Identifying and Managing Project Risk, 3rd 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 differentiate the parts of the work that are well understood, and therefore less risky, from the parts where you are clueless. Often, what separates an impossible project from a possible one is isolating the most difficult work early, so it receives the attention and effort required to deal with it. Risk assessment techniques are central to gaining an understanding of what is most uncertain about a project, and they are the foundation for managing ...