A risk management method for a Turkish defence industry firm

Thesis Type: Postgraduate

Institution Of The Thesis: Middle East Technical University, Faculty of Economic and Administrative Sciences, Department of Business Administration, Turkey

Approval Date: 2007

Thesis Language: English

Student: Erhan Karadaş



In this study, a risk management methodology for the business development phase of a Turkish defense industry firm’s projects is proposed. The proposed method is based on the contemporary risk management practices and offers the integration of risk management process on top of existing project management processes in the business development phase, besides being cost effective and applicable. The method suggests a format for a risk management plan with two new sections, results, and compliancy. Furthermore, the method suggests the development of risk response plans prior to the implementation of quantitative risk analysis contrary to the applications in the literature, in order to reduce the size and the complexity of data to be analyzed. The method proposed also benefits from software tools that are easy to use and compatible with the existing project management practices executed in the firm. The method also aims to lead the construction of necessary risk databases that are specific to projects of the firm. The method also discusses the risk management framework under the scope of organizational aspects and decisions. Furthermore, a sample project of the firm is evaluated both with the current method and with the proposed method in order to put forward the advantages of the proposed system over the existing risk management practices of the firm.