Global survey of current barriers to project risk management and their impact on projects
Abstract
The main goal of this contribution is to assess and evaluate the degree to which project risk management is currently applied in companies at the global level based on empirical research. More specifically, it aims to assess the degree to which project risk management is applied during the initiation and planning phases of projects. In 2019, global empirical research was carried out in 31 countries in Europe, Africa, Australia, Asia, and America. In total, 1,143 project managers participated. The research was conducted on the basis of an online questionnaire survey. For the quantitative data analysis, mathematical and statistical data assessment tests were used to process the obtained data. Although the results reveal an increasing interest among top managers in the application of project risk management, they also show that project managers do not apply risk management to every project. The results of this contribution are applicable to managers and project managers in enterprises around the world, especially in European countries. Results highlighted the importance of project risk management and enhancing its application. In this way, managers can potentially reduce the time and financial losses that may affect the successful project realization.
Keyword : risk, project, project risk management, global empirical research, enterprises, project managers, ERM
How to Cite
Masár, M., Hudáková, M., Melkovič, T., & Šuleř, P. (2022). Global survey of current barriers to project risk management and their impact on projects. Journal of Business Economics and Management, 23(5), 1194–1210. https://doi.org/10.3846/jbem.2022.17784
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Zhang, Y. (2009). How the principle of risk management can be applied to different types of projects? International Journal of Business and Management, 4(1), 9–16. https://doi.org/10.5539/ijbm.v4n1p9
Ahmed, M. N., & Mohammed, S. R. (2019). Developing a risk management framework in construction project based on agile management approach. Civil Engineering Journal, 5(3). https://doi.org/10.28991/cej-2019-03091272
Avlijaš, G., & Radunović, M. (2019). Application of event chain methodology in schedule risk analysis. European Project Management Journal, 9(2), 26–34. https://doi.org/10.18485/epmj.2019.9.2.3
Azizan, N. A., Mohamed, I., & M’ng, J. C. P. (2011). A profitability study on the Malaysian futures markets using a new adjustable technical analysis indicator, adjustable bands Z-test-statistics’ (ABZ’). African Journal of Business Management, 5(14), 5984–5993.
Ayub, B., Thaheem, M. J., & Ullah, F. (2019). Contingency release during project execution: The contractor’s decision-making dilemma. Project Management Journal, 50(6), 734–748. https://doi.org/10.1177/8756972819848250
Besner, C., & Hobbs, B. (2012). An empirical identification of project management toolsets and a comparison among project types. Project Management Journal, 43(5), 24–46. https://doi.org/10.1002/pmj.21292
Broll, U., & Mukherjee, S. (2017). International trade and firms’ attitude towards risk. Economic Modelling, 64, 69–73. https://doi.org/10.1016/j.econmod.2017.03.006
Buganová, K., & Šimíčková, J. (2019). Risk management in traditional and agile project management. Transportation Research Procedia, 40, 986–993. https://doi.org/10.1016/j.trpro.2019.07.138
Crispim, J., Silvia, L., H., & Rego, N. (2019). Project risk management practices: The organizational maturity influence. International Journal of Managing Projects in Business, 12(1), 187–210. https://doi.org/10.1108/IJMPB-10-2017-0122
Dans, E. P., & González, P. A. (2018). The Altamira controversy: Assessing the economic impact of a world heritage site for planning and tourism management. Journal of Cultural Heritage, 30, 180–189. https://doi.org/10.1016/j.culher.2017.09.007
De Bakker, K., Boonstra, A., & Wortmann, H. (2010). Does risk management contribute to IT project success? A meta-analysis of empirical evidence. International Journal of Project Management, 28(5), 493–503. https://doi.org/10.1016/j.ijproman.2009.07.002
Dvorsky, J., Belas, J., Gavurova, B., & Brabenec, T. (2021). Business risk management in the context of small and medium-sized enterprises. Economic Research-Ekonomska Istrazivanja, 34(1), 1690–1708. https://doi.org/10.1080/1331677X.2020.1844588
Gemünden, H. G. (2015). Success, learning, and risk. Project Management Journal, 46(4). https://doi.org/10.1002/pmj.21519
Green, P. E. J. (2016). Enterprise risk management: a common framework for the entire organization. Elsevier, Butterworth-Heinemann.
Guan, L., Abbasi, A., & Ryan, M. J. (2020). Analyzing green building project risk interdependencies using Interpretive Structural Modeling. Journal of Cleaner Production, 256, 120372. https://doi.org/10.1016/j.jclepro.2020.120372
Guetterman, T. C. (2019). Basics of statistics for primary care research. Family Medicine and Community Health, 7(2), e000067. https://doi.org/10.1136/fmch-2018-000067
Fang, C., & Marle, F. (2012). A simulation-based risk network model for decision support in project risk management. Decision Support Systems, 3(52), 635–644. https://doi.org/10.1016/j.dss.2011.10.021
Haniff, A. P., & Salama, M. (2016). Introduction to project management. (The Global Management Series). Goodfellow Publishers.
Hirsenberger, H., Ranogajec, J., Vucetic, S., Lalic, B., & Gracanin, D. (2019). Collaborative projects in cultural heritage conservation – management challenges and risks. Journal of Cultural Heritage, 37, 215–224. https://doi.org/10.1016/j.culher.2018.10.006
Hofman, M., Spalek, S., & Grela, G. (2017). Shedding new light on project portfolio risk management. Sustainability, 9(10), 1798. https://doi.org/10.3390/su9101798
International Organization for Standardization. (2018). Risk management – Guidelines (ISO 31000:2018). Geneva, Switzerland. https://bit.ly/3cmnZUF
Klein, G., & Müller, R. (2019). Quantitative research submissions to project management journal. Project Management Journal, 50(3), 263–265. https://doi.org/10.1177/8756972819840141
Kozhakhmetova, A., Zhidebekkyzy, A., Turginbayeva, A., & Akhmetova, Z. (2019). Modelling of project success factors: A cross-cultural comparison. Economics & Sociology, 12(2), 219–234. https://doi.org/10.14254/2071-789X.2019/12-2/13
Kozubikova, L., Kotaskova, A., Dvorsky, J., & Kljucnikov, A. (2019). The impact of political factors‘ perception on suitability of international business environment: The case of startups. Economics & Sociology, 12(1), 61–79. https://doi.org/10.14254/2071-789X.2019/12-1/3
KPMG. (2017). Driving business performance – Project management survey 2017. https://assets.kpmg/content/dam/kpmg/nz/pdf/July/projectmanagementsurvey-kpmg-nz.pdf
Masso, J., Pino, F. J., Pardo, C., García, F., & Piattini, M. (2020). Risk management in the software life cycle: A systematic literature review. Computer Standards & Interfaces, 71, 103431. https://doi.org/10.1016/j.csi.2020.103431
Özdemir, Y. A., Ebegil, M., & Gökpinar, F. (2018). A test statistic for two normal means with median ranked set sampling. Iranian Journal of Science and Technology, Transactions A: Science, 43(3), 1109–1126. https://doi.org/10.1007/s40995-018-0558-0
Project Management Institute. (2017a). Success Rates Rise – Transforming the high cost of low performance. https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/pulse/pulse-of-the-profession-2017.pdf
Project Management Institute. (2018). Success in disruptive times. Expanding the value delivery landscape to address the high cost of low performance. https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/pulse/pulse-of-the-profession-2018.pdf
Project Management Institute. (2017b). A guide to the project management body of knowledge (Pmbok guide).
Reed, A. H. & Angolia, M. (2018). Risk management usage and impact on information systems project success. International Journal of Information Technology Project Management, 9(2), 1–19. https://doi.org/10.4018/IJITPM.2018040101
Rabechini, R., & Monteiro de Carvalho, M. (2013). Relationship between risk management and project success. Production, 23(3), 570–581. https://doi.org/10.1590/S0103-65132012005000091
PWC. (2018). Project success survey. https://www.pwc.be/en/documents/20180618-project-success-survey-belgium.pdf
Shayan, S., Kim, K. P., & Tam, V. W. Y. (2022). Critical success factor analysis for effective risk management at the execution stage of a construction project. International Journal of Construction Management, 22(3), 379–386. https://doi.org/10.1080/15623599.2019.1624678
Tavares, B. G., Silva, C. E. S. D., & Souza, A. D. D. (2019). Practices to improve risk management in agile projects. International Journal of Software Engineering and Knowledge Engineering, 29(3), 381–399. https://doi.org/10.1142/S0218194019500165
Teller, J., Kock, A., & Gemünden, H. G. (2014). Risk management in project portfolios is more than managing project risks: A contingency perspective on risk management. Project Management Journal, 45(4), 67–80. https://doi.org/10.1002/pmj.21431
Tereso, A., Ribeiro, P., Fernandes, G., Loureiro, I., & Ferreira, M. (2018). Project management practices in private organizations. Project Management Journal, 50(1), 6–22. https://doi.org/10.1177/8756972818810966
Thaheem, M. J., & De Marco, A. (2013). A survey on usage and diffusion of project risk management techniques and software tools in the construction industry. In Proceedings of World Academy of Science, Engineering and Technology. World Academy of Science, Engineering and Technology.
Wang, F. K., Tamirat, Y., & Tsai, Y. S. (2014). Process selection for linear profiles with one-sided specifications based on the ratio test statistic. Quality and Reliability Engineering International, 31(8), 1575–1585. https://doi.org/10.1002/qre.1693
Wellingtone Project Management. (2017). The state of project management – Annual survey 2017. http://www.wellingtone.co.uk/wp-content/uploads/2017/03/The-State-of-Project-Management-Survey-2017-1.pdf
Wiemken, T. L., Furmanek, S. P., Mattingly, W. A., Haas, J., Ramirez, J. A., & Carrico, R. M. (2018). Googling your hand hygiene data: Using Google forms, Google sheets, and R to collect and automate analysis of hand hygiene compliance monitoring. American Journal of Infection Control, 46(6), 617–619. https://doi.org/10.1016/j.ajic.2018.01.010
Willumsen, P., Oehmen, J., Stingl, V., & Geraldi, J. (2019). Value creation through project risk management. International Journal of Project Management, 37(5), 731–749. https://doi.org/10.1016/j.ijproman.2019.01.007
Zhang, Y. (2009). How the principle of risk management can be applied to different types of projects? International Journal of Business and Management, 4(1), 9–16. https://doi.org/10.5539/ijbm.v4n1p9