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"A STUDY ON PROJECT RISK MANAGEMENT"
A project report submitted in partially fulfilment of the requirements for
the award of Degree of Master of Business Administration
Submitted by:
(WADAH SALIH MOHAMED SALIH MUSTAFA)
Reg No. 1404000065
Under the guidance and supervision of
C.K. ABDUL RAHMAN, MBA.,
Submitted to
FACULTY OF MANAGEMENT STUDIES
SIKKIM MANIPAL UNIVERSITY
April 2016
II
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III
ACKNOWLEDGEMENT
First and foremost I would like to thank God Almighty for His
blessings that have been showed upon me for the success of the project.
I express my sincere thanks with gratitude to my faculty (Abdul
Rahman), Department of Management Studies for his able guidance,
advice, valuable suggestion and support, which he imparted to me in
the completion of the project.
I am also thankful to the Managing Director of EDS, Sikkim Manipal
University Learning Centre Jeddah, Mr. Mohsen S Bazaham. I would
also like to thank the respondents who rendered their help in
responding to my interview schedule.
Last but not the least I would like to thank my parents and friends for
their valuable support and help.
MUSTAFA, W. S.
IV
DECLARATION
I hereby declare that the dissertation report entitled A
STUDY ON PROJECT RISK MANAGEMENT . Submitted in
partial fulfilment for the award of Master of Business
Administration to the SMU University, is a record of independent
research work carried out by me under the guidance of (C.K.
ABDUL RAHMAN), I also declare that this dissertation report is
the result of my own effort and has not been submitted earlier for
the award of any other degree / diploma / associate ship and prize
by any other university.
Place: Jeddah, Saudi Arabia
Date: April, 2016 (MUSTAFA, W. S.)
V
C.K. ABDUL RAHMAN, MBA,
BONAFIDE CERTIFICATE
Certified that this project titled A STUDY ON PROJECT RISK
MANAGEMENT is the bona fide work of (WADAH SALIH
MOHAMED SALIH MUSTAFA) under my supervision. Certified
further, that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation on the
basis of which a degree or award was conferred on an earlier
occasion on this or any other candidate.
Place: Jeddah
Date: Signature of the Guide
Forwarded by
Internal Examiner External Examiner
VI
PROJECT CERTIFICATE
(This is only a format and it has to be printed in the company letter head)
VII
EXECUTIVE SUMMARY
Table of Contents
ACKNOWLEDGEMENT .................................................................................................. 3
DECLARATION ................................................................................................................ 4
BONAFIDE CERTIFICATE .............................................................................................. 5
PROJECT CERTIFICATE ................................................................................................. 6
EXECUTIVE SUMMARY ................................................................................................ 7
Table of Contents ............................................................................................................ 7
List of Figures ............................................................................................................... 10
List of Acronyms ........................................................................................................... 11
ABSTRACT ...................................................................................................................... 12
CHAPTER - 1 ..................................................................................................................... 1
INTRODUCTION .............................................................................................................. 2
1.1 Industry profile ..................................................................................................... 2
1.2 Company profile ................................................................................................... 4
CHAPTER - 2 ................................................................................................................... 14
METHODOLOGY ........................................................................................................... 15
2.1 Research Design ................................................................................................. 15
2.2 Need for the study .............................................................................................. 15
2.3 Objectives of the study ....................................................................................... 16
2.3.1 Primary Objective ....................................................................................... 16
2.3.2 Secondary Objectives .................................................................................. 16
2.4 Scope of the study .............................................................................................. 16
2.5 Method of data collection ................................................................................... 16
2.5.1 Survey: ........................................................................................................ 17
2.5.2 Project Documents: .................................................................................... 18
VIII
2.6 Sampling Design and Sample Size..................................................................... 18
2.7 Tools used for the study ..................................................................................... 18
2.8 Universe / Population ......................................................................................... 19
2.9 Period of Study ................................................................................................... 19
2.10 Limitation of the Study ...................................................................................... 19
CHAPTER 3 .................................................................................................................. 20
LITERATURE REVIEW ................................................................................................. 21
3.1 Background and history: .................................................................................... 21
3.2 Insurance and risk management .............................................................................. 21
3.3 Project outlook of risks: .......................................................................................... 22
3.4 Definition of Risk Management: ............................................................................. 22
3.5 Knowledge and Uncertainty: ................................................................................... 23
3.6 Uncertainty and Risk: .............................................................................................. 24
3.7 The Risk Management process: .............................................................................. 25
3.8 Risk Management goal: ........................................................................................... 27
3.9 Risk Management Techniques: ............................................................................... 27
3.9.1. Quantitative techniques: .................................................................................. 27
3.9.2. Qualitative techniques: .................................................................................... 28
3.10 Risk Management constraint: ................................................................................ 28
CHAPTER - 4 ................................................................................................................... 30
DATA PRESENTATION AND ANALYSIS .................................................................. 31
4.1 Secondary Data Analysis ........................................................................................ 31
4.1.1 Sources of Risks at the initial project stages .................................................... 31
4.2 Primary Data Analysis ............................................................................................ 34
4.2.1 Data Processing: ............................................................................................... 34
CHAPTER - 5 ................................................................................................................... 37
FINDINGS, SUGGESTIONS & CONCLUSION ............................................................ 38
IX
5.1 Finding ............................................................................................................... 38
5.2 Suggestion .......................................................................................................... 39
5.3 Conclusion .......................................................................................................... 39
BIBLIOGRAPHY ............................................................................................................. 40
Appendix ....................................................................................................................... 41
References ..................................................................................................................... 45
X
List of Figures
Figure 1: The GDP of G 20 Countries in 2014............................................................ 3
Figure 2: Shafts & Collection Chamber Building ....................................................... 6
Figure 3: Site Overview ............................................................................................... 7
Figure 4: North Jeddah Pump Shaft ............................................................................ 7
Figure 5: Collection Chamber Building ...................................................................... 8
Figure 6: Electrical Building...................................................................... 8
Figure 7: Electrical Generators .................................................................................... 8
Figure 8: House Connection ........................................................................................ 9
Figure 9: House Connection Inside ............................................................................. 9
Figure 10: Aeration Tank .......................................................................................... 10
Figure 11: Aeration Tank .......................................................................................... 10
Figure 12: Blower House ........................................................................................... 11
Figure 13: Aeration Tanks ......................................................................................... 11
Figure 14: Inlet Area .................................................................................................. 11
Figure 15: Screen ....................................................................................................... 12
Figure 16: Belt Press.................................................................................................. 12
Figure 17: Main Blowers ........................................................................................... 12
Figure 18: Main Sewage Line ................................................................................... 13
Figure 19: Shaft ......................................................................................................... 13
Figure 20: Knowledge and risk change during project .............................................. 23
Figure 21: Data Comparison...................................................................................... 35
XI
List of Acronyms
UNESCO - United Nations Educational, Scientific and Cultural Organization
UN - United Nations
SWOT - Strengths, Weaknesses, Opportunities, Threats
RM - Risk Management
RBS - Risk Breakdown Structure
PMBOK - Project Management Body of Knowledge
PM - Project Management
PESTEL - Political, Environmental, Social, Technical, Economic, Legal
PMI - Project Management Institute
KM - Knowledge Management
ISO - International Organization for Standardization
ICT - Information and Communications Technology
APM - Association for Project Management
WHO - World Health Organization
XII
ABSTRACT
In this Research, risk management have been investigated in a case study
which helped to realize how the infrastructure and construction industry
works with this concept. The research has been carried out from November
2015 to April 2016, at the facility of management studies, Sikkim Manipal
University, DE . The Research has been carried out with Abuljadayel Co. for
Contracting and Maintenance, a contracting company within infrastructure
construction project management, where a rehabilitation project of Sewage
Treatment Plant in Khumrah (3) area in Jeddah has been investigated in
order to do this research. The research has also been supervised by C.K.
ABDUL RAHMAN, MBA,.
CHAPTER - 1
2
INTRODUCTION
Project risk is an uncertain event or condition that, if it occurs, has a positive or negative
effect on one or more project objectives such as scope, schedule, cost, and quality. A risk
may have one or more causes and, if it occurs, it may have one or more impacts. A cause
may be a given or potential requirement, assumption, constraint, or condition that creates
the possibility of negative or positive outcomes. (PMBOK5)
The purpose of risk management is to identify these potential problems before they occur
so that risk-handling activities may be planned and invoked as needed across the life of the
product or project to mitigate adverse impacts on achieving objectives.
Risk management is a continuous, forward-looking process that is an important part of
business and technical management processes. Risk management should address issues
that could endanger achievement of critical objectives. A continuous risk management
approach is applied to effectively anticipate and mitigate the risks that have critical impact
on the project.
Effective risk management includes early and aggressive risk identification through the
collaboration and involvement of relevant stakeholders. Strong leadership across all
relevant stakeholders is needed to establish an environment for the free and open
disclosure and discussion of risk.
Although technical issues are a primary concern both early on and throughout all project
phases, risk management must consider both internal and external sources for cost,
schedule, and technical risk. Early and aggressive detection of risk is important because it
is typically easier, less costly, and less disruptive to make changes and correct work
efforts during the earlier, rather than the later, phases of the project.
1.1 Industry profile
Saudi Arabia is the largest exporter of oil in the world. As a result, the Saudi economy has
grown very strongly in recent years, it has been one of the best performing in the G-20 in
2014. See Figure 1, The Group of Twenty (also known as the G-20 or G20) is an
international forum for the governments and central bank governors from 20 major
economies.
3
Figure 1: The GDP of G 20 Countries in 2014
Persistent low oil prices during 2015 combined with a more active regional policy have
caused considerable fiscal strain, pushing the budget into a deficit approaching 20% of
GDP. The government has drawn on its financial reserves and initiated plans to tap
international bond markets for the first time. The policy and contracting environment will
become more uncertain amid pressure to cut spending while moving ahead with
infrastructure investments and other reforms deemed critical to economic diversification
and generating employment for Saudi nationals.
Even though that the impact of lower oil prices is notes on the private sector, Saudi
Arabia's infrastructure and construction sectors will offer scale and growth opportunities
over next 8 years up to 2024 (research and markets 10 year forecast), although.
expected that government investment in affordable housing and infrastructure to remain
robust, although its observant that the government will begin moves to lessen the pressure
being placed on the country's substantial fiscal buffers.
Generally, Saudi economy is constantly on the rise and the construction sector specifically
has seen significant increases in activity. One of the main trends within the construction
4
sector is infrastructure. Saudi government has always been actively concerned with
growing the Saudi infrastructure. Indications show that this concern will remain at the
forefront of Saudi decision making.
According to Eng. Loay Al-Musallam (NWC CEO), The National Water Company
(NWC) as government owned organization, planning to invest some USD $23 billion in
Saudi Arabia's sewage collection and treatment infrastructure over the next 20 years. This
investment aims to increase wastewater network coverage to 100%, up from the current
coverage level of 45% (and lower in some cities/towns).
The NWC has launched 80 water and wastewater projects in Riyadh and Jeddah worth 5
billion Saudi riyals ($1.3 billion). The projects will revamp water transmission and sewage
systems in these two cities. The NWC also signed a US$46.32 million deal with a French-
Saudi consortium to manage and operate the water and sewage sectors in the Saudi cities
of Makkah and Taif. The consortium comprises of France's Saur Group and Saudi Arabia's
Zamil Operations and Maintenance Co., a unit of Zamil Group Holding Co. Under the
contract, the consortium will engage in the supervision, management, operation and
maintenance of the water and sewage grids in addition to the management and
development of the client service department, revenue collection, leakage reduction, and
staff training. The NWC has contracts with Veolia to manage Riyadh Water and Suez to
manage Jeddah water.
1.2 Company profile
1.2.1 Abuljadayel Co. For Contracting & Maintenance
Abuljadayel Co. for Contracting and Maintenance is a Saudi National Company
established in 1974 with Head Office in Jeddah and Branches in: Jeddah, Makkah, Taif
and Al Madinah Al Munawarrah. The Company is specialized in the field of Water &
Waste Water projects such as Construction of Water & Sewage Pipeline Networks,
Treatment Plants, and Pump Stations as well as Operation & Maintenance projects of
related field. The Company also executes Tunnelling projects for Water & Sewage Lines
using Tunnel Boring Machines and Pipe Jacking Techniques.
The Co. has completed many projects in the main cities of the Kingdom of Saudi Arabia.
Equipped with extensive knowledge of the job at hand and constant adherence to the
5
on a limited timeframe. Thereby earning the trust and respect of the project owners.
Due to the distinct quality of work, the company was classified as CLASS A by the
categories:
Construction of Water & Wastewater Utility (First Class).
Operation and Maintenance of Water & Sewage Work. (First Class).
Electro-Mechanical works, Buildings, Road Construction.
Abuljadayel Co. for Contracting & Maintenance Possess a long experience through its
administrative and executive sections, professional engineers and Accountants; Chemists,
Technicians and Skilled workers specialized in their respective field. In addition, a
specialized Study and Contract department over sees the drafting of contracts and attends
to the various projects; takes into consideration all the Technical, Financial aspects and
eventualities of the projects and provides a detailed, competitive quotation in accordance
with International Standards.
In its contribution to the development of the kingdom of Saudi Arabia, Abuljadayel
Establishment for Contracting & Maintenance has acquired fleets of the latest machineries
calibre administrative & technical
personnel carries out various main infrastructure projects and leads the company towards
progress.
With the expansion of Cities of the Kingdom, it was imperative to expand the Utilities
services including the Water & Sewage Networks that requires working with deep shafts
for Auxiliary Gravity Sewage Line [10 60 meters] which is impractical to execute with
Conventional method (Open Trench).
Abuljadayel Co. for Contracting & Maintenance possesses the latest international
Technology to execute projects in Constructing Tunnels for Water & Sewage using
Tunnel Boring Machines and Pipe Jacking method.
The company procured the Latest Technology with trained & qualified Technical
personnel to carry out tunnelling projects that range from dia. 500 mm to 3500 mm.
6
1.2.2 Some of Company infrastructure Projects:
a. North Jeddah Pump Station
The North Jeddah Pump Station Project purpose is to pump sewage and waste water
collected from North Jeddah area through a 3.5 m. diameter and 65 m. deep tunnel to the
North Jeddah Wastewater Treatment Plant.
The Pump station is designed to pump a future maximum flow of 1,125,000m3 per day
and is about 80 m. deep which make it the world deepest sewage pumping station, and
third largest. Alternative configurations and construction techniques for Screens, wet well
and dry well were studied and evaluated to select the best arrangement that fulfils
maximum constructability, operability, maintainability. The selected option consists of
one screen shaft and two separate pump shafts, both have the same clear depth of 76 m,
with diameters of 40 m. The screen shaft is to accommodate the bar screens and wet well,
and the pump shafts to accommodate the pumps. Latest technologies in Control,
Ventilation and Odor Control Systems are provided
PROJECT OWNER: National Water Company
Figure 2: Shafts & Collection Chamber Building
7
Figure 3: Site Overview
Figure 4: North Jeddah Pump Shaft
8
Figure 5: Collection Chamber Building
Figure 6: Electrical Generators Building
Figure 7: Electrical Generators
9
b. Construction of Main Sewage & Branch Sewage & House Connections at Central
Area in Jeddah
Supply & Fixing of House Connection by vitrified clay pipes for diameter 150, 200 mm
with a length of 2,350,000 LM.
Supply & construction of 235,000 inspection Chambers with internal dia 600 & 900 mm.
Supply & laying of vitrified clay pipes for gravity sewer line of different dia with a length
of 260,045 LM.
Supply & construction of 6,450 manholes for gravity line.
Execution of Micro Tunnels with dia of 300, 600, 800, 1000 & 1200 mm with length of
7,785 LM including construction of 44 shafts.
Execution of Big Tunnel with dia of 1500 mm with length of 3,425 LM including
construction of 22 nos. of shafts.
PROJECT OWNER: National Water Company
Figure 8: House Connection
Figure 9: House Connection Inside
10
c. Const. of Tertiary Sewage Treatment Plant of capacity 250,000M3/day in Jeddah
Al Khumrah #4.
Design & Const. of Tertiary Sewage Treatment Plant at Al Khumrah area in
Jeddah (Al Khumrah # 4).
Secondary Sewage Treatment Plant of capacity 250,000M3/day and Tertiary
treatment of capacity 500,000M3/day including Ultra violet disinfection.
Supply, Installation and execution of All Civil, Architectural & Electro-
Mechanical works of the Project components.
PROJECT OWNER: National Water Company
Figure 10: Aeration Tank
Figure 11: Aeration Tank
11
Figure 13: Aeration Tanks
Figure 12: Blower House
Figure 14: Inlet Area
12
Figure 16: Belt Press
Figure 17: Main Blowers
Figure 15: Screen
13
d. Cont #4A
Const. of Main Sewage Line of dia 3500 mm using Pipe Jacking method from the end of
Cont # 4 to Main Pumping Station in North Jeddah with length 8600 LM and Const. of
Shafts 18 Nos. of dia 10 meters with a depth of 60 M.
PROJECT OWNER: National Water Company
Figure 18: Main Sewage Line
Figure 19: Shaft
14
CHAPTER - 2
15
METHODOLOGY
2.1 Research Design
study how Saudi companies adopted risk management Planning and Execution in their
projects.
One of the most effective way to study risk management inside Saudi companies is to
knowledge and what they know about risk management through interviews and surveys
which we considered in this study.
Abuljadayel for Contracting and Maintenance is considered as a Large scale companies
with more than 1000 employee and a number of in hands projects Which makes it very
difficult to measure how this company response to and control projects risks as a whole
during project life cycle. Thus, we targeted one of their running projects - Sewage
Treatment Plant in Khumrah (3) area study it in depth to analyze their
technique and how they reflect it to their industry.
In this study we focused on the project main departments; Civil, Mechanical and
Electrical departments which they have the direct responsible of project success. We
res about risk
management tools and techniques and how they use it, at the same time for the last four
months we were there to asked them Who? What? When? Where? and Why? For the
decisions that they had made in order to know exactly the effect of their decisions on the
project Scope, Time, and cost.
2.2 Need for the study
The purpose of this study is to evaluate how the risk management process is used in the
Projects industry and how the practitioners are managing risks in everyday situations.
The theory of the risk management process will be compared to the actual practice in
order to investigate similarities and differences. In other words, the main idea is to see if
the projects industry is working with risk management as it is described in the literature
regarding the methods and techniques presented. In order to achieve the purpose, the
following research questions have been formulated to support the investigation: How are
16
risks and risk management perceived in a project? How is risk management process used
in practice? How do risks change during a project life cycle? investigate how
construction companies manages risks and the use of risk management knowledge during
projects in Saudi Arabia.
2.3 Objectives of the study
2.3.1 Primary Objective
The primary objective of this Study is to know how project risk management planning
and execution adopted within Saudi companies. Evaluate and assess the companies risk
management planning and execution and its benefits and limitations and Suggest possible
tools and techniques that could improve risk management planning within projects
industry.
2.3.2 Secondary Objectives
Project risk management plan is one of the ten Knowledge Areas that the PMI mentioned
in their PMBOK to be as a reference for each project manager to succeed in his project.
With this study we will test whether th that Saudi companies t risk
management plans in their projects or not.
2.4 Scope of the study
This study focuses in Jeddah which is one of the
NWC infrastructure projects.
AK3 is a rehabilitation project of Sewage Treatment Plant in Khumrah (3) area. It
includes all Civil, Mechanical, Electrical and SCADA work, Project Duration is two
years and it delivered by Apr 2016.
2.5 Method of data collection
In order to collect appropriate data for the study, different sources have been used. For
the secondary data, theoretical background, a literature study has been conducted, using
both scientific articles written by professionals in the field as well as books in the area of
project and risk management.
For the primary data; Interviews, Questionnaires and Project documents overview
techniques are used to collect the data.
17
2.5.1 Survey:
A survey is a data gathering method that is utilized to collect, analyze and interpret the
views of a group of people from a target population. Surveys have been used in various
fields of research, such as sociology, marketing research, politics and psychology.
In our research we used survey to collect primary data from the field, both personal
interviews and questionnaires are obtaining to make sure that the data is accurate and
goal oriented.
2.5.1.1 Personal Interviews:
A personal interview survey, also called as a face-to-face survey, is a survey method that
is utilized when a specific target population is involved. The purpose of conducting a
personal interview survey is to explore the responses of the people to gather more and
deeper information.
In our survey we inte
Mahmod Al-Ajame and ask him about the challenges that he interface with risk
managements and his backup plans in case of any risk happens, also we get a general
idea about how Abuljadayel implement and develop their risk plans and we considered to
attend one of their ISO 9001:2008 training program which include risk management and
evaluation techniques.
our interview with Anas Maraey; The mechanical department manager was more
technical since he is responsible of Sewage treatment systems and machinery, suppling
and installing. We asked him how he will response if one of the supplier delayed and
how he protect himself and his company in contracts, what is the procedures that he
implement to ensure the systems will not fail and if so, what will happen then?
2.5.1.2 Questionnaires:
In survey research, a questionnaire is an instrument that is comprised of a set of questions
to be asked to the participants of the survey. Sir Francis Galton, an English polymath,
introduced the use of the questionnaire in surveys. Questionnaires usually ask questions
that elicit ideas and behaviors, preferences, traits, attitudes and facts.
18
This survey targeted the decision makers and department leaders (Civil, Mechanical,
Electrical) which their decisions could have direct effect in the project triangle positively
or negatively.
We asked these participants to answer 30 questions about their general and in-depth
knowledge of risk management techniques and if they are using it in their work.
2.5.2 Project Documents:
Project Documents may include project charter, statement of work, contracts,
requirements documentation, stakeholder register, change control register, activity list,
quality metrics, risk register, issue log, and other similar documents. These documents
may not be included in a project management plan, however, they are an integral part of
the project. With a few exceptions such as charter, contracts and statement of work
(SOW), the rest of the documents are used by the project manager for his own needs.
They may or may not be shown to the project sponsor.
ton Dizon - Senior Mechanical and safety Engineer at Abuljadayel Co. for
with us the AK3 safety plans
and documents to analyze it and use it in our research.
2.6 Sampling Design and Sample Size
This is a special Kind of research which measure the techniques that was been taken by
the decision makers so the sample should be a decision maker, in this research we find
that the most effective decision in such a project is made by three main departments,
Mechanical, Electrical and Civil department so we decided to take them as our sample to
measure the most effective decisions that may been taken during project life cycle.
2.7 Tools used for the study
In this research we used Microsoft excel as analytical software to manage and compare
collected data.
Microsoft Excel is a powerful spreadsheet application and one of the most famous tool in
this field and it gives a very accurate result, this is why most researchers consider it as
their number one analysis tool.
19
2.8 Universe / Population
project stakeholders, the consultant, Abuljadayel employees, Abuljadayel suppliers,
subcontractors, and everyone who work at the same project area.
2.9 Period of Study
This study took around months started in Nov 2015 in order to complete, in the
first phase after university approval we started to put the Research Methodology Plan
after that we Finalized the Questionnaire and Started the Data Collection work, three
months later we Completed Project Data Collection and started to write this report in
order to submit it to the Guide for final Approval before Printing.
2.10 Limitation of the Study
This research focused on Abuljadayel Company for Contracting and Maintenance as a
sample of Saudi companies worked in infrastructure projects industry. it was
complemented by studying one of their project which it was the AK3 , AK3 is a
rehabilitation project of Sewage Treatment Plant in Khumrah (3) area in Jeddah
cooperation with some of the stakeholders involved in it so most of the project meant to
fix and maintain what it was available already if possible, which make it very difficult to
control its risks. Due to the limited research time, the project was investigated during the
execution and closing phase only catch planning and design stage in it
except from the its documents.
20
CHAPTER 3
21
LITERATURE REVIEW
3.1 Background and history:
which interprets risk being a choice out of the
available options rather than fate. Humans have always been fascinated about randomness
and since long have tried to predict and control uncertainty.
The study of risk management began after World War II (Crockford, 1982; Harrington
and Neihaus, 2003; Williams and Heins, 1995). Risk management has long been
associated with the use of market insurance to protect individuals and companies from
various losses associated with accidents. Other forms of risk management, alternatives to
market insurance, surfaced during the 1950s when market insurance was perceived as very
costly and incomplete for protection against pure risk. The use of derivatives as risk
management instruments arose during the 1970s, and expanded rapidly during the 1980s,
as companies intensified their financial risk management. International risk regulation
began in the 1990s, and financial firms developed internal risk management models and
capital calculation formulas to hedge against unanticipated risks and reduce regulatory
capital. Concomitantly, governance of risk management became essential, integrated risk
management was introduced and the first corporate risk officer positions were created.
3.2 Insurance and risk management
Risk management is a relatively recent corporate function. Historical milestones are
helpful to illustrate its evolution. Modern risk management started after 1955. Since the
early 1970s, the concept of risk management evolved considerably. Notably, risk
management has become less limited to market insurance coverage, which is now
considered a competing protection tool that complements several other risk management
activities. After World War II, large companies with diversified portfolios of physical
assets began to develop self-insurance against risks, which they covered as effectively as
insurers for many small risks.
Self-protection activities have also become very important. This type of activity affects the
probabilities of losses or costs before they arise. It can also affect the conditional
distribution of losses ex ante. Accident prevention is the most natural form of self-
protection. Precaution is a form of self- protection applied to suspected but undefined
22
events for which the probabilities and financial consequences are unknown. A pandemic is
one such event (Courbage et al., 2013). All protection and prevention activities are part of
ri
in the 1980s, particularly during the liability insurance crisis characterized by exorbitant
premiums and partial risk coverage. In that decade, alternative forms of protection from
various risks emerged, such as captives (company subsidiaries that insure various risks
and reinsure the largest ones), risk retention groups (groups of companies in an industry or
region that pool together to protect themselves from common risks), and finite insurance
(distribution of risks over time for one unit of exposure to the risk rather than between
units of exposure). Nowadays the definition of risk management became more general.
Risk management decisions are now financial decisions that must be evaluated based on
their effect on firm or portfolio value, rather than on how well they cover certain risks.
This change in the definition applies particularly to large public corporations, which,
ironically, may be the companies that least need risk protection (apart from speculation
risk), because they are able to naturally diversify much more easily than small companies.
In particular, shareholders can diversify their portfolios at a much lower cost than the
companies whose shares they hold.
3.3 Project outlook of risks:
In the project context, risk is deliberated to be a disruption, the realization of which leads
to the diversion from the project objectives of time, cost, quality, scope and others (H.
Zhang, 2007). From the information perspective, risks overall are a cluster of factors
formed on the perspectives of the diverse stakeholders. From the project perspective, the
risks can arise from the business or the operational aspects. In the initial stages, the
business risks are emphasized and during the implementation the operational risks are
primarily considered. But there should be an optimum balance between the two without
ignoring any trait at any stage of the project as the operational risks affect specific work
activities whereas the business risks affect the project as a whole (Dey, 2010).
3.4 Definition of Risk Management:
With the diverse interpretations of risk, the domain of RM becomes even more complex
with different organizations and entities defining it in different expressions. ISO defines it
as a set of coordinated activities implemented in order to direct and control an
23
structured process that allows individual risk events and overall project risk to be
understood and managed proactively, optimizing project success by minimizing threats
and maximizing of Risk Management
perceives it as the process whereby organizations methodically address the risks attaching
to their activities with the goal of achieving sustained benefit within each activity and
systematic process of identifying, analyzing and res
p.991). But no matter what definition is used, the overall purpose of RM remains the same
which is to assimilate information and approaches from the different parts of the project
on a particular aspect of uncertainty. Therefore, RM is required to take into account the
past problems leading to complications, present challenges and predominant inclinations
3.5 Knowledge and Uncertainty:
As its apparent in Figure 20, during the execution stage of the project, as the knowledge
about the project increases, the risks decrease. It reveals that at the beginning of the
project, numerous qualitative risks are present which reduce with the access to and
availability of information.
Figure 20: Knowledge and risk change during project
24
Projects are enclosed by risks in all the phases and response actions are identified,
assessed and carefully chosen on the basis of the knowledge accessible at that stage
(Seyedhoseini, Noori, & Hatefi, 2009). The US National Research Council advocates the
pro-active approach to project RM (Arrow, 2008). A pro-active methodology to RM
reassures learning from experience for anticipating, recognizing and managing both the
threats and the opportunities inherent in risk (UNESCO, 2009). This can be accomplished
by starting the RM process early in the project life to take account of the engagement
process of all the stakeholders in the process. In the early stages of the project, the risks
associated are based on the uncertainty which restricts taking decisions to precede the
project. This uncertainty can be defined as a state for which there is lack of information.
Measures for tackling the risks can be initiated if amply precise information is accessible.
This makes the identification of qualitative risks necessary early on in the start phase of a
project along with assessing their impact and probability (Franke, 1987).
Regarding the dilemma of the information domain, Duncan (1972 cited in Herremans, et
al., 2011) elaborates on three characteristics hindering the process of decision making in
dynamic environments:
a. a deficit in available information
b. inability to assess in advance the effect of an incorrect decision
c. inability to assign probabilities to predict outcomes
3.6 Uncertainty and Risk:
Some authors view risk from the lens of uncertainty which can lead to threats as well as
opportunities. Knight (2006) has done seminal work on risk and uncertainty and he
perceives the situation from both the perspectives. He names Risk as the case where the
probability of statistical variations with the distribution of its outcomes in known with the
effect that the randomness is measurable (Knight, 2006). On the other side, the cases
where distribution of outcomes are unknown with the effect that the randomness cannot be
measured are named as Uncertainty (Knight, 2006). The cases in the conditions of Risk
can be classified into categories whereas under Uncertainty every situation is unique and
thus only judgements can be made. Uncertainty associated in actual circumstances
emic
uncertainties arise due to the lack of knowledge about the situation and are a characteristic
25
of the analysts dealing with the situation whereas the Aleatory uncertainties arise due to
the possible variations in the outcomes which surface as a result of the associated
randomness and are a characteristic of the situation (Aven, 2010). Therefore, the epistemic
uncertainties can be decreased with access to more and precise information but the
aleatory uncertainties are fortuitous and are thus irreducible. Keeping this within the
context, Apgar (2006 cited in Massingham, 2010) states that knowledge directs
individuals along the spectrum of uncertainty towards certainty, thus making risk a
s ought to play an
integral part in RM to ensure that the uncertainty in the RM process through the
management of information quality is kept at an economically feasible level
(Emblemsvåg, 2010). A drawback of this notion is that this necessitates the development
of novel methods
for the congregation of information and data and its processing with the formal
explanations of uncertainty (Rebiasz, 2007). Some authors Jiang et al. (2008) advocate
using a suitable strategy of understanding the perception gaps to address difficulties for
the mitigation of uncertainty present at the start of the project due to the differences in
insights of the stakeholders (Jiang, Klein, Wu, & Liang, 2008). The perception gap is the
presence of diverse interpretations of a project task by different stakeholders which can be
due to dissimilar frames of reference and thus leads to the foundation of a knowledge gap.
As a result of the complexity due to vagueness and uncertainty, risk assessment usually
n based on experience (Shi, Li, & Meng, 2009).
3.7 The Risk Management process:
The process of RM according to the International Standards Organization is inclusive of
five key stages (ISO, 2009):
a. Establishing the Context This step defines the external and internal parameters that
organizations must consider when they manage risk (ISO, 2009). It is used to
define the scope of RM for the selected area of the project. This then leads to the
formation of the aims and objectives of the project in consultation with the
stakeholders. This is followed by the development of the basis for risk evaluation,
the constraints involved, establishing framework for risk analysis and the
measurement of resources available. SWOT and PESTEL analysis are often done
to analyze the project context.
26
b. Risk Identification It is a process that involves finding, recognizing and describing
2009). This classifies the sources of risks that hinder the achievement of the
objectives. It takes into account the causes of the risk as well as the impact that
they can have. There are many techniques used for this process which include
questionnaires, brainstorming, lessons learnt and others. The RBS (Risk
Breakdown Structure) acts as an essential tool for risk identification, a useful
structure for managing risk ownership by assigning resources (Arrow, 2008). The
result of this process is the project risk profile which describes the project
assessed, its environment and objectives.
c. Risk Analysis This is a process that is used to understand the nature, sources, and
causes of the risks that you have identified and to estimate the level of risk (ISO,
2009). This process is used to establish the relationship between the risk
consequence and the risk event triggering it (H. Zhang, 2007). One of the
commonly used techniques for this process is the DELPHI technique. This step
assists in the transformation of risk data into decision making information. The
outcome is a comprehensive examination of every effective risk and its
probability, impact, severity, and priority assessments.
d. Risk Evaluation This is a process that is used to compare risk analysis results with
risk criteria in order to determine whether or not a specified level of risk is
acceptable or tolerable (ISO, 2009).
e. Risk Response This is a risk modification process (ISO, 2009). This is the action
phase where the mitigation step is taken. There are various risk response strategies
in terms of treatments available for this step which can be taken depending on the
severity of the risk. These would not be utilized much for discussion and analysis
in the research, so the strategies are not described in detail. They are as follows:
Risk avoidance
Risk reduction
Risk transfer(insurance)
Risk retention (tolerate)
Risk termination (elimination)
There is however, one step missing from this model which is the monitoring of risks. This
is a feedback process. To monitor means to supervise and to continually check and
27
critically observe (ISO, 2009). This solves the purpose of assessing and updating the status
of risks, the necessitated action required, the effectiveness of risk treatment and to weed
out new risks and their sources.
3.8 Risk Management goal:
The goal of RM is to deal with all the risks inherent in the project and its context. This is
executed by organizing the risks on the basis of frequency of occurrence, level of impact,
importance followed by the arrangements needed to control the identified risks. Risks can
be categorized into two segments based on its structure: the ones whose costs can be
estimated namely quantifiable risks and the other whose financial impacts cannot be
directly anticipated i.e. qualifiable risks (Franke, 1987) which forms the base for the next
section.
3.9 Risk Management Techniques:
By use of Change Management principle in the context of cost control, the quantifiable
risks are assessed but the ambiguity regarding the net financial consequence of the
aggregate risks to the total cost of the project is still upheld by the uncertainty of the cost
effects of the qualitative risks (Franke, 1987). On this basis, the RM techniques are
segmented into two parts: Quantitative and Qualitative which are described below.
3.9.1. Quantitative techniques:
One of the most intricate part accompanying project RM is the quantification of risk
(Rebiasz, 2007). The industry wide used key techniques include:
Monte Carlo analysis
Scenario planning
Sensitivity analysis
Expected value analysis
PERT (Program Evaluation and Review Technique)
Fuzzy set analysis vii) Risk data quality assessment
Decision Tree Analysis
Modelling and Simulation
Probability Distribution.
28
Some of these techniques are less applicable as they necessitate the need for detailed
information which is generally not available at the planning stage and thus there is a
difficulty in making accurate decisions (Dey, 2010).
3.9.2. Qualitative techniques:
The qualitative risks include the risks regarding contractual obligations, variations by the
client, design variations, incomplete or inaccurate cost estimate. The industry wide used
key techniques for these risks include:
FMEA (Failure Mode and Effects Analysis)
Fault tree analysis
Event tree analysis
Risk Probability and Impact Assessment
Probability and impact matrix
Cause-Consequence Analysis
Risk Data Quality Assessment
Risk Categorization
Risk Urgency Assessment
Delphi Technique
Brainstorming
Assumption analysis
Checklist analysis
Expert Judgement
To follow these techniques various tools are used some of which are:
Risk register
Risk catalogue
Spread sheets
Focus group discussions
3.10 Risk Management constraint:
There is a restriction to RM techniques as well. The wrong use of tools and techniques can
lead on to taking a decision, which can be destructive in nature, with confidence based on
the RM technique. As individuals vary in their perception of reality, knowledge by
training through tools for comprehending the nature of risk can enhance objectivity of
29
individuals to process risk in the same way (Massingham, 2010). Thus the qualitative risk
techniques can be made more precise by reducing the vulnerability of subjectivity as a
result of the human factor. This vulnerability can be internally generated affected by the
organizational, social or economic factors (H. Zhang, 2007). On the down side, it has to be
acknowledged that there is a contradiction that the increasing dependence on RM drives
the decision-makers to undertake risks which in optimum situation can have been
mitigated (Emblemsvåg, 2010). The thing that can be of the essence and make a difference
is the real time risk assessment and monitoring.
30
CHAPTER - 4
31
DATA PRESENTATION AND ANALYSIS
4.1 Secondary Data Analysis
This section utilizes the reports and statements of companies and international
organizations along with the issues raised in the journal articles to provide an analysis of
the secondary research obtained from the extended literature review. The analysis of
secondary data first is very essential as it protrudes the areas that need to be verified
through the primary research in the form of interviews. While doing so, the analysis
probes the first objective of investigating the main sources of risks that originate from the
beginning of the project i.e. from the early stages. The analysis of secondary data is
described in the next sub-section.
4.1.1 Sources of Risks at the initial project stages
These risk sources are the restrictions that initiate at the project initial stage i.e. the
planning stage (Farias, Travassos, & Rocha, 2003), are of epistemic nature i.e. they are
related to the uncertainty regarding the knowledge of things. These risks are dynamic in
nature as they change over time with the increase in the availability of precise and detailed
information. The actual uncertainty is not a risk in itself but in turn leads to it. While the
uncertainty ascends due to the lack of information, the underlying risks arise due the
decisions made in that situation (Emblemsvåg, 2010). A collection of these sources of
risks have been gathered from numerous international organizations to advance the
understanding of the issue. The main problems encountered during this early project stage
which become the sources of risk as found in the research are described below:
4.1.1.1. Unavailability of information:
WHO through experience of its diverse projects have recognized that the process of
knowledge production and synthesis is costly and slow (WHO, 2006). Due to this
progression being expensive, some of the aspects of knowledge generation could be turned
down which leads to the lack of information. As regards its slow nature, there may be poor
or no access to relevant information due to the ambiguity about knowledge being
produced by the time it is required. As a result, there is a gap between expected and
32
between an actual situation or the perception of it and the required or expected
(Maylor, 2010, p.338). Moreover, this gap is inflated by the lack of knowledge sharing,
especially within stakeholders and the project team members.
4.1.1.2. Absence of a mutually defined context:
This is the first step in the RM process. Uncertainty in the context of projects is the lack of
information which is apparent as the difference between the available and desired
information for performing an activity (Antvik & Sjöholm, 2007). Embedding the process
of defining a collective context into the organizational culture is a challenging but
necessary endeavour (UN, 2010). But still organizations fall into the trap of executing the
project, failing to recognize the significance of creating a shared context first. This is
partly as a result of tight project budget and schedules leading to dearth of interactive
communication between producers and users of information. This interaction can
determine the sources of existing data and information via tools of knowledge mapping
and others. It can assist with the methods of accessing them, evaluating the needs and
assumptions of the diverse stakeholders and then sharing it with all, leading to a mutual
and shared pool of information. The context at this stage is an issue as it builds varied
interpretations but the advancement towards a shared context progresses towards
achieving the KM as well as RM goals. Moreover, the establishment of mutual context
assists in the identification of the risks and the capabilities of the organization. A SWOT
analysis solves this purpose by substituting the risks with threats and opportunities and the
organizational capabilities for strengths and weaknesses (Emblemsvåg, 2010). A
knowledge SWOT can also elucidate the process of an information audit here.
4.1.1.3. Inadequate information flow:
One of the sources that lead to the development of risks is the insufficient flow of the
information which restricts the knowledge spiral process. This risk source varies across
project organizations depending upon the depth of KM being put into practice as made
apparent by primary research. The lack of information bundled with the poor information
flow among the different teams and individuals act as obstacles and become apparent with
their hindering effects (Mabudafhasi, 2002). The resulting effect of this restricted flow is
the constrained synergy among the initiatives taken which are not aligned with each other
and may cause conflicts. Moreover, this can lead to inability in consideration of all
involved factors and variables necessary to take a decision (Maylor, 2010). The
33
management of risk is dependent on the frequent streaming of data and information
through the different departs of the organization. The purpose of managing the flow of
information is to assist individuals and teams in better decision making which is critical
for moving projects forward.
4.1.1.4. Lack of common framework of reference:
While executing projects in different nations across continents, WHO has reckoned that
there is an absence of a common framework for knowledge transfer and translation
(WHO, 2006). Due to this lack of reference, there is no consistency in the assumptions
and analysis of different departments and individual possessors of knowledge. There is in
turn a lack of a common organization wide RM approach. This fact is apparent at the UN
too. At the UN office, the departments and programmes are utilizing their own different
methodologies based on one of the numerous RM standards presently existing. As a
consequence, there is a lack of consistency in the processes which leads to different
approaches for identifying, evaluating, reporting and responding to risks even in the same
project through different stages (UN, 2010). Moreover, even within these approaches there
is lack of integration between the quantitative and the qualitative methods of analysis as
explained in the literature review. With the increase in continuous innovations, knowledge
sharing and concepts of learning by doing, there is a need to develop comprehensive
framework or common platform to fill the know-do gap in parallel with the systems to
deal with it (WHO, 2006). This results in enhancing the capability to make informed
decisions. By using a common framework, all the tasks come under a joint framework
leading to an integration of the operations throughout the organization making apparent all
the identified risks to all stakeholders thus increasing transparency, accountability and
performance.
4.1.1.5. Ineffective linkage systems:
This is one of the complex problems arising right from the early stage of the projects made
apparent by the international organization UNESCO. They have explored that scarce
information combined with inadequate network systems restricts the formation and
development of the links and connections between different knowledge domains
(UNESCO, 2009). This is mainly originated from the fact that the data and information is
present in dispersed forms throughout the organization. Different systems are used by the
departments which are not compatible with each other thus leading to complexity in
34
executing mutual actions and co-ordinated decisions. The intricate arrangement of the
technological structures does not promote intersectional collaboration (UNESCO, 2009).
This is quite critical in the dynamic environment of the project which necessitates the need
for an integrated approach for the analysis of data and information. The ICT plays a major
role by serving as a medium for information gathering as well as dissemination points
which can further assist in designing a network for linking all the isolated knowledge
areas into one collective web.
4.2 Primary Data Analysis
with the sources of risks apparent from the secondary data analysis, it was required to
configure these into segments of questions for validation through interviews to confirm
their existence and their extent. This was prepared in the form of an interview template, as
a research instrument, he analysis is shown in the upcoming sections.
4.2.1 Data Processing:
The first step after collection of raw data from the interviews and questionnaires was the
process of content and data analysis. For this purpose, manual coding using both MS
Word and MS Excel along with numerous paper copies was used. Computer software
packages for qualitative analysis were not used as it was not deemed necessary with this
sample size of two interviews. Moreover, these softwares are just tools for doing the
analysis, not the analysis in itself.
The purpose of the primary research was to complement the secondary research by
investigating the patterns either confirming or refuting what had already been found in the
first phase through extended literature review which have been described in the upcoming
sections.
As a result, we find that the percentage of understanding risk evaluation tools and
technique with in Abuljadayel Co. is about 63%.
The 63% percentage come from analysing all collected data and questionnaires as an
-point
analysis. In the figure 21, we
can see a comparison of each department separately:
35
Figure 21: Data Comparison
36
according to interviews; Abuljadayel employees see risk management in its growth stage
in their company and they are excited about its applicable benefits, also we noted that
sometimes they use risk management techniques without known that it is a technique, they
have some written policies but most of it consider the safety risks, they are experts on their
field so they already know most of possible risks but this knowledge is not fully written.
This research has revealed very few risk management approaches and processes that are
is apparent therefore that large numbers of Project Managers continue to receive training
in and exposure to the very risk management approaches and processes that are criticised
in the literature. Possibly with more Project Managers being exposed to other forms of risk
management training, greater momentum could be made towards change.
It is noted however that there is the possibility that some of the participants who identified
having implemented the uncertainty management paradigm may have identified this
not sure
management paradigm as presented by Chapman and Ward (2003a, 2003b). However,
there was a cross-reference validation conducted with the responses received from a later
question in the questionnaire, which requested participant Project Managers to
qualitatively depict the uncertainty and risk management approaches / processes they
standards.
Unfortunately, a non-significant result was achieved through statistical analysis. The low
sample of onsidered a key issue
leading to a non-significant result. However, even with a no significant result, the
difference shown in this research is hoped to be a catalyst for further research to be
conducted, to perhaps achieve a significant result to empirically highlight the value of
using some of the innovative uncertainty and risk management approaches presented in
the literature.
37
CHAPTER - 5
38
FINDINGS, SUGGESTIONS & CONCLUSION
5.1 Finding
Risk is perceived as a negative term, even though in theory it can have two
dimensions.
Professionals in the infrastructure and construction industry are using techniques
described in the literature concerning RM, but are not aware of it. Risks are being
managed every day in the industry, but not in such a structured way as the literature
describes. As also other researchers confirmed, the knowledge of RM and RMP is
close to zero, even though the concept of risk management is becoming more popular
in the infrastructure and construction sector.
There is a willingness among respondents to start using RMP, but it has to bring
profits to the organization.
By applying a simple method, it is possible to identify potential risks in an easy way.
Moreover, it gives possibility to detect which of the identified risks has the biggest
impact on time, cost and quality. Those risks should be eliminated or mitigated by
taking an appropriate action. The research showed that the most common action was
risk mitigation. Moreover, it was proven that the results from probability and impact
method may differ among projects due to the fact that each project and its scope are
unique.
It was important to establish during the interview which phase of the project life cycle
the respondents were taking part in and what their role in the project was. Based on
that, we could systematize the answers and see types of risks identified in various
phases of the project life cycle. The conclusion was that there are risks which are
characteristic for each project stage.
As the research showed, unstructured form of RM is to some extent used in the
infrastructure and construction sector. Thus application of actual RM into companies
should not be difficult. As proved by the research, knowledge is the factor which is
missing for organizations to implement RM. Thus, this aspect of application of RM
could be further investigated in terms of how to facilitate use of RM in an
infrastructure and construction sector. Moreover, a simple RM manual could be
39
developed including basic theoretical information as well as ready-to use guidance for
one of the RM methods.
5.2 Suggestion
In order to avoid risks as much as possible, its suggested that Abuljadayel must assign an
easier to avoid
most of it, another thing that they can make a knowledge sharing through team meetings
and department meetings, also we believe that they need more trainings sessions with a
deeper and comprehensive problems and try to interact during these sessions, all these
could help them to manage risks with a strong basis and have the ability to make the right
decisions.
5.3 Conclusion
RM is becoming a very popular topic nowadays. When searching through job adverts, it
becomes obvious that a lot of companies from various sectors are looking for certified risk
managers. Thus we found it interesting to do research in this area, and study this concept
in more detail. A lot of information is available in the literature regarding RM in the form
of books, articles or other publications. However, information provided in those sources is
rather messy. For the purpose of the master thesis research, a number of positions had to
be read to find appropriate information. Some theories provided by RM literature are not
at all applicable to infrastructure and construction industry, so we had to be very careful
with choosing the right data. Moreover, we wanted to see how RM works in practice.
Even though not many of the actors participating in the project agreed for an interview, we
managed to collect enough data to complete the study. The results which we obtained
were very surprising with the extent to which RM is used by professionals. The
knowledge we gained while working on the thesis could be successfully used in our future
professional careers. Each project manager should have a basic knowledge about risks
associated to a project and how to handle them. Thus we think that the research done for
this master thesis was not a waste of time, but actually gave us a strong basis of RM.
40
BIBLIOGRAPHY
41
Appendix
Survey Temple:
42
Interview Templets:
Interviewer: Date:
Interviewee:
Experience (years):
Present Designation:
Organization:
Segment 1
Objective - to understand the level of RM in the organization and the tools used
1. How mature are the Risk Management (RM) practices in your organization?
A. Early stage
B. Introduction stage
C. Growth stage
D. Highly developed stage
2. In what way would you characterize how RM is looked upon in your
organization? (Multiple options may be chosen)
A. Something that is already being done but not under the same name
B. Something which is considered as a management fad
C. It has been incorporated into the strategic part of our business
D. Others, please specify
3. Regarding policies and strategies, your organisation: (Multiple options may be
chosen)
A. has a written RM policy or strategy
B. has a value system or culture intended to promote Risks sharing
C. has policies or programmes intended to avoid risks
D. uses partnerships or strategic alliances to avoid risks
E. Others, please specify
4. To what extent are the below mentioned tools, techniques or methods does your
organization utilize for RM? (Level of magnitude: 1. Negligible, 2. Low, 3.
Intermediate, 4. High, 5. Very High)
A. PESTEL
B. SWOT
C. Risk catalogue/register
43
D. Group discussions
E. FMEA (Failure Mode and Effects Analysis)
F. Decision tree analysis G. Event tree analysis
H. Fault tree analysis
I. Risk Probability and Impact Assessment
J. Probability and impact matrix
K. Cause-Consequence Analysis
L. Risk Urgency Assessment
M. Monte Carlo analysis
N. Sensitivity analysis
O. PERT (Program Evaluation and Review Technique)
P. Risk data quality assessment
Q. Modelling and Simulation
R. Others, please specify
Segment 2
Objective - to verify risks of the early stages as brought into being by the research and
analyse their depth
5. What is the degree to which the below mentioned sources of risks affect your
organization right from the early stages? (Level of magnitude: 1. Negligible, 2. Low, 3.
Intermediate, 4. High, 5. Very High)
A. Unavailability of information
a. Slow process of knowledge gathering and generation
b. Lack of and poor access to relevant information
B. Inadequate information flow
a. Poor sharing of knowledge in the organization especially with stakeholders and project
team members
b. Lack of effective communication between producers and users of information
c. Reinventing the wheel
d. Projects disconnected on the information distribution front
e. Complex organizational structure limiting inter departmental collaboration
f. Restricted information transfer due to organizational barriers
C. Absence of a mutually defined context
44
a. Diverse interpretations of information
b. Different needs and assumptions of the diverse stakeholders
D. Lack of common framework of reference
a. Absence of a common framework for knowledge transfer
b. Lack of consistency in processes for RM across departments/teams
c. Limited integration of quantitative and qualitative methods for RM analysis
E. Ineffective linkage systems
a. Inadequate information and network systems
F. Others, please specify
Segment 3
Objective to receive the inte improving of RM strategy in his
company (open ended)
6. In your view, what is the best RM tools/techniques to be used in your company?
45
References
Eng. Mahmod Al-Ajame, AK3 Project Manager, E-mail:
Eng. Anas Maraey, The mechanical department manager, Personal Profile:
https://www.linkedin.com/in/anas-maraey-4bb37bb8?trk=seokp-
title_posts_secondary_cluster_res_author_name
Eng. Clifton Dizon, Senior Mechanical and safety Engineer at Abuljadayel Co.
for Contracting and Maintenance, Personal Profile:
https://www.linkedin.com/in/clifton-dizon-266353100?trk=seokp-
title_posts_secondary_cluster_res_author_name
UNESCO (2009), Risk Management: Evaluating, Managing and Mitigating Risk
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