Abstract
M.Com. (Business Management)
Risk management has increasingly become a crucial aspect of project success in the Information Technology industry. Risks are no longer seen from the narrow perspective of physical harm; but the narrative has evolved to include unforeseen circumstances and effects on all stakeholders and planned outputs of the project. In financial terms, it was reported that 13.8 billion SA Rands were lost to failed projects in 2011. In light of the aforementioned, this research focuses on Project Risk Management (PRM) and how it can help reduce and better manage risks inherent in all project works.
Since it is expected that effective project risk management (PRM) seeks to minimize the risks inherent to projects in order for the project manager to make better-informed decisions, which will contribute to overall project success, this research asks the fundamental question: ‘is there any positive relationship between PRM and project success in the IT industry?’ To answer the research question, this study takes a pragmatic approach using the quantitative method of data collection. Surveys were distributed among 100 project managers and coordinators within the IT environment in South Africa, 65 valid responses were received. Descriptive analysis was conducted on the findings and the results are presented in themes according to the objectives of the study.
One of the research conclusion is that the most significant factors limiting the use of PRM methodologies with the respondents is not organisational culture as expected, rather ‘lack of subject matter expertise in project management’ on the part of the project managers. It was ultimately concluded that there is a strong relationship between PRM and project success. If risks can be reduced in a project, the chances of success increases. Lastly, it was seen that within the scope of the research, PRM has a positive impact with project being completed on schedule (or earlier) and within or below budget.
The research is however not without its own inherent limitations; one of which is the fact that the study is a once-off experience and cannot envisage changes in the IT project success while using different project management strategies. A longitudinal study would have helped prevent against this.