Agile risk management: Enhancing the risk management process in projects through agile principles, methods and tools
A. LIAPI (TU Delft - Civil Engineering & Geosciences)
Afshin Sohi (TU Delft - Integral Design & Management)
Daniel M. Hall (Design & Construction Management)
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Abstract
A construction project is inherently complex, involving numerous stakeholders, lengthy timelines, and intricate relationships, leading to significant risk potential. The increased complexity of construction projects and the fact that a large percentage of projects are still delivered with significant delays and cost overruns has led to the necessity of applying different methods by the project managers and the teams. Agile project management is an example of that as its implementation in construction projects can help increase flexibility, achieve continuous improvement, help the project stay on track without schedule overruns and achieve an overall improved quality through effective collaboration and constant feedback. Despite agile project management's flexibility and continuous improvement benefits, its integration with risk management remains underexplored in the construction industry.
The objective of this study is to propose a framework that could help improve the risk management project by offering a more proactive approach and at the same time enhance people’s engagement with risks. The goal of this thesis project is to support construction companies in approaching risk management in a way that incorporates agile methods.
Implemented in a project and evaluated through questionnaires and a focus group, the framework showed promise in elevating risk awareness and fostering interdisciplinary collaboration. However, incomplete implementation of some elements limited definitive effectiveness assessments. Subsequent expert judgment sessions confirmed the framework's potential in proactive risk identification and management, alongside the initial findings of heightened awareness and collaboration. Recommendations for improvement include clearer risk impact depiction and explicit framework objectives communication. Essential for success are targeted risk training, clear vision articulation, and structured step-by-step implementation supported by project managers and risk coordinators.
In summary, the proposed framework merges agile principles with risk management, aiming to cultivate a proactive risk culture, enhance team communication, and mitigate increase engagement with risks. While showing significant benefits, it also highlights the need for adjustments to fully realize its effectiveness in the construction industry's risk management practices. This study underscores the importance of agile methodologies in enhancing traditional risk management approaches, offering insights for future application and refinement.