# Construction Management Risk System (CMRS) for Construction Management (CM) Firms
## 4 CRMS Development
### Contribution
#### 4.3.1 Comparing Characteristics of the CRMS with Existing Risk Management Systems  
Considering the fact that the effectiveness of risk management for overseas constructions is higher during the early stages of projects from both case studies and literature review, the fully integrated risk management system (FIRMS) subdivides the early stages of projects and presents a tool for managing the risks in procedures by classifying the total life cycle of projects in five stages: establishment of ordering plans, bid preparation period, contract conclusion, construction, completion, and maintenance. This allows the risks to be systematically managed. Additionally, by means of a portfolio cash flow analysis, it provides practical cash flow and contract management guidelines including main check points. However, since the system is focused on the early stages of domestic and overseas construction projects, it cannot be easily applied to the national construction industry. Furthermore, it also presents difficulties in performing multiple analyses because it cannot easily process all characteristics related to the project and its environment, which are essential to analyzing the variety of risks that may occur during overseas construction projects.  
The risk management plan (RMP) and risk-based estimate system (RBES) used by the Washington State Department of Transportation [36] were designed so that it could be more easily used and accessed by users. Their major significance is that they can be downloaded from the internet without charge. The RMP has a checklist form through which risk management processes, including risk recognition, analysis, countermeasures, monitoring, and control, can easily be viewed. Additionally, specific information about each process can be input, enabling effective risk management. In contrast, the RBES, which is based on the RMP, offers functions such as calculation of expenses incurred by risks during the entire project, and calculation of total expenses incurred by basic risk countermeasures (e.g., gain, avoidance, bypass). Furthermore, the degree of risk can be obtained through Excel-based Monte Carlo simulation. However, users have difficulties using and accessing the system due to its complex architecture that comprises multiple menus.  
The Simple Risk Management Process (TSRMP) is a risk management process designed with the support of the Royal Society of London for the Promotion of Natural Knowledge [37]. It has major significance as an Excel-based user-friendly process. Through this integrated web-based construction risk management system, construction practitioners can easily understand the many risks that occurduring construction projects and establish effective countermeasures to minimize losses caused by them. However, although the architecture of this system is comparatively simpler than that of the RMP or RBES, its system analysis techniques such as construction industry research and information association (CIRIA) are weak, and it can only be used by Royal Society members.  
The CRMS proposed in this study is capable of analyzing the importance, incidence, detection, and severity of risks factors that occur in CM firms through AHP and FMEA techniques, which yielded the six main risk factors that have to be prioritized. The CRMS comprises seven modules and 20 sub-modules in which detailed risk management status information is available and through which information about future construction plans can also be obtained. Additionally, information regarding the risk factors of projects is stored in the database, and it can be used as a resource for processing future claims or disputes. Finally, all the information provided can easily and conveniently be visualized through this system. Therefore, the CRMS proposed herein is suitable for use by all users--from construction managers to executives--and it provides optimal risk management information for national CM firms. Table 4 compares the characteristics of CRMS to the aforementioned existing risk management systems.