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Managing Risk in Large Projects and Complex Procurements

 
Reducing risk when it counts the most.
4/18/2005

Managing risk when developing a new toothbrush is one thing, quite another when developing a new bridge.

This book focuses on risk management in big and complex projects, although the authors—all risk-management practitioners and consultants—say the basic principles are applicable on almost any kind of project. The purpose of managing risk, the authors declare simply, "is to obtain better project outcomes, in terms of schedule, cost, and operations performance."

But risk management is not a project-by-project undertaking—it's a company-wide attitude and set of procedures integrated with other project management functions, with responsibility shared by all stakeholders.

The basic process is to first establish the context, then identify, analyze, evaluate, and treat the risks. Processes and results are monitored and communicated to appropriate levels in the organization. The authors elaborate by looking at such items as managing opportunities presented through process, financing options, market testing, and cost estimation. The book includes plenty of checklists and case studies.—Sean Silverthorne

Table of Contents:

    Introduction to project risk management
    Part I
    The basics of project risk management
  1. The project risk management approach
  2. Establish the context
  3. Risk identification
  4. Qualitative risk assessment
  5. Semi-quantitative risk assessment
  6. Risk treatment
  7. Monitoring and review
  8. Communication and reporting
  9. Project processes and plans
  10. Simplifying the process
  11. Managing opportunities
  12. Other approaches to project risk management

    13. Part II
    Extending the basic process
  13. Case study: tender evaluation
  14. Contracts and risk allocation
  15. Market testing and outsourcing
  16. Public-private partnerships and private financing
  17. Technical tools and techniques
  18. Introduction to environmental risk management

    19. Part III
    Quantification of project risks
  19. Introduction to quantification for project risks
  20. Cost-estimating case studies
  21. Case study: planning a timber development
  22. Capital evaluation for large resource projects
  23. Risk analysis and economic appraisal
  24. Conclusions

    25. Part IV
    Additional information and supporting material
  25. Risk management process checklist
  26. Worksheets and evaluation tables
  27. Examples of risks and treatments