GPS Extranet

Risk Management

This sub-project is coordinated by VTT Technical Research Centre of Finland.

Networked project business is particularly challenging field for risk management. In close co-operation between networked organisations the risks can spread and cumulate in many dimensions: over time in course of a project, through different parts or phases of the project and across the networked organisations. On the other hand the network offers the project partners new business possibilities, resources and also new ways for sharing or partitioning the risks. The understanding of project risk management is mainly based on linear models that describe how various risk events are present in considered projects. While these rather normative models provide rich intuition as to why firms should manage risks, they provide less information about how firms turn the incentives to manage risk into actual decisions on the choice of risk mitigation actions, how risk risks change and how the risk management strategies evolve over time.

This research shall improve our understanding beyond the normative standard project risk management solutions towards dynamic risk management solutions that better meet the needs of complex and large projects. The main research question is: What are the novel and effective risk management practices in large and global project networks with several and diverse actors? Research tasks will explore the following issues:

  • Conceptual and contextual understanding
    • Synthesis of existing research on risk management in networks
    • What are risk factors in project networks?
    • Conceptual study with empirical examples
  • General guidelines for managing risks in global projects networks
    • Guidelines on how to manage global projects to avoid pitfalls
  • Analysis tool for creating a risk profiles for global project networks
  • Dynamic risk management and simulation
  • Risk management charter for global project networks

Helsinki School of Economics HSE |VTT Technical Research Centre of Finland | Helsinki University of Technology HUT | Stanford University SU