Establishing Risk Management Index in Infrastructure Project in Indian Construction Industry

Abstract

Managing risks is a strategic tool for reaping the full benefits of the critical initiatives that are implemented in any organization. Organizations which implement good risk management practices tend to reap the maximum advantage. Considering this aspect in mind, an upcoming thermal power project in the state of Telangana Pradesh (India) has been selected for study. This study has been carried out for the selected project by considering 6 potential risks in various phases of the project that has the ability to cause inordinate delay in project completion. Various factors under each of the major risks was identified and based on the responses received from the respondents, Relative Severity Index (RSI) was calculated for each 33 risk factors. The mean RSI was calculated for each of the 6 major risks and this was used to calculate Risk Management Index (RMI). The RMI is an indicator of the extent to which a construction project is exposed to risk and the mitigation measures need to be taken accordingly for lowering the risks impact to a manageable level, if the risks seem to be quite unmanageable.