Risk management in a complex frame agreement - a case study from a contractors perspective

Risk management in organisations has, over the years, gained increasing recognition as an important part of project management. Achieving effective and efficient project management is vital for the modern project organisation, in order to optimise the chance for project success. Not only is it preferable to optimise the chance for a successful project, but also the successfulness of the project. In this context, the risk management plays an important role. The risk management aims to maximise the likelihood and impact of opportunities, and to minimise the likelihood and impact of threats for the project objectives. The objective for this thesis will be to evaluate the implementation of risk management in a Frame Agreement for one of the largest oil service companies on the Norwegian Continental Shelf. The Company is committed to be in compliance with the ISO31000:2009 standard for risk management. The evaluation is based on the following hypothesis: “Risk management is well implemented throughout the Project Organisation in the Frame Agreement”. The writer aims to test the hypothesis through multiple methods, comprising of a survey in case study research. After having examined all areas, it was found that the company had considerable need for improvement in most areas. It was also found that the Company was not being in compliance with the ISO31000:2009. The Company does not have a risk management policy in place. The Management System does not provide sufficient information on risk management processes, and the Management System is not used consistently by the project managers. The risk database should be improved upon. Project Managers risk competence is varying, caused by lack of training. These findings lead to poor communication quality. All study findings clearly points to the conclusion that the hypothesis is rejected, and that the Company does not have a well-implemented risk management