《建筑管理论文文献综述.docxVIP

Chapter 2 Principle of risk managementIntroduction:The first purpose of this chapter is to review related literatures for understanding the definition and influence of risk. Then comprehensive specialized literatures will be reviewed to introduce the process and application of risk management in construction industry. These wide ranges of literature reviews could contribute to research design of this study and risk identification in construction projects.2.1 Definition of RiskFlanagan and Norman (1993) summarized that the source of risk is a French word “risque”. This word was used in English in the seventeenth century. Lehmann (1928) definedrisk as probability of damage. Another scholar Knight (1921) organized that risk is influence of the possibility of accident.Thompson and Perry (1983) suggested that risk isthe uncertainty concerning damage. The conception of risk can be applied in every human activity due to the uncertainty of the results. This kind of uncertainty is caused by the future which is uncertain. For this reason, the time is the key variables for dealing with risks. Adler and Dumas (1984) organized that the risk will lead to damage andbe caused by the uncertainty because of the lack of information.Nigel at el (1999) contended that construction projects are fraught with risks which lead contractors and owners to bear it and pay for it. Comparing to other industries, construction industry is subject to more influences of uncertain factors and risks. The reason is that the process of construction project is complex (Tang at el, 2007). The process includes investment appraisal, construction and operation. In general, a completed construction project requires people who have professional skills and different positions make joint efforts. In addition, it need high coordination of interrelated activities and could be affected by various uncontrollable factors.Any construction project consists of multifarious organizations and numerous related peopl. Flanaga