Risk Management Planning by Risk Register in Building Construction Project

This research addresses the common issue of vulnerabilities emerging during construction projects due to inadequate risk identification and analysis. It aims to mitigate this by creating a comprehensive risk register, documenting potential risk events, their causes, and characteristics. The main goal is to identify prominent risk factors in building construction projects and develop a risk management strategy using this register. The study used purposive sampling and considered 22 indicators, including human resources, cost, materials, equipment, and environmental conditions. Questionnaires were distributed to 50 contractors in the Banda Aceh region. Validity and reliability were confirmed through statistical analysis. The analysis showed that human resources were the most prevalent risk factor. Using a probability impact matrix, five indicators had medium-risk levels, while seventeen indicated low risk. Human resources, materials and equipment, and environmental conditions were identified as dominant risk factors, all at a medium-risk level. The study underscores the importance of addressing human resources risks through a structured risk register, which can significantly improve project management and execution. By systematically assessing and mitigating potential risks, project stakeholders can make informed decisions and enhance project outcomes in terms of timelines, costs, and quality. In conclusion, this research highlights the critical role of risk management in construction projects and emphasizes the value of a comprehensive risk register. Addressing dominant risks proactively can positively impact building construction projects.


Introduction
In the construction service sector, challenges related to cost, time, and quality are recurrent in project implementation.These challenges collectively shape the overarching project goal: achieving optimal cost-efficiency, meeting project timelines, and ensuring uncompromised quality standards [1].The triumph of construction projects, undertaken by service companies, hinges on realizing these objectives.Swift resolution of these challenges is essential to ensure the successful completion of projects.
Project Risk Management represents a structured process encompassing planning, identification, analysis, response, and ongoing monitoring of potential negative impacts [2].A blend of art and science, it involves the identification, analysis, and management of risks.Risk identification involves the meticulous recognition of project-affecting risks and their comprehensive documentation [3].
Four distinct risk types surface in project management: 1) Operational risk which pertains to risks impacting an organization's operations; 2) Financial risk which affects an organization's financial performance; 3) Hazard risk which relates to physical accidents like fires and earthquakes; and 4) Strategy risk which tied to risks challenging an organization's strategic direction [4].The importance of risk management is evident.A suite of documents guides project execution, monitoring, and risk control.Among these, the risk register is pivotal.It compiles potential risk events, causes, indications, probabilities, impacts, ownership, and response strategies [5].The risk register encapsulates identified risks, causes, ownership, outcomes, priorities, categories, and responses developed through qualitative and quantitative risk analyses [9].
The problem statement of this research delves into two primary inquiries: first, identifying the most dominant risk prevalent in building construction projects, and second, devising a targeted risk management plan utilizing a risk register.Notably, understanding the most dominant risk offers a key to more effective risk management strategies, leading to enhanced project outcomes and overall success.This study's significance extends to the broader context of the construction service sector, potentially improving risk management practices.By introducing novel methodologies and findings, this research contributes to the sector's capacity to navigate risks adeptly and enhance project success.The findings have the potential to enhance project outcomes, improve risk management practices in the construction sector, and contribute to broader sustainability efforts.This aligns with the growing importance of sustainability in the construction industry and across various sectors worldwide.

Research Object
The focal point of this research centers on the inherent risks within building construction projects.The investigation was carried out within the locale of Banda Aceh, targeting contractors actively engaged in building construction ventures.The selected contractors encompassed those holding qualifications denoting small (K1, K2, K3) and medium (M1 and M2) scales of operation.The contractor data utilized for this study emanated from the Indonesia National Construction Practitioner (GAPENSI) of Banda Aceh, acquired in the year 2021.
The research sample was drawn through a nonprobability sampling approach, specifically employing the purposive sampling technique.This methodology facilitated the selection of 50 pertinent samples.The research endeavor revolved around the examination of variables encompassing human resources (X1), cost (X2), material and equipment (X3), natural and environmental conditions (X4), and the utilization of a risk register (Y).These variables were delineated through a comprehensive array of 22 indicators.
By delving into these research objects, this study illuminates the multifaceted landscape of risk factors within building construction projects.The chosen methodology not only ensures a representative sampling but also provides a comprehensive perspective on the interplay of these variables and their collective impact on project outcomes.

Risk Analysis
Risk analysis constitutes a pivotal process that delves deeper into the intricate details of identified risks.It involves the pursuit of more granular information and comprehensive descriptions, encompassing aspects such as risk probability, underlying causes, and interconnections [4], [7][8][9].This analysis is underpinned by methodologies like brainstorming, interviews, historical data collection, and other strategies that stakeholders utilize to identify potential risks within the research context.
Concurrently, the estimation of risk impact encompasses an exploration of potential effects that reverberate across construction quality, encompassing dimensions like time, cost, and work quality [10].This multifaceted discipline of risk analysis is subsumed under five distinct categories: 1. Human Resource Factors: Reflecting risks emerging from human resource-related dynamics.2. Design Factors: Encompassing risks tied to the design aspects of the project.3. Material and Equipment Factors: Encompassing risks inherent to materials and equipment.4. Factors of Natural Conditions: Encompassing risks stemming from environmental or natural factors.5. Construction Factors: Encompassing risks emerging from construction-specific intricacies [11].
The outcomes derived from the analysis of these risks culminate in the identification of the most influential risk agents.Subsequent to this identification, specific mitigation actions are devised to address the distinct risk agents.A glimpse into these mitigation strategies includes: a) The halting of resource procurement processes, if not rescheduled, can be resolved through the creation of pragmatic schedules and the establishment of a vigilant monitoring and sanctioning system.By constructing schedules grounded in on-site realities and implementing robust monitoring mechanisms, potential problems like resource procurement halts due to fraud or other untoward actions can be predicted and averted.b) Challenges stemming from inadequate coordination with the project owner can be ameliorated through the reestablishment of effective communication and coordination channels.This approach serves as a conduit for resolving issues adequately, thus steering the project towards the attainment of its threefold objectives.c) Instances of additional scope of work can be effectively addressed when communication and coordination with the project owner are streamlined.By ensuring that communication channels are open and coordination is seamless, any instances of scope expansion can be managed efficiently, having been communicated and agreed upon in advance.
In essence, risk analysis serves as a proactive means to delve into the intricacies of potential challenges, subsequently paving the way for strategic mitigation efforts that align with project objectives and foster a more resilient construction project ecosystem.
The findings of the study concerning four distinct risk factors estimation, external risk, labor risk, and the risk associated with supporting tools and materials highlight the paramount importance of risk identification in every construction project.This process proves essential in delineating three potential risks for each project activity, paving the way for subsequent impact analyses on the project's sustainability [12].Within the risk identification phase, each stakeholder in the project undertakes the task of identifying risks within their respective area of expertise.This critical task is facilitated through methods such as brainstorming, interviews, historical data collection, checklist creation, prioritization lists, risk charts, and the categorization of risks into groups.
In the context of the research conducted on the superblock project in Surabaya, the investigation encompassed a comprehensive array of 33 risk factors.Through meticulous analysis, it was discerned that the risk factors associated with design changes and those linked with preparation and delayed design approval claimed the highest positions in the risk frequency analysis.This finding underscores that, to date, design-related risks particularly design changes emerge as the predominant challenges within superblock projects [13].
These insights underscore the pivotal role of risk identification, offering a strategic vantage point for stakeholders to anticipate, assess, and mitigate potential challenges.By pinpointing the critical junctures of risk occurrence and emphasizing design-related factors, this research contributes to the ongoing refinement of risk management strategies in the construction domain.

Probability and Impact Matrix
Assessing risks within a construction project hinges on the evaluation of two pivotal dimensions: risk probability or event frequency, and risk impact.Probability pertains to the inherent chance or opportunity of a risk event coming to fruition.The quantification of these dimensions coalesces into a comprehensive risk evaluation.Probability levels are elucidated through the following representation: The assessment of risk impact gauges the potential negative ramifications on target achievements, encompassing factors that could lead to financial losses for the company.This comprehensive evaluation is encapsulated in the impact rating scale depicted below:

Figure 2. Impact ratings
By integrating the probability and impact dimensions through this matrix, project stakeholders gain a multifaceted understanding of risks' potential consequences and their likelihood of occurrence.The conjunction of these two elements culminates in a comprehensive risk assessment, enabling more informed decision-making, targeted mitigation strategies, and ultimately enhancing the overall project's resilience and success.

Risk Register
The risk register functions as a structured repository, encapsulating a wealth of critical information related to identified risk events.Within this comprehensive tool, each risk event is systematically detailed, including its potency, underlying causes, recommended preventive activities, and projected impact.This strategic approach to risk documentation and management empowers project stakeholders to proactively address potential challenges, thereby minimizing the likelihood of disputes.
The culmination of risk analysis is distilled into a simplified risk register, presented succinctly in the following table:

Score
In this tabular framework, the numeric value denoted by P represents the cumulative outcome of a rigorous risk assessment.This value is determined based on various factors such as probability, potential consequences, and other pertinent dimensions.The corresponding risk levels are categorized as follows: If P exceeds 14, the risk level is classified as High; If P falls within the range of 8 to 14, the risk level is categorized as Medium; and if P is less than 8, the risk level is designated as Low.
The contents of the risk register extend beyond this categorization, encompassing a holistic view of each identified risk event.The register's columns include: 1. Potency: this column quantifies the potential magnitude of the risk event, reflecting its overall impact if realized.2. Causes: describes the underlying factors or conditions that could lead to the occurrence of the risk event.3. Preventive activities: outlines recommended measures to avert or minimize the likelihood of the risk event materializing.4. Impact: assesses the potential consequences should the risk event occur, spanning dimensions like time, cost, quality, and more.By systematically capturing these critical aspects, the risk register empowers stakeholders to make informed decisions, institute proactive measures, and effectively navigate the intricacies of risk management.The utilization of such a register not only enhances communication among project participants but also fortifies the project's overall resilience and success.

Respondent's Characteristic
The participants in this research comprised contractors actively engaged in building construction projects within Banda Aceh.The total sample size consisted of 50 respondents.The distinctive attributes of these respondents were analyzed and classified according to various criteria, including gender, age, educational background, position within the organization, and the qualification level of their respective companies.
These are the categories or classifications into which the contractors are sorted based on their size or capacity.Here's what each category likely represents: 1.Small (K1, K2, K3): This category probably includes smaller contractors, which could be small businesses or individuals with limited resources, manpower, or financial capacity.They might be suitable for smaller projects or contracts.2. Medium (M1, M2): Medium-sized contractors are likely those with a moderate level of resources, manpower, and financial capacity.They may be capable of handling medium-sized projects or contracts.These characteristics were presented visually, offering a comprehensive depiction of the composition of the respondent pool.The distribution of respondents based on the outlined criteria was summarized in the following figure:

Factor Analysis
Factor analysis was employed to analyze the frequency of several variables.This process involved utilizing both the Kaiser-Meyer-Olkin (KMO) measure and Bartlett's Test to determine the viability of each variable for continued analysis.The following output table showcases the results for each variable: The presented output showcases the KMO-MSA (Kaiser-Meyer-Olkin Measure of Adequacy) and Bartlett's Test results for each variable: X1 (Human Resource), X2 (Financial), X3 (Material and Equipment), X4 (Natural and Environmental Conditions), and Y (Risk Register).The KMO-MSA values are indicative of the appropriateness of data for factor analysis, with all values exceeding the threshold of 0.50.Furthermore, Bartlett's Test significance (Sig.)values for each variable are below 0.050, confirming the validity and reliability of the factor analysis within this research.
Similarly, the feasibility of factor analysis for impact variables was assessed using KMO and Bartlett's Test.The results of this evaluation are summarized in the subsequent table: The presented output encapsulates the KMO-MSA values and Bartlett's Test results for impact variables: X1 (Human Resource), X2 (Financial), X3 (Material and Equipment), X4 (Natural and Environmental Conditions), and Y (Risk Register).The KMO-MSA values and Bartlett's Test significance (Sig.)values in this context also confirm the validity and reliability of the factor analysis, underscoring the robustness of the research methodology employed.

Descriptive Analysis
Descriptive analysis aimed to find mean to percentage index of the total questionnaire answers given by the respondents.The value used to find the qualitative description of risk register in project construction.Based on the mean of the frequency shown in Table 4, the highest mean is 2.74 in indicator X3.3 (material is supplied from the distant location).It explains that the majority of the respondents describing that indicator X3.3 has high risk.Based on the mean of the impact, the highest mean is 3.66 in indicator X1.4 (ineffective communication of owner, foreman, contractor, mad construction management).It explains that the majority of the respondents describing that indicator X1.4 has high risk.

Risk Level Analysis
Descriptive analysis found mean of frequency and mean of impact.Then it was multiplied both mean of frequency and mean of impact to find risk of each variable.The output of can be summarized in Table 4 below.The above table explained that the five indicators have the highest risk values of 8-14 meaning that the risk is medium.

Conclusion
Risk mitigation strategies for different risk factors: Human Resources Factor: A critical risk event within the human resources factor revolves around the "limited number of experienced construction management workers."The resultant impact encompasses disruptions to ongoing work and a potential failure to meet the project's cost, quality, and timeline targets.Mitigating this risk necessitates strategic actions, including targeted training initiatives to enhance personnel skills.Moreover, prioritizing experienced personnel deployment within construction management roles can effectively address this challenge, maintaining project momentum and ensuring objectives are met.
Material and Equipment Factors: In the realm of material and equipment considerations, the risk of "material production scarcity" looms large.The subsequent impact involves potential work delays with cascading effects on project timelines.Proactive measures are essential to counter this risk, such as stockpiling necessary materials and optimizing procurement processes.By securing materials in advance, potential bottlenecks can be mitigated, streamlining project execution and enhancing overall efficiency.
Natural and Environmental Factors: The sphere of natural and environmental risks encompasses events like "unpredictable conditions and events" such as fires, floods, storms, and earthquakes.The impact of these events includes potential losses and delays, jeopardizing project timelines.Robust disaster mitigation strategies should be integral to project planning, ensuring smooth implementation despite potential challenges.By proactively addressing these risks, projects can navigate disruptions, safeguarding timelines and successful outcomes.
In the intricate landscape of construction project management, this research unveils the strategic significance of proactive risk mitigation.By systematically identifying, analyzing, and addressing diverse risk factors, stakeholders can effectively safeguard project success.The findings underscore that understanding and managing risks are essential pillars for attaining optimal project outcomes, cost efficiency, and stakeholder satisfaction.Adopting tailored strategies for human resources, materials, and environmental risks empowers projects to navigate challenges adeptly.This study's implications reverberate beyond the immediate research scope, resonating with the broader construction industry.A proactive approach to risk management not only averts potential pitfalls but also empowers stakeholders to adapt to dynamic circumstances, fostering a culture of resilience and innovation.Ultimately, this research contributes to the construction sector's overarching goal of delivering projects on time, within budget, and at the pinnacle of quality realizing a holistic vision of success.

Table 1 :
Indicator of risk level

Table 2 :
KMO and Bartlett's test of frequency

Table 3 :
KMO and Bartlett's test of impact

Table 4 :
Analysis of risk level

Table 6 :
Risk register