Balancing control and flexibility in joint risk management: Lessons learned from two construction projects

Joint risk management (JRM) is an approach that highlights the importance of collaboration between the project actors in managing risk that cannot be identified at the outset of the project. Despite the recognition of the concept in the literature, the use of JRM in practice seems to be rare. Based on contingency theory, we investigate how mechanistic (control-oriented) and organic (flexibility-oriented) management systems influence the implementation of JRM in two construction projects. In the first project, the actors managed to achieve a balance between control and flexibility, which paved the way for successful JRM. The extensive use of control in the second project hampered flexibility and constrained the use of JRM. We conclude that JRM requires both control for managing risk that has been identified and flexibility for dealing with unforeseen events. When a mechanistic approach is dominant, risk management remains a formal process carried out individually rather than collaboratively.

► Joint risk management (JRM) requires both formal and collaborative processes. ► Formal tools deal with identified risks; flexibility copes with unforeseen events. ► A strong focus on control hampers a collaborative project environment and JRM. ► Flexibility increases the chances of implementing JRM.