ABSTRACT

Projects wishing to implement risk management need to understand that the realisation of effective risk management will not be instant. It is most probable that highly developed risk management practices will not be possible “out of the starting blocks” or be capable of being established “overnight”. The level of risk management maturity assumed to be attainable by consultancies (that have secured a commission against a financial and technical bid) and are already committed (by way of their bid) to a scope and method of implementation of risk management, may be a fallacy. In addition, organisations that regularly undertake projects “in-house” and have well-developed risk processes may still falter in developing mature practices due to, for instance, team formation,culture, budget or decision-making issues. Mature PRM practices typically take time to develop. There will be a myriad of factors which will need to be addressed to achieve risk management practices which enhance project performance. Some of these factors are examined in turn below:

• Project leadership: from experience, a high proportion of project staff in senior management positions do not possess project management or risk management qualifications or have had no formal risk management training. The experience of the senior management team will be significant in affecting their adopted approach to risk management (commonly referred to as the “tone at the top”) and be very influential in “colouring” the risk management culture.1