The Resource-Based View on Project Risk Management

Abstract

The benefits of conducting risk analyses in the planning of construction projects are widely acknowledged. However, the actual implementation of procedures notably differs significantly across industry segments. Even within an organization, different units represent risks differently, depending on their primary function. As a result, a holistic picture of the risk exposure is often hard to describe and even harder to manage. The objective of this paper is to provide a link between strategic planning theory, namely the resource-based view (RBV), and project risk management. The proposed resource-based approach is based on the development of a project causal network which then allows for both data-intensive and conceptual evaluation of the project risks, primarily focusing on cost impacts. The key contribution of this paper is the capacity of the developed framework to integrate with a number of methods already used in project management practices with little to no additional data requirement. These contributions are illustrated using real project data.