project risk management guidelines

[...]... better project outcomes, in terms of schedule, cost and operations performance, by reducing risks and capturing opportunities Good project risk management within an organization has the following characteristics: • project risk management activities commence at the initiation of the project, risk management plans are developed and risk management continues throughout the project life cycle; • project risk. .. significant risks It involves several key phases, with feedback through a monitoring and review process In most projects, risk management overlaps with other management processes and procedures, in that many of the steps are undertaken as part of normal project management This provides the basis for integrating risk management and project management activities The approach to project risk management. .. these project risk management guidelines The first part of this book, Chapters 1 to 12, addresses the basics of project risk management The focus is on simple processes, in the context of practical project management Our recommended approach to project risk management is outlined, and each step is described in a detailed chapter There is extensive case study material based on our risk management work... project management processes and activities TEAM LinG - Live, Informative, Non-cost and Genuine ! 14 Project risk management guidelines Overview The broad objectives of the project risk management process are to: • enhance the capability of the organization; • extend the organization’s overall risk management processes to projects, and apply them in a consistent way; and • enhance the management of projects... risks take account of opportunities to address more than one risk; • The process itself and the risk treatment strategies are implemented cost-effectively • Method The recommended approach to project risk management is consistent with the approach adopted for a wide range of other risk management processes The application of those processes to projects requires integration of risk management with project. .. the professional project management associations around the world, and many relevant standards are extant or being developed Some examples from the many approaches in use include: • Project Management Institute (PMI), USA (2003), Project Management Body of Knowledge, Chapter 11 on risk management; • Association for Project Management, UK (1997), PRAM Guide; • AS/NZS 4360 (2004), Risk Management, Standards... (2001), Project Risk Management Application Guidelines; • Office of Government Commerce (OGC), UK (2002), Management of Risk; and • Treasury Board of Canada (2001), Integrated Risk Management Framework The standards and the guides from the professional associations provide only an outline of the topics that are essential for managing project risk, and they offer few insights into how the risk management. .. identifies the risks that should be accorded the highest priority in developing responses for risk treatment TEAM LinG - Live, Informative, Non-cost and Genuine ! 4 Project risk management guidelines Risk treatment establishes and implements management responses for dealing with risks, in ways appropriate to the significance of the risk and the importance of the project We usually think about risk in terms... the reduction in risk exposure provide the main justifications for undertaking risk management At the management level, better insight is a critical aspect, leading to better decisions Risk management also provides a framework that avoids sudden surprises and justifies prudent risk reduction and mitigation measures The benefits of risk management are not confined to large or risky projects The process... and assessment of risk and dealing with the results contributes significantly to the success of projects However, poorly managed project risks may have wide-ranging negative implications for the achievement of organizational objectives Risk should be considered at the earliest stages of project planning, and risk management activities should be continued throughout a project Risk management plans and . xiii Introduction to project risk management 1 Part I The basics of project risk management 11 1 The project risk management approach 13 2 Establish the context 19 3 Risk identification 37 4 Qualitative risk. a regional director of the Risk Management Special Interest Group of the US Project Management Institute. He is the author of Practical Risk Assessment for Project Management (1995). Contact. comfort that risks are being managed prudently within the project prior to determining whether and how much to charge for financing residual risks. Benefits of project risk management Projects,