Risk management is essential for a wide
variety of development and production projects because certain
information about key project cost, performance, and schedule (C,P,S)
attributes are often unknown until late in the project. Potential risk issues
that can be identified early in the project that will potentially impact the
project later, are often termed "known unknowns" and can be
alleviated with a good risk management process. For those problems that are
beyond the vision of the project team(s), such as an unanticipated budget cut
(often termed "unknown unknowns"), a good, properly implemented risk
management process can help to rapidly quantify the problem’s impact and
develop sound plans for alleviating its affect.
Risk management is concerned with the outcome
of future events, whose exact outcome is unknown, and with how to deal with
these uncertainties (e.g., a range of possible outcomes). In general, outcomes
are categorized as favorable or unfavorable, and risk management is the art and
science of planning, assessing (identifying and analyzing), handling, and
monitoring future events to ensure favorable outcomes. Thus, a good risk
management process is proactive in nature, and is fundamentally different than
crisis management (or problem solving), which is reactive. In addition, crisis
management is a resource-intensive process that is normally constrained by a restricted
set of available options. This is in part because the longer it takes for
problems to surface within a project, the fewer options to resolve them
typically exist. And the adverse C,P,S impacts associated with those options
are likely to be substantially greater than if the issues had been identified
much earlier in the project. (This is in part because C,P,S cannot be traded
perfectly in the short-run.)
Risk management is an important skill that
can be applied to a wide variety of projects. In an era of downsizing,
consolidation, shrinking budgets, increasing technological sophistication, and
shorter development times, risk management can provide valuable insights to
help key project personnel plan for risks, alert them of potential risk issues,
analyze these issues, and develop, implement, and monitor plans to address the
issues long before the issues surface as problems and adversely affect project
cost, performance, and schedule.
We will work with your personnel
to effectively implement project risk management and related disciplines.
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Links to Project Risk Management Services |
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Why Risk Management? |
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Second Edition of Dr. Conrow's Risk Management Book with Reviews |
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Risk Management e-Interview by International
Council on Systems Engineering |
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Links to Other Services |
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Dr. Edmund H. Conrow, CMC, CPCM, CRM, PMP |
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