How business critical is risk management to the success of projects?

Abstract

Within the field of project management, risk management is an area that is arguably under developed and under researched. This is compounded by the lack of recognition as to how critical project management is to the ultimate success and delivery of projects. The purpose of this study is to attempt to gain a deeper understanding of risk management and more specifically to better understanding the specifics of the risk management process and the categorical importance of the topic to the success of project management in contemporary organisations. Using semi-structured interviews to gain an insight from six practitioners that have knowledge and expertise in the fields of project management and risk management, the data confirmed the importance of both disciplines and what authors and practitioners consider to be required for project success in today's fast paced, highly competitive environment. By analysing the respondent's thoughts on key aspects of the project risk management process and analysing the findings with existing literature, there is a greater identification of the answer to the research question and objectives. This study highlights there is a clear realisation that risk management is fundamentally important to the success of projects and the overall business firm. However, there are a number of important factors that are required for efficient and effective risk management to occur. There are a number of key aspects that businesses must also prioritise and be aware of for an organisation to be successful in their aims and objectives, including the importance of attempting to change perceptions of risk and creating a corporate culture of risk. It also highlights the need for communication, standardised procedures and the requirement to think about opportunities to ensure consistent quality.