Chapter 1 identifies the need for a broad approach to project risk management. One feature of this breadth is addressing opportunities as well as threats. Another is addressing uncertainty, including ambiguity, wherever it matters. A third is a concern for the roots of uncertainty in terms of a project's six Ws: the who (parties), why (motives), what (design), whichway (activities), wherewithal (resources), and when (timing) questions.
Chapter 2 considers the implications of the Project Life Cycle (PLC), using an eight-stage framework. This helps to clarify the context in which risk management operates and a range of project management issues that risk management needs to address. For example, the nature of the process used to manage project risk should be driven by when in the PLC it is used.
Chapter 3 describes the key motives for formal Risk Management Processes (RMPs). These include the benefits of documentation, the value of quantitative analysis that facilitates distinguishing between targets, expectations, and commitments, the pursuit of risk efficient ways of carrying out a project, and related culture changes. Effective exploitation of risk efficiency implies highly proactive risk management that takes an integrated and holistic approach to opportunity and threat management with respect to all six Ws.
Chapter 4 outlines the nine-phase generic process framework employed to discuss RMPs. This framework is compared with a number of other published frameworks, as a basis for understanding the transferable nature of the concepts developed in the rest of this book for users of alternative RMP frameworks and as a basis for understanding the choices available when developing RMP frameworks for particular organizations.
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