<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The function of project risk management (PRM) is to understand the uncertainty that surrounds a project and to identify the potential threats than can affect it as well as to know how to handle these risks in an appropriate way. Then, the measurement of the performance of PRM becomes an important concern, an issue that has not yet been addressed in the research literature. It is necessary to know how successful the application of the PRM process is and how capable is the process within the organization. Regarding construction projects, it is essential to know whether the selected responses to mitigate or eliminate identified risks were suitable and well implemented after the execution of the project. This paper presents a critical analysis of the relevance of measuring the performance of PRM and the benefits of doing so. Additionally, it presents a preliminary and pioneering methodology to measure the performance of PRM through the evaluation of the adequacy of responses applied to mitigate risks as well as to evaluate the resulting impacts as indicators of the effectiveness of these actions at the end of the project. This knowledge will allow construction companies to incorporate good practices, generate lessons learned, and thereby to promote a continuous improvement of the whole PRM process.</p></abstract>

The function of project risk management (PRM) is to understand the uncertainty that surrounds a project and to identify the potential threats than can affect it as well as to know how to handle these risks in an appropriate way. Then, the measurement of the performance of PRM becomes an important concern, an issue that has not yet been addressed in the research literature. It is necessary to know how successful the application of the PRM process is and how capable is the process within the organization. Regarding construction projects, it is essential to know whether the selected responses to mitigate or eliminate identified risks were suitable and well implemented after the execution of the project. This paper presents a critical analysis of the relevance of measuring the performance of PRM and the benefits of doing so. Additionally, it presents a preliminary and pioneering methodology to measure the performance of PRM through the evaluation of the adequacy of responses applied to mitigate risks as well as to evaluate the resulting impacts as indicators of the effectiveness of these actions at the end of the project. This knowledge will allow construction companies to incorporate good practices, generate lessons learned, and thereby to promote a continuous improvement of the whole PRM process.

Measuring the performance of project risk management: a preliminary model

Depto. Ingeniería y Gestión de la Construcción

Pontificia Universidad Católica de Chile

Organization, Technology and Management in Construction: an International Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Measuring the performance of project risk management: a preliminary model"}

The function of project risk management (PRM) is to understand the uncertainty that surrounds a project and to identify the potential threats than can affect...

Measuring the performance of project risk management: a preliminary model

Article Category: Research Paper

Published Online: Oct 02, 2019

Page range: 1984 - 1991

Received: Nov 21, 2018

Accepted: Mar 18, 2019

DOI: https://doi.org/10.2478/otmcj-2019-0005

Keywords
performance, measurement, risk management, projects, key performance indicators

© 2019 Alfredo Federico Serpell et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Measuring the performance of project risk management: a preliminary model

Article Category: Research Paper

Published Online: Oct 02, 2019

Page range: 1984 - 1991

Received: Nov 21, 2018

Accepted: Mar 18, 2019

DOI: https://doi.org/10.2478/otmcj-2019-0005

Keywordsperformance, measurement, risk management, projects, key performance indicators

© 2019 Alfredo Federico Serpell et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
performance, measurement, risk management, projects, key performance indicators