Risk Management Application-Level Analysis in South Korea Construction Companies Using a Generic Risk Maturity Model

Risk can be defined as the effect of uncertainty on the achievement of objectives. All organizations are exposed to risk and uncertainty, and organized risk management is highly regarded in the construction industry. The Generic Risk Maturity Model (GRMM) is a tool for evaluating and identifying the current level, weaknesses, strengths, and areas that need improvement in construction companies. The purpose of this study is to diagnose and analyze domestic construction companies’ risk management maturity and status using the GRMM and to suggest areas for improvement. In this research, domestic construction companies were analyzed using GRMM by targeting 25 companies that ranked in the top 100 in terms of the 2019 South Korean construction evaluation. An online survey was conducted through e-mail and a total of 131 responses from 18 construction companies were collected and analyzed. As a result, the average maturity score (MS) of domestic construction companies was 5.6 but ambition score (AS) became 7.9 points. As a result of evaluating the risk system and execution level, the risk system (RS) score was 6.0, which was higher than the risk execution (RE) score of 5.3, indicating that the risk execution power was lower than that of the risk system. Therefore, in order to improve the level of risk management of Korean construction companies, it is necessary to improve the ability to execute risk management.