A Broader View of Risk Management Process in Projects

Risks have to be managed with great care so that the final goal of delivering a successful project can be reached. The paper extends the risk management process with the value-based risk monitoring framework developed by the authors, where the primary purpose is to detect and monitor risks jeopardizing the expected project return, and if necessary, to start action plans in order to avoid losses. An important characteristic of the suggested integrated model is that it takes into consideration that risks are timevarying, that is, as time passes, the uncertainty of the occurrence of a risk changes. In this paper, the traditional risk management process is extended with the value-based approach, where risk factors are measured on a linear scale. The integrated project risk management process supports the organizationlevel decision making, and extends the fundamental roles of project portfolio management office identified by the literature. © 2020 The Authors. Published by Budapest University of Technology and Economics & Diamond Congress Ltd Peer-review under responsibility of the Scientific Committee of the Creative Construction Conference 2020.