Choosing project risk management techniques. A theoretical framework
Journal of Risk Research
The pressure for increasing quality while reducing time and costs places particular emphasis on managing risk in projects. To this end, several models and techniques have been developed in literature and applied in practice, so that there is a strong need for clarifying when and how each of them should be used. At the same time, knowledge about risk management is becoming of paramount importance to effectively deal with the complexity of projects. However, communication and knowledge creation
... nowledge creation are not easy tasks, especially when dealing with uncertainty, because decision-making is often fragmented and a comprehensive perspective on the goals, opportunities, and threats of a project is missing. With the purpose of providing guidelines for the selection of risk techniques taking into account the most relevant aspects characterising the managerial and operational scenario of a project, a theoretical framework to classify these techniques is proposed. Based on a literature review of the criteria to categorise risk techniques, three dimensions are defined: the phase of the risk management process, the phase of the project life cycle, and the corporate maturity towards risk. The taxonomy is then applied to a wide selection of risk techniques according to their documented applications. This work helps to integrate the risk management and the knowledge management processes. Future research efforts will be directed towards refining the framework and testing it in multiple industries. Keywords: Project management, risk management, corporate risk maturity, technique selection, knowledge creation. 2008). Nowadays a sound management of risk is a crucial determinant of the success of a project due to an increased attention to the variability of actual quality, time, and cost performance compared to the expected one as a consequence of a growing pressure on reducing time and costs. It has been demonstrated that failure to deal with risk is a main cause of budget exceeding, falling behind schedule, and missing performance targets (Carbone and Tippet 2004). In several industries, such as the construction and information and the phases of the risk management process, the phases of the life cycle of a project, and the corporate maturity towards risk. The aim is assisting in the selection of the appropriate risk management technique by considering all the relevant aspects characterising the context of analysis. This enhances knowledge about the most appropriate operational ways to implement risk management processes. The proposed scheme is general and can be applied to projects in numerous industries. References Adler, B., A. Kanungo, I. Trboljevac, A. Deshprabhu, and R. Levenson. 2003. Tools of Risk Management. Engineering 801: Engineering Management.