Akomea-Frimpong, I; Jin, X and Osei-Kyei, R (2021) Developing a financial risk maturity model for public-private partnership projects. In: Scott, L and Neilson, C J (eds.) Proceedings of 37th Annual ARCOM Conference, 6-7 September 2021, Online Event, UK.
Abstract
Globally, the management of financial risk is a topic that has gained much attention in the construction management research community in recent years. Existing studies rank financial risks among the top three risk factors that leads to the failure of a PPP project. Available literature on Public Private Partnership (PPP) projects also acknowledges the need for specific and suitable maturity models to tackle this problem of financial risks. However, there are limited (almost non-existent) studies on specific maturity models on financial risks of PPP projects. In this paper, we developed, tested and validated a financial risk maturity model (FRMM) to enhance the management of financial losses of PPP projects. The FRMM uses a list of statements extracted from financial risk management literature on PPP projects. The statements in the designed model were tested and validated with data from surveys and interviews of experts and practitioners in the PPP market in Australia, China and Ghana. According to the findings backed by experts and literature, FRMM improves the financial success of PPPs. Project managers could use the FRMM as a guide to control financial losses of the project, and the results support further research.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | financial risk management; maturity model; public-private partnership projects |
| Index terms: | risk management, practitioner, project manager, maturity model, Ghana, management research, risk factor, public private partnership, survey, interview, China, Australia, partnership |
| Subjects: | profession, contractual arrangements, partnership management, research design and methodology, data collection methods, evaluation, Geography, risk assessment, practitioner, environmental hazards |
| Topics: | Stakeholder Management, Sustainability, Geographical Context, Research Practice, Risk Management, Procurement, Roles and Professions |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here