Organisational risk propensity directly affects the decision-making behaviour of employees, with linked impacts on the ongoing prosperity of the organisation. The literature on an individual's risk behaviour is extensive. However, few studies investigate the risk propensity of an organisation....

This paper considers choosing between different forms of fixed price incentive contracts. The analysis assumes the underlying probability density function for project costs is triangular. The methods of evaluation considered are expected value, certainty equivalence and stochastic dominance. The...

A parametric approach to the problem of selection from amongst alternative investment opportunities is considered in a discounted cash flow framework. The approach employs differential cash flows, an uncertain planning horizon and a nested approach to composing cash flow parameters. This...

This paper explains what ‘risk efficiency' means, why it is a key part of best practice project management, and why it may not be delivered by common practice as defined by some guidelines. This paper also explains how risk efficiency can be addressed operationally using comparative cumulative...

An important aspect of stakeholder management in construction projects is the contractual approach to managing risk and uncertainty. Clients need to choose an appropriate form of contract from available common options, like fixed price, design and build (D&B), and design, build, finance and...

This paper illustrates the value of several particular features of a first phase parametric approach to discounted cash flow (DCF) decision analysis when significant uncertainty is involved. It also illustrates the value of second phase probabilistic approaches to selected parameters for five...