http://www.prosjektnorge.

no/PUS/files/pages

Improving Risk Management in Projects: Stakeholder Management in Perspective of Risk

Management.

Shahbaz Ahmed and Amir Hosein Fazel bakhsheshi

MS Project Management NTNU University

July, 2009

Ahmed,S and Bakhsheshi,A (2009), Improving Risk Management in Projects: Stakeholder

Management in Perspective of Risk Management, NTNU University,[online]<
http://www.prosjektnorge.no/PUS/files/pages> accessed [14/04/2016].

Baldry, D. (1998), The evaluation of risk management in public sector capital projects, International
Journal of Project Management, Vol. 16(1), p35-41

Risk management challenge:

The issue challenging in Risk management process in many areas that project people in
different disciplines may have various perceptions of risks. For instance, in economics, the
risk is introduced to explain the individual behaviour in an uncertain environment to pursue
the maximization of satisfaction. Furthermore, based on the attitude towards risk, people can
be hypothesized as risk seeker, risk neutralizer and risk dislike. While the sociologists will
argue that economic rationally is just only one way to explain the attitude towards risks, other
factors such as, culture, personality, education and personal experience will also contribute to
shaping the perception of risks. In biology, risk is interpreted as a demonstration of certain
gene. In statistics, risk will be divided into quantifiable and those unquantifiable.
Consequently, it will not be surprising that risk will be identified and evaluated differently by
various stakeholders in the same project [Duo and lei, 2008]. Beside of this human side effect
on risk interpretation .Baldry (1998), lists some issues that may influence project risk
management such as degree of influence related to status and political power rather than
project relevance pursuance of limited range of personal objectives with little concept of total
project aspirations varied agenda of performance criteria make agreement upon success
factors, and therefore identification of risks, difficult to achieve Subject to irrationality and
inconsistency as stakeholder participation changes over project life cycle and displays varying
standards of expertise and informed capabilities Differences in risk interpretation and
differences in external influences on risk management are inevitable. Due to the reason that
this process can be applied in varying areas and employed by varying standards of expertise.