Design of a model for risk reduction in project management in small and medium-sized enterprises

Abstract

In general, it can be said that a project is a means of change so that the organization or individual obtain something they do not currently have, and which, in some respects, can ensure its functioning within the system in society, in the market, etc. Organizations often use different tools and techniques in project implementation to help manage projects. The selection of the optimal method requires a thorough systematic analysis. The chosen method must cover the requirements of project management with regard to its size and nature. One such tool is the ISO 21500 Guidance on project management standard, which defines the basic processes and documents needed for project management. The aim of this article is to propose a model through which it would be possible to effectively manage projects in small and medium enterprises (SMEs), i.e., where generally available international methodologies for project management are not introduced. The proposed model (referred to as Model B) was verified on projects in different SMEs in Slovakia. Mathematical evaluation presented in the paper as well as the knowledge and experience from this verification were summarized and the proposed Model B was modified (referred to as SMEPM: small and medium enterprises project management) so that it can be used in the implementation of other projects in the conditions of SMEs.