Identifying and Managing Project Risk, 2nd Edition

Chapter 7

Quantifying and Analyzing Activity Risks

“When you know a thing, to hold that you know it,and when you do not know a thing, to allow thatyou do not know it—this is knowledge.”—CONFUCIUS

Project planning processes serve several purposes, but probably the most important for risk management is to separate the parts of the work that are well understood, and therefore less risky, from the parts that are less well understood. Often, what separates an impossible project from a possible one is isolating the most difficult work early, so it receives the attention and effort it requires. Risk assessment techniques are central to gaining an understanding of what is most uncertain about a project, and they are the foundation for managing risk. ...