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
- The project risk management approach
- Establish the context
- Risk identification
- Qualitative risk assessment
- Semi-quantitative risk assessment
- Risk treatment
- Monitoring and review
- Communication and reporting
- Project processes and plans
- Simplifying the process
- Managing opportunities
- Other approaches to project risk management
- Case study: tender evaluation
- Contracts and risk allocation
- Market testing and outsourcing
- Public-private partnerships and private financing
- Technical tools and techniques
- Introduction to environmental risk management
- Introduction to quantification for project risks
- Cost-estimating case studies
- Case study: planning a timber development
- Capital evaluation for large resource projects
- Risk analysis and economic appraisal
- Conclusions
- Risk management process checklist
- Worksheets and evaluation tables
- Examples of risks and treatments
Part I
The basics of project risk management
Part II
Extending the basic process
Part III
Quantification of project risks
Part IV
Additional information and supporting material