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Integrated Risk Management through dynamic capabilities within project-based organizations: The Company Dynamic Response Map

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Abstract

This article proposes a new risk management (RM) instrument for project-based organizations – the Company Dynamic Response Map (CDRM) – and tests its ability to better respond to risks and opportunities. The CDRM is based on the concept of dynamic capabilities as a means by which companies can adapt to fit with their evolving business environment. Different risk response strategies are conceptualized as the combination of a given set of capabilities that could be used to manage risks more effectively across the organization. The empirical basis of the article is provided by a leading project-based organization competing in the Engineering, Procurement & Construction industry; the CDRM has been applied to analyse the company's current RM systems, highlighting strengths and weaknesses. On the basis of the data analysis, generalized operational elements are identified that project-based organizations should consider when seeking to manage risks and opportunities in a holistic and integrated way.

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Authors and Affiliations

  1. Department of Management, Economics & Industrial Engineering, Politecnico di Milano, Piazza Leonardo da Vinci, Milano, 32 – 20133, Italy

    Marika Arena, Giovanni Azzone, Enrico Cagno, Gianclaudio Ferretti, Enrico Prunotto & Paolo Trucco

  2. SAPIEM SpA (ENI Group), Via Martiri di Cefalonia, 67 20097 San Donato Milanese, Milano, Italy

    Amerigo Silvestri

Authors
  1. Marika Arena
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  2. Giovanni Azzone
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  3. Enrico Cagno
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  4. Gianclaudio Ferretti
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  5. Enrico Prunotto
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  6. Amerigo Silvestri
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  7. Paolo Trucco
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Arena, M., Azzone, G., Cagno, E. et al. Integrated Risk Management through dynamic capabilities within project-based organizations: The Company Dynamic Response Map. Risk Manag 15, 50–77 (2013). https://doi.org/10.1057/rm.2012.12

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