Companies Spend Millions Managing Project Risks. But Who Manages Decision Risk?

20 Jul 2026 · 42 min
41:52

In this Turkish‑language interview, host Haluk and guest Cem Kafadar examine why construction and engineering firms invest heavily in traditional project risk management while largely ignoring "decision risk" – the hidden costs and consequences of poor decision‑making. They argue that decisions are rarely documented with measurable data (who made it, why, assumptions, alternatives, expected outcomes), making it impossible to assess their quality or learn from them. The conversation highlights cultural and hierarchical barriers such as ego, group pressure, and informal decision‑making that prevent transparent recording. They illustrate the problem with concrete project examples – contractor selection, design approvals, procurement, and on‑site execution – showing how a single bad decision can cascade into cost overruns, schedule delays, and quality issues. The duo proposes practical remedies: a simple five‑question decision log, a critical‑decision inventory, AI‑driven assistants that capture rationale, surface biases, and generate checklists, and a shift toward organizational learning through documented decision records and Return‑of‑Experience (REX) processes. They stress that improving decision quality is essential for digital transformation, arguing that AI can augment—not replace—human judgment, and that firms must build a culture where decision transparency is valued and systematically managed.

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