Current industrial practice of managing risks in product development project portfolios

R. Weng, Josef Oehmen, M. Ben-Daya, G. Finke

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

    Abstract

    Managing portfolios of development and engineering projects currently presents significant challenges to companies. This is even more the case in the management of portfolio risks, where both industry and academia currently lack a clear conceptual understanding of what portfolio risks are and what influences them.
    The objective of this paper is two-fold: First, based on a literature review and industry focus group discussions, we introduce a new model for describing portfolio-level risks. It consists of three types of risks (escalated risks, common cause risks, and cascading risks) based on 9 types of interdependencies in PD project portfolios (Technology, Budget, Objectives and Requirements, Infrastructure and Equipment, Skillset and Human Resources, Process and Schedule, Supplier, Legal and Regulatory, and finally Market and Customer).
    Second, we investigate how risk management on the portfolio level is currently executed in industry. The paper describes the results of a survey with n=43 participants, investigating the frequency and impact of portfolio risks, and the influence of the interdependencies on the portfolio risks.

    Original languageEnglish
    Title of host publicationProceedings of the 19th International Conference on Engineering Design (ICED13) : Design For Harmonies
    Volume3
    PublisherDesign Society
    Publication date2013
    Pages041-050
    ISBN (Print)978-1-904670-46-9
    Publication statusPublished - 2013
    Event19th International Conference on Engineering Design - Sungkyunkwan University, Seoul, Korea, Republic of
    Duration: 19 Aug 201323 Aug 2013
    Conference number: 19
    http://www.iced13.org/

    Conference

    Conference19th International Conference on Engineering Design
    Number19
    LocationSungkyunkwan University
    Country/TerritoryKorea, Republic of
    CitySeoul
    Period19/08/201323/08/2013
    Internet address

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