null

Managing Project Risks

Managing Project Risks

Peter J Edwards
RMIT University
Australia

Paulo Vaz Serra
University of Melbourne
Australia

Michael Edwards

This edition first published 2020
© 2020 John Wiley & Sons Ltd

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise,
except as permitted by law. Advice on how to obtain permission to reuse material from this title is available
at http://www.wiley.com/go/permissions.

The right of Peter J Edwards, Paulo Vaz Serra and Michael Edwards to be identified as the authors of this
work has been asserted in accordance with law.

Registered Offices
John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, USA
John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

Editorial Office
9600 Garsington Road, Oxford, OX4 2DQ, UK

For details of our global editorial offices, customer services, and more information about Wiley products
visit us at www.wiley.com.

Wiley also publishes its books in a variety of electronic formats and by print‐on‐demand. Some content that
appears in standard print versions of this book may not be available in other formats.

Limit of Liability/Disclaimer of Warranty
While the publisher and authors have used their best efforts in preparing this work, they make no
representations or warranties with respect to the accuracy or completeness of the contents of this work and
specifically disclaim all warranties, including without limitation any implied warranties of merchantability
or fitness for a particular purpose. No warranty may be created or extended by sales representatives, written
sales materials or promotional statements for this work. The fact that an organization, website, or product
is referred to in this work as a citation and/or potential source of further information does not mean that
the publisher and authors endorse the information or services the organization, website, or product may
provide or recommendations it may make. This work is sold with the understanding that the publisher is not
engaged in rendering professional services. The advice and strategies contained herein may not be suitable
for your situation. You should consult with a specialist where appropriate. Further, readers should be aware
that websites listed in this work may have changed or disappeared between when this work was written
and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other
commercial damages, including but not limited to special, incidental, consequential, or other damages.

Library of Congress Cataloging-in-Publication Data
Names: Edwards, Peter J. (Peter John), 1940- | Vaz Serra, Paulo, 1966-
author. | Edwards, Michael, 1969- author.
Title: Managing project risks / Peter J. Edwards, Paulo Vaz Serra, Michael
Edwards.
Description: Hoboken, NJ : Wiley-Blackwell, 2020. | Includes bibliographical
references and index. |
Identifiers: LCCN 2019010837 (print) | LCCN 2019016405 (ebook) | ISBN
9781119489764 (Adobe PDF) | ISBN 9781119489733 (ePub) | ISBN 9781119489757
(hardcover)
Subjects: LCSH: Risk management. | Project management.
Classification: LCC HD61 (ebook) | LCC HD61 .E3744 2019 (print) | DDC
658.4/04–dc23
LC record available at https://lccn.loc.gov/2019010837

Cover Design: Wiley
Cover Image: © Vijay Patel / iStockphoto

Set in 10/12pt WarnockPro by SPi Global, Chennai, India

10 9 8 7 6 5 4 3 2 1

http://www.wiley.com/go/permissions

http://www.wiley.com

v

List of Tables xv
List of Figures xvii
Preface xix
Acknowledgements xxiii
Glossary xxv

1 Introduction 1
1.1 Introduction 1
1.2 The Project Perspective 1
1.3 The Project Stakeholder Perspective 2
1.4 Overview of Contents 3
1.5 Limitations Caveat 5

2 An Overview of Risk 7
2.1 Introduction 7
2.2 Risk Definitions 7
2.3 Threat and Opportunity 9
2.4 Risk and Uncertainty 11
2.4.1 Uncertainties in the Type of Risk Trigger Events 13
2.4.2 Uncertainties in the Occurrence of Risk Events 14
2.4.3 Uncertainties in the Period of Exposure to Risk Events 14
2.4.4 Uncertainty in the Type of Consequences of Risk Events 15
2.4.5 Uncertainty in the Magnitude of Risk Consequences 15
2.4.6 Uncertainty in Periods of Exposure to Risk Consequences 16
2.5 The Dynamic Nature of Risk 16
2.6 Psychology and Perceptions of Risk 17
2.7 Risk Awareness 18
2.8 Classifying Risk 19
2.8.1 A Generic Source‐Event Risk Classification System 20
2.8.2 Natural Systems Risks 21
2.8.3 Human Risks 22
2.8.4 Risk Classification Based upon Organisational Structure 24
2.8.5 Risk Classification Based upon Project Phases 25
2.8.6 Customised Hybrid Approaches to Risk Classification 26
2.8.7 Multisystem Risk Classification 27

Contents

Contentsvi

2.9 Risk Communication 28
2.10 Summary 28
References 29

3 Projects and Project Stakeholders 31
3.1 Introduction 31
3.2 The Nature of Projects 31
3.3 Project Objectives 32
3.3.1 Procurement Objectives 33
3.3.2 Operational Objectives 35
3.3.3 Strategic Objectives 36
3.4 Project Phases 39
3.5 The Composition of Projects 41
3.6 Processes of Project Implementation 43
3.7 IT Project Example 44
3.7.1 Ideation and Concept Development 45
3.7.2 Project Development Stage 45
3.7.3 Project Deployment and Operation 46
3.7.4 Operational Maintenance 46
3.8 Organisational Structures for Projects 46
3.9 Project Stakeholder Relationships 47
3.10 Stakeholder Organisational Structures 55
3.10.1 Simple Structures 55
3.10.2 Machine Bureaucracies 55
3.10.3 Professional Bureaucracies 57
3.10.4 Divisionalised Forms 59
3.10.5 Adhocracies 60
3.11 Modes of Organisational Management 60
3.12 Project Stakeholder Decision Making 61
3.13 ‘Risky’ Projects 65
3.14 Summary 67
References 68

4 Project Risk Management Systems 69
4.1 Introduction 69
4.2 Risk Management 70
4.3 Risk Management Systems 72
4.4 Risk Management Standards and Guides 73
4.5 A Cycle of Systematic Project Risk Management 75
4.5.1 A: Establish the Context 77
4.5.2 B: Identify Risks 77
4.5.3 C1: Analyse Risks 77
4.5.4 C2: Evaluate Risks 77
4.5.5 D: Respond to Risks 78
4.5.6 E: Monitor and Control Risks 78
4.5.7 F: Capture Project Risk Knowledge 79
4.6 Project Stages and Risk Management Workshops 79

Contents vii

4.6.1 Construction Project Example 79
4.6.1.1 The Design‐Bid Stage 81
4.6.1.2 The Build Stage 83
4.6.2 IT Project Example 84
4.7 A Project Risk Register Template 86
4.8 Summary 88
References 88

5 Project Risk Contexts and Drivers 91
5.1 Introduction 91
5.2 The Contextualising Process 92
5.3 Internal Contexts as Risk Drivers 93
5.4 External Contexts as Risk Drivers 94
5.4.1 Physical Contexts 96
5.4.2 Technical Contexts 97
5.4.3 Economic Contexts 98
5.4.4 Social Contexts 99
5.5 Using Contextual Information 100
5.6 Summary 101
Reference 101

6 Approach to Project Risk Identification 103
6.1 Introduction 103
6.2 Approach to Risk Identification 104
6.3 Workshop Timing 105
6.4 Types of Risk Identification Techniques 110
6.4.1 Activity‐Related Techniques 112
6.4.2 Analytical Techniques 112
6.4.3 Associated Representative Techniques 113
6.4.4 Functional Value Technique 114
6.4.5 Matrices 115
6.4.6 Simulation and Visualisation Techniques 115
6.4.7 Speculative Techniques 115
6.4.8 Structural and Management Tools 116
6.5 Summary 116
Reference 117

7 Project Risk Identification Tools 119
7.1 Introduction 119
7.2 Activity‐Related Tools 120
7.2.1 Work Breakdown Structures 120
7.2.2 Bar Charts 124
7.2.3 Critical Path Networks 125
7.3 Analytical Tools 128
7.3.1 Decision Tree Analysis 128
7.3.2 Event Tree Analysis 130
7.3.3 Fault Tree Analysis 131

Contentsviii

7.3.4 Failure Modes and Effects Criticality Analysis 133
7.3.5 Hazard and Operability Studies 134
7.3.6 Safety Hazard Analysis (SHA) 135
7.4 Associated Representative Tools 137
7.4.1 Contextualisation 138
7.4.2 Checklists 138
7.4.3 Financially Related Tools 140
7.4.4 Procedural Tools 140
7.4.5 Design/Cost Related Tools 144
7.4.6 Risk Related Tools 146
7.5 Matrix Tools 149
7.6 Simulation and Visualisation Tools 149
7.7 Speculation Tools 153
7.7.1 Scenario Testing 153
7.7.2 Stress Testing 155
7.8 Structural and Management Tools 155
7.9 Risk Identification Statements 156
7.10 Summary 158
References 160

8 Project Risk Analysis and Evaluation 161
8.1 Introduction 161
8.2 Qualitative Analysis 163
8.3 Assessing Likelihood 164
8.4 Assessing Impacts 167
8.5 Evaluating Risk Severity 168
8.6 Quantitative Analysis 172
8.7 Risk Mapping 179
8.8 Summary 181
References 182

9 Risk Response and Treatment Options 183
9.1 Introduction 183
9.2 Risk Attitudes and Appetites 184
9.3 Existing Risk Controls 187
9.4 Risk Response Options 188
9.4.1 Risk Avoidance 188
9.4.2 Risk Transfer 190
9.4.3 Risk Reduction and Retention 192
9.4.4 Risk Retention 192
9.4.5 Combination Responses to Risk 193
9.5 Risk Treatment Options 194
9.6 Risk Mitigation Principles 195
9.7 Strategic Use of ALARP (‘As Low as Reasonably Practical’) 197
9.8 Reassessment 198
9.9 Recording Decisions 198
9.10 Summary 198
References 199

Contents ix

10 Risk Monitoring and Control 201
10.1 Introduction 201
10.2 Assigning Responsibility 202
10.3 Monitoring Procedures 204
10.3.1 Negligible Risks 205
10.3.2 Low Risks 205
10.3.3 Medium Risks 205
10.3.4 High Risks 206
10.3.5 Extreme Risks 206
10.4 Control Measures 207
10.4.1 Negligible Risks 207
10.4.2 Low Risks 207
10.4.3 Medium Risks 207
10.4.4 High Risks 207
10.4.5 Extreme Risks 207
10.5 Reporting Processes 209
10.6 Dealing with New Risks 210
10.7 Disaster Planning and Recovery 211
10.8 Capturing Project Risk Knowledge 212
10.9 Summary 213
References 213

11 Project Risk Knowledge Management 215
11.1 Introduction 215
11.2 Knowledge Definitions and Types 216
11.3 Knowledge Transformation 217
11.4 Types and Forms of Knowledge 218
11.5 Organisational Culture and Knowledge Management 219
11.6 The Knowledge Creation Cycle 220
11.6.1 Stage 1 (Tacit to Tacit): Use and Validate 221
11.6.2 Stage 2 (Tacit to Explicit): Identify and Capture 221
11.6.3 Stage 3 (Explicit to Explicit): Codify and Store 221
11.6.4 Stage 4 (Explicit to Tacit): Share and Update 221
11.6.5 Using and Validating Knowledge 222
11.6.6 Identifying and Capturing Knowledge 222
11.6.7 Codifying and Storing Knowledge 224
11.6.8 Sharing and Updating Knowledge 225
11.7 Additional Issues of Organisational Culture 226
11.8 KMS Alignment and Information Redundancy 226
11.9 Tools and Techniques for Eliciting Risk Knowledge 227
11.9.1 Brainstorming Sessions 227
11.9.2 Storytelling 227
11.9.3 Communities of Practice 230
11.9.4 Networking 230
11.9.5 Project Reviews, Project Debriefings, and ‘Lessons Learned’ 230
11.9.6 Mentoring and Apprenticeships 231
11.9.7 Induction and Training Courses 231
11.9.8 Workplace Design 231

Contentsx

11.9.9 People Finders 231
11.9.10 Intranets and IT Platforms 232
11.9.11 Internet Search Engines and Alerting Services 232
11.9.12 Organisational Culture 232
11.9.13 PRMS‐Related Tools 232
11.10 Developing Organisational Risk Wisdom 233
11.11 Project and Organisational Risk Register Architecture 233
11.11.1 Capturing Project Risk Experiences 234
11.11.2 Project Risk Registers 234
11.11.3 Organisational Risk Registers 235
11.12 Challenges for Implementing Risk Knowledge Management

Systems 237
11.12.1 Issues Relating to Knowledge Itself 237
11.12.2 Storing, Accessing, and Using Knowledge 238
11.12.3 Knowledge System Development and Implementation Costs 238
11.12.3.1 Concern with Financial Issues and Return on Investment 239
11.12.3.2 Concern with Time Management and ‘Unproductive Tasks’ 239
11.13 Communication and Risk Knowledge Management 240
11.14 Summary 242
References 243

12 Cultural Shaping of Risk 245
12.1 Introduction 245
12.2 Culture in Society 246
12.3 Organisational Cultures 247
12.3.1 Organisational Scans 249
12.3.2 The Organisational Scanning Process 252
12.4 External Cultures as Project Risk Shapers 253
12.4.1 Media Scans 253
12.5 Organisational Cultures of Other Project Stakeholders 254
12.6 Applying Cultural Shaping in Project Risk

Management 255
12.7 Summary 259
Reference 260

13 Project Complexity and Risk 261
13.1 Introduction 261
13.2 The Concept of Complexity 261
13.2.1 Differentiation 264
13.2.2 Interdependency 267
13.3 Relative Complexity 268
13.4 Uncertainty and Project Complexity 270
13.5 Identifying and Mapping Complexity 272
13.6 Influence of Complexity on Risk Management 273
13.7 Complexity and Mega‐projects 273
13.8 Summary 276
References 276

Contents xi

14 Political Risk 277
14.1 Introduction 277
14.2 Political Spheres 279
14.3 Dimensions of Political Risk Factors 280
14.4 Examples of Political Risks 281
14.5 Political Stakeholders 284
14.6 Managing Political Risks 284
14.6.1 Contextualising 284
14.6.2 Identifying Risks 285
14.6.3 Analysing and Assessing Risks 286
14.6.4 Responding to Risks 287
14.6.5 Monitoring and Controlling Risks 287
14.6.6 Knowledge Capture 287
14.7 In‐house Political Risks 288
14.8 More Extreme Political Threat Risks 288
14.9 Summary 290
Reference 291

15 Opportunity Risk Management 293
15.1 Introduction 293
15.2 Concept of Opportunity Risk 294
15.3 Opportunity Risk in Projects 295
15.4 Examples of Opportunity Risks 296
15.4.1 IT Brand Product Personalisation Service 296
15.4.2 Botanic Gardens Special Display Project 297
15.4.3 Case Study A (PPP Correctional Facility) 297
15.4.4 Case Study C (Aid‐Funded Pacific Rim Island Civic Project) 298
15.5 Managing Opportunity Risks 298
15.5.1 Implications for Personnel 298
15.5.2 Implications for the PRMS 299
15.6 Summary 306
Reference 307

16 Strategic Risk Management 309
16.1 Introduction 309
16.2 Strategic Issues for Project Risk Management 310
16.2.1 PRMS Implementation 312
16.2.2 System Separation 313
16.2.3 System Inception 314
16.2.4 Initial System Application 315
16.2.5 Roles and Responsibilities 315
16.2.6 PRMS Process Approach 317
16.2.7 Risk Knowledge Management 318
16.2.8 PRMS Maintenance and Development 319
16.2.9 Disaster Preparedness 319
16.3 PRMS Process Strategies 321
16.3.1 Project Contextualisation 321

Contentsxii

16.3.2 Project Risk Identification Strategies 322
16.3.3 Quantitative and Qualitative Risk Analysis Strategies 322
16.3.4 Risk Response and Treatment Strategies 324
16.3.5 Risk Monitoring and Control Strategies 325
16.3.6 Risk Knowledge Capture Strategies 325
16.4 Summary 325
References 326

17 Planning, Building, and Maturing a Project Risk Management System 327
17.1 Introduction 327
17.2 PRMS Objectives 328
17.3 Planning and Designing the PRMS 329
17.3.1 Planning the PRMS 329
17.3.2 Designing the System 330
17.4 Risk Management Maturity 333
17.4.1 Level 1 PRMS Maturity (Mostly Unaware) 333
17.4.2 Level 2 PRMS Maturity (Starting) 334
17.4.3 Level 3 PRMS Maturity (Growing) 336
17.4.4 Level 4 RM Maturity (Maturing) 337
17.5 Building the PRMS 339
17.5.1 Organising the PRMS Project 339
17.5.2 PRMS Specialists 339
17.5.3 System Building Tasks 340
17.5.4 Component Testing 341
17.5.5 PRMS Trials 341
17.5.6 PRMS Roll‐Out 342
17.6 PRMS Performance Review and Improvement Cycle 343
17.6.1 Review Criteria 343
17.6.2 System Benchmarking 346
17.6.3 Addressing System Decay 347
17.6.4 Review Frequency 348
17.7 Summary 348
References 349

18 Computer Applications 351
18.1 Introduction 351
18.2 Project Risk Management System (PRMS) Software

Applications 352
18.2.1 Tables and Matrices 355
18.2.2 Spreadsheets 356
18.2.3 Project Management Systems 357
18.2.4 Bespoke Risk Knowledge Management Systems (RKMSs) 358
18.3 Other Information Technologies and Tools 359
18.3.1 Simulation Systems 359
18.3.2 Smart Sensors 359
18.3.3 Aerial Drones 360
18.4 Summary 360

Contents xiii

19 Communicating Risk 363
19.1 Introduction 363
19.2 Communication Theory and Models 364
19.2.1 Communication Theories in the Model 364
19.2.2 Other Theory Elements of the Model 365
19.2.3 Processes in the Model 366
19.3 Components in the Communication Process 366
19.3.1 Senders 367
19.3.2 Receivers 367
19.3.3 Messages 367
19.3.4 Media 368
19.3.5 Channels 369
19.3.6 Relays 369
19.3.7 Filters 369
19.3.8 Interference 370
19.3.9 Feedback 370
19.4 Communicating Risk in the PRMS Cycle 370
19.5 Communicating Project Risk Beyond the Project Stakeholder

Organisations 372
19.5.1 Promotional Announcements 372
19.5.2 Communicating Risk in Adverse or Challenging Environments 372
19.5.3 Communication in Extensive Advisory Loops 373
19.6 Evaluating Risk Communication 374
19.7 Summary 374
References 375

20 Conclusions 377
20.1 Introduction 377
20.2 Current State of Project Risk Management 378
20.2.1 Changes in Business Conditions 379
20.2.2 More Serious Risk Impacts and Consequences 379
20.2.3 Public Expectations and Regulations 379
20.2.4 Publication of Standards and Texts 379
20.2.5 Tertiary Curriculum Changes 380
20.2.6 Continuing Issues with Contemporary PRMSs 380
20.3 Future Project Risk Management 381
20.4 Checking Your Reading Satisfaction 383
20.4.1 Risk 383
20.4.2 Projects 383
20.4.3 PRMSs 384
20.4.4 Risk Contexts 384
20.4.5 Risk Identification 385
20.4.6 Risk Assessment 385
20.4.7 Risk Response 386
20.4.8 Risk Monitoring and Control 386
20.4.9 Risk Knowledge Management 387
20.4.10 Risk and Culture 387

Contentsxiv

20.4.11 Complexity 387
20.4.12 Political Risk 388
20.4.13 Opportunity Risk 388
20.4.14 Strategic Risk Management 389
20.4.15 Building and Maturing a PRMS 389
20.4.16 Computer Applications 389
20.4.17 Communicating Risk 390
20.4.18 Case Studies 390
20.5 Closing Remarks 391

Case Study A: Public–Private Partnership (PPP) Correctional
Facilities Project 393

Case Study B: Rail Improvement Project 403

Case Study C: PM Consultant and a Government Aid–Funded Pacific Rim Project 409

Case Study D: High‐Capacity Metropolitan Train Mock‐up Project 415

Case Study E: Hot‐Rod Car Project 417

Case Study F: Aquatic Theme Park Project 421

Index 425

xv

List of Tables

Table 2.1 A certainty/uncertainty matrix for project risk management 13
Table 2.2 Generic source‐event risk classification 20
Table 2.3 Examples of natural category risk events 21
Table 2.4 Examples of human category risk events 23
Table 2.5 Risk classification by organisational structure 25
Table 2.6 Customised hybrid approach to risk classification 26
Table 2.7 Typical internal category risks for a customised classification

system 26
Table 3.1 Procurement objectives for a public high school project 34
Table 3.2 Operational objectives for café website project 36
Table 3.3 Client objectives for the Singapore Gardens by the Bay (SGBB)

projects 37
Table 3.4 Key elements to decision making 63
Table 4.1 Project risk register template (part 1) 86
Table 4.2 Project risk register template (part 2) 87
Table 6.1 A typology of risk identification techniques 111
Table 7.1 Typical activities for reinforced concrete floor slab casting cycle

for a multistorey building 120
Table 7.2 Resourced slab casting cycle activity schedule 123
Table 7.3 Bar chart for product personalisation IT project 124
Table 7.4 Task list for room renovation project 126
Table 7.5 Failure modes and effects criticality analysis (FMECA) example 133
Table 7.6 Hazard and operability studies (HAZOPS) example 134
Table 7.7 Safety hazard analysis (SHA) example 136
Table 7.8 Typical architect’s preliminary checklist for a construction project 139
Table 7.9 Schedule for botanic gardens display event 141
Table 7.10 Botanic gardens display event: opening ceremony schedule 142
Table 7.11 Typical list of design elements for a construction project 145
Table 7.12 An IT project attributes checklist for assessing project riskiness 147
Table 7.13 Resourced WBS/generic risk category matrix 150
Table 7.14 Project risk item record 158
Table 8.1 Three‐point risk assessment measures 164
Table 8.2 Five‐point measures of likelihood 165

List of Tablesxvi

Table 8.3 Alternative five‐point measures of likelihood 166
Table 8.4 Five‐point measures of impact 167
Table 8.5 Multiple‐impact risk assessment measures 169
Table 8.6 Three‐point measure of risk severity 170
Table 8.7 Five‐point measure of risk severity 171
Table 8.8 Franchise first‐year trading loss EMV 177
Table 8.9 Comparative project risk severity assessments 180
Table 11.1 Correlation matrix between tools and activities for risk knowledge

creation 228
Table 11.2 A project risk debriefing record template 234
Table 11.3 Strengths and weaknesses of small and medium‐sized enterprises

(compared to large organisations) for knowledge management 238
Table 12.1 Typical areas for culturally influenced organisational practice 251
Table 12.2 Negative and positive organisational cultures 251
Table 13.1 An uncertainty/resolution space complexity matrix for projects 263
Table 13.2 Differentiation complexity in projects 269
Table 14.1 Spheres commonly associated with politics 279
Table 14.2 Factors associated with political risks 280
Table 15.1 Five‐point interval scale for opportunity risk financial impact 301
Table 15.2 Multiple measures of opportunity risk impact 302
Table 15.3 Three‐point opportunity risk potential matrix 303
Table 15.4 Five‐point opportunity risk potential matrix 304
Table 15.5 Comparison between threat and opportunity risk treatment

options 304
Table 16.1 Strategic PRM issues 311
Table 17.1 PRMS design framework 331
Table 17.2 PRMS performance review criteria 344
Table 18.1 PRMS computer software application types 353
Table 18.2 Conditional statements for three‐point risk severity rating 356
Table A.1 D&C Contractor’s project risk management processes

and procedures 396
Table A.2 Contextual issues explored by D & C contractor 398
Table A.3 ‘Top 10’ contractor risks identified for correctional facility project 400
Table B.1 Level crossing site packages and procurement systems 405
Table F.1 Functional management for aquatic theme park project 422
Table F.2 Company–project alignment policy 424

xvii

Figure 2.1 Threat and opportunity risk 10
Figure 2.2 Project information/uncertainty symmetry 12
Figure 3.1 A hierarchy of project objectives 33
Figure 3.2 Project phases 41
Figure 3.3 Project elements 42
Figure 3.4 Project interphase decision making effects 43
Figure 3.5 Project stakeholders 47
Figure 3.6 Project stakeholder coalitions 48
Figure 3.7 Hospital project organogram 49
Figure 3.8 Settlement upgrading project organogram 50
Figure 3.9 Electrical substation project organogram 52
Figure 3.10 Residential development project organogram 53
Figure 3.11 Construction company organisational structure 56
Figure 3.12 Engineering consultancy organisational structure 57
Figure 3.13 A project decision making process 62
Figure 4.1 Approaches to managing project risks 71
Figure 4.2 The dynamic cycle of project risk management 75
Figure 4.3 A design‐build (DB) project’s design‐bid stage: information, uncertainty,

and risk management 80
Figure 4.4 A design‐build (DB) project’s build stage: information, uncertainty, and

risk management 81
Figure 4.5 An IT project’s concept development stage: information, uncertainty,

and risk management 84
Figure 4.6 An IT project’s development stage: information, uncertainty, and risk

management 85
Figure 5.1 Project system boundaries 95
Figure. 5.2 Project risk driver contexts 96
Figure 6.1 Design consultant risk management workshops in a construction

project inception/design stage 106
Figure 6.2 Bidder’s risk management workshops in the construction project

tendering stage 107
Figure 6.3 Contractor’s risk management workshops and the project construction

process 108
Figure 7.1 Screenshot (MS Project) of critical path network (CPN) example 127
Figure 7.2 Decision tree analysis (DTA) example 129

List of Figures

List of Figuresxviii

Figure 7.3 Event tree analysis (ETA) example 131
Figure 7.4 Fault tree analysis (FTA) example 132
Figure 8.1 Expected utilities for DTA of travel outcomes 174
Figure 8.2 Outcome probabilities for ETA of ferry vehicle loading door

incident 175
Figure 8.3 FTA causal factor probabilities for chute deployment failure 177
Figure 8.4 Risk severity spider chart 181
Figure 9.1 Strategic risk responses 197
Figure 10.1 The risk severity–management responsibility relationship 203
Figure 11.1 A knowledge transformation sequence 217
Figure 11.2 The knowledge creation cycle 220
Figure 11.3 An interactive project risk management knowledge process 236
Figure 12.1 Elements of organisational culture 250
Figure 12.2 Stakeholder‐to‐project cultural risk shaping and management 256
Figure 13.1 Project elements, environments, and complexity factors 271
Figure 17.1 Risk management maturity levels 334
Figure 17.2 Level 2 organisational project risk management maturity 335
Figure 17.3 Level 3 organisational project risk management maturity 336
Figure 17.4 Level 4 organisational project risk management maturity 338
Figure 19.1 A hybrid multi‐model of human and project risk communication 364
Figure A.1 State correctional facility project structure 394
Figure B.1 Level crossing removal programme: simplified organisational

structure 404
Figure C.1 Simplified organisational structure for aid‐funded project 411
Figure E.1 The ‘finished’ hot‐rod car. Source: Photograph used with kind

permission of the owner 418
Figure F.1 Organogram for regional civil engineering contractor 421

xix

If ‘project’ is part of your daily vocabulary, then this book is aimed at you. It is intended
to appeal to practitioners of project management across a wide range of industries and
professions; to people working in the private and public sectors, and those in the arts
and entertainment; as well as to business organisations, service providers, and manu-
facturers. Students are very much included in our target readership as they pursue their
academic journeys on the way to entering hopefully satisfying and rewarding careers.

An overview of the content is provided in Chapter  1. Besides offering a systematic
approach to project risk management that we hope is easy to follow and understand, we
have introduced topics generally not found in other books on this subject but which
have an important bearing on how risks are managed, particularly those associated with
today’s projects. The additional matters we have dealt with include risk knowledge
management, cultural risk‐shaping, project complexity, and political risks. Strategic
risk management is also considered. These topics are based upon our own project expe-
riences, and reflections on how they might influence project risk management practice.
Six project case studies (located as Appendices) are used to exemplify many of the
points we make, together with many examples within the chapters.

We have adopted generic and multi‐stakeholder perspectives of projects. This means
that, whatever the types of projects in which you are involved, and whatever role you
play in them, you should be able to apply the principles and processes of systematic and
effective risk management in your work without constantly having to recontextual-
ise them.

If you are a practitioner, as either a project manager or someone who specialises in
risk management, we concede that you probably just want to get on with managing your
projects and the risks associated with them. The inevitable time constraints for all pro-
jects will almost certainly already impact severely on the opportunities you have for
reading. If this is so, then the arrangement of topics should help you. While they are
predominantly sequential (in a flow process sense), the topics are distinguished as sepa-
rate chapters, easily enabling you to dip in and out of them in a convenient way. The
contents should meet several needs: as a refresher for your current risk management
processes; as a guide to benchmarking them; or as a framework for replacing informal,
reactive, and intuitive ways of dealing with project risks with a more formal, systematic,
and proactive approach.

If you are a student, whatever your academic discipline, you will almost certainly be
expected to take a project‐oriented approach to your studies, and will also …

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 929 473-0077

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code GURUH