Given the importance of IT investments in today’s organization, firms tend to spend increasing amounts of time and resources to better manage IT projects. However these projects continue to have high failure rates thus highlighting the need for improved risk management. A stream of IS research has focused on identifying several causes of managerial risks. The theory base that has been used in the context of IT risk management is limited compared to other fields such as economics and finance and also has been used in limited aspects of project management. This paper examines risk management at different phases of the project life cycle using theories from a behavioral decision analysis perspective. Under researched, yet important theories in the context of IT project management are identified along with illustrative propositions.