Project Risk and Uncertainty

Risk is related to the magnitude and uncertainty of an output (consequence or outcome); outputs take on different identities in different disciplines and situations. Risk is peculiar to each stakeholder and the measurement scale for risk depends on the stakeholder's value system. Risk management provides a way of addressing the issues associated with the magnitude and uncertainty of outputs. This book provides a distinctively rational treatment of risk and risk management, based on a systems approach. The book's treatment applies to all disciplines and sets out the principles of risk and risk management as well as looking at a range of applications and more specialist tools and approaches. The book: Develops a risk framework through a systems approach Offers a challenging and fresh approach for infrastructure engineering, construction and project management in general The book will suit students and practitioners alike.

The most essential component of every project manager's job is the ability to identify potential risks before they cause unnecessary headaches and turmoil all around. All projects are inherently risky, and complex ones can potentially be the downfall for even the most experienced project manager. From technical challenges and resource issues to unrealistic deadlines and problems with your subcontractors, any number of things can go wrong. Fully updated, consistent with PMI® standards, and addressing "VUCA" (Volatility, Uncertainty, Complexity, and Ambiguity--the now-common business and project management acronym), this book remains the definitive resource for project managers seeking to be proactive in their efforts to guard against failure and minimize unwanted surprises. Identifying and Managing Project Risk draws on real-world situations and hundreds of risk examples to show you how to: Thoroughly discover and document risks Use risk assessment techniques effectively Implement a system for monitoring and controlling projects Personalize proven methods for project risk management on any type of project Complete with fresh guidance on program risk management, qualitative and quantitative risk analysis, simulation and modeling, and significant "non-project" risks, this one-stop indispensable resource is what every project manager needs to avoid chaos and keep their projects on track.

A comprehensive treatment of project risk management, offering a systematic but easy-to-follow approach. Explores critical topics that influence how risks are managed including risk knowledge management, cultural risk-shaping, project complexity, political risks, and strategic risk management. The book commences with foundational concepts, providing an overview of risk, project definitions, project stakeholders, and risk management systems. Subsequent chapters explore the core processes of project risk management, including risk identification, analysis, evaluation, response strategies, and risk monitoring and control. Additional topics include risk knowledge management, the influence of culture on risk, political risks in projects, and relevant software applications. Imparts a practical approach that does not rely on high level expertise or advanced mathematical techniques; the emphasis remains on pragmatic solutions, user-friendly techniques, and reliable communication, enabling readers to seamlessly integrate theory into practice.

All projects, large and small, are subject to various risks. But the failure to manage inherent risk with diligence and know-how can lead to devastating consequences for an organization. In this comprehensive hands-on guide, a renowned expert in the field provides everything organizations need to conduct project risk management the right way. Why do so many projects come in over schedule and over budget? How do projected expenditures and schedules line up with reality? How can you accurately assess risk to mitigate financial disaster? Through a methodical, statistics-based approach, Christian B. Smart reveals: The enduring problem of cost and schedule growth How rigorous project risk management can reduce the impact of uncertainty The systematic tendency to underestimate risk--and how to avoid it

Uncertainty permeates every thinkable aspect of project work, so mastering it is the key to controlling benefits, budgets, and timelines. Offers a theoretical framework and practical guidelines to systematically minimize uncertainty and increase the chances of project success. Offers a roadmap to transition from traditional risk management in order to master project uncertainty. Part One provides a theoretical foundation using systems thinking. Part Two introduces basic strategies supported by practical tools and techniques to master uncertainty through: 1. Raising information awareness 2. Increasing information availability 3. Improving the effective use of information 4. Maximizing information efficiency.