Project Risk Management Incorporating Knight, Ellsberg & Kahneman

Abstract

This work investigates the Practice Standard for Project Risk Management (PSPRM) in light of the fundamental organizational risk research. As a result of this investigation, the work finds that the PSPRM is lacking some key concepts from the extant organizational risk literature and that other fundamental risk concepts are not applied in a manner consistent with the literature. Building on these findings, the work illustrates how project risk management and project risk research might be effected by these deficiencies and recommends some simple measures that could be implemented to usefully augment the PSPRM and project risk research.

Keywords: Project Risk Management, Frank Knight, Ellsberg, Daniel Kahneman, PMI, PMP, Risk, Uncertainty, Ambiguity, Cognitive Uncertainty, Information Quality