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Risk Management
' Obviously, a man's judgement cannot be better than
the information on which he based it. Give him the truth and he may still go wrong
when he has the chance to be right, but give him no news or present him only with
distorted and incomplete data, with ignorant, sloppy or biased reporting, with propaganda
and deliberate falsehoods, and you destroy his whole reasoning processes, and make
him something less than a man'.
Arthur Hays Sulzberger
Risk Management is a process which enables the identification, assessment,
planning and management of all the risks associated with undertaking a project.
In the context of Project Risk Management a risk is defined as an uncertain event
or set of circumstances that, should it or they occur, will have an effect on either
the Project's business objectives in terms of safety (both during the project and
after handover), operability, reliability and maintainability ie, Business Risks
or the Project's objectives in terms of time, cost and quality/performance, ie Project
Risks.
The generic process of Project Risk Management follows a number of
sequential stages as illustrated below.
-
Information - What does the project look like?
- Identification - What are the risks?
- Assessment - How big are these risks?
- Planning - How do we propose to manage these risks?
- Management - Management of the risks.
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