Integration of risk management and value management - An Australian case study

This paper is part of an on-going doctoral research project based on the integration of Risk Management (RM) and Value Management (VM) in Public Private Partnership (PPP) project management. RM and VM are proven to be best practice methodologies to minimise risk and increase benefits in project management. There is a clear synergy between minimising risk and maximising value in a project or program and researchers and practitioners argue that integration of risk and value management will deliver better outcomes to the client than separate application of the two processes. The research is aimed at exploring the potential benefits of integrating RM and VM in a single study process along with the identification of the Critical Success Factors (CSF) related to the successful implementation of an Integrated Risk and Value Management (IRVM) process. As a means of identifying the approaches used in combining the two processes, this paper puts forward a case study on the application of an integrated risk and value management study at the early stages of project development where the work was conducted in accordance with, and reflects the standards of, Value Management AS 4183:2007 and Risk Management AS/NZ 4360:2004. Research results are drawn using qualitative methods from data collected through literature reviews, case study and semi-structured in-depth interviews with the workshop facilitator. It is identified that the client is satisfied with the outcome of the integrated workshops. The findings suggest that this approach would assist clients in utilising resources and multidisciplinary teams more effectively while reducing the cost of conducting the workshops.