Title: Relationships of economic decision-making and risk in the project environment: insights from the literature
Authors: Brian J. Galli; Mohamad Amin Kaviani; Lanndon A. Ocampo
Addresses: School of Computer Science, Innovation and Management Engineering, Long Island University, Brookville, New York, USA ' Young Researchers and Elite Club, Islamic Azad University, Shiraz Branch, Shiraz, Iran ' Department of Industrial Engineering, Cebu Technological University, Corner M.J. Cuenco Ave. and R. Palma St., Cebu City, 6000, Philippines
Abstract: The purpose of this study is to effectively identify and assess economic risk in decision-making under project environments. A systematic literature review is used to identify the critical relationships between risk and economic decision-making. This paper highlights the implications of these relationships and how they impact a project-based environment. Results revealed salient points such as proper anchoring of project performance with previous risk performance, the necessity of effective, reliable and consistent methods of project risk performance evaluation, the importance of assessing projects in terms of risk-adjusted gains and that returns and risks in the investment portfolio are effectively determined to proactively organise priority portfolio hazards. These findings contribute to economic decision-making and risk management, both in theory and practice.
Keywords: risk management; project management; systematic literature review; economic decision-making.
International Journal of Project Organisation and Management, 2019 Vol.11 No.2, pp.110 - 139
Received: 07 May 2018
Accepted: 11 Feb 2019
Published online: 28 Jun 2019 *