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1. Introduction
According to the International Organization for Standardization (ISO), risk is defined as "effect of uncertainty on objectives" (ISO, 2009, p. 1). Project risk management (PRM) has been emphasized in construction firms because these firms typically depend on construction projects to earn revenues and profits (Zhao et al. , 2014). However, construction firms are also exposed to the risks outside projects (Low et al. , 2009), which are likely to impact both project objectives and corporate objectives. Thus, a global view to identify systemic risks was recommended for construction firms venturing into overseas markets to replace project-only risks (Zhi, 1995).
In recent years, a paradigm shift has occurred in the way companies view risk management, and the trend has moved toward a holistic view of risk management (Gordon et al. , 2009). As the fundamental paradigm in this trend, enterprise risk management (ERM) has attracted worldwide attention (Liu et al. , 2013). The Committee of Sponsoring Organizations of the Treadway Commission defines ERM as "a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives" (COSO, 2004, p. 2). Afflicted with various risks, construction firms have been considered as prime candidates for ERM implementation (Zhao et al. , 2013b). Implementing ERM in construction firms can be seen as a gradual organizational change because the management in these firms has been accustomed to PRM and needs to adapt to ERM.
This study aims to interpret ERM implementation in Chinese construction firms (CCFs) based in Singapore from an organizational change perspective. The specific objectives are to: first, identify the critical drivers for and hindrances to ERM implementation in Singapore-based CCFs; second, interpret the critical drivers and hindrances in tandem with organizational change theories; and third, provide possible strategies to strengthen the drivers and overcome the hindrances.
2. ERM
2.1 Drivers for ERM implementation
ERM adoption has been compelled by a series of legal compliance and corporate governance requirements (Kleffner et al. , 2003; Liebenberg and Hoyt, 2003). Some of these requirements are the mandatory laws or...