Evaluating project risk: an exploratory study of UK and Czech Republic practices

Abstract

Project specific risk is an important factor when appraising capital projects, for to ignore it can result in high-risk projects being accepted with catastrophic consequences. The literature shows that this is possibly more important with regard to new technology projects, such as information communication technology (ICT), than the more traditional capital projects. The purpose of this paper is to explore these issues and present the results of research into the risk assessment practices of both the UK and Czech Republic organisations that have recently undertaken an appraisal of both ICT and non-ICT capital projects. We believe that this is the first investigation simultaneously to study such practices in these two countries. This research provides valuable insights into the way both the UK and Czech Republic organisations deal with project specific risk in respect of ICT and non-ICT capital projects, and presents data and practitioners' views, which are lacking in the literature.