Appraising Risk Management Strategies in Construction Small and Medium-Sized Enterprises: A Sector-Specific Analysis

Abstract The small and medium-sized enterprises (SMEs) within the construction industry hold the greatest potential for increasing the construction industry’s capacity and general economic development in any country. However, these SMEs face high risks associated with the construction industry which can deter their survival, growth, and sustainability in the sector. Therefore, this study evaluates the risk management strategies among the construction small and medium enterprises (CSMEs) intending to enhance project outcomes. The study utilized a cross-sectional survey research design using a questionnaire data instrument to elicit information regarding the subject of risk management. 202 construction professionals from different CSMEs in Lagos State participated in the study. The result showed that expert judgment, risk analysis, and checklist analysis were identified to have registered significant awareness by the CSMEs. However, this high level of awareness did not translate to high usage of risk management strategies. Thus, since awareness alone is insufficient to drive implementation, this study recommends fostering continuous awareness of risk management practices to enhance their adoption among CSMEs. This may be accomplished by encouraging continuous awareness and education through industry seminars, case-based training, and focused workshops that highlight the application of risk management strategies by CSMEs in actual projects. Besides, creating peer-learning networks, disseminating success stories centered on CSMEs, and incorporating useful risk management information into CSME development initiatives will be beneficial. Furthermore, aid from the government agencies and professional associations in the form of mentorship, and simpler tools can promote regular use and enhance comprehension among CSMEs.