Development of a Risk Analysis Method using a Hybrid of WBS and PESTLE on a Construction Project

Abstract

The risk identification stage that is a part of the risk analysis in construction project implementation mostly uses the Work Breakdown Structure (WBS), political, economic, social, technological, legal, and environmental (PESTLE) methods, or other partial methods. Partial risk identification with WBS or PESTLE does not yet provide adequate risk mapping, so it needs to be studied using a hybrid risk identification method between WBS and PESTLE. Qualitative descriptive methods were used in this research. The WBS and PESTLE hybrid risk identification methods were developed through a review of the literature and expert judgment. The risk assessment and evaluation of risk levels for qualitative risk analysis used the Probability-Impact (PI) method. The hybrid WBS and PESTLE risk identification method obtained was in the form of a WBS and PESTLE matrix framework model. The results of implementing risk identification based on the WBS and PESTLE risk sources provided more in-depth information on each task in the WBS, mapped to the PESTLE risk sources. The results of the analysis of the major risk categories consisting of unacceptable and undesirable risk levels can be traced to the WBS and PESTLE tasks. For construction project teams, the hybrid WBS and PESTLE method makes it easier to identify and map risks in detail so then the results of the risk analysis and evaluation can be handled and controlled in detail.