Relationships of economic decision-making and risk in the project environment: insights from the literature

The purpose of this study is to effectively identify and assess economic risk in decision-making under project environments. A systematic literature review is used to identify the critical relationships between risk and economic decision-making. This paper highlights the implications of these relationships and how they impact a project-based environment. Results revealed salient points such as proper anchoring of project performance with previous risk performance, the necessity of effective, reliable and consistent methods of project risk performance evaluation, the importance of assessing projects in terms of risk-adjusted gains and that returns and risks in the investment portfolio are effectively determined to proactively organise priority portfolio hazards. These findings contribute to economic decision-making and risk management, both in theory and practice.