RISKS AND RISK MANAGEMENT ALTERNATIVES FOR BUILDING CONSTRUCTION INDUSTRY ENTERPRISES IN LATVIA: THE RESULTS OF AN EXPERT SURVEY
DOI:
https://doi.org/10.17770/lner2018vol1.10.3599Keywords:
building construction industry enterprises, Latvia, risks, risk management alternativesAbstract
In the era of progressive globalisation, risk has become an integral component of entrepreneurship, which makes it necessary for every enterprise to design a risk prevention plan.
The research aim is to assess the expert opinions on risks and risk management alternatives for building construction industry enterprises in Latvia. To achieve the aim, the following specific research tasks are set: 1) to assess the most essential and widespread risks for building construction industry enterprises in Latvia; 2) to identify the most effective risk management alternatives for building construction industry enterprises.
Research methods used: monographic, descriptive, analysis, synthesis, data grouping and a sociological method – a structured expert survey.
The research results showed that almost half of the identified risks for building construction industry enterprises could be prevented by applying the risk mitigation strategy and taking various daily control and internal management measures, thereby investing no additional funds and reducing the consequences caused by the existing risks. A calculation of the average risk severity level by risk group revealed that the most essential risks affecting the building construction industry were those related to human capital.
To reduce the effect of seasonality and the risk of unforeseeable orders, building construction industry enterprises have to diversify their business, developing some auxiliary kind of economic activity. This would ensure earning revenues throughout the year.
Downloads
References
ADALEKE, A.Q., BAHAUDIN, A.J., KAMARUDDEEN, A.M. etc. (2018). The Influence of Organization External Factors on Construction Risk Management among Nigerian Construction Companies. Safety and Health at Work. 2016, Volume 9, Issue 1, March 2018, Pages 115-124, Retrieved May 5, 2018 from https://www.sciencedirect.com/ science/article/pii/S2093791116302153
ALHOMIDAN, A., (2013). Factors Affecting Cost Overrun in Road Construction Projects in Saudi Arabia. International Journal of Civil & Environmental Engineering IJCEE-IJENS. Vol: 13 No:03. Retrieved May 5, 2018 from http://citeseerx.ist.psu.edu/ viewdoc/download?doi=10.1.1.653.6500&rep=rep1&type=pdf
BEKAERT, G., HARVEY, C. R., LUNDBLAD C.T., SIEGEL, S. (2016). Political risk and international valuation. Journal of Corporate Finance. Volume 37, April 2016, Pages 1-23. Retrieved May 1, 2018 from https://datubazes.lanet.lv:2076/science/ article/pii/S092911991500156X#
DIJK, N., GALLERT, R., ROMMETVEIT, K. (2016). A risk to a right? Beyond data protection risk assessments. Computer Law & Security Review. Vol.32, Issue 2, April 2016, Pages 286-306. Retrieved May 15, 2018 from https://datubazes.lanet.lv: 2076/science/article/pii/S026736491500182X
HAIMES, Y. (2015). Risk Modeling, Assessment and Management, John Wiley & Sons, 720 pages, Retrieved May 2, 2018 from https://books.google.lv/books?hl= lv&lr=&id=JvowBgAAQBAJ&oi=fnd&pg=PP11&dq=+Risk+Management+and+Management+Control+Systems.+Similarities+and+Differences&ots=DZ-j3PMltG&sig=Ta ZWE0HMgfr-uZ5hJ-HR985lwak&redir_esc=y#v=onepage&q=Risk%20Manage ment%20and%20Management%20Control%20Systems.%20Similarities%20and%20Differences&f=false
KUMBHAKAR, S.C., TSIONAS E.G. (2008). Estimation of production risk and risk preference function: a nonparametric approach. Annals of Operations Research. Volume 176, 20 April. 2010, Issue 1, Pages 369–378, Retrieved March 23, 2018 from https://link.springer.com/article/10.1007/s10479-008-0472-5
MANDRU, L. (2016). How to control risks? Towards a structure of enterprise risk management process. Journal of Public Administration, Finance & Law. 2016, Issue 9, Pages 80-92. 13 p., Retrieved May 1, 2018 from http://datubazes.lanet.lv:3537/ ehost/pdfviewer/pdfviewer?vid=1&sid=41133c2d-59dc-4058-a7f7-f1ec08d06c34%40sessionmgr4008
PETTERE, G., VORONOVA, I. (2003). Riski uzņēmējdarbībā un to vadība. Banku augstskola, Apgāds „Rasa ABC” datorsalikums, 175 lpp.
Statēģija “Eiropa 2020”. Retrieved April, 10, 2018 from https://ec.europa.eu/ info/business-economy-euro/economic-and-fiscal-policy-coordination/eu-econo mic-governance-monitoring-prevention-correction/european-semester/ framework/europe-2020-strategy_lv
SZYMAŃSKI, P. (2017). Risk management in construction projects. Procedia Engineering. Volume 208, 2017, Pages 174-182. Retrieved April, 10, 2017 from https://www.sciencedirect.com/science/article/pii/S1877705817360290#!
TIMOFEEVA, S.S., ULRIKH, D.V., TSVETKUN N.V. (2017). Professional Risks in Construction Industry. Procedia Engineering. Volume 206, 2017, Pages 911-917. Retrieved April, 10, 2017 from https://www.sciencedirect.com/science/ article/pii/S1877705817352566#
UZULĒNS, J. (2016., feb.). Korupcija būvniecībā. Latvijas būvniecība, 1, 120 -121 lpp.
Valsts ieņēmumu dienests (2018) Nodokļu parādu struktūra. Retrieved May 15, 2018 from https://www.vid.gov.lv/lv/statistika/nodoklu-paradu-struktura-0
ZVAIGZNE, A. (2005). Riska vadība Latvijas lauku tūrisma uzņēmumos. Promocijas darbs ekonomikas doktora (Dr. oec.) zinātniskā grāda iegūšanai, LLU.
