12

Risk Management

12.1 Introduction

There is an element of risk in every activity or enterprise, but effective risk management techniques can mitigate the harmful effects of risks coming to fruition. The American Express Bank, for example, undoubtedly succeeded in managing risk effectively and professionally, because their centers in New York were back in operation just one day after the 9/11 attacks. Project managers, too, are required to plan for and manage risks, because cost overruns, loss of stakeholder confidence, or even outright project failure can result if any or all threats associated with project risks do materialize.

12.2 Reactive vs Proactive Risk Strategies

In reactive risk strategy, nothing is done until something goes wrong ...

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