings, P., 2013. construction project management: An integrated approach. Routledge. Gioia, D.A., Corley, K.G. and Hamilton, A.L., 2013. 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