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Risk Management Usage and Impact on Information Systems Project Success
Abstract
This article explores the usage of risk management practices on virtual Information Systems projects to address the growing industry practice of geographically separated teams. A survey of 557 virtual-project managers assessed usage of risk management practices and association with successful outcomes. The Theory of Reasoned Action is used to model attitudes and behavior. Correlation analysis indicated a strong relationship between risk management and successful outcomes, irrespective of success measured by budget, functionality, or schedule. Findings indicated that while the highest levels of risk management usage were characteristic of project success for virtual projects, many well-trained project managers are short-cutting use of all three core practices. While risk assessment and risk control are typically performed, only 52% of participants completed the final step of developing a risk management plan. This may not only lead to sub-optimal project outcomes, but also renders the first two actions an inefficient use of resources.
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