Does risk matter? Disengagement from risk management practices in information systems projects

Abstract

Risk management and ‘routine-based reliability’ is considered fundamental to project performance. Existing theories of project risk management do not fully explain why project managers stop practicing risk management information systems (IS); however, constructs drawn from organisation theory offer insights into how and why such disengagement occurs. The study examines risk management practices in 21 IS projects within 10 organisations. By focusing on risks that resulted in significant events and mapping backwards over time the practices associated with those risks, we identify that in all but five projects the manager had disengaged from prescribed risk management before executing risk responses. In most projects, the majority of formally identified and assessed risks remained unallocated and untreated. A laddering technique was used to help explain why this transpired. We found five key underlying beliefs that governed project managers’ risk management attitudes and actions.

Keywords:

• IS projects
• project risk management
• routines
• practical drift

Acknowledgements

The authors would like to thank Professor John Ward for his valuable comments and support.

Additional information

Notes on contributors

Elmar Kutsch

About the authors

Elmar Kutsch is a Lecturer in Programme and Project Management. Over the past few years, Elmar has become deeply involved in the development of Graduate Programmes and Customised Executive Development, providing common-sense, intuitive, and deliverable-based methods for planning and executing projects. He is a Visiting Professor at IÉSEG (France) and is associated with Umeå University (Sweden) as a Guest Researcher.

David Denyer

David Denyer is a Professor of Organizational Change and Director of the Ph.D. Programme at Cranfield School of Management. He is also a Management Practices Fellow at The Advanced Institute of Management Research (funded by the Economic and Social Research Council – ES/G037825/1). David's research interests lie in leading and implementing change, organizing for safety, resilience and high reliability, and understanding and improving the practice of management.

Mark Hall

Mark Hall is a Director of Studies for the M.Sc. in Management. Mark's research interests are focused around project management and public sector service delivery. Current areas of research include: The influence of cultural theory in project environments, with a focus on risk management practices.

Elizabeth (Liz) Lee-Kelley

Elizabeth (Liz) Lee-Kelley is a Programme Director of the specialist M.Sc. in Programme and Project Management. In her early career, Liz worked in investment, manufacturing, distribution and logistics and went on to hold board-level positions in engineering and clinical research.