case study on project risk management

Table of Contents

Understanding project risk management, definition and explanation of project risk management, 4 key components of project risk management, risk identification, risk assessment, risk response planning, risk monitoring and control, 5 project risk management case studies, gordie howe international bridge project, fujitsu’s early-career project managers, vodafone’s complex technology project, fehmarnbelt project, lend lease project, project risk management at designveloper, how we manage project risks, advancements in project risk management, project risk management: 5 case studies you should not miss.

May 21, 2024

Exploring project risk management, one can see how vital it is in today’s business world. This article from Designveloper, “Project Risk Management: 5 Case Studies You Should Not Miss”, exists in order to shed light on this important component of project management.

We’ll reference some new numbers and facts that highlight the significance of risk management in projects. These data points are based on legit reports and will help create a good basis of understanding on the subject matter.

In addition, we will discuss specific case studies when risk management was successfully applied and when it was not applied in project management. These real world examples are very much important for project managers and teams.

It is also important to keep in mind that each project has associated risks. However through project risk management these risks can be identified, analyzed, prioritized and managed in order to make the project achieve its objectives. Well then, let’s take this journey of understanding together. Watch out for an analysis of the five case studies you must not miss.

Risk management is a very critical component of any project. Risk management is a set of tools that allow determining the potential threats to the success of a project and how to address them. Let’s look at some more recent stats and examples to understand this better.

Statistics show that as high as 70% of all projects are unsuccessful . This high failure rate highlights the need for efficient project risk management. Surprisingly, organizations that do not attach much importance to project risk management face 50% chances of their project failure. This results in huge losses of money and untapped business potential.

Additionally, poor performance leads to approximated 10% loss of every dollar spent on projects. This translates to a loss of $99 for every $1 billion invested. These statistics demonstrate the importance of project risk management in improving project success rates and minimizing waste.

Let us consider a project management example to demonstrate the relevance of the issue discussed above. Consider a new refinery being constructed in the Middle East. The project is entering a key phase: purchasing. Poor risk management could see important decisions surrounding procurement strategy, or the timing of the tendering process result in project failure.

Project risk management in itself is a process that entails the identification of potential threats and their mitigation. It is not reactionary but proactive.

This process begins with the identification of potential risks. These could be any time from budget overruns to delayed deliveries. After the risks are identified they are then analyzed. This involves estimating the probability of each risk event and the potential consequences to the project.

The next stage is risk response planning. This could be in the form of risk reduction, risk shifting or risk acceptance. The goal here is to reduce the impact of risks on the project.

Finally, the process entails identifying and tracking these risks throughout the life of a project. This helps in keeping the project on course and any new risks that might arise are identified and managed.

Let’s dive into the heart of project risk management: its four key components. These pillars form the foundation of any successful risk management strategy. They are risk identification, risk analysis, risk response planning, and risk monitoring and control. Each plays a crucial role in ensuring project success. This section will provide a detailed explanation of each component, backed by data and real-world examples. So, let’s embark on this journey to understand the four key components of project risk management.

Risk identification is the first process in a project risk management process. It’s about proactively identifying risks that might cause a project to fail. This is very important because a recent study has shown that 77% of companies had operational surprises due to unidentified risks.

There are different approaches to risk identification such as brainstorming, Delphi technique, SWOT analysis, checklist analysis, flowchart. These techniques assist project teams in identifying all potential risks.

Risk identification is the second stage of the project risk management process. It is a systematic approach that tries to determine the probability of occurrence and severity of identified risks. This step is very important; it helps to rank the identified risks and assists in the formation of risk response strategies.

Risk assessment involves two key elements: frequency and severity of occurrence. As for risk probability, it estimates the chances of a risk event taking place, and risk impact measures the impact associated with the risk event.

This is the third component of project risk management. It deals with planning the best ways to deal with the risks that have been identified. This step is important since it ensures that the risk does not have a substantial effect on the project.

One of the statistics stated that nearly three-quarters of organizations have an incident response plan and 63 percent of these organizations conduct the plan regularly. This explains why focusing only on risks’ identification and analysis without a plan of action is inadequate.

Risk response planning involves four key strategies: risk acceptance, risk sharing, risk reduction, and risk elimination. Each strategy is selected depending on the nature and potential of the risk.

Risk monitoring and control is the last step of project risk management. It’s about monitoring and controlling the identified risks and making sure that they are being addressed according to the plan.

Furthermore, risk control and management involve managing identified risks, monitoring the remaining risk, identifying new risks, implementing risk strategies, and evaluating their implementation during the project life cycle.

It is now high time to approach the practical side of project risk management. This section provides selected five case studies that explain the need and application of project risk management. Each case study gives an individual approach revealing how risk management can facilitate success of the project. Additionally, these case studies include construction projects, technology groups, among other industries. They show how effective project risk management can be, by allowing organizations to respond to uncertainties and successfully accomplish their project objectives. Let us now examine these case studies and understand the concept of risk in project management.

The Gordie Howe International Bridge is one of the projects that demonstrate the principles of project risk management. This is one of the biggest infrastructure projects in North America which includes the construction of a 6 lane bridge at the busiest commercial border crossing point between the U.S. and Canada.

The project scope can be summarized as: New Port of Entry and Inspection facilities for the Canadian and US governments; Tolls Collection Facilities; Projects and modifications to multiple local bridges and roadways. The project is administered via Windsor-Detroit Bridge Authority, a nonprofit Canadian Crown entity.

Specifically, one of the project challenges associated with the fact that the project was a big one in terms of land size and the community of interests involved in the undertaking. Governance and the CI were fundamental aspects that helped the project team to overcome these challenges.

The PMBOK® Guide is the contractual basis for project management of the project agreement. This dedication to following the best practices for project management does not end with bridge construction: It spreads to all other requirements.

However, the project is making steady progress to the objective of finishing the project in 2024. This case study clearly demonstrates the role of project risk management in achieving success with large and complicated infrastructure projects.

Fujitsu is an international company that deals with the provision of a total information and communication technology system as well as its products and services. The typical way was to employ a few college and school leavers and engage them in a two-year manual management training and development course. Nevertheless, this approach failed in terms of the following.

Firstly, the training was not comprehensive in its coverage of project management and was solely concerned with generic messaging – for example, promoting leadership skills and time management. Secondly it was not effectively reaching out to the need of apprentices. Thirdly the two year time frame was not sufficient to allow for a deep approach to the development of the required project management skills for this job. Finally the retention problems of employees in the train program presented a number of issues.

To tackle these issues, Fujitsu UK adopted a framework based on three dimensions: structured learning, learning from others, and rotation. This framework is designed to operate for the first five years of a participant’s career and is underpinned by the 70-20-10 model for learning and development. Rogers’ model acknowledges that most learning occurs on the job.

The initial training process starts with a three-week formal learning and induction program that includes the initial orientation to the organization and its operations, the fundamentals of project management, and business in general. Lastly, the participants are put on a rotational assignment in the PMO of the program for the first six to eight months.

Vodafone is a multinational mobile telecommunications group that manages telecommunications services in 28 countries across five continents and decided to undertake a highly complex technology project to replace an existing network with a fully managed GLAN in 42 locations. This project was much complex and thus a well grounded approach to risk management was needed.

The project team faced a long period of delay in signing the contract and frequent changes after the contract was signed until the project is baselined. These challenges stretched the time frame of the project and enhanced the project complexity.

In order to mitigate the risks, Vodafone employed PMI standards for their project management structure. This approach included conducting workshops, developing resource and risk management plan and tailoring project documentations as well as conducting regular lesson learned.

Like any other project, the Vodafone GLAN project was not an easy one either but it was completed on time and in some cases ahead of the schedule that the team had anticipated to complete the project. At the first stage 90% of migrated sites were successfully migrated at the first attempt and 100% – at second.

The Fehmarnbelt project is a real-life example of the strategic role of project risk management. It provides information about a mega-project to construct the world’s longest immersed tunnel between Germany and Denmark. It will be a four-lane highway and two-rail electrified tunnel extending for 18 kilometers and it will be buried 40 meters under the Baltic Sea.

This project is managed by Femern A/S which is a Danish government-owned company with construction value over more than €7 billion (£8. 2 billion). It is estimated to provide jobs for 3,000 workers directly in addition to 10,000 in the suppliers. Upon its completion, its travel between Denmark and Germany will be cut to 10 minutes by automobile and 7 minutes by rail.

The Femern risk management functions and controls in particular the role of Risk Manager Bo Nygaard Sørensen then initiated the process and developed some clear key strategic objectives for the project. They formulated a simple, dynamic, and comprehensive risk register to give a more complete risk view of the mega-project. They also created a risk index in order to assess all risks in a consistent and predictable manner, classify them according to their importance, and manage and overcome the risks in an appropriate and timely manner.

Predict! is a risk assessment and analysis tool that came in use by the team, which helps determine the effect of various risks on the cost of the construction of the link and to calculate the risk contingency needed for the project. This way they were able to make decisions on whether an immersed tunnel could be constructed instead of a bridge.

Lend Lease is an international property and infrastructure group that operates in over 20 countries in the world; the company offers a better example of managing project risks. The company has established a complex framework called the Global Minimum Requirements (GMRs) to identify risks to which it is exposed.

The GMRs have scope for the phase of the project before a decision to bid for a job is taken. This framework includes factors related to flooding, heat, biodiversity, land or soil subsidence, water, weathering, infrastructure and insurance.

The GMRs are organized into five main phases in line with the five main development stages of a project. These stages guarantee that vital decisions are made at the ideal time. The stages include governance, investment, design and procurement, establishment, and delivery.

For instance, during the design and procurement stage, the GMRs identify requisite design controls that will prevent environment degradation during design as well as fatal risk elimination during planning and procurement. This approach aids in effective management of risks and delivery of successful projects in Lend Lease.

Let’s take a closer look at what risk management strategies are used here at Designveloper – a top web & software development firm in Vietnam. We also provide a range of other services, so it is essential that we manage risks on all our projects in similar and effective ways. The following part of the paper will try to give a glimpse of how we manage project risk in an exemplary manner using research from recent years and include specific cases.

The following steps explain the risk management process that we use—from the identification of potential risks to managing them: Discovering the risks. We will also mention here how our experience and expertise has helped us in this area.

Risk management as a function in project delivery is well comprehended at Designveloper. Our method of managing the project risk is proactive and systematic, which enables us to predict possible problems and create successful solutions to overcome them.

One of the problems we frequently encounter is the comprehension of our clients’ needs. In most cases, clients come to us with a basic idea or concept. To convert these ideas into particular requirements and feature lists, the business analysts of our company have to collaborate with the client. The whole process is often a time-waster, and having a chance is missed.

To solve this problem, we’ve created a library of features with their own time and cost estimate. This library is based on data of previous projects that we have documented, arranged, and consolidated. At the present time when a client approaches us with a request, we can search for similar features in our library and give an initial quote. This method has considerably cut the period of providing the first estimations to our clients and saving the time for all participants.

This is only one of the techniques we use to mitigate project risks at Designveloper. The focus on effective project risk management has been contributing significantly to our successful operation as a leading company in web and software development in Vietnam. It is a mindset that enables us to convert challenges into opportunities and provide outstanding results for our clients.

In Designveloper, we always aim at enhancing our project risk management actions. Below are a couple examples of the advancements we’ve made.

To reduce the waiting time, we have adopted continuous deployment. This enables us to provide value fast and effectively. We release a minimum feature rather than a big feature. It helps us to collect the input from our customers and keep on improving. What this translates into for our customers is that they start to derive value from the product quickly and that they have near-continuous improvement rather than have to wait for a “perfect” feature.

We also hold regular “sync-up” meetings between teams to keep the information synchronized and transparent from input (requirements) to output (product). Changes are known to all teams and thus teams can prepare to respond in a flexible and best manner.

Some of these developments in project risk management have enabled us to complete projects successfully, and be of an excellent service to our clients. They show our support of the never-ending improving and our capability to turn threats into opportunities. The strength of Designveloper is largely attributed to the fact that we do not just control project risks – we master them.

To conclude, project risk management is an important element of nearly all successful projects. It is all about identification of possible problems and organization necessary measures that will result in the success of the project. The case studies addressed in this article illustrate the significance and implementation of project risk management in different settings and fields. They show what efficient risk management can result in.

We have witnessed the advantages of solid project risk management at Designveloper. The combination of our approach, powered by our track record and professionalism, has enabled us to complete projects that met all client’s requirements. We are not only managing project risks but rather mastering them.

We trust you have found this article helpful in understanding project risk management and its significance in the fast-changing, complicated project environment of today. However, one needs to mind that proper project management is not only about task and resource management but also risk management. And at Designveloper, our team is there to guide you through those risks and to help you realize your project’s objectives.

Also published on

Share post on

Insights worth keeping. Get them weekly.

Get in touch

Simply register below to receive our weekly newsletters with the newest blog posts

Read more topics

Project Risk Management: A Practical Implementation Approach by Michael M. Bissonette

Get full access to Project Risk Management: A Practical Implementation Approach and 60K+ other titles, with a free 10-day trial of O'Reilly.

There are also live events, courses curated by job role, and more.

Example Project Case Studies

Four project case studies are included in this chapter to demonstrate different aspects of project management that impact project risk and performance. The focus is on the differences between “best practices” used on different types of projects and the degree of risk that is imposed when project management tools, techniques, and competencies are not aligned with the prescribed “best practices” associated with those projects. These case studies highlight some organizational influences that can alter the course of project performance, as well.

Each of the case study projects has a particular project profile and suite of project management tools and techniques that were selected to be used. General ...

Get Project Risk Management: A Practical Implementation Approach now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Don’t leave empty-handed

Get Mark Richards’s Software Architecture Patterns ebook to better understand how to design components—and how they should interact.

It’s yours, free.

Check it out now on O’Reilly

Dive in for free with a 10-day trial of the O’Reilly learning platform—then explore all the other resources our members count on to build skills and solve problems every day.

Increasing Value and Resilience Through Project Risk Management: A Case Study in the IT Consulting Sector

• First Online: 19 March 2024

Cite this chapter

• Raffaele Testorelli 3 ,
• Anna Tiso 3 &
• Chiara Verbano 3  

Part of the book series: Management for Professionals ((MANAGPROF))

263 Accesses

In the current dynamic and uncertain business environment, small- and medium-sized enterprises (SMEs) are struggling to enhance their ability to adapt and resist to the changes while pursuing their strategic objectives. In particular, projects are gaining a crucial role for companies’ success, as the main vehicles for managing change and creating innovation. Consequently, Project Risk Management (PRM) is a widely used approach to foster the effect of positive events opportunities while mitigating those related to negative ones, with the final aim of creating value and resilience. For these reasons, there is growing interest in PRM as a value generation process for multiple project stakeholders. This research presents a case study conducted in an SME based in Italy and operating in the information technology (IT) consulting sector, addressing the literature gaps about the creation of value through PRM. From an academic perspective, it provides an overview of the topic, proposing a framework for the analysis of the relationships between the characteristics of the context, the PRM system implemented, and the value generated. Moreover, it supports practitioners with a new measurement system for the value generated through PRM and with guidelines to enhance value generation and resilience.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime
• Available as PDF
• Read on any device
• Instant download
• Own it forever
• Available as EPUB and PDF
• Durable hardcover edition
• Dispatched in 3 to 5 business days
• Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Ahmadi-Javid, A., Fateminia, S. H., & Gemünden, H. G. (2020). A method for risk response planning in project portfolio management. Project Management Journal, 51 , 77–95. https://doi.org/10.1177/8756972819866577

Article   Google Scholar  

Andersen, E. S. (2014). Value creation using the mission breakdown structure. International Journal of Project Management, 32 , 885–892. https://doi.org/10.1016/j.ijproman.2013.11.003

Andersen, E. S. (2016). Do project managers have different perspectives on project management? International Journal of Project Management, 34 , 58–65. https://doi.org/10.1016/j.ijproman.2015.09.007

Bakker, R. M. (2010). Taking stock of temporary organizational forms: A systematic review and research agenda. International Journal of Management Reviews, 12 , 466–486. https://doi.org/10.1111/j.1468-2370.2010.00281.x

Besner, C., & Hobbs, B. (2012). The paradox of risk management: A project management practice perspective. International Journal of Managing Projects in Business, 5 . https://doi.org/10.1108/17538371211214923

Borge, D. (2002). The book of risk . Wiley.

Google Scholar  

Branzei, O., & Abdelnour, S. (2010). Another day, another dollar: Enterprise resilience under terrorism in developing countries. Journal of International Business Studies, 41 (5), 804–825. https://doi.org/10.1057/jibs.2010.6

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

Chroust, G., & Aumayr, G. (2017). Resilience 2.0: Computer-aided disaster management. Journal of Systems Science and Systems Engineering, 26 , 321–335. https://doi.org/10.1007/s11518-017-5335-7

Conroy, G., & Soltan, H. (1998). ConSERV, a project specific risk management concept. International Journal of Project Management, 16 , 353–366. https://doi.org/10.1016/S0263-7863(98)00012-X

Crispim, J., Silva, L. H., & Rego, N. (2019). Project risk management practices: The organizational maturity influence. IJMPB, 12 , 187–210. https://doi.org/10.1108/IJMPB-10-2017-0122

Dahlberg, R. (2015). Resilience and complexity: Conjoining the discourses of two contested concepts. Culture Unbound: Journal of Current Cultural Research, 7 , 541–557. https://doi.org/10.3384/cu.2000.1525.1572541

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 . Elsevier Ltd and IPMA , 28 (5), 493–503. https://doi.org/10.1016/j.ijproman.2009.07.002

de Camprieu, R., Desbiens, J., & Feixue, Y. (2007). “Cultural” differences in project risk perception: An empirical comparison of China and Canada. International Journal of Project Management, 25 , 683–693. https://doi.org/10.1016/j.ijproman.2007.07.005

de Carvalho, M. M., & Rabechini Junior, R. (2015). Impact of risk management on project performance: The importance of soft skills. International Journal of Production Research, 53 (2), 321–340. https://doi.org/10.1080/00207543.2014.919423

Dey, P. K. (2012). Project risk management using multiple criteria decision-making technique and decision tree analysis: A case study of Indian oil refinery. Production Planning and Control, 23 , 903–921. https://doi.org/10.1080/09537287.2011.586379

Durst, S., Bruns, G., & Henschel, T. (2018). The management of knowledge risks: What do we really know? In Global business expansion: Concepts, methodologies, tools, and applications (pp. 258–269). IGI Global.

Chapter   Google Scholar  

Elkington, P., & Smallman, C. (2002). Managing project risks: A case study from the utilities sector. International Journal of Project Management, 20 , 49–57. https://doi.org/10.1016/S0263-7863(00)00034-X

European Standard 12973. (2000). Value management.

European Standards 12973. (2000). EN 12973.

Fitsilis, P. (2008). Comparing PMBOK and agile project management software development processes. Advances in Computer and Information Sciences and Engineering , 378–383. https://doi.org/10.1007/978-1-4020-8741-7_68

Geraldi, J. G., Lee-Kelley, L., & Kutsch, E. (2010). The Titanic sunk, so what? Project manager response to unexpected events. International Journal of Project Management, 28 , 547–558. https://doi.org/10.1016/j.ijproman.2009.10.008

Henschel, T., & Durst, S. (2016). Risk management in Scottish, Chinese and German small and medium-sized enterprises: A country comparison. International Journal of Entrepreneurship and Small Business, 29 (1), 112–132.

Henschel, T., & Lantzsch, A. D. (2022). The relationship between ERM and performance revisited: Empirical evidence from SMEs. In Risk management: Insights from different settings (pp. 95–113). Springer.

ISO 31000. (2018). International Organization for Standardization: Geneva, Switzerland.

Javani, B., & Rwelamila, P. M. D. (2016). Risk management in IT projects – A case of the South African public sector. International Journal of Managing Projects in Business, 9 , 389–413. https://doi.org/10.1108/IJMPB-07-2015-0055

Jiang, J. J., & Klein, G. (2001). Software project risks and development focus. Project Management Journal, 32 , 4–9. https://doi.org/10.1177/875697280103200102

Jun, L., Qiuzhen, W., & Qingguo, M. (2011). The effects of project uncertainty and risk management on IS development project performance: A vendor perspective. International Journal of Project Management, 29 , 923–933. https://doi.org/10.1016/j.ijproman.2010.11.002

Keeney, R. L., & Raiffa, H. (1993). Decisions with multiple objectives – Preferences and value tradeoffs . Cambridge University Press.

Book   Google Scholar  

Kutsch, E. (2008). The effect of intervening conditions on the management of project risk. International Journal of Managing Projects in Business, 1 (4), 602–610. https://doi.org/10.1108/17538370810906282

Laursen, M., & Svejvig, P. (2016). Taking stock of project value creation: A structured literature review with future directions for research and practice. International Journal of Project Management, 34 , 736–747. https://doi.org/10.1016/j.ijproman.2015.06.007

Lepak, D. P., Smith, K. G., & Taylor, M. S. (2007). Value creation and value capture: A multilevel perspective. Academy of Management Review, 32 , 180–194. https://doi.org/10.5465/AMR.2007.23464011

Linnenluecke, M. K. (2017). Resilience in business and management research: A review of influential publications and a research agenda. International Journal of Management Reviews, 19 (1), 4–30. https://doi.org/10.1111/ijmr.12076

Marle, F. (2020). An assistance to project risk management based on complex systems theory and agile project management. Complexity . https://doi.org/10.1155/2020/3739129

Mendelow, A. (1991). Stakeholder mapping. In Proceedings of the 2nd international conference on information systems .

Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. The Academy of Management Review, 22 , 853–886. https://doi.org/10.2307/259247

Morris, P. (2013). Reconstructing project management . Wiley Blackwell.

Muhammedamin, H., Hagelaar, G., van der Velde, G., & Omta, S. W. F. (2021). Conceptualization of SMEs’ business resilience: A systematic literature review. Cogent Business & Management, 8 (1). https://doi.org/10.1080/23311975.2021.1938347

Murray-Webster, R., & Simon, P. (2006). Making sense of stakeholder mapping . PM World Today Tips and Techniques.

PMI. (2013). A guide to the project management body of knowledge (PMBOK guide) (5th ed.). PMI.

PMI. (2017). A guide to the project management body of knowledge (PMBOK guide) (6th ed.). PMI.

Qazi, A., Quigley, J., Dickson, A., & Kirytopoulos, K. A. (2016). Project Complexity and Risk Management (ProCRiM): Towards modelling project complexity driven risk paths in construction projects. International Journal of Project Management, 34 , 1183–1198. https://doi.org/10.1016/j.ijproman.2016.05.008

Quartermain, M. (2002). Value engineering. In Management A.f.P (Ed.), Project management pathways . Association for Project Management.

Radner, R., & Shepp, L. (1996). Risk vs. profit potential: A model for corporate strategy. Journal of Economic Dynamics and Control, 20 , 1373–1393. https://doi.org/10.1016/0165-1889(95)00904-3

Raz, T., & Michael, E. (2001). Use and benefits of tools for project risk management. International Journal of Project Management, 19 , 9–17. https://doi.org/10.1016/S0263-7863(99)00036-8

Sanchez, H., Robert, B., Bourgault, M., & Pellerin, R. (2009). Risk management applied to projects, programs, and portfolios. International Journal of Managing Projects in Business, 2 , 14–35. https://doi.org/10.1108/17538370910930491

Scholz, R. W., & Tietje, T. O. (2002). Embedded case study methods: Integrating quantitative and qualitative knowledge . SAGE.

Serpell, A. F., Ferrada, X., & Rubio, L. (2019). Measuring the performance of project risk management: A preliminary model. Organization, Technology and Management in Construction: an International Journal, 11 , 1984–1991. https://doi.org/10.2478/otmcj-2019-0005

Serra, C. E. M., & Kunc, M. (2015). Benefits realisation management and its influence on project success and on the execution of business strategies. International Journal of Project Management, 33 , 53–66. https://doi.org/10.1016/j.ijproman.2014.03.011

Shenhar, A., Dvir, D., Levy, O., & Maltz, A. (2001). Project success: A multidimensional strategic concept. Long Range Planning, 34 , 699–725. https://doi.org/10.1016/S0024-6301(01)00097-8

Shimizu, T., Won Park, Y., & Hong, P. (2012). Project managers for risk management: Case for Japan. Benchmarking: An International Journal, 19 (4/5), 532–547. https://doi.org/10.1108/14635771211257990

Sommer, S., & Loch, C. (2003). Incomplete incentive contracts under ambiguity and complexity. SSRN Electronic Journal . https://doi.org/10.2139/ssrn.452521

Taleb, N. N. (2012). Antifragile: Things that gain from disorder . Random House Publishing Group.

Tavares, B. G., da Silva, C. E. S., & de Souza, A. D. (2019). Risk management analysis in Scrum software projects. International Transactions in Operational Research, 26 , 1884–1905. https://doi.org/10.1111/itor.12401

Testorelli, R., & Verbano, C. (2020). Value creation with project risk management: A systematic literature review. In Business theory and practice across industries and markets, EuroMed academy of business conference book of proceedings (pp. 1399–1404).

Testorelli, R., & Verbano, C. (2022). An empirical framework to sustain value generation with project risk management: A case study in the IT consulting sector. Sustainability, 14 , 12117.

Tognazzo, A., Gubitta, P., & Favaron, S. D. (2016). Does slack always affect resilience? A study of quasi-medium-sized Italian firms. Entrepreneurship and Regional Development, 28 (9–10), 768–790. https://doi.org/10.1080/08985626.2016.1250820

Turner, R., Ledwith, A., & Kelly, J. (2010). Project management in small to medium-sized enterprises: Matching processes to the nature of the firm. International Journal of Project Management, 28 , 744–755. https://doi.org/10.1016/j.ijproman.2010.06.005

Voss, C., Tsikriktsis, N., & Frohlich, M. (2002). Case research in operations management. International Journal of Operations & Production Management, 22 , 195–219. https://doi.org/10.1108/01443570210414329

Wallace, L., Keil, M., & Rai, A. (2004). Understanding software project risk: A cluster analysis. Information & Management, 42 , 115–125. https://doi.org/10.1016/j.im.2003.12.007

Williams, N., Vorley, T., & Ketikidis, P. H. (2013). Economic resilience and entrepreneurship: A case study of the Thessaloniki City Region. Local Economy, 28 (4), 399–415.

Willumsen, P., Oehmen, J., Stingl, V., & Geraldi, J. (2019). Value creation through project risk management. International Journal of Project Management, 37 , 731–749. https://doi.org/10.1016/j.ijproman.2019.01.007

Winter, M., Smith, C., Morris, P., & Cicmil, S. (2006). Directions for future research in project management: The main findings of a UK government-funded research network. International Journal of Project Management, 24 , 638–649. https://doi.org/10.1016/j.ijproman.2006.08.009

Yeo, K. T., & Ren, Y. (2009). Risk management capability maturity model for complex product systems (CoPS) projects. Systems Engineering, 12 , 275–294. https://doi.org/10.1002/sys.20123

Yin, R. K. (2013). Case study research: Design and methods (5th ed.). SAGE.

Download references

Acknowledgments

The authors gratefully acknowledge the Grant VERB_SID19_01 funded by the University of Padova.

Author information

Authors and affiliations.

University of Padova, Padua, Italy

Raffaele Testorelli, Anna Tiso & Chiara Verbano

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Raffaele Testorelli .

Editor information

Editors and affiliations.

Business and Economics, Reykjavík University, Reykjavik, Iceland

Susanne Durst

Faculty of Business and Law, HTW Berlin – University of Applied Science, Berlin, Berlin, Germany

Thomas Henschel

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Testorelli, R., Tiso, A., Verbano, C. (2024). Increasing Value and Resilience Through Project Risk Management: A Case Study in the IT Consulting Sector. In: Durst, S., Henschel, T. (eds) Small and Medium-Sized Enterprise (SME) Resilience. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-031-50836-3_13

Download citation

DOI : https://doi.org/10.1007/978-3-031-50836-3_13

Published : 19 March 2024

Publisher Name : Springer, Cham

Print ISBN : 978-3-031-50835-6

Online ISBN : 978-3-031-50836-3

eBook Packages : Business and Management Business and Management (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

Red Learning

• [email protected]
• +971-523532803

Project Management

Risk Management in Action: Case Studies for Project Managers

• Posted by Red Learning
• Categories Project Management
• Date April 20, 2024
• Comments 0 comment

The theoretical aspects of risk management are crucial, but seeing them applied in real-world scenarios brings the concepts to life. Here are two case studies that showcase how Project Managers identified, assessed, and mitigated risks to achieve project success:

Case Study 1: Launching a New Software Product

Project: Developing and launching a new web-based project management software application.

Identified Risks:

• Technical Issues:  Potential delays due to software bugs or integration challenges with third-party applications.
• Market Adoption:  The target market might not be receptive to a new project management solution.
• Scope Creep:  New feature requests during development could lead to project delays and budget overruns.

Risk Mitigation Strategies:

• Thorough Testing:  Implemented a rigorous testing process to identify and fix bugs before launch.
• Market Research:  Conducted extensive market research to understand customer needs and preferences.
• Change Management Process:  Established a clear change management process to evaluate and prioritize new feature requests, mitigating scope creep.

Outcome: The project was completed on time and within budget. The software was well-received by the target market, achieving successful market adoption.

Key Learnings:

• Proactive identification of potential risks is essential.
• Implementing a mitigation plan can significantly improve project outcomes.
• Adaptability and continuous risk monitoring are crucial throughout the project lifecycle.

Case Study 2: Building a New Manufacturing Facility

Project: Construction of a new manufacturing facility for a consumer goods company.

• Labor Shortages:  Difficulty finding qualified workers to complete the construction project on schedule.
• Material Price Fluctuations:  Rising costs of raw materials could impact the project budget.
• Unforeseen Weather Events:  Adverse weather conditions could cause delays and disrupt the construction schedule.
• Strategic Workforce Planning:  Partnered with recruitment agencies and offered competitive wages to attract and retain skilled workers.
• Contract Negotiation:  Negotiated fixed-price contracts with material suppliers to minimize the impact of price fluctuations.
• Contingency Plans:  Developed contingency plans to address potential weather disruptions, including alternative work schedules and materials sourcing.

Outcome: The manufacturing facility was constructed on schedule and within budget despite encountering some labor shortages and minor weather delays. The contingency plans proved effective in mitigating these challenges.

• A diverse set of risks can arise in construction projects.
• Having mitigation plans in place for various risk categories is crucial.
• Effective communication and collaboration with stakeholders (contractors, suppliers) are essential for successful risk management .

These case studies highlight the importance of risk management in project success. By proactively identifying potential risks, developing mitigation plans, and continuously monitoring the project environment, project managers can navigate challenges, ensure project delivery, and achieve their goals.

Previous post

Delegation Strategies for Increased Project Efficiency

Building a culture of innovation in your project teams, you may also like, pmp certification: your path to project management mastery with red learning.

Understanding the PMP Certification The Project Management Professional (PMP)® certification is globally recognized as the gold standard in project management. Administered by the Project Management Institute (PMI), the PMP credential validates a project manager’s experience, education, and competency across a …

The Future of Work: How PMI CPs Can Stay Relevant in the Evolving Industry Landscape

The construction industry is undergoing a rapid metamorphosis. Technological advancements, sustainability concerns, and evolving client demands are reshaping how projects are planned, executed, and delivered. To navigate this dynamic landscape and remain relevant, PMI Certified Professionals (PMPs) must embrace continuous …

Construction Project Management in a Remote and Hybrid Work Environment

The construction industry is undergoing a metamorphosis, transitioning from a traditionally hands-on approach to a world of remote and hybrid work models. This shift presents both challenges and opportunities for Project Management Institute (PMI) Certified Professionals (PMPs). Here’s a comprehensive …

• Predict! Software Suite
• Training and Coaching
• Predict! Risk Controller
• Rapid Deployment
• Predict! Risk Analyser
• Predict! Risk Reporter
• Predict! Risk Visualiser
• Predict! Cloud Hosting
• BOOK A DEMO
• Risk Vision
• Win Proposals with Risk Analysis
• Case Studies
• Video Gallery
• White Papers
• Upcoming Events
• Past Events

Fehmarnbelt case study

. . . . . learn more

Lend Lease case study

ASC case study

Tornado IPT case study

LLW Repository case study

OHL case study

Babcock case study

HUMS case study

UK Chinook case study

• EMEA: +44 (0) 1865 987 466
• Americas: +1 (0) 437 269 0697
• APAC: +61 499 520 456

Subscribe for Updates

Copyright © 2024 risk decisions. All rights reserved.

• Privacy Policy
• Cookie Policy
• Terms and Conditions
• Company Registration No: 01878114

Powered by The Communications Group

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Risk Management for a Construction Project -A Case Study

2017, IJSRD

All categories of any organizations may face few internal and external factors that may make it uncertain to achieve their objectives or goals. This uncertainty is called Risk. A guide to the project management body of knowledge (PMBOK guide) defines project risk management as "The process of conducting risk management planning, identification, analysis, response planning, and monitoring and control on a project". The main objective of this study is to illustrate application of risk management process in construction project. To achieve this, a case study is chosen in Bangalore which is a residential villa project. A review of literature and experts advice gave opportunity to prepare a risk breakdown structure which has 9 risk categories that result from 39 risk factors which are generally faced in construction projects. Further questionnaire survey played important role in identifying and analysing the risks faced in the case study. And the results of case study conclude with list of risk factors which were majorly affecting the project and their analysis. And a proper recommendation is suggested for the research work carried out.

Related Papers

eSAT Journals

Risk management is an important step which should not be neglect or ignore in every project. Because of various risk involved in construction, it is difficult to maintain time, cost and quality as planned. Project undertaken in the construction sector are widely complex and have often significant budgets, and thus reducing the risk associated should be a priority for each project manager. The main purpose of this paper is to identify the key risk factors that affect construction project. Questionnaires has been prepared incorporating of 50 difference questions after which questionnaire survey was conducted where the questions has been focused based on (component of questionnaire) the respondents were selected based on their susceptibility to the risk. The data was analyzed using the Statistical package for social sciences (SPSS) version 21. The result shows that the inadequate planning in construction project, poor adoption of site safety, supply and use of defective materials and poor resources management in construction project are all among the forefront key risk factors which affect construction project, meanwhile, effective recommendations have been developed to increases the efficiency, speedy and minimises risk and abortive work in construction project.

Ashutosh Nandkumar Chandanshive

Ashutosh Chandanshive, Arjita Biswas Researcher, Assistant Professor, Department of Civil Maharashta Institute of Technology, Pune, India ________________________________________________________________________________________________________ Abstract : Risk is present in every construction project and each construction project is unique. The risk factors influencing the projects are also different. If these risk factors are not addressed properly at planning stage, it can adversely affect the project performance. In this study, various risk factors were identified and classified according to their nature. Data related to risk measurement was collected through the questionnaire survey and by meeting personnel working in the construction industry. The risk factors were rated for the likelihood of their occurrence and impact was recorded for the projects under case study. These ratings were analyzed using SPSS software and possible correlations were developed for the critical factors....

INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)

Dr Amit B Dutta , M. Kolhatkar

Risk management (RM) is a concept which is used in all industries, from IT related business, automobile or pharmaceutical industry, to the construction sector. One concept which is widely used within the field of RM is called a risk management process (RMP) and consists of four main steps: identification, assessment, taking action and monitoring the risks (Cooper et al., 2005). The overall aim is to let everyone know what risk management is. Realize the procedure of risk management in the construction project and have a deeper study on the application of risk management in the construction industry during the entire phase of construction from the Estimate to the execution state. The topics studied are application of risk management techniques, barriers to risk management, data cost management.

IRJET Journal

The construction industry has now turned out to be one of the fastest growing industries of today that has significant effect on the economy of India Large development projects when deferred cause increment in the general spending plan. The undertaking must be planned and sorted out property and precisely to finish it inside given time with good quality work. This study specify that all the construction projects, all over the world, have huge number of risks and to complete the project, efficiently and successfully, risk management is essential. The risks can be recognized by questionnaire survey. The risks are identified and then it is evaluated by various technique like qualitative analysis to know the occurrence probability of risk and impact of these risk on project goals. When any risk arises, they have severe or simple impact on project and it affects cost, schedule of project, time, and quality. Therefore, for the project to be succeed, the risk management is required.

International Journal for Research in Applied Science and Engineering Technology -IJRASET

IJRASET Publication

The construction industry is widely associated with a high risk and uncertainty due to the nature of its operating environment. This study aims to identify and evaluate key risk factors and their frequency and severity and then their impact in different types of construction projects in India. A questionnaire survey was conducted and a total of sixty five critical factors were identified and categorized into eight groups. These are: Financial related risk, Legal related risk, Management risk, Market related risk, Political and security related risk, Technical related risk, Environmental related risk, and Social related risk.. The results are presented on the basis of their frequency, severity and importance. I. INTRODUCTION The aim of this study is to conclude the prospect factors in industry, allotment of these factors, strategies used to traumatize risks and thus the techniques adopted in analysing these risks. the development project is exposed to a high degree of risk from the start of the project till the highest of the project. Risk is printed as any event or prevalence which could have an impact on the action of project goals. Risk management in construction comes is to deal effectively with uncertainty and sudden events that might have an impact on palmy and timely completion of the project. If risks don't seem to be known early throughout a project, it creates tons of exposure and uncertainties to the project life cycle, thereby touching such aspects as value, schedule and quality of the project. additionally, it'd additionally produce exposures within the space of Health, safety and surroundings. Hence, risk management permits project managers to identify, analyze, respond and manage the risks of the project. this will be the rationale why risk management is extremely necessary for the palmy action for a project. In drafting the contract, the getting strategy need to clearly outline the responsibilities of the consumer and therefore the contractor and such need to be specific and graspable. this will be to make positive that the prospect is clear for every the contractor and shopper thereby avoid future dispute. The importance of risk management in construction comes are reportable by many authors. It had been completed that risk management is crucial to construction activities in minimizing losses and enhancing profitableness. It had been explicit that risk management might be a way that need to be applied in associate trade to achieve the goals of the trade, thus it is necessary to unfold awareness and build interest amongst individuals to use risk management techniques within the trade. the prospect might be a measurable a neighborhood of uncertainty and is assumed as a deviation from the specified level, thus the prospect analysis is thus necessary for project choice and coordination of construction work.

IJESRT Journal

Risk assessment is a series of processes consisting of risk analysis, assessment of magnitude of risk, judgment on whether the risk is acceptable or unacceptable, and making and assessing risk control options, to attain this goal. Risk assessment will play an important role when the part relate to the risk within decisions made by an organization is to be rationally implemented. Managing these processes can be quite a challenge for the management. Risk management includes identifying risks, assessing risks either quantitatively or qualitatively, choosing the appropriate method for handling risks, and then monitoring and documenting risks. This study identifies the procedures for risk identification, management and its perception from the Indian construction industry. Time and cost management need to be fully integrated with the identification process. The aim of this study is to advise for a method of risk mitigation which includes a well-documented procedure which serves as a one stop-solution to all the risks that would emanate in the future. We conducted a survey research by applying a questionnaire among in the construction industry. The risk identification techniques more frequently applied in construction are checklist, flowchart, Brain storming, Delphi method, Anova hypothesis etc.

Shumank Srivastava

Construction industry is highly risk prone, with complex and dynamic project environments creating an atmosphere of high uncertainty and risk. The industry is vulnerable to various technical, sociopolitical and business risks. The track record to cope with these risks has not been very good in construction industry. As a result, the people working in the industry bear various failures, such as, failure of abiding by quality and operational requirements, cost overruns and uncertain delays in project completion. In light of this, it can be said that an effective systems of risk assessment and management for construction industry remains a challenging task for the industry practitioners. The aim of the this research is to identify and evaluate current risks and uncertainties in the construction industry through extensive literature survey and aims to make a basis for future studies for development of a risk management framework to be adopted by prospective investors, developers and contractors

E3S Web of Conferences

Sharif Akbari

The main task of the project manager is risk management. However, this task can be very complicated and inefficient if risk management is not considered from the beginning of the project. An effective risk management approach requires a systematic and appropriate approach, knowledge and experience. Studies of many projects have shown that both the owner and the contractor do not regularly implement risk management practices, which can have negative consequences on project performance. Because of the above-mentioned issues in this study, it is attempted to first evaluate the concepts of project risk management based on different and valid standards, to evaluate risk management in construction projects. Then, an attempt has been made to present an implementation approach for implementing six stages of risk management in projects. For this purpose, based on the experiences of the project “Lala Residential Complex” in Kabul, as a case study, the experimental application of the proposed ...

Academic Research International

mohammad abazid

The study was carried out in order to obtain a comprehensive conceptualization on risk and the consequences it has in the fields of construction and the required management operation. Along with the utilities and techniques adopted to control risk in the construction industry, the effect of risk on the project assessment is also discussed. The aspiration of the topic of research is to be able to enquire into the productive method of implementing risk management in construction industry, to be able to respect the various types of managing techniques manipulated to reduce risk, to define the utility of implementation of the risk management, to resolve the components that affect the execution of risk management in the life cycle of projects. The following study discloses the research which focuses on distinguishing the practices of risk management and construction projects in the Arab region.

Mohammedshakil S Malek

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

INTERNATIONAL JOURNAL OF ENGINEERING TECHNOLOGIES AND MANAGEMENT RESEARCH I J E T M R JOURNAL

Dr G Chitra

Ehab Bairam

SSRG International Journal of Civil Engineering

Swati Dhurve

The Ijes The Ijes

American Journal of Civil Engineering

Dr.Mohammad Taghipour Talesh

Dr. Suchith Reddy Arukala

Editor IJERMS

Mohamed Noureldin

Haozz Zhang

Rizwan Khurram

Mehmood Alam

Journal of Emerging Technologies and Innovative Research

ASHISH H . MAKWANA

Beemnet Kumlachew

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024