Measuring project risk management performance: a preliminary model

Abstract

The function of project risk management (PRM) is to understand the uncertainty that surrounds a project and to identify the potential threats than can affect it as well as to know how to handle these risks in an appropriate way. Then, the measuring of the performance of PRM becomes an important concern, an issue not addressed yet in the research literature. It is necessary to know how successful is the application of the PRM process, and how capable is the process within the organization. Regarding construction projects, it is essential to know if the selected responses to mitigate or eliminate identified risks were suitable and well implemented. This paper presents a critical analysis of the relevance of measuring the performance of PRM and the benefits of doing so. Additionally, it presents a preliminary and pioneering methodology to measure the performance of PRM through the evaluation of the adequacy of the responses applied to mitigate risks, as well as to evaluate the resulting impacts as indicators of the effectiveness of these actions. This knowledge will allow construction companies to incorporate good practices, generate lessons learned, and thereby promote a continuous improvement of the whole PRM process.