Managing risks in global project business: A case study

Mervi Murtonen, Teuvo Uusitalo, Kirsi Eloranta

    Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

    Abstract

    In this paper we examine the current project risk management activities in three Finnish project organizations. Our aim is to describe the anatomy of the formative risk management process and related embedded activities currently used to identify, analyse or mitigate risks in global engineering projects. This study shows that there is a difference between written risk management procedures, managers' ambitions towards risk management and how risk management is actually realized in projects. We also analysed how systematic and participative the risk management activities are during the project life cycle. We identified two discontinuity points: the first one is in the project start-up and handover from the sales to the project team, in a phase where the main decisions affecting the risks in the project have already been made and where the risk knowledge should be transferred from the sales team to the project team. The other discontinuity point is at the end of the project where the risk information from each project should be gathered within a project team and utilized in other projects. Even though there were discontinuities in the formal risk management processes within the projects, the risks were successfully managed in the case companies. This could imply that other processes and mechanisms are used parallel to the formal risk management process. These non-formal actions are used to cover the discontinuity points and the areas where the formal risk management lacks the flexibility and agility required.
    Original languageEnglish
    Title of host publicationProceedings of the 13th International Conference on Productivity and Quality Research, ICPQR 2008
    EditorsJ. Kujala, P. Iskanius
    Place of PublicationOulu
    PublisherUniversity of Oulu
    Pages826-836
    ISBN (Print)978-951-42-8827-2
    Publication statusPublished - 2008
    MoE publication typeA4 Article in a conference publication
    Event13th International Conference on Productivity and Quality Research, ICPQR 2008
    - Oulu, Finland
    Duration: 25 Jun 200827 Jun 2008

    Conference

    Conference13th International Conference on Productivity and Quality Research, ICPQR 2008
    Abbreviated title ICPQR 2008
    CountryFinland
    CityOulu
    Period25/06/0827/06/08

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    Keywords

    • risk management
    • project management

    Cite this

    Murtonen, M., Uusitalo, T., & Eloranta, K. (2008). Managing risks in global project business: A case study. In J. Kujala, & P. Iskanius (Eds.), Proceedings of the 13th International Conference on Productivity and Quality Research, ICPQR 2008 (pp. 826-836). University of Oulu.