Barriers to Effective Project Risk Management

This research study explored and identified why current Project Risk Management (PRM) practices in industry are not as effective as they should be, by investigating the barriers to effective PRM. The motivation for this investigation was that recent studies have identified poor PRM as the foremost reason for the low success rate of projects. In addition, there are limited empirical studies to show factors responsible for the ineffectiveness of the PRM, particularly as it affect users in industry.;This research took an integrated approach to investigating the barriers to effective PRM by using a two-phase methodology of modified Delphi study and qualitative interviewing and analysis.;Twenty one factors which served as a broad list of barriers to effective PRM were identified from the Delphi study and further subjected to both qualitative and a series of quantitative analyses, in order to ascertain which factors held strongly as barriers to effective PRM and how each factor impacted PRM's effectiveness. Following this, the Delphi results were then validated by conducting interviews with industry experts. The interview results further refined the identified factors and served as a basis and guide to the final conclusions.;The most pertinent themes which emerged from this study were categorized under four main headings and discussed to elicit their ties as barriers to effectiveness of PRM: (a) Tools and resources. (b) Risk education. (c) Norms and practices within industry. (d) Risk perspective.;The findings suggest that the barriers to effective project risk management stem largely from a lack of understanding of, and inability to manage, risk perspectives of project stakeholders. In addition, the need to broaden the risk concept in project management was also suggested.