ABSTRACT
As much psychology goes into risk management as ranking and calculating. Unfortunately, few project managers recognize this fact and, as a result, many fail to become attuned to the influence of psychology during risk management. This psychological influence manifests itself in one of two basic ways: risk acceptance or risk aversion. Several institutional factors influence how people perceive their risk assessment. They include: atmosphere; availability of information; management style; market/economic conditions; and policies and procedures. B.F. Skinner’s model of human behaviour helps to determine the perception of risk and the results of risk management. Whether on an individual or group level, therefore, project managers must maintain a balanced view of risk and maintain that balance throughout risk management. Managing risk is as much psychology as it is mathematics. Whether on an individual or group level, perception and approach to risk influence the results of a risk management exercise.
