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Value Creation with Project Risk Management: A Holistic Framework

Author

Listed:
  • Raffaele Testorelli

    (Department of Management and Engineering, University of Padova, Stradella San Nicola 3, 36100 Vicenza, Italy)

  • Anna Tiso

    (Department of Management and Engineering, University of Padova, Stradella San Nicola 3, 36100 Vicenza, Italy)

  • Chiara Verbano

    (Department of Management and Engineering, University of Padova, Stradella San Nicola 3, 36100 Vicenza, Italy)

Abstract

The conceptual shift, from a traditional task perspective and a managerial approach to project risks toward a value-centric view, underlines the challenge of creating different forms of value for multiple project stakeholders. This emerging theme arises the need for a new holistic framework for value creation through Project Risk Management (PRM). With this purpose, the paper aims at deepening the knowledge about PRM for value creation. A systematic literature review has been conducted, extracting a database of 116 papers. To address the research questions, a descriptive and a content analysis have been performed. The results of a systematic literature review reveal that the value created through PRM includes both economic and intangible (not monetary) benefits. Moreover, even if international standards are giving greater relevance to value creation and protection, considering also the potential positive effects of risks, empirical results show significant discrepancies. From the analysis of the results, a new theoretical framework emerges that integrates fundamental aspects not fully considered so far, incorporating the concepts of economic, ecological, and social impacts into the notion of value creation through PRM. This work extends the current research in this field and sets forth the definition of a holistic framework to promote the creation of value for project stakeholders in practice, through the management of negative and positive risks, providing a perspective on the sustainability orientation of projects.

Suggested Citation

  • Raffaele Testorelli & Anna Tiso & Chiara Verbano, 2024. "Value Creation with Project Risk Management: A Holistic Framework," Sustainability, MDPI, vol. 16(2), pages 1-20, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:753-:d:1319748
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    References listed on IDEAS

    as
    1. Abdelaal Ahmed Mostafa Ahmed Ragas & Alexander Chupin & Marina Bolsunovskaya & Alexander Leksashov & Svetlana Shirokova & Svetlana Senotrusova, 2023. "Accelerating Sustainable and Economic Development via Scientific Project Risk Management Model of Industrial Facilities," Sustainability, MDPI, vol. 15(17), pages 1-16, August.
    2. Radner, Roy & Shepp, Larry, 1996. "Risk vs. profit potential: A model for corporate strategy," Journal of Economic Dynamics and Control, Elsevier, vol. 20(8), pages 1373-1393, August.
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    4. Packendorff, Johann, 1995. "Inquiring into the temporary organization: New directions for project management research," Scandinavian Journal of Management, Elsevier, vol. 11(4), pages 319-333, December.
    5. Aven, Terje, 2016. "Risk assessment and risk management: Review of recent advances on their foundation," European Journal of Operational Research, Elsevier, vol. 253(1), pages 1-13.
    6. Hamzah Abdul-Rahman & Faizul Azli Mohd-Rahim & Wang Chen, 2012. "Reducing failures in software development projects: effectiveness of risk mitigation strategies," Journal of Risk Research, Taylor & Francis Journals, vol. 15(4), pages 417-433, April.
    7. Ofer Zwikael & Mark Ahn, 2011. "The Effectiveness of Risk Management: An Analysis of Project Risk Planning Across Industries and Countries," Risk Analysis, John Wiley & Sons, vol. 31(1), pages 25-37, January.
    Full references (including those not matched with items on IDEAS)

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