For effective execution of Project portfolio, project risk should be carefully identified and managed. Does organizational flexibility help to improve the risk identification process of projects?
Not so much of identifying but more of responding and being resilient to risks through "loose coupling". Because there are somethings that we just will not be aware of no matter how much preparation has been made to be more aware and receptive.
Article 1984–2014. Normal Accidents. Was Charles Perrow Right for th...
Beyond risk identification, I would encourage you to consider focusing on how managerial flexibility could instead mitigate losses or to avoid losses. I have covered this in my paper published by the Journal of Applied Corporate Finance. A more extensive discussion is given by Lenos Trigeorgis in his book on real options and option games, where I have used a number of his frameworks in my forthcoming book on Energy Investments: An adaptive approach to profiting from uncertainties.
Given the uncertainties surrounding the outcomes of any investment, identifying risks is one thing. Structuring the investment so that with managerial flexibility, actions could be reversed or adapted to conform with new information or circumstances allows the avoidance (or at the very least, minimize) of losses.
Hi Mahammad:
One question is where in the lifecycle is the organization? That may dictate how flexible they can be and how the identification and response mechanisms work. You may want to have a look at four of the papers I have co-authored because the complexity of the firm, the complexity of the market, and the risk profiles along the market lifecycle will be able to give you a good idea of the level of flexibility of the firm. All are on Researchgate (I didn't want to "pad" my stats by going into the publication to get the DOI):
Risk Profiles of Emerging and Established Value Chains in Dynamic Markets
The evolution of complexity in High Technology Markets
The evolution of complexity within firms.
Risk Profiles Along the Lifecycle in Dynamic Markets
Regards,
Brian
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