The role of ISO 31000 risk management in enhancing HSE and project performance: evidence from oil and gas construction projects

Abstract

Using a survey, 152 professionals involved in Indonesian oil and gas pipeline projects were approached to examine how different elements of ISO 31000 risk management (Context and Criteria (IC), Identify and Analyse (IA), Evaluate and Treat (ET), and Communication (CM)) affect both Health, Safety, and Environment (HSE) performance and overall project outcomes. The data analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that Context and Criteria have a strong positive influence on HSE performance (β = 0.55, p < 0.001), as well as project performance (β = 0.90, p < 0.001). Evaluate and Treat also significantly boosts HSE (β = 0.65, p < 0.001). In contrast, Identify and Analyse, Communication, and even HSE performance do not appear to have a significant direct impact on project outcomes. The model accounts for a substantial proportion of the variance in both HSE (R²_HP = 0.64) and project performance (R²_PP = 0.71). Early-stage risk contextualisation and active risk treatment are far more influential than merely identifying or communicating risks, especially in the high-risk setting of oil and gas construction. For project owners, contractors, and regulators, the lesson is clear: prioritise early risk framing, allocate concrete resources for treatment, and incorporate risk criteria into contracts to achieve better safety and more reliable project delivery.