CHAPTER 14Risk Management in Practice

DAVID HILLSON, PHD, PMP, FAPM, FIRM; RISK DOCTOR & PARTNERS

The word “risk” is a common and widely used part of our daily vocabulary, relating to personal circumstances (health, pensions, insurance, investments, etc.), society (terrorism, economic performance, food safety, etc.), and business (corporate governance, strategy, business continuity, etc.). One area where risk management has found particular prominence is in the management of projects, perhaps because of the risky nature of projects themselves. All projects to some extent are characterized by the following:

• Uniqueness

• Complexity

• Change

• Assumptions

• Constraints

• Dependencies

• People.

Each of these factors introduces significant risk ...

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