How does project risk management influence a succesful IPO project? A case study of an investment bank in Malaysia.

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Tan, Sue Peng
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MBA in Project Management
Dublin Business School
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In Malaysia, the initial public offering (IPO) market has seen some changes in 2016 due to poor economic conditions. Project risk management practices in IPO projects by investment bank are to be explored in this paper. This will be done to identify their positive impact on an IPO project in Malaysia to understand the significance of the role of project risk management in determining IPO success. The goal of the IPO is to obtain approval for it to be launched in the stock exchange market. The objectives of this paper are to identify the factors impacting on IPO processes and to understand the tools and techniques used in identifying and accessing the risks in an IPO project. In this case study, primary data was collected qualitatively with the corporate financiers in the investment bank. The findings show that the participants from the investment bank practice project risk management unsystematically as the participants lack project risk management knowledge. This study concluded that project risk management contributes to IPO success. Positive relationships are established between the corporate financiers and project risk management. Recommendations on involving a project manager in the IPO and implementing the best project risk management practices in an IPO through documentation are suggested by the researcher. Information on IPO project risk management and the management practices in investment banks are presented through this study and are able to lead to a more systematic way of handling risks in this industry. Author's keywords: IPO, Project risk management, Project management, Bursa Malaysia, Security Commission, Risk management