Measuring the performance of project risk management: a preliminary model

Abstract

<jats:title>Abstract</jats:title> <jats:p>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 measurement of the performance of PRM becomes an important concern, an issue that has not yet been addressed in the research literature. It is necessary to know how successful the application of the PRM process is and how capable is the process within the organization. Regarding construction projects, it is essential to know whether the selected responses to mitigate or eliminate identified risks were suitable and well implemented after the execution of the project. 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 responses applied to mitigate risks as well as to evaluate the resulting impacts as indicators of the effectiveness of these actions at the end of the project. This knowledge will allow construction companies to incorporate good practices, generate lessons learned, and thereby to promote a continuous improvement of the whole PRM process.</jats:p>

The Importance of Continuous Organizational Project Risk Management and the Value of Project Management Certificates in the Customers’ Eyes

“…Risk management is a strategic process that enables an organization to make decisions under uncertain conditions and, subsequently, to optimize its performance [17], [18]. Continuous project risk management, in particular, offers the means to identify, assess, and control risks on an ongoing basis, allowing for an adaptive response to changes and unforeseen circumstances [5], [19]. Risk management has gained high recognition in a multitude of industries in the past decades.…”

“…The increasing complexity of projects and their interdependencies call for an integrated approach towards understanding, assessing, and managing risks. The right execution of risk management allows organizations not only to foresee potential threats but also to identify and exploit opportunities for value creation [4], [5], [6].…”

A construction–specific extension to a standard project risk management process

“…Quantitative risk analysis allows for a more is a continuous process in projects. According to a study conducted by Serpell, Ferrada & Rubio, in 2019, risk identification is considered one of the most critical stages of risk management for construction projects and influences the successful execution of the next stages of this process. However, identifying and managing all risks in construction projects is impossible.…”

“…Moreover, in the initial phase of the project, it is important to start managing risks (contracts covering the risks must be concluded with the actors involved in this process, e.g. insurance firms) (Serpell et al 2019).…”

Rancangan Manajemen Risiko Korporat Terintegrasi Pada Perusahaan Pertambangan Batu Bara Tahun 2023-2024

“…Manajemen risiko adalah suatu upaya yang dilakukan oleh perusahaan untuk memaksimalkan pencapaian tujuan bisnis melalui identifikasi, analisa dan pengendalian aktivitas berbasis risiko yang bertujuan mendukung pertumbuhan dan keberlanjutan perusahaan (Djohanputro, 2013;Senjaya et al, 2020). Proses manajemen risiko terdiri dari lima tahapan utama yaitu 1) perencanaan; 2) identifikasi; 3) analisa dan evaluasi; 4) perlakuan, dan; 5) pengendalian dan pengawasan risiko (Serpell et al, 2019). Untuk diketahui bahwa tujuan dari manajemen risiko bukan untuk menghilangkan sepenuhnya risiko bisnis dalam suatu perusahaan, namun untuk meminimalisir dampak risiko tersebut, maka fokus yang harus dilakukan adalah mengidentifikasi, mengukur dan mengendalikan risiko tersebut (Rampini et al, 2019).…”