Conceptual development
This research aimed to examine the validity of decision tree methods for managing
organisational risk; and to develop an alternative risk management method derived from
knowledge management constructs. Previous research has argued that traditional methods
are ineffective (Fischhoff
et al.
, 1984). Our aim was to understand more about why decision
tree methods do not work, and to use this knowledge to develop an alternative method. Our
alternative is grounded in an emerging field of research, knowledge risk management
(KRM), which uses knowledge management constructs to help differentiate the nature of
organisational risk and prioritise for action. Our conceptual model aimed to improve upon
existing decision tree methods by addressing cognitive constraints. The knowledge
management literature provides three constructs we can use in the development of our
conceptual model: individual, knowledge, and organizational characteristics