M

EXHIBIT 6.1 Relationship of risk management to the primary project management functions

Definition

Planning

Control

Definition

Planning

Control

Execute risk plan and continue to identify new risks

represents this as the business case risk coming out of Definition and the Reserves that feed back from risk planning.

For example, a real estate developer may choose to purchase property to develop apartments. In the initial business case for the project, any known risks (such as the difficulty of getting a permit) would be listed and additional funds would be designated within the budget for all risks—both known and unknown. This high level information is used during risk planning and, as shown in Exhibit 6.1, the outcome of risk planning is likely to be refinement of original assumptions about scope, responsibilities, cost, schedule, and the budget reserves for risk.

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Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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