2 research outputs found
A new maturity model for analysing project risk management in the global automotive industry
Project risk maturity models, which encompass change management,
continuous improvement and knowledge management issues, can be used to improve
risk management in projects. The purpose of this research is to develop and apply a
new maturity model for the assessment and on-going management of project risk
management capability in the automotive industry. The success of strategic projects is
critical for innovation in the automotive industry, and project outcomes directly
influence time to market and future revenues for companies operating in this sector.
Projects in this industry are generally characterised as high risk. The belief that the use
of carefully acquired information put into some kind of rational order can avoid poor
decision making and project failure is the foundation of traditional project
management and, by extension, of project risk management. Prescriptive guides and
methodologies are often too mechanistic and simplistic as regards the risk management
process. This research presents a theoretical framework applying the centricity concept
to four major project risk management dimensions, namely risk identification, risk
assessment, risk allocation and risk appetite. The centricity concept was critical in the
development of several of the labels that are an integral part of the maturity model,
thereby furthering the understanding of risk management.
The research design is based on a multi-project case study analysis in a major
German automotive company. The approach is qualitative and inductive, using 12 indepth
interviews with major stakeholders in the project management function in the
company to provide data for the construction of the initial maturity model. This model
is then verified and refined via an online survey and three further follow-up interviews.
The findings provide material for the construction of a new maturity model that can be
used for the assessment of project risk management capability and as a tool for ongoing
monitoring and improvement. The model is structured around the four
dimensions of risk management β identification, assessment, allocation and appetite β
and has four maturity stages β rudimentary, intermediate, standardised and corporate.
The model is based on a detailed analysis of in-depth interview material in a specific
industry sector. The model adds to existing risk management maturity models and is
unique in being specific to the automotive industry. It can be used by risk and project
managers, and can also be adapted to other industry sectors