Two-Pillar Risk Management (TPRM): A Generic Project Risk Management Process


Department of Industrial Engineering,Iran University of Science and Technology


A conventional Risk Management Process (RMP) contains two main phases: (a) risk
assessment that includes risk identi cation and risk analysis, and (b) risk response that decides what, if
anything, should be done about the analyzed risks. Based on a traditional tendency, most studies in stateof-
the art RMP have ample emphasis on risk assessment, but we can nd limited studies on the subject of
risk response. This paper aims to oppose the mentioned traditional view. The paper introduces a generic
RMP, namely Two-Pillar Risk Management (TPRM) that considers an equivalent importance for both risk
assessment and risk response. The paper compares the TPRM with the last version of the RMP provided in
the standard of PMBoK. Application of the proposed model in projects in the construction industry shows
a tremendous total risk level improvement. We believe that applying the TPRM helps project managers
in a most e ective and ecient manner in dealing with their risk management programs.