Conceptual Framework for Risk Propensity, Risk Perception, and Risk Behaviour of Construction Project Managers

Although a number of quantitative risk management measures and methods have been developed, the risk decision-making behaviour of construction project managers still needs to be further considered. Taking the characteristics of construction projects into consideration, this research put forward an integrated framework from the perspective of construction project managers and proposes 11 general hypotheses, putting risk propensity and risk perception in central roles. Individual differences, including demographic traits, personality differences, and knowledge and experience are identified as factors affecting risk propensity of construction project managers. Risk perception, on the other hand, is mainly influenced by magnitude or probability of potential gain or loss, problem framing, and culture influence. Questionnaires were distributed and multiple hierarchy regressions were employed to test 2 of the 11 hypotheses. The results confirm that extraversion positively influences risk propensity while agreeableness negatively does. Besides, risk propensity has a negative influence on risk perception of construction project managers. Propositions derived not only shed light on guidance for future research on the risk behaviour of construction project managers, but also provide decision-making support through a better understanding of the factors affecting risk behaviour. More empirical tests of the proposed hypotheses should be conducted in future researches.