Risk Management, 5th Edition

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Risk Modeling

Risk models are developed so that project managers will be able to better identify high-risk or high-opportunity projects consistently. That drive for consistency is actually closely aligned with the discussion on rating schemes (see Chapter 25). The problem that many organizations encounter is their own inability to measure projects for risk. Although they will have predictive tools for cost and schedule, there are very few tools specific to the notion of risk. The risk model seeks to fill that void by encouraging the consistent evaluation of projects for issues that put the organization at risk, as well as concerns that afford the organization the highest probability of success.

Technique Description

The technique consists ...