Postulation of project management office structures in reducing operational risk of financial institutions

This exploratory case study used a qualitative research method and explored how Project Management Offices (PMOs) and associated governance groups, such as project management, program management, portfolio management, and risk management, play an important role and are viewed as a positive contributing factor in the successful management of projects. The study also explored the perceived reduction of operational risk that would help prevent the likelihood of financial market collapse reoccurrences, and the perceived importance and impact of operational management structures of financial institutions in contributing to the prevention of another banking collapse. The following themes emerged in the study: Operational risk, regulatory groups, characteristics of PMO structures, optimal PMO structures, PMO effectiveness, and maturity levels of PMOs. A postulation to integrate PMO structures and associated governance groups in the accords (frameworks) of the Basel Committee on Banking Supervision (BCBS) was proposed to help financial institutions reduce operational risks that affect consumers of financial services. A non-traditional survey-based case study was conducted with eight project management professionals with financial industry experience in the United States. The case study helped reveal that financial collapses were significantly related to the lack of PMO structures and integration of those structures into regulatory frameworks as mandates. This case study further found that to reduce the likelihood of another financial collapse, a change needs to be made to organizational structures by (a) implementing well-run PMOs and associated governance groups, and (b) integrating those structures into regulatory frameworks.