Project risk management practices: the organizational maturity influence

Abstract

Purpose The purpose of this paper is to identify patterns of project risk management (PRM) practices’ adoption, and provides empirical evidence concerning the importance (and key attributes) of organizational PRM maturity to the use of risk-related practices and project performance. Design/methodology/approach The research involved two phases: interviews with five project managers, and a worldwide survey of project managers that resulted in the analysis of 865 valid questionnaire responses. Cluster analysis was used to classify PRM practices’ use, factor analysis to detect the structure of the relationship between the variables measuring PRM practices’ use and a multiple regression analysis (with canonical correlation) to further reveal the different degrees to which PRM practices and organizational maturity are associated. Findings The identified patterns of risk practices’ adoption indicate that different contexts of organization PRM maturity and project complexity influence practices selection. The PRM practices related with targets (e.g. time-phased budget plan) are the most used, and those related to tools and techniques (e.g. S-curve) are the least used. Additionally, the obtained results confirm that organizational PRM maturity influences risk practices’ usage, moderated by project complexity, and organizational PRM maturity influences project performance. Originality/value Empirical methods were used to investigate the relationship between organizational PRM maturity and a large set of PRM practices with project complexity as a moderator. Gaps in the use of PRM practices (i.e. areas where more PRM knowledge and training are needed) were identified. Finally, this work identifies the attributes of organizational maturity with implications in practices’ usage and project performance.

Perception of the Risk Factors in Official Development Assistance (ODA) Construction Project Management: Focused on Comparison between Project Owner and Construction Manager in KOICA Grant Projects

“…The management of these risk events to mitigate or eliminate the occurrence and impact of adverse effects and encourage positive results is called Risk Management (Boateng et al, 2020). Crispim et al (2019) posited that the inability to cope with risk is the leading cause for exceeding budget, deadlines, and other project objectives. To mitigate or eliminate the risk, we count on risk management, an integral part of project management (Serpell et al, 2014).…”

Analysis of Dominant Causative Variable for Project-Based Work Delay at PT. XYZ

“…Managing process from initiation through closing consists of some steps, namely initiation phase, planning phase, execution phase, control and monitoring phase, and closing phase [13]. In initiation process, a project needs to be defined and forecasted for resources needed.…”

“…Risk must be acknowledged, identified, and evaluated [14]. There are some practices and technique to be applied at project risk management that consist of six steps, namely risk identification, risk evaluation, planning actions against risk, risk monitoring, communication and integration, and management support task [13].…”

“…Risk should be managed to achieve lower level of risk [13] but before, the level of every identifiable risk variable should be known. To calculate the level, risk index level are used [2].…”

The impact of project risk management maturity on performance: Complexity as a moderating variable

“…The moderation variable was “complexity and uncertainty” at the project level. A worldwide survey by Crispim et al 50 suggests that the firm-level PRMM positively influences PRM practices which in turn affects project performance. Moreover, it is found that project complexity moderates the relationship.…”