CHAPTER 7Managing Project Risk

IF YOU ARE A BUSINESS OWNER, you already understand the concept of risk: You invest your capital, time, and energy in your business in the hope that you’ll be rewarded for your efforts. Risk isn’t a bad thing; it’s the impact that the risk may have that can be painful. Calculated risk means that you’ve considered the potential for the risk event, the possible downside of the risk, and the reward that you’ll receive for managing the risk. Just as you might lose your business investment, you might reap rewards.

When project managers talk about risk, they’re talking about events, conditions, and circumstances in their work that could cause someone to get hurt, the project to be delayed, or cost overruns to occur, and ...

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