11. Project Risk Management
What is project risk management?
Risk management principles
Risk management planning
Qualitative risk analysis
Quantitative risk analysis
Risk response planning
Risk monitoring and control
Project risk management
Aims of this chapter
This chapter will cover the processes involved with project risk management to ensure that project risks are decreased and opportunities are increased, because every project involves risks. The proper management of risk is acknowledged as a key element to effective project management. The use of risk management should result in the project manager being proactive and in control of the project, rather than the other way round if situations are not planned for. This process will enhance the probability of the project achieving customer satisfaction within the 'triple constraint'. By the end of this chapter, the reader should:
know what risk management is, how it works within project management and its proactive approach on the delivery of a project;
be able to determine the planning and preventive actions required to increase the opportunities and decrease the threats which affect the progress of the project;
be able to apply risk analysis within project management to ensure resources are targeted at the areas identified within the scale of project priority;
be able to explain the need for treating project risk management as a distinct knowledge area within project management.