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Risk Management: The Project Manager's Perspective
Risk Management: The Project Manager's Perspective
Risk Management
The project Manager’s Perspective
Riskhantering
Projektledarens perspektiv
Project Management
MSc. Thesis
Termin: HT-2018
Handledare: Henrik Bergman
Tomas Johansson
Lennart Ljung
Abstract
Risk management is often mentioned in project management literatures and
among project managers. From all literatures that discuss project risk
management, it is recognized as an important tool, in project management, which
helps project managers to achieve projects goals in terms of project’s time, cost,
and quality that satisfy stakeholders. Considering the fact that there are always
uncertainties and risks in all new projects, it is of interest to find out if the views
of practicing project managers on risk management are the same as that which the
literatures portray.
The purpose of this study is to find out project managers views on risk
management and it is based on interviews conducted with project managers from
the construction, IT, product development, city planning, marketing, and event
planning branches.
The study concluded that project managers view risk management as a very
important tool in project management and that by applying their leadership skills
in risk management and maintaining proper control of projects, project managers
are able to achieve projects’ goals.
Key words: Project management, Uncertainties, Risk assessment, Risk analysis,
and Risk management
ii
Sammanfattning
Studien drar slutsatsen att projektledare ser riskhantering som ett mycket viktigt
redskap i projekthantering. Genom att tillämpa sina ledarförmågor i riskhantering
såväl som att upprätthålla rimlig kontroll av projekt kan man därigenom uppnå
projektets mål.
iii
Acknowledgement
My journey through the entire study at Karlstad University has been a remarkable
one and I have learnt a lot on project management.
I would like to thank all those involved in making this thesis a success and to
those respondents who happily and willingly agreed to be interviewed, I do
sincerely express my heartfelt appreciation. Without them, my thesis would not
have been completed.
Special thanks to my lectures and supervisor who gave me the foundation and
directions needed in becoming a project manager.
Finally, I will like to thank my course mates Linda, Jenny for their continuous
invaluable encouragements and contributions given me during the times when I
felt like fighting an uphill battle with this research.
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Table of contents
1 Introduction ................................................................................................ 1
1.1 Purpose .............................................................. Error! Bookmark not defined.
1.2 Who will benefit from this research? .................................................................. 2
1.3 Research question ............................................................................................... 2
2 Literature Review ....................................................................................... 2
2.1 Risk assessment................................................................................................... 4
2.2 Risk identification techniques ............................................................................. 9
2.3 Performing Qualitative Risk Analysis .............................................................. 11
2.4 Performing Quantitative Risk Analysis............................................................. 12
2.5 Planning Risk Responses .................................................................................. 12
2.6 Risk Transfer ..................................................................................................... 13
2.7 Controlling Risks .............................................................................................. 13
2.8 Communication Skills ....................................................................................... 14
3 Methodology ............................................................................................. 16
3.1 Population ......................................................................................................... 17
3.2 Data Analysis .................................................................................................... 17
3.3 Reliability and Validity ..................................................................................... 18
3.4 Ethical Consideration ........................................................................................ 18
4 Result ........................................................................................................ 19
4.1 Using leadership skills in risk management to facilitate project success .............. 19
4.2 Evaluating projects to maintain control ................................................................ 20
5 Discussion ................................................................................................ 22
6 Limitation .................................................................................................. 26
7 References .................................................................................................. 27
8 Appendix................................................................................................... 30
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1 Introduction
There are always uncertainties and risk associated with the implementation of
every project. These could be on the cost, time, quality etc. that a project manager
has to be prepared to deal with. Kerzner (2006). The question which then arises is,
what is risk management?
Kerzner (2006) defines Risk management as the process of identifying,
quantifying, and responding to the risks of the project without any material impact
on the project's objectives and Dinu (2015) defines risk management as the
process of identifying, analyzing and responding to risk factors during the life of a
project and in the best interests of its objectives. Dinsmore & Cabanis-Brewin
(2011) on the other hand, defines risk management as the formal process whereby
risk factors are systematically identified, assessed, and provided for.
Studies have shown that there are uncertainties associated with every project
hence risk management is important in achieving the goal of a project. Kerzner
(2006), Nicholas & Steyn (2011), and Yim et al (2015). This is supported by
Burke (2003) when he explains that risk management has always been an intrinsic
part of project management. Chapman & Ward (2003) further explains that the
need to manage uncertainties is inherent in most projects that require formal
project management hence the need for risk management is important.
Monteiro de Carvalho & Rabechini Junior (2013) on the other hand, argue that
risk management shows a wide gap between theory and practice in organizations.
This argument seems to explain that risk management is not widely implemented
or practiced in some organizations. Also, Dey (2002) explains that risk is by
1
nature subjective and that managing risk subjectively poses the danger of non-
achievement of project goals. Comparing the arguments of Kerzner (2006),
Nicholas & Steyn (2011), and Yin et al (2015) to that of Monteiro de Carvalho &
Rabechini Junior (2013) and Dey (2002) does seem to raise some sort of
contradiction and this may cast some doubts on some aspiring project managers
as to whether risk management is necessary in project management or not. In an
effort to clarify this doubt, this research will focus on obtaining the perspectives
or views of practicing project managers on risk management. This study will
bring out the views of practicing project management professionals on risk
management. It is hoped that this research will provide an answer to the question:
1.1 Purpose
The research aims to ascertain the project managers views on risk management
2 Literature Review
This study aims to find out how project managers view risk management in
project management. Raz et al (2002) defines project risks as undesired events
that may cause delays, excessive spending, unsatisfactory project results, safety or
environmental hazards, and even total failure. They go on to further explain that
the source of projects risk may come from the task itself, which can be
characterized by uncertainty, complexity, and urgency, or from the lack of
resources or other constraints such as skills, or policy. According to Dinu (2015),
anything that threatens or limits the goals, objectives or deliverables of a project is
a project risk. Since we now know the meaning of project risks, we have to look at
what project risk management is. Yim R et al (2014) defines project risk
2
management as a process for systematically identifying, evaluating, and
mitigating risks to improve the likelihood of project success whereas(and)
Kerzner (2006) on the other hand, defines project risk management as the process
of identifying, quantifying, and responding to the risks of the project without any
material impact on the project's objectives. A look into Burke (2003) expands
these above definitions of project risk management a bit further to include
management of project risk throughout the entire project’s lifecycle. It defines
project risk management as the systematic process of identifying, analyzing and
responding to project risk throughout the entire project lifecycle. In addition to
this definition, it specifically states that these actions should include maximizing
the results of positive events and minimizing the consequences of adverse events.
Burke (2003) view of including project risk management throughout the entire
project’s life-cycle is also shared by Chapman & Ward (2003) where they
emphasize that to be fully effective, risk management needs to address the whole
PLC (i.e. project life-cycle) rather than selected stages, guiding and informing
each and every stage of the PLC. According to Hedemann et al (2005), the project
lifecycle begins with the approval of the project assignment and continues on
through specification, development, testing and implementation up until delivery
of the project outcome. All these definitions of risks by the various authors have
one thing in common. They always link risk with objectives.
Looking at the various definitions of risk above, one can conclude that a risk is
any uncertain event that, if it occurs, could prevent the project realizing the
expectations of stakeholder. With regards to risks in projects, Hoobs (2015)
clearly states that most tasks will contain some elements of risks and that one
needs to set up a threshold at which one is going to begin to plan. He emphasizes
that as a project manager, the risks that you should be concerned with are those
that will have an impact on one of the three project parameters (time, cost, or
quality). Hoobs (2015) and Dinu (2015) argue that project risks need to be
evaluated with respect to two criteria. Probability (how likely they are going to
happen) and impact (how serious will it be if they do). This argument is also
supported by Nicholas & Steyn (2011) when they claim that the notion of project
risk management involves two concepts:
1. The likelihood that some problematical event will occur.
2. The impact of the event if it does occur.
3
This sets risk as a joint function of the above two parameters: Meaning that,
Risk = ƒ (likelihood, impact). Equ. This can also be expressed as:
Risk = Probability of event X Magnitude of loss/gain
This impact/likelihood is illustrated in fig. 1
Source: pm4id.org
4
Table 1: Risk Assessment Matrix
Bodicha (2015) on the other hand introduces a five-point scale guide for almost all
project work. This five-point scale is shown in table 2. Risk probability and Impact table.
Based on this risk likelihood and impact we can conclude that a project will,
under normal circumstance, be considered risky whenever the combination of
these two parameters (i.e. likelihood and impact) is large. According to Raz et al
(2002) no one can avoid project risks; however, we can certainly prepare by
adding risk management activities to project plans and put in place mechanisms,
backups, and extra resources that will protect the organization when something
goes wrong. Dinu (2015) shares this view by stating that with a suitable risk
management, the probability of an event occurring and its impact on a project can
be reduced. Carvalho & Rabechini Junior (2015) on the other postulate that some
surveys have found that risk management has low impact on project performance
and at the same time other scholars have suggested that even moderate levels of
risk management planning is enough to reduce the negative effects of risk on
project success.
5
Young (2007) states that there are two fundamental types of risks that are always
present. These are Project risks and Process risks.
• Project risks are those risks that are associated with the technical aspects of the
work to achieve the required outcomes; and
• Process risks are those risks that are associated with the project process,
procedures, tools and technique employed, controls, communication, stakeholders
and team performance. Young (2007)
Young (2007) goes on to further emphasize that as a project manager you have the
obligation, working, with your team, to:
• identify and evaluate potential risks;
• derive a response strategy and action plans to contain the risks;
• implement the actions and monitor the results;
• promptly resolve any issues arising from risks that happen.
Dey (2002) summarizes the process of risk assessment as follows as shown in
table 3:
Table 3. Risk Assessment
Risk Assessment
• Identify risks
• Assess risk
• Determine consequence
scenarios
• Determine control meas-
ure
6
phases and reaches its maximum at the termination phase. This is illustrated in
Fig.2 (Risk vs Amount at stake)
In his survey to identify the occurrence tools which were mostly implemented and
related to the success of any project management and specifically with effective
project risk management, Ghaeli (2017) identifies the following tools: Analysis,
Background, Control, Identification, Planning and Tracking. These tools listed
are in fact similar to the following six processes.
These tools or processes are also identified by Kerzner (2006). The PMI’s
PMBOK Guide; however, groups these above listed tools into two groups: The
planning process group and the Monitoring and Controlling Process Group as
illustrated in fig. 3. below.
7
Fig. 3 Plan Risk Management
The risk management plan essentially identifies the risks that can be defined at
any stage of the project life cycle (PLC). It has to be periodically updated
throughout the PLC of the project. According to Dinsmore & Cabanis-Brewin
(2011), risk management planning is about deciding how to conduct management
activities for a project. Such planning should be continuously reviewed during the
project and updated whenever occurrence if the risk process is modified.
In other to define how the risk management plan will be structured and
performed for the project, Mulcahy et al. (2013) suggests that the following
people be involved:
• Project Manager
• Sponsor
• Team
• Customer
• Other Stakeholder, and
• Experts.
The Project Manager can identify the potential risks for a project in any of the
following methods: Brainstorming with the team, considering issues/problems
that have arisen in past projects, or the 2” common risks” checklists that exist for
the particular project.
Williams (2008) details the process involved in creating a risk management plan
as follows:
1. Identify potential risks
2. Rate them by likelihood and severity.
8
3. Choose which risks to plan for.
4. Make plans for dealing with those risks.
Due to the fact that there are numerous risks associated with projects, Hoobs
(2015) advices that as a project manager, the risks that you should be most
concerned with are those risks that will have impact on one of the three project
parameters (time, cost or quality).
The main output of a risk management plan according to Peixoto et al (2014) is
the risk register. A risk register, as defined in Turner (2014) is a list of all the risks
on the project, with their impact and risk reduction strategy. These risks,
according to the authors, are sorted according to their priority so that the
significant few are at the top, where they can be focused on, and the significant
many are at the bottom, where they can be remembered but do not occupy too
much attention.
The identification of project risk, according to Nicholas & Steyn (2008) begins
early in the conception phase and focuses on discovering the high-risk factors that
would cause difficulties in executing the project or destined to failure. Peixoto et
al (2014) does summarize the risk identification techniques in Table 4. Where the
process involved are explained showing the inputs, tools and techniques, and
outputs used in identifying risks.
9
Table 4. Risk Identification Techniques
Objective source: recorded experience from past projects and the current project
as it proceeds
• Lessons learned
• Program documentation evaluation
• Current performance data.
Subjective source: experience based upon knowledgeable experts
Interviews and other data from subject matter experts
10
2.3 Performing Qualitative Risk Analysis
Qualitative risk analysis helps us to identify the sources or factors of the main
risks of a project. Norris et al (1997).
During the qualitative risk analysis, you create a prioritized list of risks. You then
classify these risks as high, moderate, or low, or you assess the cost impact of the
risk if it happens. Dvir &Shenhar (2007) Due to the limitations on resources and
time, these risks cannot be given the same degree of attention; hence, these risks
are further prioritized so as to identify those risks that are worst threats and best
opportunities. Dinsmore & Cabanis-Brewin J. (2011).
Basically, qualitative risk analysis assesses the importance of the identified risks
and develops prioritized lists of risks for further analysis to determine how to
reduce their potential impact. Dvir & Shenhar (2007). The authors point out that
at times, experts from functional units are called upon to help in assessing the
risks and their potential impact.
The reason why Dvir & Shenhar (2007) discusses the importance of developing
prioritized lists is because with the large number of possible risk events, it is
impossible to address each and every situation hence it is necessary to prioritize
risks. Kerzner (2006)
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Looking at table 5, it can be seen that the project manager would have to focus
his/her effort on reducing the scheduled-related risks. Having said that, one has to
bear in mind that even if schedule has the highest priority, the project manager has
to start work on cost and technical performance-related issues at the same time,
but the schedule-related issues may have the greatest resources applied.
According to Kerzner (2006), the prioritization of risks could be established by
either the project manager or the project sponsor, or even by the customer. It can
also be industry specific, or even country specific.
After identifying the risks and prioritizing the risks, it would helpful to come up
with a list of the known risk and, the chances of it happening, the impacts if it
happens, and the response. This could be listed in a ‘known risk’ as in table 6.
12
The methods of dealing with an identified risk generally are, according to Nicho-
las & Steyn (2011) and Dey (2002).
• to transfer;
• to avoid;
• to reduce; and
• to accept/absorb.
Reduce Risk
Some of the ways to reduce technical risks (its likelihood, impact, or both)
according to Nicholas & Steyn (2011) are to:
13
Project risks are those risks that are threats to the projects itself and may impede
the achievement of the project’s objectives within budget and on time. Typical
risks associated with project risks could be supplier failure, skill
shortage(manpower), New methods (new technology) etc. Nicholas & Steyn
(2011).
There are a lot of factors that contribute to project risks. Some of them are scope
definition, time, cost, incorrect management, ineffective shareholder management,
human resources, poor communication etc. Kerzner (2006) and Nicholas & Steyn
(2011).
Elkjaer et al (1999) summarizes risk management processes into a complete loop
which he refers to as The project Risk Management Loop of Control as seen in fig.
4. He lists the advantages of using the Project Risk Management Loop of Control
to be:
• Baselining for a systematically work approach
• Controlling critical risks.
• Ensuring use of experience.
• Exchanging information between project participants. Elkjaer et al (1999).
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relationships with all stakeholders. It also requires the ability to communicate. As
explained in Carroll (2012) a project manager needs the basic skills that any line
manager needs; however, the project manager requires a different approach in
using these skills. Whiles hard skills are job-specific skills and the knowledge one
needs to perform a particular task, communication (sometimes referred to as soft
skills) on the other hand can be said to be interpersonal skills. They include
attributes like listening skills, communication skills, empathy, conflict resolution,
decision-making, motivation, creative-thinking, flexibility, problem-solving,
political and cultural awareness, trust-building, negotiating, expectation
management. etc. Newton (2016) explains that being able to deal with
stakeholders, set and manage their expectations, and keep them positively
engaged in a project is one of the most important factors in project management
and that soft skills are most critical to a project manager’s success.
According to Carvalho & Rabachini Junior (2015), soft skills involve the
management of interpersonal relationships and the notion of project ecology. The
authors argue that risk management requires more time and efforts invested in soft
skills and that complex projects require management interventions that go beyond
simple analytical approach. They go on to emphasize that the ISO 31000 standard
(ISO 2009) suggests communication and consultation with both internal and
external stakeholders during all the phases of the risk management process so as
to ensure that they and those responsible for risk management understand the
foundations that form the basis for certain decisions and specific actions. This,
authors believe, will enable them to adjust their perception of risk. These skills
mentioned above are supported by Anantatmula (2010) when he explains that
leadership has its efforts directed toward convincing people about the need to
change, aligning them to a new direction, and motivating people to work together
to achieve project objectives under difficult and demanding work environments.
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3 Methodology
A qualitative research approach will be used to find out project managers’ views
on risk management.
Semi-structured open-ended questions were used for the interviews. These open-
ended questions allow the respondents to freely interpret and respond to the
questions the way they view them.
In order to ensure that the participants who were initially contacted for the
interview were available and were still willing to participate in the interviews,
16
emails were sent to them on few occasions to remind them and at the same time
confirm the agreed dates for the interview. However, there was one participant
who initially agreed for the interview but did not respond to my mails and did not
participate.
3.1 Population
The population of this research was randomly selected to reflect a broad range of
different fields in which project management is implemented. It includes 9 project
managers and senior project managers in the following industries: Construction,
IT Sector, product development, and city planning, Event management/planning,
Marketing and City planning with experience in project management ranging
from 5 to 20 years in Sweden, the US, and the middle east. Two of the
respondents have 20yrs of experience in project management, 4 of them have
15yrs of project management, and 3 of them have 5yrs experience as senior
project management.
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3.3 Reliability and Validity
According to Neuman (2003), reliability means dependability or consistency.
The author goes on to say that qualitative researchers use variety of techniques
(e.g. interviews, participation, photographs, document studies, etc.) to record their
observations consistently.
Nobel & Smith (2015) also talks about consistency in reliability whereas
Golafshani (2003) discusses how crucial it is in the examination of
trustworthiness to ensure reliability in qualitative research.
To ensure the reliability of this study, few numbers of the population were asked
if they understood the research topic and each question was explained to make
sure they clearly understood each question. This formed a sort of test or pilot
questionnaire to make sure that the questions are easy to understand, appropriate
to the research topic, and unambiguous. After the pilot questionnaire, the
questions were then adjusted in the interview guide where necessary. A re-test
method was also used to determine the reliability of the results. This was done by
sometimes slightly asking the same questions in different way at a later time. This
was to ensure that they will give the same answers if the research is repeated.
Fellows & Liu (2008).
Some of the participants were invited to comment on the interview transcript and
also to verify if the final themes do adequately reflect the study. This was done to
ensure the validity of the study.
All the participants were interviewed under the same condition, in their respective
offices at their workplaces, and in quiet environment without disruptions. Both the
transcription and the analysis were done by the same person to ensure a consistent
approach. In order to make this research process transparent, all steps have been
reported through the choice of problem formulation, methodology,
implementation, data processing and analysis.
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opt out during anytime of the interview and that they were free to decide not to
answer any questions that they didn’t feel comfortable with. As explained in
Jelsma J. & Clow S. (2005), It is essential to obtain informed consent before any
participant is enrolled in a research project. It was very important let the
participants know their identities would be protected and that any information
about them would be kept confidential as explained in Bryman (2012). The
respondents were also informed that all material transcribed will be available to
those who are competent only.
4 Result
What do project managers say about risk management?
19
“I am able identify the risks early, analyze them, and coordinate the resources
available to find solutions to those problems.”
“I notice that it is a good idea to get stakeholders involved because it gives them
the opportunity to make better decisions and also their involvement is a key to
delivering what the stakeholders want.
20
come up with strategies to respond to those problems and regularly monitor to see
if the project is going according to plan.
Here are what some of them had to say:
“To have control you need to be able to know the problems, check to know how
these problems could affect the project and then go ahead to find a solution to the
problems. “
When asked why there is a need to maintain control of projects that they manage,
a respondent had this to say:
“You want to know at the early stage if there are errors to be corrected rather
than waiting until you come midway through the project to realize that everything
is wrong.”
The respondents also expressed that there are several tools available to enable
them to gain control of the project that they manager; however, some of them did
say that they do look at those tools that let them know what uncertainties or risks
are associated with the projects that they are going to undertake. Based on that,
21
they are able to find solutions to enable them to deliver successful projects. Some
of them also emphasized the need to have control over the project if one wants to
deliver a successful project.
Without having control over a project, there is a likelihood that the project
manager won’t be able to finish the project on time, and possibly over run the
budget allocated for the project.
“Finding the balance between the project’s budget and the resources and the
time to deliver the project puts you in control of your project.”
During the interview it came to light that all the respondents do conduct
evaluation to help them to see if the projects that they are managing are going in
the right direction and they see it as a form of controlling the project as well.
Some of them explained that controlling a project is a way of measuring project
performance.
5 Discussion
How do project managers view risk management?
22
Leadership is the ability to influence the behavior of others to accomplish what is
desired, also a leadership function directs and motivates people Nicholas & Steyn
(2011). This ability to influence the behavior of others to accomplish what is
desired obviously requires, among other things, good communication skills.
Some respondent explained that with good leadership skills they are able to know
what the problems are, find solutions to these problems, and deliver the project’s
objective on time. This is in line with Kerzner (2006).
From the views expressed by some of the respondents, they use better leadership
skills to identify the risks early, analyze them, and coordinate the resources
available to find solutions.
These views expressed by some of the respondents are explained in Dinsmore &
Cabanis-Brewin, (2011) in which it states that risk management is concerned with
conducting risk management planning, identification, analysis, responses, and
monitoring and control on a project. However, to be able to effectively conduct all
the above-mentioned processes requires good leadership skills. This, in fact, can
explain why the respondents view leadership role in risk management as
important
Other respondents emphasized how, through risk management, they are able to
know in advance what can possibly go wrong, plan how to avoid it happening,
and then apply their leaderships skills to lead team mates to achieve the project’s
goal.
It was discovered, through the views of the respondents, that with leadership skills
the respondents are able to communicate with stakeholders to convince them
where changes are needed, motivate team members and align them to new
directions. This is emphasized in Newton (2016) and Anantatmula (2010) where
they explain that the project manager has to a be able to communicate with
stakeholders and convince them on why he or she thinks these changes are
necessary to achieve the projects objectives.
Looking at the respondents’ views on leadership it is very clear that they view
leadership role in risk management as important tool which enables them to
coordinate the resources available to achieve the project’s goal.
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How do project managers maintain control of the project?
This study discovered that project managers do undertake project evaluations as a
means of controlling the project. In other to gain control of the project, it was
revealed that the tools needed are : identifying the problems (i.e. risks), knowing
the impact these problems could have on the project (i.e. analyzing the risks), and
finding a solution to the problem (i.e. risk response). This is in line with the risk
management tools mentioned in Dey (2002) and Ghaeli (2017). These tools
mentioned here are similar to the risk management plan mentioned in Williams
(2008). These tools when used ensures effective risk management.
These evaluations, according to Nicholas & Steyn (20011), do also ensure that if
any mistakes are made those mistakes are not repeated in the next project etc. The
authors also explained that evaluation throughout the life-cycle addresses the
questions “What is happening?“ and “How is the project proceeding?“ and
evaluation after the project is completed for the purpose of appraising the project
and assessing the end product or end-result addresses the questions “What has
happened?” and “What were the results?” These are all means of controlling the
project.
Kerzner (2006) do emphasize that risk monitoring, which is part of project
control, systematically tracks and evaluates the effectiveness of risk handling
action against established metrics and that monitoring results may also provide a
basis for developing additional risk handling strategies , or updating existing risk
handling strategies, and reanalyzing known risks. This is in support with the
Project Risk Management Loop Control given in Elkjaer et al (1999).
In summarizing the processes involved in risk management control, Elkjaer et al
(1999) uses the Project Risk Management Loop of Control, as shown in fig. 4 to
explain the stages involved in project control. The authors list these stages as:
The Identification stage, followed by the Assessment stage, the Response stage,
and finally, the Monitoring stage. These stages mentioned by Elkjaer et al (1999)
are in agreement with the tools mentioned in Dey (2002), Ghaeli (2017), and
Williams (2008).
Comparing what these authors, mentioned above, say about project control to
some of the respondents’ statements on project evaluation and control, it can be
seen/agreed that for effective risk management, project evaluation/control is very
24
important and an integral part of project risk management as shown in fig. 3 and
fig. 4.
From most literature and the views of the respondents in this study, I do see that
project management is an important tool which , when properly implemented, that
is to say, when the PM takes into account, the triple constraints(i.e. Budget, Cost,
and Scope) the project manager , with the approval of the customer, can decide to
make trade-offs among the triple constraints. This could be a trade-off between
the cost of the project and the period of implementation. That is to say, increasing
human resource to shorten the duration of the project but at the expense of the
cost of the project.
I do hope that this research will serve to encourage people who are new to project
management to see the importance of risk management and also to help them
identify some of the areas in project management that they need to pay keen
attention to.
25
the likelihood of external risks impact on projects.
6 Limitation
Initially it was anticipated that at least ten or more respondents would be
interviewed. However, due to time constraint only 9 project managers were
contacted for the study. Out of these nine project managers that were contacted
eight project managers agreed to be interviewed. It was not an easy task arranging
suitable times for the interviews as all the respondents had busy work schedules.
26
7 References
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UK
Dey, P.K. (2002) Project Risk Management: A Combined Analytic Hierarchy
Process and Decision Tree Approach, Cost Engineering Vol 44, No 3, 14 – 26
27
Elkjear, M. et al. Project Management The International Project Management
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Fellows, R. & Liu, A. (2008). Research methods for construction (3rd ed.),
Wiley-Blackwell, Chichester, UK
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Mulcahy R, et al. (2013) PMP Exam Prep, RMC Publication, Inc. Minnesota,
USA.
Neuman, L.W. (2003) Social Research Methods- Qualitative and Quantitative
Approaches. Pearson Education, Inc. New York, USA
Newton, R. (2016) Project Management Step by Step, How to Plan and Manage a
Highly Successful Project, Pearson Education Ltd, Harlow, UK
Norris, C. Perry, J. & Simon, P. (1997) Project Risk Analysis and Management,
The Association of Project Management, Buckinghamshire, UK
https://www.fep.up.pt/disciplinas/PGI914/Ref_topico3/ProjectRAM_APM.pdf
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[Accessed: August 8, 2018]
Raz, T. Shenhar, A. J, & Dvir, D. (2002) Risk management, project success, and
technological uncertainty. R & D Management 32 (2) Blackwell Publishers Ltd,
UK
https://www.greycampus.com/opencampus/certified-associate-in-project-
management/risk-identification-tools-and-techniques-in-capm
www.interact-eu.net/download/file/fid/4524
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8 Appendix
APPENDIX
Hello,
The purpose of this interview is to find out the views of project managers on risk
management and how they experience it?
Regards, Richard
Interview guide
You are permitted to skip any question that you don’t want to answer.
I will like to thank you for giving me the opportunity to interview you on this topic.
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Questionnaire
1. Can you explain a little bit on how you view risk management in project
management?
2. Do you normally apply/consider risk management when managing projects? (If
yes, why do you consider risk management when managing projects? and if no,
why not?)
3. What has been your experience when you apply risk management in project
management?
4. Did it go well? If it went well, why do you think it went well? If it did not go
well, why didn’t it go well?
5. When you apply risk management in managing project, what aspects of risk
management do you look at or what aspects do you consider and why?( In other
words the areas where you think there is likelihood that risk could occur and
could have a significant impact on the project?) why do you focus on those areas?
Thank you for giving me the time and opportunity to meet with you for this interview.
If there is any answer that I misunderstand during the interview, will it be ok, if I sent a
mail to get more clarification?
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