UniversalJournalofManagement4(4):203-210,2016http://www.hrpub.orgDOI:10.13189/ujm.2016.040406ToolsandTechniquesinRiskIdentification:AResearchwithinSMEsintheUKConstructionIndustryAliRostamiFacultyofScienceandEngineering,UniversityofWolverhampton,UnitedKingdomCopyright©2016byauthors,allrightsreserved.AuthorsagreethatthisarticleremainspermanentlyopenaccessunderthetermsoftheCreativeCommonsAttributionLicense4.0InternationalLicenseAbstractRiskidentificationplaysakeyroleinthesuccessofmanagingrisk.Failureintheidentificationofriskscancauseinadequacyinthewholeprocessofriskmanagementwhichledtonon-achievementoforganisationalobjectives.Toolsandtechniquesfacilitatetheprocessofidentification,andneedtobeadoptedonthebasisoffirms’characteristics.Thedifficultytorecogniseapplicabletoolsandtechniqueswithinorganisationsisinvestigatedasoneofthekeybarriersthatobstructpractiseofriskmanagement.ThisstudydiscussestheefficacyofdifferenttoolsandtechniquesofriskidentificationwithinSmallandMediumEnterprises(SMEs)intheUKconstructionindustry.ResultsfromaquestionnairesurveyshowsthechallengesfacedbySMEsinundertakingriskidentificationandhighlightsthemostcommontechniquesadoptedamong453organisations.Documentationreview,expertjudgment,checklistanalysisandinformationgatheringareseenasthemostimportanttechniqueswithinriskidentification;whicharepractisedfortheirvaluableresults,uncomplicatedprocessesandeasytounderstandstructure.Conversely,thegroup-basedtechniqueslikebrainstormingandDelphitechniquesbecauseofSMEs’inadequatelevelofknowledgeandresourcesarelesspractised.KeywordsRiskManagement,RiskIdentification,ToolsandTechniques,ConstructionIndustry,SmallandMediumEnterprises1.IntroductionTheGlobalConstructionPerspectivesandOxfordEconomics[1]forecastedthattheconstructionsectorwillgrowbyover70%by2025.ThissignificantgrowthintheglobalconstructionindustrywillcreateconsiderableopportunitiesfortheUKconstructionorganisations,butwillequallygeneratedemandforadequatereformsinprojectperformance[2].Inordertoimprovetheperformanceoftheconstructionindustryandtakeadvantageofthenewbusinessenvironment,anumberofstudieshavespecifiedthekeyroleoftheriskmanagementpractice[3].ChapmanandWard[4]explainedthatimplementationandsubsequentpractiseofriskmanagementcontributestoenhancedprojectperformance.ThisviewisalsoconfirmedbytheUKGovernmentthroughtheBritishStandard[5].Itstatesthatthepractiseofriskmanagementinorganisationalmanagementresultedinthecontrolofdelaysandbudgetoverruns,whichultimatelypromotesthecompetitiveadvantageoforganisations.StudiesintheUKconstructionindustrypresentedtheweakreputationofriskmanagementwithinorganisations[6]and[7].KimandBajaj[8]andFrimpongetal.[9]investigatedthattheconstructionprofessionals’lowleveloffamiliaritywithtechniquesandinabilitytoelicitresultsoftheprocessesarethemostinfluentialfactorswhichimpacttheadoptionofriskmanagementinorganisations.Chapman[10]andCouillard[11]addedthat,evenprofessionalswithfrequentuseofriskmanagementhavedifficultytounderstandtherationalofitstechniques’outputsinnewprojects.ThisdifficultyisalsocompoundedbySMEs’restrictedresourceswhichmakebothimplementationandpracticeofriskmanagementmorecomplicated[12].ThetakeupandpractiseofriskmanagementtechniquesinvolvesaconsiderablelevelofinvestmentwhichinsomecasesisunaffordableforSMEs.Thisinvestmentsignifiesthehighdegreeofeffortrequiredtounderstandandt...
