Project risk: Theoretical concepts and stakeholders' perspectives

Project, Program and Portfolio Risk Perceptions

“…This result was consistent with a research by [23] which identified that risk is more about the consequence than the unpredictability of the outcomes. [14] found that Project stakeholders in defining risk tend to over-focus on the negative sides while the rational decision theory would suggest a more neutral view. They also exhibit a tendency of over emphasizing the impact of risk in contrast to the theory which considers both impact and probability.…”

“…Project stakeholders' risk perception is usually based on individual's beliefs, approaches, judgments, and feelings [11] and influenced by group thinking [12] and reliance [13]. Therefore different stakeholder perspectives need to be considered in order to build the bigger picture and manage risks effectively [14].…”

“…Most of people respond to losses in a more conservative way than to gains; they are loss averse [22]. [14] demonstrated that Project stakeholders tend to overemphasize the ‗consequence' aspect of risk leaving aside the ‗probability' dimension. This result was consistent with a research by [23] which identified that risk is more about the consequence than the unpredictability of the outcomes.…”

“…In such a case, Project opportunities that arose from uncertainties would largely be missed due to the lack of conceptual understanding and too much focus on responding to the negative risks. [14] in order to finding a definition of Project risk, designed a questionnaire and inquired 99 clients as well as 96 construction contractors for providing their perspectives on the definitions of ‗risk' in Project settings. They concluded that the majority of contractors take negative or neutral terms related to Project risk including: operating condition, unpredictable thing, the mismatch between plan and actual condition and bad outcomes.…”

Data management in project planning and control

“…Focusing, for instance, on project risks, the risk triggers are an example of weak signals that anticipate the risk event (Hartono et al, 2014). Ansoff (1975) stated that a strategic surprise does not appear out of the blue; it is possible to anticipate its occurrence by the aid of weak signals (triggers, early warnings, symptoms, clues, etc.).…”