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60085 Is any attempt to define risk a form of linguistic imperialism 1. Introduction The following essay attempts to assess whether the term risk in Project Management is unsuitable due to its wide range of ambiguous definitions being attributed, its diverse usage, the possibility it might preconceive outputs as well as whether it eliminate inputs. It is being argued that in order for the term to be precise it needs to be combined with other terms and if risk is replaced with more specific terms such as uncertainty might provide a better perspective of the available options. That different language used in a sector which is need of a universal terminology that will not allow derailing, led to the characterization of risk as a linguistic imperialism (Hansson, 2000). 2. The term Risk The search for a proper definition of risk immediately indicates what causes that labyrinthine perception of the word. Not only the definitions vary they also offer the word a different meaning in terms of risk being something good or bad. Thesaurus states risk as a situation involving exposure to danger and Oxford Dictionary defines it as the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility. ISO 31000 (2009) / ISO Guide 73:2002 however defines risk as the effect of uncertainty on objectives and at the same wavelength APM states risk as an uncertain event or set of circumstances that, should it occur, will have an effect on the achievement of the projects objectives. While the first two definitions are more widely used in our everyday life (we identified risk as something wrong) it de facto excludes the possibility of something else - not negative occurring. More recent definitions as the later included that possibility but instead of resolving the problem it enhanced it.

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MACE 60085 Is any attempt to define risk a form of linguistic imperialism Dowie (1999) sympathized the idea that risk as a term was not beneficial for proper project management stating specifically that: In its famous Humpty Dumpty fictional dialog with the decision analyst the egg uses risk in three completely different ways. As a synonym of probability or chance in relation or outcome (the risk of something like falling happening), as a synonym for something negative occurring (like death or disability) and finally as an action (the sitting on the wall). The example illustrates the vast usage of the term and the dysfunctionality it might cause. As Davies et al (2006) says, experience is gained by PMs through one project to another but Perminova, Gustafsson & Wikstrm (2007) fear that this knowledge acquired might vaporize upon project completion. 3. The use of uncertainty In order to eliminate the above flaws risk management has slowly started to be replaced by the term uncertainty management. Uncertainty management tries to explore and understand the origins of project uncertainty before seeking to manage it (Ward and Chapman, 2001). It tries to offer the more optimal route while displaying all possibilities and their outcomes and tries to implement that in all stages of a projects life cycle. Hubbard (2009) says uncertainty is the absence of certainty when the result of a process is not known. It therefore does not discriminate the possibility of something negative occurring (risk) rather than it attempts to provide the analyst with possibilities for the oncoming processes and outcomes. While some might consider risk and uncertainty synonymous (especially since one might think that risk is an uncertainty) economist Knight (1964) objects to that by claiming that risks andreas georgiades Page 2 3/2/12 Risk is an obstacle to improved decision and policy making. Its multiple and ambiguous usages persistently jeopardize the separation of the tasks of identifying and evaluating relevant evidence on the one hand, and eliciting and processing necessary value judgments on the other.

MACE 60085 Is any attempt to define risk a form of linguistic imperialism are events subject to known or knowable probability, whereas uncertainty refers to events for which it is impossible to specify numerical probabilities. Ward and Chapman (2003) state that uncertainty management is a combination of risk factors as well as an opportunity management. 4. How it affects the project. Another issue that needs to be taken in concern is the diversity of characters involved 1. 2. 3. 4. 5. 6. Who are the parties ultimately involved? What do the parties want to achieve? What is it that each party is interested in? Whichway is each partys work to be done? What resources are required? When does it have to be done? Chapman and Ward also proposed a six-part framework in order for one to break down and analyze the uncertainty of a project through answering the questions.

in a project. What might be considered a risk for one project member might not be for another. This is depended on different cultural backgrounds, experience, age, the need for success the desired outcome etc. McKenna (2006) concludes that investors prefer to risk less in order to minimize losses rather than maximize profits. andreas georgiades Page 3 3/2/12

MACE 60085 Is any attempt to define risk a form of linguistic imperialism 5. Conclusion. If we try to remove any of the discussed terms (risk and uncertainty) we might create the same problem we initially tried to resolve. Some definitions that are not enough to stand- alone and sufficiently cover project management. If, on the other hand, give more importance to one over the other we might again have only one term that will be given many definitions (it is already happening with both risk and uncertainty) and end up in a vicious circle. It is my belief that risk management as well as uncertainty management can both exist in project management in order for one to acquire a broader view of the project; having both the numerical analysis of the probabilities of an action, as well as assessing possible processes during the life cycle of a project through implementing Chapmans and Wards questions. However it is essential and crucial that the engaging parties must give a more specific definition to both terms in order to avoid the problems caused above and that they keep a unified standardized procedure that it is not adjustable by each party separately rather than the party itself must follow the same procedure the rest are following. andreas georgiades Page 4 3/2/12

MACE 60085 Is any attempt to define risk a form of linguistic imperialism REFERENCES Perminova, O et. al (2008) Defining uncertainty in projects a new perspective, International Journal of Project Management, Volume 26, Issue 1, pp 73-79 Ward, S. and Chapman, C. (2003) Transforming project risk management into project uncertainty management, International Journal of Project Management 21, pp97 105,Elsevier Dowie, J. (1999) Against risk, Risk Decision and Policy, 4(1), 57-73, Routledge Barrie, D. S. and Paulson, B. C. (1992). Professional Construction Management. 3rd ed. Singapore: McGraw Hill International Editions. Dastous, P.-A. et al (2008). Risk Management: All Stakeholders must do their part. Journal of Loss Prevention in the Process Industries 21, 367-373 Douglas, W. H. (2009), The Failure of Risk Management: Why its broken and How to fix it. [e- book]. New Jersey: John Wiley and Sons Ltd. Available from: http://books.google.com/books?id=e0IoQJcn1YC&printsec=frontcover&hl=el#v=onepage& q&f=false [accessed 20 October 2010] Dowie, J. (1999). Against Risk. Risk Decision and Policy 4(1), 57-73 Kaplan, S. (1997). The words of Risk Analysis. Risk Analysis 17(4), 407-417 Knight, F. H. (1921). Risk, Uncertainty and Profit. Boston, MA: Hart, Schaffner and Marx; Houghton Mifflin Co. Available from: http://www.econlib.org/library/Knight/knRUP.html [accessed 20 October 2010] Merna, T. and Al-Thani, F. (2005). Corporate Risk Management: an organizational perspective. 2nd ed. Chichester: John Wiley and Sons Ltd.

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