Project Risk Management: A Practical Implementation Approach

CHAPTER

4

Classical Project Risk Management Practices

The basic objective of project risk management is twofold: (1) to increase the likelihood and impact of positive events that affect the project (i.e., opportunities), and (2) to decrease the likelihood and impact of negative events that affect the project (i.e., risks [threats]). The implication here is that the result of these two actions will improve the probability of being successful in meeting project objectives. There is a fairly standard and natural process that accomplishes this. It is comprised of a specific set of risk management process steps. In short, these steps facilitate: (1) project planning, (2) the identification and critical analysis (or assessment) of risks as ...