The Psychology of Risk Management Avoidance in Project Management

This article explores the impact of psychology on risk management in project management. It discusses the importance of understanding brain functions, human behavior, and personal characteristics in managing different types of risks. The article also highlights the role of team coordination and policies in mitigating psychological risks. The study includes statistical analysis of the responses from a questionnaire. The article is relevant for students studying project management and psychology.

The psychology of risk
management avoidance in
project management

ABSTRACT
Psychological risk is the possibility of the injury that has the nature of psychology for
and is of hazardous nature. For project management the psychology can impact the risk
management that will learn about the brain functions, development of human behaviour and
personal characteristics that are very important for a different range of risks. This relation is
experienced as the factor that arranges ways of avoiding minimized effects in the phenomenon
of risk management. Gaining knowledge can bring positive and confidence in the employee that
makes a psychological difference to the outcome of the projects. Risk management is very
important aspect for the company for being able to understand the importance of the course of
crucial important time.

Table of Contents
ABSTRACT.........................................................................................................................................
CHAPTER 4 : RESULTS AND DISCUSSION..................................................................................
Results..........................................................................................................................................4
Discussion..................................................................................................................................20
CHAPTER 5: CONCLUSION AND RECOMMENDATION..........................................................
Conclusion.................................................................................................................................23
Recommendation.......................................................................................................................24
REFERENCES...................................................................................................................................

CHAPTER 4 : RESULTS AND DISCUSSION
Results
Frequency Table
What is your age?
Frequency Percent Valid Percent Cumulative
Percent
Valid
<20 11 32.4 36.7 36.7
20-30 9 26.5 30.0 66.7
30-45 7 20.6 23.3 90.0
45+ 3 8.8 10.0 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0

The results from the above table indicate the age of the respondents that have taken part
in the survey. These results indicate that the majority respondents belonged from the age group
of less than twenty. It shows that in the project management people from a younger section of
group are more preferred for their job roles. In comparison to that of the people which are near
to their 40s. It indicates that the project has more energy however it runs a risk of lack of
experience that is present in the young people. Hence, the risk of psychological risk increases
for the ways in which they are able to analyses the operational management.
What is your gender?
Frequency Percent Valid Percent Cumulative
Percent
Valid Male 13 38.2 43.3 43.3
Female 17 50.0 56.7 100.0

Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0
From the above frequency table, the number of male and female respondents has been
calculated. This shows that the study includes more female respondents in comparison to that of
the male. The reason for which could be due to the high level of discipline that the females
provides at their work which is very essential for the project management. As far as the
psychological factors are concerned it has been noticed that females are less flexible with their
feeling that might impact their behavior.
Are you aware of the psychological risks in project management?

Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 25 73.5 83.3 83.3
No 5 14.7 16.7 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0
The above table was to help in testing the level of awareness of the project management
that the respondents have in the survey. This would help the study found out how many
individuals are engaged with their work in the project that they have taken part. Being able to
understand the factors that influence the mindset of the employee of project management can be
understood by understanding their awareness regarding the psychological risks in the project

management. From this results it was found that there are 25 people out of 30 that understand
the reason for the influence in the project management practices.
Does cognitive biases responsible for psychological risks in management of
project
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Agree 14 41.2 46.7 46.7
Agree 11 32.4 36.7 83.3
Disagree 5 14.7 16.7 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0

The above table is the indication of the does the respondents believe in the cognitive
biases being a responsible for the psychological risk in project management. The respondents
have had different opinions of this question it can be considered to be the factor that is said to
be responsible for the ways in which the individuals are able to analyze the factors that are key
towards the development of their growth. The above results show that majority people strongly
believe that the cognitive biases is said to be responsible for the psychological risks in the
management of a project.
Are psychological risks identified at your project management
organization?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 5 14.7 16.7 16.7
No 25 73.5 83.3 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0

The above research question explains about the identification of the psychological risk
in the project management of the different employee at their organization. This results shows
that most of the organization do not have any identification of the risks which is the reason due
to which the psychological risks are generally overlooked and also identified for the project
management. Understanding of these results show that the business has been key factors
towards the understanding of the ways in which business can manage. Development of the
certain criteria is the key factor towards the management of the operations.
Self-confidence is likely to affect the decision-making of employees in project
management?
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Agree 14 41.2 46.7 46.7
Agree 11 32.4 36.7 83.3

Strongly Disagree 5 14.7 16.7 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0
This table shows the number of employee that agree towards the self-confidence and
affect the decision-making of the employee in the project management. The results of which
indicate that confidence in project management can strongly influence the decision making of
the employees that is directly related to their performance. Having a lack of self-confidence has
to be considered to be the main factor that causes risks regarding the operations of the business
and their ways of developing effective results in the business. Employees of the project
management are aware about how their self-confidence is an important part to their success.

Is stress likely to be cause of risk for project managers operations?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 25 73.5 83.3 83.3
No 5 14.7 16.7 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0
As per this study it has been identified from the results of the respondents that the stress
is very likely factor that can create risk in the project management operations. Hence, stress has
been said to have direct relations with the cause of risk at project management operations. It has
to be said that the higher the stress in the organization the more risk of project to be able to gain

the success that is essential for the ways in which they can generate the growth and operational
success.
Psychological risks from risk perception can be mitigated through team work
coordination in project management?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Agree 25 73.5 83.3 83.3
Strongly Disagree 5 14.7 16.7 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0

The results of the above table show how the psychological risk in the risk perception can
be mitigated in the form of team work and coordination in the project management. Most people
in this survey has been only agreeing to this phenomenon. Whereas there are people the can also
disagree towards the behavior. Certain psychological risks are considered to be mitigate through
the coordination of the ways in which the business is able to manage the operations of the
organization. It has been considered to be the key factor towards the success that the business
generates.
Employee mentality affects the risk aversion in project management?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 24 70.6 80.0 80.0
No 6 17.6 20.0 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0

From the above results it has been evaluated that the employee mentality affects the
risks aversion in the project management. The results show that the employee mentality is
directly affecting the risk and its modes of aversion for the project management. Development
of the success in the organization has to be considered to be very essential for the management
of the project and its aversion of the risk that impacts the risk aversion of the project
management. The results show that majority people are well aware about the employee
mentality factor of the risk aversion in project management.
Can psychological risks be averted through policies of project manager?
Frequency Percent Valid Percent Cumulative
Percent
Valid Very
Likely
6 17.6 20.0 20.0

Likely 24 70.6 80.0 100.0
Total 30 88.2 100.0
Missing System 4 11.8
Total 34 100.0
As per the understanding developed from the above table it has been found that the
respondents are either very likely or likely to be able to affect the psychological risk of the
project management. This shows that the project manager has a very big role in the
establishment of the mentality of the employees that impact their performance and also can
reduce the likely hood of success in the operations. Being able to understand the areas that are

key towards the growth and the development of resources is said to be the very effective
towards the success that can be measured.
The following represents the statistical representation of the different questions that
were asked to the respondents. It has to be said that the it helps in understanding the mean,
median and the mode of the different variables that have been taken in the form off a
questionnaire. Standard deviation in this explains the divergence of the results from the actual
mean of the results which influences the operations.
Statistics
What
is your
age?
What
is your
gender
?
Are you
aware of the
psychologic
al risks in
project
managemen
t?
Does
cognitive
biases
responsible
for
psychologic
al risks in
managemen
t of project
Are
psychologic
al risks
identified at
your project
managemen
t
organization
?
Self-
confidence
is likely to
affect the
decision-
making of
employees
in project
managemen
t?
Is stress
likely to
be cause
of risk for
project
managers
operations
?
Psychologic
al risks from
risk
perception
can be
mitigated
through
team work
coordination
in project
managemen
t?
Employee
mentality
affects the
risk
aversion in
project
managemen
t?
Can
psychologic
al risks be
averted
through
policies of
project
manager?
N
Valid 30 30 30 30 30 30 30 30 30 30
Missin
g 4 4 4 4 4 4 4 4 4 4
Mean 2.0667 1.5667 1.1667 1.7000 1.8333 1.8667 1.1667 2.3333 1.2000 1.8000
Median 2.0000 2.0000 1.0000 2.0000 2.0000 2.0000 1.0000 2.0000 1.0000 2.0000
Mode 1.00 2.00 1.00 1.00 2.00 1.00 1.00 2.00 1.00 2.00
Std.
Deviation
1.0148
3 .50401 .37905 .74971 .37905 1.07425 .37905 .75810 .40684 .40684

Descriptive Statistics
N Minimu
m
Maximu
m
Mean Std.
Deviation
What is your age? 30 1.00 4.00 2.0667 1.01483
What is your gender? 30 1.00 2.00 1.5667 .50401
Are you aware of the
psychological risks in
project management?
30 1.00 2.00 1.1667 .37905
Does cognitive biases
responsible for
psychological risks in
management of project
30 1.00 3.00 1.7000 .74971
Are psychological risks
identified at your
project management
organization?
30 1.00 2.00 1.8333 .37905
Self-confidence is
likely to affect the
decision-making of
employees in project
management?
30 1.00 4.00 1.8667 1.07425
Is stress likely to be
cause of risk for project
managers operations?
30 1.00 2.00 1.1667 .37905

Psychological risks
from risk perception
can be mitigated
through team work
coordination in project
management?
30 2.00 4.00 2.3333 .75810
Employee mentality
affects the risk aversion
in project management?
30 1.00 2.00 1.2000 .40684
Can psychological risks
be averted through
policies of project
manager?
30 1.00 2.00 1.8000 .40684
Valid N (listwise) 30
The following descriptive analysis provides an overall analysation of the results and
their behaviour patterns of the employees that have taken part in the situation. It has been said
that the growth of the operations can be said to be the mean of these results shows the average
response of the respondents that have taken part in the survey. Standard deviation is showing
how the results of the individuals have diversified in the results of the different questions which
have arised.
Hypothesis
H0 Avoiding risk as a psychological management technique does not work in project
management.
H1 Risk management avoidance is successful psychology of avoiding risk at project
management.
Regression
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .976a .953 .951 .16550
a. Predictors: (Constant), Self-confidence is likely to affect
the decision-making of employees in project management?

From the above R Square value that is 0.953 explains that there is more variability in the
outcomes of this test. It shows that the observed target of this regression test was proved and
high value of R square is considered to be reliable for their operations.
ANOVAa
Model Sum of
Squares
df Mean Square F Sig.
1
Regression 15.533 1 15.533 567.098 .000b
Residual .767 28 .027
Total 16.300 29
a. Dependent Variable: Does cognitive biases responsible for psychological risks in
management of project
b. Predictors: (Constant), Self-confidence is likely to affect the decision-making of
employees in project management?
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .428 .061 6.980 .000
Self-confidence is likely to
affect the decision-making
of employees in project
management?
.681 .029 .976 23.814 .000
a. Dependent Variable: Does cognitive biases responsible for psychological risks in management of
project
From the above analysis it can be seen that there is an alternate hypothesis proved hence
proving that risk management avoidance is successful psychology of avoiding risk at project
management. The reason for the alternate hypothesis because the P value of this test is 0.00
which is lower than that of the standard P value of 0.05. Hence, the alternate hypothesis has
been proved. In this test self-confidence is a psychological aspect that is able to prove that

having self-confidence is going to help the employers and project manager is going to be able to
avoid the risks in project management.
Discussion
From the above developed results about the ways in psychological risk at project
management it can be said that these factors do affect the employee performances in the
organization. As per the results the age is a very big factor that influences the psychology of the
organization which influences the organizational growth. It explains that the business
performance has been considered to be able to develop the operational effectiveness which
impacts the success of the business. Mubarak, Khan and Khan, (2022) added to that by
explaining how the employee age is a factor that influences the psychological risks development
in the management of the practices. Analysation of the study is said to be the key factor towards
the ways in which the business can create the solutions that are considered to be very essential
for the management of the key practices.
The gender of the employees involved in the project management can also impact their
psychological understanding that affects the risk management practices. Being able to develop
the success it is very important to be able to understand that the management of risks is very
effective for the ways in which business performs. Simpson and et.al., (2021) has been able to
analyse that the success of the risks management has been seen as the factor that brings both
success and operational effectiveness. Development of the practices is considered to be the
reason for the factors that help them be more effective towards the areas that are seen to gather
the growth and performance. It has been found that the mind-set of the female employees which
cover the majority part of the project management employees is not so effective in the
recognition of the risk management practices. Creation of growth is considered to be the major
reason towards the development of the operational effectiveness. Risk increases with the mind-
set of the individuals and as a part is considered to have negative influence towards the ways in
which the business can gather the success.
Cognitive biases have been considered responsible for the psychological risks in the
management of the project. The study has been able to find that the cognitive biases that is
present in the individual has been the reason for the loss of management in the project. The
study of this project has been considered to be the reason for the areas that are able to gather the

growth for the employees. Abu-Helalah and et.al., (2022) has explained that the decision-
making is said to be the reason due to which the there is an easy derailing of the cogitative
biases which is related to the errors or mistakes in the though process of the employees in
project management. It has been found that everyone has a biases that with the regards of the
intelligent can be well educated for the experience for the practices that influences the
operations. The psychology of the business has to be seen as the reason for the development of
potential issues in the experienced workplaces. The results of the study show that majority
people does believe very strongly that cognitive biases is said to be responsible for the risk in
the management of projects.
Identification of the psychological risk has been considered to be a very effective reason
for the mitigation of issues from the project management organization. Being able to develop
the understanding of the project management is also said to be the reason for the organization to
be able to develop the new areas that can help the project management can gain the growth that
is essential. Schmitt and et.al., (2021) has been able to elaborated that psychological risks that
are present is project management are needed to be identified in order to help the project
prepare strategies that can be used for its mitigation. This has to be seen as the key strategy
towards the factors that can help the organization achieve the operational effectiveness for the
management of the organization. Success in the practices regarding the operations has to be said
as the reason due to which the business can manage an identify the areas of growth and
operational awareness.
Psychological risks in the project management has been said to be the reason due to which
the performance of the employees are affecting the overall results. Hence, it has been seen as
the self confidence is a very big reason due to which employee decisions are affected. Wang,
Cui and Liu, (2018) supported this by adding that being aware about the project management
risks is very important for the project management to gather the success that is required.
Therefore, majority people have also said that the self confidence is very important for the
employees for project management. Stress has been said to be the reason for because that
influences the risk in the project management. It shows that majority people are having to face
the issues of stress that is regarding the management of stress. Shingler, Sonnenberg and Needs,
(2020) supported that stress impacts the psychology of an individual and can results in the
errors and omission for their practices. KHIHEL and HARBAL, (2021) added that the

psychological risks are said to be that perception that can be mitigated through the team work
for coordination in the project management. It was found that majority employees believe that
they have to work together to be able to mitigate through the risks that can cause major issues to
their operations. Piya and et.al., (2021) also added that the psychological risks are said to be the
ones that are responsible for being able to resolve the psychological risks that are present in the
organization. Understanding these factors has been the reason due to which the project manager
can be able to generate the success that is required.
CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion
It has been concluded that present research is depend on the risks management which is
how can be avoiding for project management on the basis of development and replacement
programmes which is necessary for time and accuracy. Also, it has been evaluated by it is
including summary which help in order to providing recommendation on the basis of relevance
of study. Also, in context to literature review it has been seen that there are different types of
themes were used in order to explain the topic effectively. By analysing on the basis of
cognitive biases this is linked with psychological risk n project management. Then, it is
depending on the critically evaluated the risk perception related to psychological risks for
project management. Lastly, theme depend on the inspecting risk and its aversion in project
management on the basis of psychological risk. With different view of author, it is depending
on hazards which also include different characteristics by getting lack of support from
managers. Furthermore, with the research methodology it has been analysed that The reliability
in this research is about maintaining the consistency of how to measure the validity and the
accuracy of the measurement. It is very important for the reliability and validity to be able to
create the research design that plans the methods and also writes up the results for the
quantitative research. For the present research quantitative research has been taken in order to
use data to formulate about the study on psychology of how the risk is managed in the project
management.
In addition to this, with the help of result it has been analysed that most of the used SPSS tool
most of the respondent are in the age group of below 20 and female also. Then, there are most
of the respondent are said yes for psychological risks identified at project management
organisation. The risk is found to be increased in order to affect the decision making of

employees in project management. In the present research there is significant difference
between independent and dependent variable. Further, from the above research it is analysed
that there is alternate hypothesis which has been proved on the basis of risk avoidance risk at
project management. The reason behind alternate hypothesis is only related to the P value of
this test that is related to the 0.00 which consider lower than standard P as well as value is 0.05.
In additions to this, it is alternate hypothesis prove which is tested self-confidence is
psychological aspect that which is sables to prove having self confidence in order to help the
employers and project manager is going to be able to avoid the risks in project management.
Lastly, Project management is considered as the important aspect that used to know about the
specific knowledge, skills and tools to deliver the value in the market.
It has been concluded that present research is related to how risk management can be
Recommendation
From the above study it has been found that psychological risks are the reason for the lack
of performance from employees. There is certain measure that can be taken by the individuals to
be able to mitigate the risks that are present in the management of the organizational operations.
 Identification of the ways in which these psychological factors are affecting the
operations of the organization that has been considered to be the key factor that
has inflicted psychological harms. This has been seen as the reason that has
influences the psychological issues that are present for the industry. Being able
find the key part of the risks is considered to be the key factor towards the areas
that are essential for the determination of the feedback. It has also allowed in the
determination of the trues issues that are leading to such psychological issues. It
has been found that true issues are the key part of the verification for the
observation for the management of the team.
 Assessment of the risks of the hazard has been seen to be the main priority for the
project manager that can be considered to be the reason for the ways in which it
can identify the level of risk. Assessment of the risk is a very important aspect of
the key consideration for the likeliness of hazardous nature for the disagreement in
between the co-workers. Management of the level of risk is going to help the
individuals develop an understanding of how it can consider the frequency of the

intensity for the people to gather the relief that helps in exposing the servings. It
has been said that the management of something is said to be the frequent for
working in stress of the constant high level of stress that is more likely to cause
more harm. Providing recognition is the factor that allows the workers to be able
to generally accept the factors that can gather the growth and understanding that is
required.
 Controlling these psychological risks is said to be the factor that is essential for the
identification and prioritization of the measures that can be put into place for
controlling the operations. Certain obligation is considered to be made with the
individuals for being able to identify the factors that run the risk of controlling the
needs of the people’s behaviour. The benefits that is present in between the
working environment is said to be the factor that is said to be the reason for the
systems for the work that brings the needs and capabilities of workers.
Psychological risks can be improved by the high level of demand in the job that
can show the consultation with the works and also determine the goals and the
targets. Bullying at the work place is said to be the reason for the issues that can
arise in the workplace. Hence such systems are said to be able to develop an
inappropriate behaviour that can provide the system supports as mentors.
 Monitoring and reviewing is said to be the measure that the people can take for
controlling the measure that is going to help prevent the elimination of the
psychological risks. It has also been the reason that helped in the monitoring of the
closely given psychological harm that can be less obvious than the psychological
injury that happens. Reviewing and control measure can be taken by the
employees for being able to catch an issue sooner rather than later for intervening
the psychological injury that is essential for management of the psychological
risks.
 For the project manager the consultation with the workers on the job can be a very
effective way of managing any psychological risk involved at their duties. It has
been defined as the job role that is the scope for the expectation for a clear and
prospect level of induction training that is provided for the starting the role of the

individuals. Hence, the increasing the clarity is a very effective way of mitigating
the psychological risks present in the projects.

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