Essays on Strategic Considerations for Project Risk Management Literature review

Download full paperFile format: .doc, available for editing

The paper “ Strategic Considerations for Project Risk Management” is a thoughtful example of the literature review on management. Project risk management has become an integral part of managers who strive to realize a successful project. When the proper procedure is followed, the process can help the management team mitigate against both expected and unexpected risks. Many established projects have been said to exceed the estimated budget, lag behind the planned time of completion, or even miss essential performance targets because of poor planning and anticipation of risks. Datta and Mukerjee (2001pp.

45– 57) explain that for project managers to have extensive and successful project completion, a great extent on the identification of possible risks forms a formidable step in achieving success. Before embarking on key strategic considerations, risk management theories, and evaluation of the project environment later in the report, various definitions of terms are needed. A myriad of risk and risk management definitions have been put in place to relate it with projects. However, research by scholars such as Faulkender, (2005 p. 932) shows that there are no standard definitions that exist to constitute a risk in relation to projects.

In the business industry, for instance, the risk is often regarded as the presence of potential or real hurdles or opportunities that partly or wholly influence the growth of business RAMP (1998). Other schools of thought have it that risk is any factor that has the potential of interfering with the successful establishment, running, and completion of any project. Dias and Ioannou (1995) gave a conclusive remark that risks can occur in two different dimensions. There could be what they called ‘ pure risks’ which they explained occur in the project when it experiences financial loss with no possibility of gaining.

On the other hand, they talked of ‘ speculative risks’ which they explain involve a situation a project has both gain and loss of finances. In my view, risk management should mean the established processes and methodologies that are used towards effective mitigation of the risks and even potential threats to project goals.

Reference

Lists

Chapman, C. and Ward, S. (2002). Managing Project Risk and Uncertainty, John Wiley & Sons.

Cornell, B., Shapiro, A. C. (1987), “Corporate Stakeholders and Corporate Finance”, Financial

Management, Vol. 16, pp. 5-14.

Dias, A. and Ioannou, P. (1995). Debt Capacity and Optimal Capital Structure for Privately

Financed Infrastructure Projects. ASCE Journal of Construction Engineering and Management, Vol. 121, No. 4, pp. 404-414.

Davies, D., Eckberg, C., Marshall, A. (2006), The Determinants of Norwegian Exporters

Foreign Exchange Risk Management. The European Journal of Finance, Vol. 12, No. 3, pp. 217-240.

Datta, S. and Mukerjee, K. (2001). Developing a Risk Management Matrix for Effective Project Planning—An Empirical Study, Project Management Journal, 32:2, pp. 45–57.

Dooris, Michael J., Kelley, John M., and Trainer, James F., (2004). Eds. Successful Strategic Planning, New Directions in Institutional Research, #123.

Faulkender, M. (2005). “Hedging or Market Timing? Selecting the Interest Rate Exposure of Corporate Debt”, The Journal of Finance, Vol. 60, No. 2, pp. 931-963.

Fite, D., Pfleiderer, P. (1995), “Should Firms Use Derivatives to Manage Risk?”, in Beaver W.,

Parker, G. (Ed.), Risk Management: Problems and Solutions, McGraw-Hill, New York, pp. 61-76.

Freeman, R. E. (1984), Strategic management: A stakeholder approach, Prentice-Hall, Englewood Cliffs, NJ. Geczy, C., Minton, B.A., Schrand, C. (1997), “Why Firms Use Derivatives”. The Journal of Finance, Vol. 52, No. 4, pp. 1323-1354.

Halman, J. and Keizer, A. (1994). Diagnosing Risks in Product Innovation Projects, International Journal of Project management Vol 12 No 2 pp 75-81.

Jiang, J., Gary K., and Selwyn, T. (2002). A Measure of Software Development Risks, Project Management Journal, 33:3, pp. 30–41.

Jin, Y. and Jorion, P. (2006). Firm Value and Hedging: Evidence from US Oil and Gas Producers, The Journal of Finance, Vol. 61, No. 2, pp. 893-919.

Judge, A. (2006), “Why and How UK Firms Hedge”, European Journal of Finance, Vol. 12, No. 3, pp. 407-441.

Klimczak, K. M. (2005), “Corporate Risk Management from Stakeholders' Perspective”, TRANS’ 05, SGH, Warszawa, Poland, pp. 371-380.

Mayers, D., Smith, C. W. (1987), “Corporate Insurance and the Underinvestment Problem”, The Journal of Risk and Insurance, Vol. 54, No. 1, pp. 45-54.

Miller, M. H., Modigliani, F. (1958), “The Cost of Capital and the Theory of Inverstment”, American Economic Review, Vol. 48, pp. 261-297.

Myddelton, D.R. (2007) They Meant Well. Government Project Disasters. London: The Institute of Economic Affairs.

Price, J. (1998). Simplified Risk Assessment, Engineering Management Journal, 10:1 pp. 19–24.

Pritchard, C. (2001). Risk Management, Concepts and Guidance, 2nd ed., ESI International.

Pyra, J. and John T. (2002). Risk Management Post Analysis: Gauging the Success of a Simple Strategy in a Complex Project, Project Management Journal, 33:2), pp. 41–48.

RAMP (Institute of Civil Engineers and the Faculty and Institute of Actuaries) (1998). Risk Analysis and Management for Projects. Thomas Telford, London.

Raz, T. and Erez M. (1999). Benchmarking the Use of Project Risk Management Tools. Proceedings of the Project Management Institute Annual Seminars and Symposium.

Smith, C. W., Stulz, R. M. (1985), “The Determinants of Firm's Hedging Policies”, Journal of Finance and Quantitative Analysis, Vol. 20, No. 4, pp. 391-405.

Tufano, P. (1996), “Who manages risk? An empirical examination of risk management practices in the gold mining industry”, The Journal of Finance, Vol. 51, No. 4, pp. 1097-1137.

Turner J (2008), The Handbook of Project-based Management: Leading Strategic Change in Organizations. Copyright by McGraw-Hill Professional; 3ed edition

Williams, T. (1994). Using a Risk Register to Integrate Risk Management in Project Definition, International Journal of Project management Vol 12 No 1 pp17-22

Williamson, O. E. (1998), “The Institutions of Governance”, The AEA Papers and Proceedings, Vol. 88, No. 2, pp. 75-79.

Williamson, O.E. (1987), The Economic Institutions of Capitalism: Firms, Markets, Rational Contracting, Free Press, New York, London.

Download full paperFile format: .doc, available for editing
Contact Us