PROJECT RISK MANAGEMENT HANDBOOK

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PROJECT RISK MANAGEMENT HANDBOOK

Definition

Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on at least one project objective. A risk may have one or more causes and, if it occurs, one or more impacts.

Objective

The project risk management process helps project sponsors and project teams make informed decisions regarding alternative approaches to achieving their objectives and the relative risk involved in each, in order to increase the likelihood of success in meeting or exceeding the most important objectives (e.g. time) sometimes at the expense of other objectives (e.g. cost). Risk management encourages the project team to take appropriate measures to


Minimize adverse impacts to project scope, cost, and schedule (and quality, as a result).

􀀗 Maximize opportunities to improve the project’s objectives with lower cost, shorter schedules, enhanced scope and higher quality.

􀀗 Minimize management by crisis.


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