A study of how risk management can be developed in large industrial R&D projects

Abstract: Background The interest for risk management has increased a lot during the last years and today it is that important that the customers are demanding the work from the contractors. To make the work easier many tools and aids have been developed but how the real actual work performs within the project teams is something that has not got that much attention in earlier studies. Purpose The purpose of the following study is therefore to study how the work regarding risk management performs within the project teams in large industrial R&D organizations to make it possible to develop their work. Method For the following study, qualitative methods have been used in terms of interviews and observations. Nine interviews were performed in the study which two were connected to the management department and the rest were performed by project managers. Observations were performed within two different project teams and at one risk review when five different project teams where observed. Results The results from the different data collection methods show that communication and knowledge are the keys in the organization. Therefore there is a need for spreading it to make it available for more persons and in this way create an internal education within the organization. Knowledge and experience should be spread both on an individual level but also between the different departments. Conclusion If the communication increase the knowledge and experience can be spread out better the organization will receive a better risk result. The organization can also become more competitive since the risk budget can be made more precisely which result in a more competitive price at the market. Delimitations The study is restricted so it will focus on the work performed by the project teams in one of the organization’s geographic locations. Regarding the risks, the study will only look at the negative approaches to risk and therefore the so-called opportunities are separated from the study. Likewise are the risks related to health, safety and environmental and also quality since these are handled separately in the organization.