The impact of risk management on business performance: case of Algerian construction organizations
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The impact of risk management on business performance: case of Algerian construction organizations Abla Narimene Baba Ahmed1 · Abdellatif Megnounif1 Received: 13 June 2020 / Accepted: 12 August 2020 © Springer Nature Switzerland AG 2020
Abstract The purpose of this study is to present a new model, based on a systemic approach, to analyze the different relationships that may exist between the risk, its management and the performance of the construction companies. Moreover, the process approach used is based first on the classification of different risks in building sector, which are then transferred to the process defined by four main activities of risk management system (RMS), namely identification, analysis, assessment and treatment of risks. In addition, external and internal functional analyses of the RMS using the application of business techniques called APTE method were conducted to describe the process that will link the types of risks to the performance of building companies. The latter is measured according to four perspectives: financial, customers, internal business process, and learning and growth. Hypotheses put in place will be tested, empirically, using a questionnaire to be distributed to customers of our system, the CEO and employees of the construction companies. Finally, the proposed model will provide a new vision on the implementation of RM in Algerian construction companies to manage risks, not only to seize the profit but also to remain competitive and survive in an increasingly dynamic world. Keywords Algerian companies · APTE · Construction · Performance · Risk management · Systemic approach
Introduction Most companies currently face numerous risks that can have a significant impact on the set objectives. The field of construction considered as the locomotive of the economy in the majority of the countries and in particular in Algeria is no exception to this. Thus, important challenges are to be taken in order to first survive and then to be competitive in a world becoming more and more complex [18]. In that case, the need of project management and strategy has become primary and the consideration of the different risks that surround our projects requires a change in behavior within companies. For these ones, it is a question today of identifying, evaluating and controlling the risks that may arise at any time in the project life cycle, with a formal model. They need to be smart enough in managing their risks, not only to seize * Abla Narimene Baba Ahmed [email protected] Abdellatif Megnounif [email protected] 1
RISAM Laboratory, Department of Civil Engineering, University of Tlemcen, Tlemcen, Algeria
the benefit of it, but also to survive in business [41]. However, this change in behavior is not always done, or is done but in a bad way, omitting the internal and/or the external aspects of a business. Previous researches proved that risk management (RM) affects business performance by improving construction processes [26, 41]. However, most
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