RISK MANAGEMENT IN THE BUSINESS PROJECTS
Author: Prof. Milen Baltov, PhD (Burgas Free University)
The author of this paper was a team leader final result of the Cross sectoral Megaprojects working group under a COST Programme action in the period of 2012-2014. The group transformed into a risk management group and he (Milen Baltov) was the one to identify the issues of “incorporating risks” and “dealing with conflicts” in the formal project management of the investments. The author together with the team leader of the Transport working group disintegrated their groups of researchers into a new group. They all assumed the risk management challenges with megaprojects – as uncertainties are not obligatory to avoid. The researchers considered that identifying the performance “gap” between the major projects and the mega projects might have also possible implications on the EU terminology. A focus was supposed to be the evaluation tools application to mega projects and especially the specifics of the Cost Benefit Analysis. Proposed aims of the Risk management Working Group were: 1) To through light and make a review on the literature about risks in megaprojects 2) To identify the main issues in common experience in the MEGAPROJECT portfolio of risks in megaprojects 3) To clarify the different between risk identification at the front end of the megaprojects and the risk at the front end of the projects as a whole? 4) To demonstrate the possible ways of dealing with risk in the evaluation of megaprojects in the front-end Proposed Deliverables from the Working Group were: Literature review paper; Papers about MEGAPROJECT portfolio and being 'mega'; Internal report; Practitioner usable guidelines; EU regional investments policy recommendations, concerning the risk management in the implementation of the cost benefit analysis (CBA). In a great part all these deliverables were finalized and the author accumulated on his own previous work and the new inputs in drafting this article.