Abstract
M.Ing. (Engineering Management)
Risk and uncertainty are very closely linked; they are recognized as threats arising from
unclear causes and effects of the project. Risk and uncertainty management has
always been acknowledged as a very important aspect of project management and is
mostly used to accomplish project objectives. These objectives are; quality, cost, time,
safety and environmental sustainability. A majority of researchers have focused on
other characteristics of risks and uncertainty management rather than a comprehensive
method which encompasses developing risk management plan, identify, and analyze
the likelihood of its occurrence and consequence should it happen. The common
challenges still experienced in project environment are; use of improper project
management methodology, stake holder interference in the decision making process,
complexity of the project, and changing requirements and management.
This study seeks to look at how risk and uncertainty can be successfully managed
within project environment. Through case studies this research will also look at how
does improper risk management plan affect the project, and the consequences of
stakeholder interference in the decision making process.
The report presents project risk management approach of two projects carried out in the
same organisation. The project A was executed by a project manager from the Project
Management Office (PMO) in accordance with the project management methodology,
while the execution of project B was highly influenced by a client/sponsor with no regard
of the approved project management methodology. The selected projects both involved
equipment replacement in which the main deliverables are supply and delivery of the
final product.
A description of the project risk management approach and analysis of data collected
for each case study are followed by a comparison of two project risk management
processes applied in case studies. This study will finally draw the conclusion and make
recommendations based on its findings.