Creative Construction Conference 2012 June 30 July 3, 2012, Budapest, Hungary
the proposed chart. Applicability of the framework methodology is finally presented followedby conclusions and future research directions.
construction management, decision making, project classification, projectmanagement, risk analysis.
Risk management is a major concern to project managers, as unmanaged or unmitigatedrisks are one of the primary causes of project failure (Royer, 2000). Risk is considered to be amajor factor influencing project success, and Project Risk Management (PRM) is an importantprocess in any capital project (Krane et al., 2010). Thus, PRM is currently one of the maintopics of interest for both researchers and practitioners working in the field of projectmanagement. The various approaches available for PRM are shared and standardized by theProject Management Institute (PMI, 2009), which recognizes PRM as the process of identification and analysis of risks, preparation of the answers to the risks, and theirmonitoring and control in the course of the project.In particular, the analysis of project risks is a critical challenge for any project manager, andfurther critical is the selection of an appropriate technique to assist the duty of project riskanalysis. In fact, there is no universally accepted way to assess risks in all projects and theliterature is littered with a number of techniques, all claiming to be mathematically,statistically and, from an engineering point of view, extremely competitive and effective, andrightly so. But, choosing the most suitable risk analysis technique under given projectcharacteristics is critical to project success.In an attempt to help project managers choose the appropriate project risk analysistechnique for a project, this paper proposes a framework methodology to help managersselect a specific qualitative or quantitative risk analysis technique under given characteristicsof a project being managed.This paper is structured as follows. First, we illustrate the four main risk drivers that cancharacterize the dimensions of a project. Second, the main risk analysis techniques are listed.Then, we present the methodology of selecting the appropriate risk analysis techniques bymapping the main dimensions of a project. Finally, after discussing the application of themethodology, we draw implications and conclusions.
2. PROJECT DRIVER DESCRIPTION
It could be argued that large, high-risk projects require specific techniques, and resourcesthat differ from those required by small, low-risk projects. For example, it seems reasonableto assign the most experienced project managers to head large, high-risk projects. As well,