Improving Your Project Management Skills, 2nd Edition

CHAPTER 13Managing Risk

A RISK IS AN UNCERTAIN EVENT or condition that, if it occurs, has a positive or negative effect on the project objectives (scope, schedule, or budget). All projects have a certain degree of risk that needs to be managed. The project manager determines where risks are likely to affect the project, makes contingency plans for them, and responds to them when they occur.

The risk management plan, evolving throughout the planning process, incorporates (1) risk identification; (2) qualitative and quantitative assessments; (3) strategies for prevention, detection, and mitigation of loss; and (4) recovery and restoration of functions.

Projects are investments and the project manager is responsible for achieving specific benefits ...