Project Risk Management And Enterprise Risk Management

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.



DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

Risk management services need to be proactive. This is one of the key preliminaries to cope with the challenges of complex projects. An overarching and consistent view on project risks and uncertainties is necessary to follow a holistic approach in project risk management (PRM). Uncertainty is inevitable since projects are unique and temporary undertakings based on assumptions and constraints, delivering project results to multiple stakeholders with different requirements. A number of associations (e.g., Project Management Institute - PMI, International Project Management Association - IPMA or Network of Nordic Project Management Associations - NORDNET) work constantly in acquiring, improving, and standardizing best practices in project management. Based on the industrial practice, this paper outlines strategies to identify, prioritize, and mitigate risks for achievement of project' or organisational objectives. Keeping in consideration of the sole purpose and objective, the basic purpose of undertaking the notion of risk management is to evaluate the whereabouts as to how and why is a specific form or type of portfolio important to be worked on. This study focused on the Enterprise Risk Management (ERM) and evaluated the methods of managing it. Then it focused on the benefits of Enterprise Risk Management (ERM). The conclusion of the study was formed on the basis of five interviews that were conducted from different participants. The participants were PMO officer, academia, risk consultant, programme manager and project manager. The conclusion of the study was formed on the basis of the research questions formed.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 01: INTRODUCTION1

Outline of the Chapter1

Background of the Research1

Research Idea5

Research Objective5

Research Objectives of the Study6

Significance of the Study7

Limitations of the Study7

Ethical Considerations7

Conceptual Framework7

CHAPTER 02: RESEARCH METHODOLOGY9

Research Design9

Ways to collect the information9

Literature search criteria11

Search Techniques Used11

Keywords Used11

Qualitative Data11

CHAPTER 03: LITERATURE REVIEW12

Risk Management12

The nature of risk12

Uncertainty12

Ambiguity13

Variability13

Complexity13

Management of Project Risk14

Project Risk Management Standards and Guidelines16

Project Risk Management22

Risk Management29

Enterprise Risk Management (ERM)30

The Management of Enterprise Risk Management31

Benefits of Enterprise Risk Management (ERM)32

Identifying the gap between the contemporary ERM and current practice33

CHAPTER 04: DATA RESULT35

Interview 1: PMO Experienced Manager35

Interview 2: Academia37

Interview 3: Risk Consultant38

Interview 4: Programme Manager39

Interview 5: Project Manager40

CHAPTER 05: ANALYSIS AND DISCUSSION42

The Importance of Project Management in the Strategy of Organisational Effectiveness42

Role of risk management in project lifecycle45

The COSO Enterprise Risk Management— Integrated Framework48

Reason for creating COSO Enterprise Risk Management - Integrated Framework49

What is COSO Enterprise Risk Management - Integrated Framework?49

Participation in the ERM process52

Benefit Senior Management Derive From Supporting ERM Implementation?53

Evaluating ERM55

The Role Of The CIO In An ERM Environment55

Relation between ERM and governance56

How Enterprise Risk Management (ERM) can intermingle with Project Management57

The Benefits ...