Understanding Risk Culture in the Context of a Sustainable Project: A Preliminary Study
Abstract
:1. Introduction
2. Literature Review
3. Methodology
4. Research Results and Discussion
So colleagues had to learn this code (…) they had to get more involved, but the chance was also high that they learned new things and so based on this experience, the chance was taken and our application was created. There was a risk, actually it came true, but the chance was also there because a new product was created at our company, that is, an application for the system was created, ours, we no longer need the participation of this subcontractor. Participation in this project was also a chance that this would expand to further locations. It didn’t come to fruition, but the chance to get to know and, as it were, in engineering terms, to make a new product was taken, well, because we have the product.
If it’s a strategic project or a project that brings in very big money, which is often interconnected, then this management culture…. Risk culture is different, it is professional more. In smaller projects, basically this risk is not managed, nothing is done with this risk. Because we have projects even short, two-month, one-month projects, then there basically the risks are not identified, nothing is done with the risks.
If these requirements (of the client) are very rigidly formalized then the culture adjusts. That’s the way it is with us, rather that’s how it happens. Sometimes, of course, I myself, by my nature, try to impose our culture of running a project on the client. And I often succeed in doing so. But there are some projects where you can’t and I don’t know what you can introduce so-called soft elements or there such as we have here. Whereas yes, this skeleton is stiffened quite a bit. And the same applies to risk, yes, that is, if the client is sort of demanding a strong formalization of the whole project then when it comes to risks. Because it’s also the case that the client doesn’t know what risks we’re defining, these are our risks. He is not always informed about it, right. Well I won’t say about all the risks because he would get a heart attack so it’s better that he doesn’t know about it. On the other hand, well it very much depends on this external side yes.
It will have been ten years ago when we implemented an international project with (…). These were companies that have been in the market for a long time and both with risk management and project management they have worked for a long time, they have a lot of experience. We actually learned from them. In this project actually the risk management culture was very good.
This is very well implemented, in my opinion, in agile projects, because there, at these daily review meetings, the so-called standards, there, every time this 15-min meeting has to be started by asking if there is a risk that we will not make it in this assumed time with the delivery of what we are supposed to deliver. So there the risk culture is very well described and the risk is very well managed. In my opinion, if he (the team member) is aware that if he can identify risks and do something about them, then it’s easier to succeed, and thus he also succeeds, not just the organization. So, in my opinion this is a very key thing.
I have to tell you, it’s an amazing thing to have such a good relationship with clients to agree on strategic facilities for reference visits for other clients. this is something I win among other suppliers.
5. Conclusions
6. Limitations and Implications for Further Research
7. Declaration of Competing Interest
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
- Streicher, B.; Eller, E.; Zimmermann, S. Risk Culture: An Alternative Approach to Handling Risks. In Psychological Perspectives on Risk and Risk Analysis; Raue, M., Lermer, E., Streicher, B., Eds.; Springer: Cham, Switzerland, 2018. [Google Scholar]
- COSO. Enterprise Risk Management: Integrating with Strategy and Performance, Committee of Sponsoring Organizations of the Treadway Commission. 2020. Available online: https://www.coso.org/SitePages/Enterprise-Risk-Management-Integrating-with-Strategy-and-Performance-2017.aspx?web=1 (accessed on 29 November 2022).
- Miller, P. Does your organization assess risk culture? If not, it should. Here’s how. Front. Res. Metr. Anal. 2022, 7. [Google Scholar] [CrossRef]
- Marano, P.; Grima, S. The risk management system, the risk culture and the duties of the insurers’ directors. In The Governance of Insurance Undertakings-Corporate Law and Insurance Regulation; Marano, P., Noussia, K., Eds.; Springer: Cham, Switzerland, 2022; pp. 25–46. [Google Scholar]
- Tagoe, N. Rethinking risk culture in a post-pandemic era. BOHR Int. J. Financ. Mark. Res. 2022, 1, 62–64. [Google Scholar] [CrossRef]
- Atkinson, M. Sport and risk culture. Res. Sociol. Sport 2019, 12, 5–21. [Google Scholar]
- Zeng, J.; Jiang, M.; Yuan, M. Environmental risk perception, risk culture and pro-environmental behavior. Int. J. Environ. Res. Public Health 2020, 17, 1750. [Google Scholar] [CrossRef] [PubMed] [Green Version]
- Armenia, S.; Dangelico, R.M.; Nonino, F.; Pompei, A. Sustainable Project Management: A Conceptualization-Oriented Review and a Framework Proposal for Future Studies. Sustainability 2019, 11, 2664. [Google Scholar] [CrossRef] [Green Version]
- Martens, M.L.; Carvalho, M.M. A Conceptual Framework of Sustainability in Project Management. Paper presented at Project Management Institute Research and Education Conference, Phoenix, AZ. Newtown Square, PA: Project Management Institute. A Conceptual Framework of Sustainability in Project Management Oriented to Success, Conference Paper, ESG Sustainability 2014. Available online: https://www.pomsmeetings.org/confpapers/051/051-0811.pdf (accessed on 20 January 2023).
- Baba, S.; Mohammad, S.; Young, C. Managing project sustainability in the extractive industries: Towards a reciprocity framework for community engagement. Int. J. Proj. Manag. 2021, 39, 887–901. [Google Scholar] [CrossRef]
- Kovači, A. Sustainable Projects as Instruments of Sustainable Development. In Proceedings of the III International Conference Industrial Engineering and Environmental Protection, Zrenjanin, Serbia, 30 October 2013. [Google Scholar]
- Sabini, L.; Muzio, D.; Anderman, N. 25 years of ‘sustainable projects’. What we know and what the literature says. Int. J. Prod. Manag. 2019, 37, 820–838. [Google Scholar] [CrossRef]
- Martens, M.L.; Carvalho, M.M. Key factors of sustainability in project management context: A survey exploring the project managers’ perspective. Int. J. Proj. Manag. 2017, 35, 1084–1102. [Google Scholar] [CrossRef]
- Wanjiru, G. Project sustainability management: Risks, problems and perspective, Project sustainability management: Risks, problems and perspective. Probl. Perspect. Manag. 2019, 17, 313–325. [Google Scholar] [CrossRef] [Green Version]
- Korombel, A. Kluczowe ryzyka i ich klasyfikacje w praktyce mikro i małych przedsiębiorstw. Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse Rynki Finansowe Ubezpieczenia 2012, 696, 229–239. [Google Scholar]
- Korombel, A. Istota i znaczenie kultury ryzyka dla funkcjonowania organizacji. Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse, Rynki Finansowe Ubezpieczenia 2013, 761, 471–478. [Google Scholar]
- Korombel, A. Apetyt na ryzyko. Próba uporządkowania terminologii. Przegląd Organizacji 2017, 4, 47–53. [Google Scholar] [CrossRef]
- Korombel, A. Identyfikacja korzyści z zarządzania ryzykiem i wyznaczania apetytu na ryzyko w małych i średnich przedsiębiorstwach. Zeszyty Naukowe Politechniki Śląskiej Seria: Organizacja i Zarządzanie 2017, 114, 231–241. [Google Scholar]
- Gorzeń-Mitka, I. Risk-Aware Culture in Enterprise Risk Management. In Theory of Management 4: The Selected Problems for the Development Support of Management Knowledge Base; Hittmar, S., Ed.; EDIS: Gainesville, FL, USA, 2011; pp. 222–225. [Google Scholar]
- Gorzeń-Mitka, I. Management Challenges in the Context of Risk Culture. Probl. Manag. 21st Century 2015, 10, 60–61. [Google Scholar] [CrossRef]
- Gorzeń-Mitka, I. Leading Markers of Risk Culture in Organization. Eur. J. Sustain. Dev. 2018, 7, 425–434. [Google Scholar] [CrossRef]
- Kasiewicz, S.; Kurkliński, L. Kultura ryzyka jako niedoceniany element zarządzania ryzykiem i wspomagania transformacji cyfrowej banków. Rozprawy Ubezpieczeniowe. Konsument na rynku usług Finansowych 2019, 31, 3–16. [Google Scholar] [CrossRef]
- Kasiewicz, S. Cyfrowa transformacja firm a kultura ryzyka. Kwartalnik Nauk o Przedsiębiorstwie 2020, 55, 22–33. [Google Scholar] [CrossRef]
- Siggelkow, N. Persuasion with case studies. Acad. Manag. J. 2007, 50, 20–24. [Google Scholar] [CrossRef]
- Mariotto, F.L.; Zanni, P.P.; Salati, G.H.; De Moraes, M. What is the use of a single-case study in management research? Rev. Adm. Empresas 2014, 54, 358–369. [Google Scholar] [CrossRef] [Green Version]
- Dyer, W.G.; Wilkins, A.L. Better Stories, Not Better Constructs, to Generate Better Theory: A Rejoinder to Eisenhardt. Acad. Manag. Rev. 1991, 16, 613–619. [Google Scholar] [CrossRef]
- Van Marrewijk, A. Managing project culture: The case of Environ Megaproject. Int. J. Proj. Manag. 2007, 25, 290–299. [Google Scholar] [CrossRef]
- Kerzner, H. Advanced Project Management: Best Practices of Implementation; John Wiley & Sons: Chichester, UK, 2004. [Google Scholar]
- Wysocki, R. Efektywne Zarządzanie Projektami; OnePress: Gliwice, Poland, 2014. [Google Scholar]
- Schoper, Y.G.; Wald, A.; Ingason, H.T.; Fridgeirsson, T.V. Projectification in Western economies: A comparative study of Germany, Norway and Iceland. Int. J. Proj. Manag. 2018, 36, 71–82. [Google Scholar] [CrossRef]
- Clegg, S.; Courpasson, D. Political hybrids: Tocquevillean views on project organizations. J. Manag. Stud. 2004, 41, 525–547. [Google Scholar] [CrossRef] [Green Version]
- Sjöblom, S.; Godenhjelm, S. Project proliferation and governance—Implications for environmental management. J. Environ. Policy Plan. 2009, 11, 169–185. [Google Scholar] [CrossRef]
- Bastian, H.; Wald, A. Effects of complexity on the success of temporary organizations: Relationship quality and transparency as substitutes for formal coordination mechanisms. Scand. J. Manag. 2014, 30, 197–213. [Google Scholar]
- Lundin, R.A.; Arvidsson, N.; Brady, T.; Ekstedt, E.; Midler, C.; Sydow, J. Managing and Working in Project Society. In Institutional Challenges of Temporary Organizations; Cambridge University Press: Cambridge, UK, 2015. [Google Scholar]
- Jensen, A.; Thuesen, C.; Geraldi, J. The projectification of everything: Projects as a human condition. Proj. Manag. J. 2016, 47, 21–34. [Google Scholar] [CrossRef] [Green Version]
- Glasdam, S.; Oeye, C.; Thrysoee, L. Patients’ participation in decision-making in the medical field—‘Projectification’ of patients in a neoliberal framed healthcare system. Nurs. Philos. 2015, 16, 226–238. [Google Scholar] [CrossRef] [PubMed] [Green Version]
- Penkler, M.; Felder, K.; Felt, U. Challenging Diversity: Steering Effects of Buzzwords in Projectified Health Care. Sci. Technol. Hum. Values 2020, 45, 138–163. [Google Scholar] [CrossRef] [Green Version]
- Fowler, N.; Lindahl, M.; Sköld, D. The Projectification of University Research: A study of resistance and accommodation of project management tools & techniques. Int. J. Manag. Proj. Bus. 2015, 8, 9–32. [Google Scholar] [CrossRef] [Green Version]
- Wehrens, R.; Oldenhof, L.; Bal, R. On Staging Work: How Research Funding Bodies Create Adaptive Coherence in Times of Projectification. Sci. Technol. Hum. Values 2022, 47, 483–516. [Google Scholar] [CrossRef]
- Lundin, R.A.; Norbäck, M. Projectification in the Media Industries. In Managing Media Firms and Industries. Media Business and Innovation; Lowe, G., Brown, C., Eds.; Springer: Cham, Switzerland, 2016. [Google Scholar]
- Jensen, C.; Johansson, S.; Löfström, M. The project organization as a policy tool in implementing welfare reforms in the public sector. Int. J. Health Plan. Manag. 2013, 28, 122–137. [Google Scholar] [CrossRef]
- Nilsen, H.M.; Feiring, E. Local public health projectification in practice: A qualitative study of facilitators and barriers to a public health plan implementation. Scand. J. Public Health 2022. [Google Scholar] [CrossRef] [PubMed]
- Jacobsson, M.; Jałocha, B. Four images of projectification: An integrative review. Int. J. Manag. Proj. Bus. 2021, 14, 1583–1604. [Google Scholar] [CrossRef]
- Fridgeirsson, T.V.; Ingason, H.T.; Jonasson, H.I.; Kristjansdottir, B.H. The VUCAlity of Projects: A New Approach to Assess a Project Risk in a Complex World. Sustainability 2021, 13, 3808. [Google Scholar] [CrossRef]
- Bennett, N.; Lemoine, G.J. What a Difference a Word Makes: Understanding Threats to Performance in a VUCA World. Bus. Horiz. 2014, 57, 311–317. [Google Scholar] [CrossRef]
- Bott, J.; Milkau, U. Risk Culture and the Role Model of the Honorable Merchant. J. Risk Financ. Manag. 2018, 11, 40. [Google Scholar] [CrossRef] [Green Version]
- McKinsey & Company. Strengthening Institutional Risk and Integrity Culture. 2020. Available online: https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/strengthening-institutional-risk-and-integrity-culture (accessed on 10 September 2022).
- Ernst & Young. Enabling Risk Culture through Governance, Risk and Compliance (GRC) Platform Thinking. Minds Made for Financial. 2021. Available online: Servicehttps://assets.ey.com/content/dam/ey-sites/ey-com/en_be/topics/financial-services/egrc/ey-enabling-risk-culture-through-grc-platform-thinking.pdf (accessed on 11 September 2022).
- Institute of Risk Management. Risk Culture. Under the Microscope Guidance for Board. 2012. Available online: https://primo-europe.eu/wp-content/uploads/2017/06/Risk_Culture_A5_WEB15_Oct_2012.pdf (accessed on 2 September 2022).
- Andrus, G.; Kane, G.C.; Copulsky, J.; Philips, A.N. Czym Przywództwo w Erze Cyfrowej Różni Się Od Tradycyjnego, A w Czym Je Przypomina, MIT Sloan Management Review Polska. 2020. Available online: https://mitsmr.pl/a/czym-przywodztwo-w-erze-cyfrowej-rozni-sie-od-tradycyjnego-a-w-czym-je-przypomina/DdvpEuuyw (accessed on 10 September 2022).
- Kanu, M. The Role of Risk Culture in Enterprise Risk Management Implementation. Int. J. Bus. Manag. 2020, 15, 13–31. [Google Scholar] [CrossRef]
- Ching, W.C.; Mohd-Rahim, F.A.; Chuing, L.S.; Zainon, N.; Aziz, N.M. Conceptualizing Risk Culture on Enterprise Risk Management (ERM) Implementation in Construction Companies. Built Environ. J. 2020, 17, 58–69. [Google Scholar]
- Kpodo, B.; Agyekum, K. The Effects of Risk Culture on Organizational Performance—The Cases of Some Selected Financial Institutions in Ghana. Int. J. Sci. Res. 2015, 4, 681–689. [Google Scholar] [CrossRef]
- Ma, X.; Tang, Z.; Wang, D.; Gao, H. The Influence of Risk Culture on the Performance of International Joint-Venture Securities. Sustainability 2020, 12, 2603. [Google Scholar] [CrossRef] [Green Version]
- Australian Prudential Regulation Authority (APRA). Information Paper: Risk Culture. 2016. Available online: https://www.apra.gov.au/sites/default/files/161018-information-paper-risk-culture1 (accessed on 6 September 2022).
- The Institute of Risk Management. Risk Culture: Resources for Practitioners. 2012. Available online: https://www.theirm.org/what-we-say/thought-leadership/risk-culture (accessed on 2 September 2022).
- Ernst & Young. Risk Culture. Role of the Internal Audit. 2017. Available online: https://isca.org.sg/docs/default-source/i-p--our-future-together/risk-culture-report_final-draft.pdf?sfvrsn=212b917f_2 (accessed on 12 September 2022).
- Wysocki, R.; McGary, R. Efektywne Zarządzanie Projektami; OnePress: Gliwice, Poland, 2005. [Google Scholar]
- Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide)—Seventh Edition and the Standard for Project Management; Project Management Institute: Newtown Square, PA, USA, 2008. [Google Scholar]
- Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th ed.; Project Management Institute: Newtown Square, PA, USA, 2013. [Google Scholar]
- Larsson, J.; Larsson, L. Integration, Application and Importance of Collaboration in Sustainable Project Management. Sustainability 2020, 12, 585. [Google Scholar] [CrossRef] [Green Version]
- Kivilä, J.; Martinsuo, M.; Vuorinen, L. Sustainable project management through project control in infrastructure projects. Int. J. Proj. Manag. 2017, 35, 1167–1183. [Google Scholar] [CrossRef]
- Silvius, G.A.J.; Schipper, R.P.J. Sustainability in project management: A literature review and impact analysis. Soc. Bus. 2014, 4, 63–96. [Google Scholar] [CrossRef]
- Yazici, H.J. The Role of Project Management Maturity and Organizational Culture in Perceived Performance. Proj. Manag. J. 2009, 40, 14–33. [Google Scholar] [CrossRef]
- Johannessen, J.A.; Olsen, B. Projects as Communicating Systems: Creating a Culture of Innovation and Performance. Int. J. Inf. Manag. 2011, 31, 30–37. [Google Scholar] [CrossRef]
- Zeng, Y.; Jin, M.; Guo, C.; Zhang, Z. Research on evaluation of enterprise project culture based on Denison model. J. Ind. Eng. Manag. 2015, 8, 909–927. [Google Scholar] [CrossRef] [Green Version]
- Lisiński, M.; Szarucki, M. Metody Badawcze w Naukach o Zarządzaniu i Jakości; PWE: Warszawa, Poland, 2021. [Google Scholar]
- Fidel, R. The case study method: A case study. Libr. Inf. Sci. Res. 1984, 6, 273–288. [Google Scholar]
- Andersen, E. Rethinking Project Management—An Organizational Perspective; Prentice Hall: Harlow, UK, 2008. [Google Scholar]
- Andersen, E. Do project managers have different perspectives on project management? Int. J. Proj. Manag. 2016, 34, 58–65. [Google Scholar] [CrossRef]
- Rodriguez-Rivero, R.; Ortiz-Marcos, I.; Ballesteros-Sánchez, L.; Martínez-Beneitez, X. Identifying risks for better project management between two different cultures: The Chinese and the Spanish. Sustainability 2020, 12, 7588. [Google Scholar] [CrossRef]
Code of the Interviewed Person | 1A | 2A | 3A |
---|---|---|---|
Role in the project | Project manager/team member | Project manager/team member | Team member |
Experience in project work | Longer than 10 years | Longer than 10 years | Longer than 10 years |
Experience in managing projects | Longer than 10 years | 1–5 years | 6–10 years |
Age | 41–60 years | 41–60 years | 31–40 years |
Length of work in the studied company | Longer than 10 years | Longer than 10 years | Longer than 10 years |
Question Area | Category | Manifestations |
---|---|---|
I | Project risk awareness | Awareness of particular risks and their potential impact on the project |
II | Attitude towards project risk | Project members’ approach towards project risk |
Company’s approach towards project risk | ||
Flexibility of the approach towards project risk | ||
Project environment as a risk generating factor | ||
III | Behaviors related to project risk | Formalization of processes related to dealing with project risks |
Risk communication process | ||
Risk monitoring process | ||
Risk management process | ||
Risk analysis process |
Group of Factors | Specification |
---|---|
Project specifics | Type of project |
The rank of the project and its importance to the company | |
Degree of formalization of the project | |
Size of the project | |
Project team | Composition of the project team, its internationalization |
Persons participating in the project | |
Availability of people | |
Qualifications and competences of people participating in the project | |
Project management | The influence of the project manager |
The influence of the steering committee | |
Project client | Customer requirements |
The influence of project client | |
Stakeholders in the project | The influence of stakeholders directly involved in the project |
The influence of stakeholders not directly involved in the project (e.g., workers from other departments) | |
The influence of other stakeholders (e.g., business partners) | |
Other factors | Project management methods, techniques and tools |
Dimension | Specification |
---|---|
Knowledge of the project | Knowledge ‘possessed’ of the project, e.g., stored as lessons learned (repositories, project logs) |
Knowledge ‘possessed’ by the organization | |
Knowledge possessed by a project’s client | |
Knowledge possessed by other projects’ partners | |
Project processes | Risk management processes (identifying, analyzing, monitoring, communicating risks) |
Rewarding team members | |
Improving competence and knowledge of risk | |
Motivation and rewards in the project | |
Communicating risk and the flow of risk information in the project | |
Responsibility for project risk in the project team | |
Selection of people to the project team and assignment to tasks | |
People in the project | Functioning of the team (stories, symbols, artifacts) |
Development of people in the project team | |
Conflict in the project | |
Trust in the project team | |
Structure | Influence of the project manager |
Impact of the organization’s managers/owners |
Impact | Specification |
---|---|
Project risk culture as a source of risk | Insulting the customer by a member of the project team |
Lying to the client | |
Failing to meet a deadline | |
Giving a promise that will not be kept | |
Leaving the team by a team member | |
Being bought up by another company | |
Failure to replace a team person | |
Project risk culture as a risk leveler | Lack of support for a team member in case of a problem |
Participation in the team of people from other organizational units | |
Relations with clients | |
Amicable resolution of the problem |
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. |
© 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Share and Cite
Moczydłowska, J.; Sadkowska, J.; Żelazko, B.; Ciocoiu, C.N.; Stawicka, E. Understanding Risk Culture in the Context of a Sustainable Project: A Preliminary Study. Sustainability 2023, 15, 5302. https://doi.org/10.3390/su15065302
Moczydłowska J, Sadkowska J, Żelazko B, Ciocoiu CN, Stawicka E. Understanding Risk Culture in the Context of a Sustainable Project: A Preliminary Study. Sustainability. 2023; 15(6):5302. https://doi.org/10.3390/su15065302
Chicago/Turabian StyleMoczydłowska, Joanna, Joanna Sadkowska, Beata Żelazko, Carmen Nadia Ciocoiu, and Ewa Stawicka. 2023. "Understanding Risk Culture in the Context of a Sustainable Project: A Preliminary Study" Sustainability 15, no. 6: 5302. https://doi.org/10.3390/su15065302
APA StyleMoczydłowska, J., Sadkowska, J., Żelazko, B., Ciocoiu, C. N., & Stawicka, E. (2023). Understanding Risk Culture in the Context of a Sustainable Project: A Preliminary Study. Sustainability, 15(6), 5302. https://doi.org/10.3390/su15065302