Project Risk Management: Automotive Industry

The study, it is based on the analysis of present procedure of project risk management that is followed by Spanish Business Unit of an automotive organisation that mainly manufactures airbags modules and steering wheels. Taking into consideration the PMI standard, different changes are needed in present methodology for the objective of defining and implementing project risk management procedure more efficiently and usefully.

Keywords: Project Risk Management; Automotive industry; Risk Procedure; PMI Standard Introduction

In the world of business, the presence of risk is involved everywhere, however the nature of risk and its scope has led to accelerate in 21st century. Risk management is the procedure for analysing, responding and identifying

It is important to note that risk management needs to be conducted from entire lifecycle of the project, from initial phase to decommissioning of the project. Risk management can often contribute to project success from improvement because of the loopholes that were previously uncovered (Zsidisin, 2003).

Literature Review

At present environment, the modern project management needs project personnel to ensure working knowledge relating to management of risk and details for procurement and contract management for controlling and directing the project towards successful accomplishment. As mentioned by De Bakker & Wortmann (2010), risk works as inescapable partner for project managers, therefore it is important to have skilful and experienced manager, the one that can work efficiently with the contracting managers, subcontractors and purchasing professionals for achieving key objectives.

Approaches to Risk Management

Normally organisation uses three diverse approaches for risk management, this

The organisation employees around 60,000 people in 185 facilities that is located in 26 countries. It is important to notice that the organisation is responsible for supplying to most significant vehicle constructors, producing and developing passive and active safety systems.

The global sales at the time of 2013, from which the data are available, were around 12 billion Euros, distributed among below mentioned business lines:

• Passive safety (OSS, Occupant Safety Systems): airbags modules, bags and seatbelts development and steering wheel

• Active safety: radar and video sensors for enabling advanced drier assist functionality, collision mitigation braking and automatic emergency braking

• Active/passive safety integration: mitigation systems and collision avoidance (radio frequency systems etc.)

• Components: presence control systems, engine valves and entry systems

OSSE is basically the European unit for production and development of passive safety products. Thus, the business unit that is being developed in this case relates to European unit and it known as OSSE Spain-Portugal