Project Risk and Cost Analysis

Answers to Exercises and Case Studies

EXERCISE 1-1. MANAGING IMPORTANT RISKS

One all-too-common strategy for dealing with risk is denial. We sometimes ignore risks because it can be uncomfortable to think about them, especially when the risks are potentially very serious and our options to do something about the risk are limited.

The purpose of this exercise is to make you more conscious of the risks in your environment—and the fact that you are doing something in response to many (albeit not all) of those risks.

You may find that actually writing down a particular risk and thinking about the best response causes you to take action you might not otherwise have taken, or at least refocus on an action you have already taken. Studies ...