Two schools of risk analysis: A review of past research on project risk

• Published in: Project management journal 2011-07, Vol.42 (4), p.5-18
• Main Author: Zhang, Hongliang
• Format: Article
• Language: English
• Subjects: literature review; objective risk; Project management; project risk; risk analysis; Risk assessment; subjective risk
• ISSN: 8756-9728; 1938-9507
• DOI: 10.1002/pmj.20250

Risk research can be generally categorized into two schools: risk as an objective fact and risk as a subjective construction. Both schools have different risk definitions, epistemological dimensions, and analytical methods, and tend to recommend different policies for managing risks. This study aims to locate the position of past studies on project risk found between the two schools of risk analysis and to help understand their basic assumptions and viewpoints by reviewing articles published during the last 10 years in two project management journals: the International Journal of Project Management and Project Management Journal. There are 171 articles collected from both journals. They are categorized into four groups: project management system, subjective perception, irrational behavior in risk management, and subjective construction. This study describes and discusses the basic assumptions, viewpoints, and tendencies usually held by each group, and it indicates the position of each group found between the two schools. It also develops some discussion on the starting point of both schools of risk analysis and their significance in directing practices of project risk management.