
u n c e rtainty and perf o rmance pre s s u re. To be successful
demands quick action and substantial commitments of
resources. Executives now realize that some of the biggest risks
they face relate to lost opportunities caused by failure to act
quickly and decisively enough.
Second, formal risk management techniques are harder to
develop in some sectors. Compared with oil exploration and
drug development projects, for example, investment projects
are often short-term and elude evaluation on a regular basis. It
is therefore hard to conduct risk assessment prior to invest-
ment and during development.
The PricewaterhouseCoopers research that led to the ...