Risk management in a multi‐project environment: An approach to manage portfolio risks
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 11 January 2008
Abstract
Purpose
The purpose of this paper is to identify differences in managing a single project compared with that of a project portfolio, where focus and requirements are expanded, and where clear links to organizational objectives exist. Further, the aim is to propose a methodology for the management of risk within the context of a project portfolio.
Design/methodology/approach
The concepts and framework described in this paper have emerged primarily from an in‐depth action research study in a major provider of transport solutions. The work has been conducted within one division, with presence in most of mainland Europe, Scandinavia, and the UK.
Findings
The paper finds that the proposed methodology would manage portfolio risk in two ways. First, it provides a means for single projects to gain experiences from other projects within the portfolio. Second, portfolio common risks and trends of issues can be identified. Such risks can become risks for succeeding projects, or require action from outside the single project.
Research limitations/implications
The paper shows that the pilot study consisted of 16 projects within one project portfolio. Other project portfolios, with other prerequisites, might result in different findings, since some factors not included in this research such as cultural aspects or organizational factors could affect the findings.
Practical implications
In this paper the identification and analysis of commonalities and risk trends between projects provide the possibility to manage risks from a portfolio perspective.
Originality/value
The paper sees that existing risk management processes do not support projects in managing risk within a project portfolio. Instead, the proposed methodology provides the project portfolio manager with a consolidated view of the total risk exposure within the portfolio. Additionally, this methodology finds risks and trends not otherwise possible to identify.
Keywords
Citation
Olsson, R. (2008), "Risk management in a multi‐project environment: An approach to manage portfolio risks", International Journal of Quality & Reliability Management, Vol. 25 No. 1, pp. 60-71. https://doi.org/10.1108/02656710810843586
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited