Implementation Level of Effective Risk Management Systems by Indian Infra Structure Projects - An Assessment
Study reports from various sources indicate that India is likely to see increased failures of infrastructure projects in the coming days. These reports are based on the historical trends of increasing cost overruns and schedule delays. The inability of project organisations to cope up with the uncertainties and risks that haunt the projects stand out as the most major reason for such failures. Even though the concept of risk management has made strong inroads into the project arena in many countries, to manage and mitigate project risks. India is seemingly lagging in integrating risk management into project management.
This paper was an attempt at mapping the level of implementation of any structured risk management in the infrastructure Project segment of India in order to identify the gaps that need to be filled for attaining a satisfactory level of effectiveness in combating project risks. The suggestion of corrective solutions based on the shortcomings thus unearthed was also another objective of the study. The study was made by means of a questionnaire survey across a cross-section sampled out of the Indian infra project spectrum. The survey was conducted only after a thorough literature survey was done to gather the know-how about implanting any effective risk management system to identify the deviations of the risk management practice at project sites from the ideal one. Instrumentation was done with the knowledge thus gathered from the published works, appropriate to point out the vital deviations from index aspects corresponding to maximum effectiveness.
The findings obtained after the analysis of survey results indicated that the project organisation that reported the best in risk management implementation itself had only effectiveness of 76%. 30% of the projects reported a poor level of implementation and exposed the lack of interest in risk management of the top management in low and medium-scale project organisations. Sector-wise analyses brought out the fact that the presence of a nationwide uniformity in governing guidelines could produce a good impact on risk performance. The study concluded that centrally administered policy guidelines aimed at maximising risk management effectiveness were necessary to bring forth breakthrough progress in the level of implementation of risk management throughout the infra sector.
Keywords:Risk, Project Risk Management, Risk Management System, Level of Implementation
Alhassani, S., & Bhaumik, A. (2019). The impact of project risk management strategies, group innovative performance, and latent tensions on project conflict manifestations within engineering and IT firms in the UAE. International Journal of Innovative Technology and Exploring Engineering, 8(8), 431-438.
Anasica, S., & Batra, S. (2020). Analysing the Factors Involved in Risk Management in a Business. International Journal of New Practices in Management and Engineering, 9(3), 5-10. https://doi.org/10.17762/ijnpme.v9i03.87
Bhaumik, A., Chun, L. C., Qun, Z. L., Jun, S. Y., Wei, Y., Y., & Ghale, B. (2021). Development, Implementation, and Application of E-Areas of E-Commerce in Malaysia is A Growing Market. Turkish Journal of Computer and Mathematics Education, 12(10), 6693 – 6698.
Chapman, C., & Stephen, W. (2003). Project risk management processes, techniques and insights (2nd ed.). John Wiley & Sons Ltd.
Foerster, M., & Arnold, C. (2019, July 21). Eight Steps to Establish a Firm Risk Management Program. International Federation of Accounts. https://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/discussion/eight-steps-establish-firm-risk-management-program
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.
Kothari, N., Shreemali, J., Chakrabarti, P., & Poddar, S. (2021). Design and implementation of IoT sensor based drinking water quality measurement system. Materials Today: Proceedings. https://doi.org/10.26555/jiteki.v7i2.21137
National Research Council. (2005). The owner's role in project risk management. National Academies Press. https://doi.org/10.17226/11183
Odimabo, O. O., Oduoza, C. F., & Suresh, S. (2018). An Insight into the Process, Tools and Techniques for Construction Risk Management. In Risk Management Treatise for Engineering Practitioners. IntechOpen. https://doi.org/10.5772/intechopen.79459
Pickett, K. S. (2005). Auditing the risk management process. John Wiley & Sons.
PricewaterhouseCoopers, L. L. P., & Committee of Sponsoring Organizations of the Treadway Commission. (2004). Enterprise Risk Management: Integrated Framework: Executive Summary, Framework, September 2004.
Younis, D., Midhunchakkaravarthy, D., Isaac, O., Ameen, A., Duraisamy, B., & Janarthanan, M. (2020). Examining the Influence of E-Leering Strategy Implementation on Educational Organizational Performance with Universities in Yemen. International Journal of Advanced Research in Engineering and Technology (IJARET), 11(12), 3155-3169. https://doi.org/10.34218/IJARET.11.12.2020.298
Zwikael, O. (2008). Top management involvement in project management- A cross country study of the software industry. International Journal of Managing Projects in Business, 498-511. https://doi.org/10.1108/17538370810906228
How to Cite
Copyright (c) 2022 International Journal of Management and Human Science (IJMHS)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.